Auditor's Digest

Auditor's Digest: A global resource for accounting and auditing professionals and students, offering facts, figures, and insights.

[Auditor's Digest @audit_org]

Any person who is serving as a whole-time director/managing director in any listed entity in India shall serve as an independent director in not more than three listed entities.

[Auditor's Digest @audit_org]

As per Rule 8 of the Companies (Meetings of Board and its Powers) Rules, 2014, read with Section 179 of the Companies Act, 2013, a secretarial auditor is required to be appointed by means of a resolution at a duly convened board meeting.

[Auditor's Digest @audit_org]

Small Finance Banks Pay More to Seniors:

Shivalik and Equitas Small Finance Banks offer up to 8.5% on select senior citizen deposits.

The Ujjivan SFB has raised its 2-year FD rate to 8.3% for seniors.

At least 6 small finance banks in India now offer 8% or more to seniors.

This has widened the interest gap with large banks that offer 7.5%.

[Auditor's Digest @audit_org]

Under the Companies Act, 2013, the Board of Directors must meet at least four times a year, and no more than 120 days may intervene between two consecutive Board meetings.

[Auditor's Digest @audit_org]

Under section 13 of the Companies Act, 2013, the name of a company can be altered by a special resolution and with the approval of the Central Government in writing.

Approval of the Central Government is not required, in case the change in the name of the company relates to the addition/deletion of the word ‘Private’ to the name of the company consequent to the conversion of a company into a public company and vice versa.

[Auditor's Digest @audit_org]

Transfer of the right to use goods without the transfer of title is a "supply of service" under GST law.

Case Law:

In Re: Famous Studios Ltd. (GST-ARA-73/2018-19/B-166 dated 21/12/2018-Maharashtra Authority for Advance Ruling)

The applicant Company was a "registered taxable person" under the GST Act, carrying on the business of studio services, such as the production of advertisement films and post-production services, including video editing, sound recording, animation, VFX, etc., and also renting out some of the premises to its tenants.

One of the tenants has surrendered his “Tenancy Rights” in favour of the applicant vide agreement dated 31-8-2017 for a consideration of Rs. 54,00,000/- (Rupees fifty-four lakhs only).

The applicant has discharged his liability of Registration Fees and Stamp Duty as per the relevant laws in Maharashtra.

It was observed that the applicant has received the tenancy rights from an unregistered person.

The Transfer of tenancy rights in goods or of an undivided share in goods without the transfer of titles thereof is treated as a "supply of services" under clause (b) of Para 1 of Schedule II of the CGST Act, 2017.

[Auditor's Digest @audit_org]

A financial lease or hire purchase transaction constitutes a "supply of goods" under GST.

[Auditor's Digest @audit_org]

Real estate companies often pre-sell flats, offering installment plans over several years until possession. This method of selling flats is considered a "supply of service" under the GST law, despite the underlying property being "goods".

[Auditor's Digest @audit_org]

A carbon credit in respect of one unit represents a reduction of one tonne of carbon dioxide equivalent emissions, validated by the United Nations Framework on Climate Change, and is tradable at market price.

[Auditor's Digest @audit_org]

An asset sale is a method of transferring a business whereby an "acquirer" cherry-picks individual assets/liabilities.

[Auditor's Digest @audit_org]

A “Slump Sale” means the transfer of one or more undertakings as a result of the sale for a "lump sum consideration" without values being assigned to the individual assets and liabilities in such sales.

[Auditor's Digest @audit_org]

Bank of Maharashtra refutes "false information" regarding non-acceptance of pre-2005 Rs.10, Rs.20, Rs.50, and Rs.100 currency notes at its branches.

[Auditor's Digest @audit_org]

Auditor's Digest @audit_org : A global resource for accounting and auditing professionals and students, offering facts, figures, and insights.

[Auditor's Digest @audit_org]

The Directorate of Vigilance and Anti-Corruption (DVAC) of the Tamil Nadu Government has filed a "corruption case" against former DMK Minister E.V. Velu, alleging he received "large sums" from highway contractors for uncompleted road work.

Well done.

But, this also raises parallel questions about why the same government is "honouring" corrupt figures from ADMK (like Gutka C. Vijayabaskar and S.P. Velumani), who also face similar accusations.

The crackdown should be on all corrupt politicians of Tamil Nadu, irrespective of their colour, caste, creed, and party.

[Auditor's Digest @audit_org]

The appointment of Karnataka-native film producer K Venkata Narayana (the producer of Actor Vijay's film Jananayagan) as the Tamil Nadu government's special representative in New Delhi is "surprising and shocking."

Since the " Tamil Nadu Special Representative" is originally from Karnataka, the people of Tamil Nadu are "waiting" for an "official clarification" from the TVK-led Tamil Nadu government.

[Auditor's Digest @audit_org]

Test Your Knowledge:

Mr. X, a Mumbai boutique owner, had a turnover of Rs. 2.8 crore in FY 2025-26, with 96% of receipts via UPI, debit card, and online transfer. His declared profit is 7.5% of turnover. Determine his eligibility for "presumptive taxation" under Section 44AD and whether a tax audit is applicable. Advise him on the appropriate ITR form and filing due date.

[Auditor's Digest @audit_org]

"Dividend income" is taxable in India under the head ‘Income from other sources’ irrespective of the fact that the person held the securities either as a "trader" or as an "investor".

[Auditor's Digest @audit_org]

A “Slump Sale” means the transfer of one or more undertakings as a result of the sale for a "lump sum consideration" without values being assigned to the individual assets and liabilities in such sales.

[Auditor's Digest @audit_org]

An asset sale is a method of transferring a business whereby an "acquirer" cherry-picks individual assets/liabilities.

[Auditor's Digest @audit_org]

A carbon credit in respect of one unit represents a reduction of one tonne of carbon dioxide equivalent emissions, validated by the United Nations Framework on Climate Change, and is tradable at market price.