Insights

FOREWARD

In today’s digital landscape, basic security measures are insufficient against evolving threats like ransomware, phishing, and supply chain risks. This insight examines key cybersecurity challenges and strategies for leaders to enhance organizational resilience.

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Is disruption a risk or an opportunity? As risk managers, we evaluate how resilient our business is to disruptions. From emerging trends to stakeholder agility, we ensure our organization is always prepared for change.

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Leveraging advanced analytics and machine learning, businesses can detect anomalies, streamline processes, and ensure compliance more effectively than ever. The future of risk management and internal auditing is here, and it's powered by AI.

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Our team of seasoned tax experts provides a sector-wise analysis of the Union Budget 2024.

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Finance Minister Nirmala Sitharaman's maiden Budget for Modi 3.0 government is now announced. The Budget, at a glance, presents opportunities for investors to focus on long term growth, widens the tax net, supports job creation and skill development, bringing us closer to a 'Viksit Bharat'.

FOREWARD

The gross Goods and Services Tax (GST) revenue for the month of May 2024 stood at ₹1.73 lakh crore. This represents a 10% year-on-year growth, driven by a strong increase in domestic transactions (up 15.3%) and slowing of imports (down 4.3%). After accounting for refunds, the net GST revenue for May 2024 stands at ₹1.44 lakh crore, reflecting a growth of 6.9% compared to the same period last year.

FOREWARD

In the realm of GST compliance, e-commerce fulfillment centers stand as crucial hubs managing various aspects of product handling for online businesses. As e-commerce dynamics evolve, so do the intricacies of tax compliance. GST REG-01 serves as the gateway for both taxpayers (businesses utilizing the warehouse) and warehouse operators (entities offering warehousing services) to register, following identical procedural norms. However, challenges emerge particularly with shared warehousing arrangements.

FOREWARD

The Gross Goods and Services Tax (GST) collections hit a record high in April 2024 at ₹2.10 lakh crore. This represents a significant 12.4% year-on-year growth, driven by a strong increase in domestic transactions (up 13.4%) and imports (up 8.3%). The chart below shows trends in monthly gross GST revenues during the current year. Table-1 shows the state-wise figures of GST collected in each State during April, 2024 as compared to April, 2023..

FOREWARD

March 2024 saw the second-highest monthly Gross GST Revenue collection, totaling ₹1.78 lakh crore—a notable 11.5% year-on-year growth. This remarkable achievement was fueled by a substantial increase in GST collection from domestic transactions, showing a 17.6% rise. Net of refunds, the GST revenue for March 2024 stood at ₹1.65 lakh crore, marking an 18.4% growth over the same period last year.

FOREWARD

The Department of Trade and Taxes, Delhi, has issued an instruction (F.No. 3(543)/ GST/POLICY/ 2024/ 1312-18) regarding the rectification of assessment orders to correct errors apparent on the face of the record under section 161 of the DGST Act, 2017.

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As we approach the conclusion of the FY 2023-24, it's crucial to review the significant changes that have occurred in GST compliances. Some key areas that have witnessed amendments or compliance adjustments.

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In the Indian context, the battle against money laundering is not only a global concern but a pressing domestic issue. India, as a rapidly growing economy, is susceptible to a myriad of money laundering activities, fueled by the intersection of traditional financial systems and emerging technologies. This article explores the nuances of money laundering in India, the evolving tactics employed by criminals, and the pivotal role of digital forensics in countering these illicit activities.

FOREWARD

Significant amendment introduced in section 43B of the Income Tax Act, 1961 (‘the Act’) in relation to disallowances of delayed payments to Micro and Small Enterprises as defined in the Micro, Small and Medium Enterprises Development Act, 2006, applicable from assessment year 2024-25 (fiscal year beginning on 01.04.2023). Delve deeper into understanding the implications of this amendment is crucial for ensuring compliance and optimizing your tax strategy.

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Profits and losses are integral parts of any business and corporate, and Income Tax laws provide tax benefits to help taxpayers even if they are at a loss. The income Tax law (provides) provisions for set-off and carry-forward of losses, explained in the article.

