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If you have borrowed funds, which can be business loans, credit cards, or bonds. You need to pay interest on the money borrowed, and this is known as interest expense. It plays a crucial role in identifying a company’s profits, financial health/status, as well as tax obligations. Having a complete knowledge of the interest expense… Continue reading Interest Expense: Definition, Formula, Types, and Impact!

Have you ever found yourself wondering why there are certain costs in your business that always remain constant every month, regardless of the changes in production? These are your fixed costs – the costs that are the foundation of any business. Rent, insurance, and salaries do not change with respect to market conditions.  This is… Continue reading What is Fixed Cost in Business? Understand with Examples

Whenever a business is about to shut down its operations, merge with another company, or plan for government tenders, a GST clearance certificate is a must-have. It is the official proof that depicts that the taxpayer holds zero tax liabilities under his name. ​In other words, we can consider, GST tax clearance certificate to be… Continue reading How to Get a GST Clearance Certificate?

In the complex maze of GST compliance, where each invoice and each credit entry is important, a small mistake can attract a huge penalty. Most of the businesses fall prey to claiming maximum Input Tax Credit (ITC), but only a few know that you may have to reverse ITC if certain conditions are not met. … Continue reading What is ITC Reversal in GST? What are Rules 42 & 43?

Ever wondered why it isn’t possible for you to claim Input Tax Credits (ITC) for specific business expenditures, even when you have paid the goods and services tax? That’s when section 17(5) of CGST, also termed as “Blocked Credit Under GST,” comes into effect. ​Section 17(5) highlights specific conditions where ITC seems to be restricted,… Continue reading Blocked Credit Under GST: Section 17(5) of CGST Act

Has it ever happened to you that you are tallying your financial records and an insignificant amount of entry pops up, and you wonder what it should be categorised as? Maybe that transaction was made against buying office supplies, business meals or ATM withdrawal charges, and you did not know how to categorise them. These… Continue reading What are Miscellaneous Expenses? A Detailed Guide