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As we delve into the fiscal landscape of 2024, we are met with a strategic blueprint meticulously crafted to steer our nation towards holistic development and economic prosperity. The interim budget’s discernible focus on vital sectors such as infrastructure, power, railways, healthcare, and education reflect the government's steadfast commitment to fortifying the pillars of our nation's progress. Aligned with the latest GDP mantra of Governance, Development, and Performance, this budget show India is actively working to adapt to changes in the Global economy. Key fiscal announcements within the budget delineate a comprehensive strategy for economic revitalization and sustainable growth. Notable indicators include a capex outlay of Rs 11.11 lakh crore, constituting 3.4 percent of GDP, alongside revised fiscal deficit targets aimed at fiscal prudence and sustainability.

FOREWARD

The Regulated entities (REs) make investments in units of AIFs as part of their regular investment operations. However, certain transactions of REs involving AIFs that raise regulatory concerns have come to RBI's notice. REs which make investments in AIFs which have downstream investments either directly or indirectly in a debtor company of the RE, entail substitution of direct loan exposure of REs to borrowers, with indirect exposure through investments in units of AIFs. In order to address concerns relating to such transactions, the RBI has issued instructions.

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Embracing ESG (environmental, social and governance) principles and practices generates a significant revenue boost for ambitious mid-sized companies, according to a wide-ranging Moore Intelligence survey.

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The majority of ambitious, mid-sized businesses across the world see artificial intelligence, or AI, as a growth opportunity despite the ongoing debate about the technology’s impact on humanity.

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The pace of technological change in financial services has quickened significantly, putting the sector at the forefront of rolling out artificial intelligence (AI), machine learning and blockchain.

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The Finance Bill 2021 was presented by the Hon’ble Finance Minister, Ms Nirmala Sitharaman in the Indian Parliament on 1st February 2021. In this regard, please find enclosed the highlights of the key direct and indirect tax amendments proposed in the Finance Bill 2021.

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Currently, lot of discussion is happening around Bots. Whether it is good or bad? How to be careful on Bots? Which are of malicious nature? Let’s understand what Bot is all about and how can we protect our organization from its risk, if any.

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As the period of pandemic has increased the Lockdown period, the Cyber Attacks have also increased many-fold majorly in Tier-I and Tier-II companies. These attacks aimed to compromise computers and mobile devices to gain access to users’ confidential data, banking details and crypto-currency accounts.

FAQs ON INDIVIDUAL INSOLVENCY UNDER IBC

The insolvency and debt resolution process in India has in the past involved the simultaneous operation of several statutory instruments. These include the Sick Industrial Companies Act, 1985, the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, the Recovery of Debt Due to Banks and Financial Institutions Act, 1993, and the Companies Act, 2013. Broadly, these statutes provided for a disparate process of debt restructuring, and asset seizure and realization in order to facilitate the satisfaction of outstanding debts.

Welcome to the first edition of the Moore Media Newsletter

Moore Media has been formed by member firms of the Moore Global Network that have well-established and recognised expertise in the media sector. The group includes 23 member firms covering five continents of the world and has expertise with a truly global reach.By combining as a group, we have unique commercial knowledge and industry focus which allows us to best identify opportunities and overcome challenges for the benefit of all our clients.

RE-ENGINEERING INTERNAL AUDIT 2020-21 – THE COVID 19 CHALLENGE

These are difficult time for business and several questions are asked how each one can contribute. Covid-19 has disrupted business over the last few weeks. As we all expect, the road the recovery is going to be challenging. Internal Audit function will have an important role to play in shaping this recovery and needs to be re-looked at to make it sharper.

Standard Operating Procedures (SOP) on work resumption post Covid-19 outbreak

As and when the Government starts easing the lockdown and offices, plants and other premises resume operations there will be a number of precautions that we will have to implement to ensure the safety and well-being of our staff and associates. We at Moore Singhi have put together a Standard Operating Process documenting the precautions that would be required to be implemented across premises. We hope you find this document useful.

Impairment Testing in COVID-19 Environment

As period of this pandemic has coincided with theFinancial Year closing of most of the companies inIndia, one of the key aspects to be considered by themanagement, CFOs, Financial Controller as well asthe auditors is the potential impact of the pandemicon the Financial Statements. In current regulatoryenvironment both the Management as well as theauditors are critically reviewed for appropriatedocumentation and audit procedures. Hence, one ofthe main questions required to be answered iswhether there is any impairment in the value of theassets or investments of the company (pure financialinvestments as well as Subsidiaries/ Associates).Several aspects need to be considered to arrive at ‘isthere a triggering event’?

Covid-19 Combat Security measures during WFH

Today, due to Coronavirus outbreak, lockdown has become imperative and accordingly the need for Work from Home (WFH) or more precisely working remotely has become the only solution. The more people are able to manage their business remotely, the more they are successful in this difficult time. But, working remotely also carries the risk of data privacy and confidentiality for the organisation.

Important update - Goods and Service Tax

Due to COVID-19 pandemic and challenges faced by taxpayers, Government has waived/ lowered the interest payable & waived the Late Fees payablefor the class of registered persons who are required to furnish the returns in FORM GSTR-3B subject to certain conditions. Under this publication we have tried to capture important updates which has been notified/ clarified by the government due to COVID -19 due to COVID-19 pandemic and challenges faced by taxpayers.

COVID-19 COMBAT: IMPACT ON FINANCIAL STATEMENT

The adverse impact of this global pandemic can vary from nation to nation, industry to industry and above all entity to entity. The effect depends upon the nature and extent of business connectivity of the individual entities with the nations more seriously affected by this pandemic. Apart from the health and safety of mankind, COVID-19 has unfavourably affected the economic environment which in turn has consequential impact on the results in the financial statements and reporting.

Inheritance Tax : India and World

Inheritance Tax, as the word suggests, is charged on the property inherited by the legal heirs in the event of death of their predecessor. However, there is a thin line between the commonly known Estate tax and Inheritance tax. Many countries make a demarcation between the two, while in other countries both are considered at par. The demarcation is made on the basis of the fact that not all of the deceased’s property may be transferred to the legal heir. Thus, there arises a need to draw a line between the two. Only tax on that much of the property as in Inherited by the legal heir would be considered as Inheritance tax.

Any entity's financial health and growth trajectory can be determined from its financial statements. While financial experts and auditors may easily understand the ins and outs of a company just by looking at its audited financial statements, not all stakeholders are well versed with the minute details and significance of a ratio or percentage. This is where the auditor's report plays a crucial role–it serves as the primary connection between an entity's stakeholders and auditor(s). The usual audit report is definitely important, but most stakeholders and readers believe that a more informative auditor’s report will go a long way to gain better insights and provide for a more objective decision-making process.

Starting February, India’s e-commerce investment rules ban companies from selling products via firms in which they have an equity interest and also bar them from making deals with sellers to sell exclusively on their platforms. Allegedly, e-commerce companies were engaging in predatory pricing and hurting the businesses of brick-and-mortar retailers. The online retailers used their control over inventory from their affiliates and exclusive sales agreements to create an unfair marketplace that allowed them to sell some products at lower prices and offer deep discounts. Such arrangements would be barred under the new policy.

Simply put, Artificial intelligence (AI) is intelligence demonstrated by machines. We can define AI as “a system’s ability to correctly interpret external data, to learn from such data, and to use those learning’s to achieve specific goals and tasks through flexible adaptation”. Artificial intelligence is a science and technology based on disciplines such as Computer Science, Biology, Psychology, Linguistics, Mathematics, Engineering, etc. Goal of AI is to create expert systems, which exhibit intelligent behavior, learn, understand, think, behave, explain, and advice its users like humans.

World is witnessing rise of developing economies in the economic sphere. Recent human development report with title ‘rise of the south’ has pointed towards this fact that combined wealth of countries from developing world had crossed that of developed world. Like it was agriculture in feudal times or industry at times of renaissance, it’s the service sector which is the currency of today. Developing countries have tapped this sector efficiently with their high demographic dividend and thrust to education. Globalization of trade had acted as game changer in all this with a robust dispute redress mechanism of WTO which has upheld rights of poor nations against rich countries and so helping them in achieving their capabilities. Indian role in this sphere can be gauged from the very fact that India is deemed as growth engine of this world. High demographic dividend along with independent judiciary and stability is all that needed for promoting growth. Economic stability of India at the time of 2008 global financial crisis makes the world confident about Indian capabilities.