Latest Articles By Hitesh Aggarwal

Shareholder Equity: A Key to Understanding Financial Health A company’s financial strength isn’t just measured by its profits—it’s also reflected in its shareholders’ equity . This figure shows the net value of a company after deducting all liabilities from total assets. In simple terms, it tells you what the equity shareholders actually own in the

Accounting for Taxes: Income Tax Reporting Paying taxes is not just a legal duty but also a step toward building financial credibility. One of the most important parts of tax compliance is income tax reporting. It is the process where individuals, businesses, and professionals declare their income, expenses, and deductions to the Income Tax Department.

Section 194B of the Income Tax Act The Income Tax Act , 1961 has specific provisions for tax deduction at source (TDS) on certain types of income. One of these provisions is Section 194B , which deals with TDS on income earned through winnings from lotteries, crossword puzzles, game shows, card games, and other similar

What is Section 194NF and How Does it Affect Unit Holders of Business Trusts and Investment Funds? The Indian Income Tax Act contains multiple provisions for the deduction of tax at source (TDS) to ensure efficient tax collection. One such provision is Section 194NF , which was introduced to bring more transparency in the taxation

TDS on Dividend Income Dividends are a common source of passive income for investors in shares and mutual funds. However, just like other types of income, dividends are also subject to taxation. To ensure tax compliance, companies and mutual funds deduct Tax Deducted at Source (TDS) on dividend payouts before crediting them to investors. In

What is Section 195 of the Income Tax Act? When Indian businesses or individuals make payments to non-residents, tax laws ensure that such payments are not left untaxed. Section 195 of the Income Tax Act, 1961, plays a crucial role here. It states that any payment made to a non-resident that is taxable in India

What is Inventory Optimization? Inventory optimization is the process of maintaining the right amount of stock at the right place and time to meet customer demand while minimizing costs. It involves balancing inventory levels to avoid both overstocking, which ties up capital, and understocking, which risks missed sales and dissatisfied customers. BOOK A FREE DEMO

What is Inventory Control? Inventory control is the process of monitoring and managing a company’s stock levels to ensure the right products are available at the right time and in the right quantity. It focuses on minimizing waste, avoiding stockouts, and reducing excess inventory. Effective inventory control ensures a balance between meeting customer demand and

Methods of Inventory and Supply Chain Management Managing stock and ensuring timely delivery are two important aspects of running a business. If you don’t plan well, you can end up with too much inventory, late deliveries, or unhappy customers. That’s why having the right inventory and supply chain management methods in place is important. Let’s

GST on Skincare Products: Rate, Branding & Retail Pricing Skincare products are an essential part of daily personal care for many people. From moisturizers and face washes to sunscreens and anti-aging creams, these products are widely used and heavily marketed. But have you ever wondered how much tax you’re paying on them? This blog explores

GST on Kitchen Utensils: What’s Taxed and What’s Not? Kitchen utensils are used in every household, hotel, and food service business. Whether it’s a simple steel plate, a pressure cooker, or a non-stick frying pan, these items fall under different GST classifications. In this blog, we’ll explain the GST on kitchen utensils, including applicable tax

GST on Packaging Materials: Tax Implication Across Industries Packaging plays a vital role in almost every industry, from FMCG and pharmaceuticals to electronics and exports. Whether it’s cardboard boxes, plastic wraps, bottles, or tin containers, packaging materials are a key part of production and supply chains. But how are these materials taxed under GST? In

GST on Pesticides: Rates, Agri-Exemptions & Sector Impact Pesticides are essential for protecting crops from pests, diseases, and insects, helping farmers secure better yields. But how are they taxed under GST? While fertilizers enjoy concessional rates or exemptions, GST on pesticides is comparatively higher. In this blog, we’ll break down GST rates on pesticides, relevant

GST on Jaggery (Gur): Clarifying Rates & Exemptions Jaggery, known as Gur in many parts of India, is a natural sweetener made from sugarcane or palm sap. It’s widely used in rural households and traditional recipes. While it’s considered a staple in many kitchens, the GST on jaggery can sometimes be confusing due to varying

GST on Courier Services: Rate by Delivery Type & B2B Implications Courier services are essential for businesses, especially in the age of e-commerce, same-day delivery, and global trade. But when it comes to billing and compliance, understanding the GST on courier services is crucial. Whether you’re a logistics provider, an online seller, or a customer

What is CESS in GST? Full Form, Meaning, and GST Use Case To address potential revenue losses for states during the initial years of GST rollout, the government implemented a mechanism known as CESS or Compensation Cess. It is a tax levied over and above the applicable GST rate on certain notified goods and services.

What is Capital in Accounting? Types, Examples, and Importance Capital in accounting refers to the owner’s financial interest in a business. It represents the residual value of assets after deducting liabilities. In simple terms, capital is what the business owes to its owner. This concept is crucial for all forms of business, whether a sole

What Are Accounting Information Systems? Components, Benefits, and Examples An Accounting Information System (AIS) is the backbone of modern finance operations. It collects, processes, and reports financial data, helping businesses manage accounts with speed, accuracy, and security. This guide covers what AIS is, how it works, and why it’s essential for every business. BOOK A

Step By Step Guide to Filing GST CMP-08 CMP-08 is a simplified quarterly return form for composition dealers under the GST Composition Scheme. This guide explains who should file CMP-08, due dates, the step-by-step process, penalties for late filing, and how accounting software can help. BOOK A FREE DEMO What is CMP-08? CMP-08 is a

GST for Food Business and Restaurants: Tax Rate on Dine-In and Takeaway Running a restaurant, café, cloud kitchen, or any kind of food business? Then knowing the correct GST rates and tax structure is crucial for pricing, billing, and compliance. Whether it’s dine-in, takeaway, or home delivery, the GST rates differ based on how food

Dustbin GST Rate: Tax on Plastic and Steel Waste Bins Dustbins are basic but essential hygiene tools—used everywhere, from homes and offices to schools, hospitals, and public places. Whether you’re purchasing a small kitchen bin or a commercial steel garbage can, you’re paying GST on it. But how much? Let’s break down the dustbin GST

GST on E-Rickshaw and Spare Parts: Tax Benefits and Inclusions As India pushes toward eco-friendly transportation, e-rickshaws have become a popular and affordable option for last-mile connectivity. But what GST benefits apply to these electric vehicles? And what about their parts and batteries? This blog explains the gst on e rickshaw, including the applicable tax

Vermicompost GST Rate in India As organic farming and eco-friendly practices gain popularity, vermicompost—a natural fertilizer made from worm digestion—has become a staple for farmers, gardeners, and environmentalists alike. But is GST applicable to this green product? This guide explains the vermicompost GST rate in India, and how it’s treated under agricultural and compost-related taxation.

Flowers GST Rate: Fresh, Cut, and Artificial From weddings and festivals to home décor and religious offerings, flowers are an inseparable part of Indian life. But are all types of flowers treated equally under GST? This blog explains the flowers GST rate in India—covering fresh, cut, artificial, and bouquet flowers—and how GST impacts both local

GST Rate on Commercial Property Sales and Leasing Whether you’re buying a shop, renting office space, or leasing a warehouse, understanding the GST implications is crucial. Unlike residential properties, commercial properties are fully taxable under GST. This guide explains the gst rate on commercial property, its impact on buying, renting, and leasing, and how it

Accounts Receivable: Managing Customer Payments Efficiently In any business that extends credit to its customers, managing accounts receivable (AR) is vital. It represents the money that clients owe you after you’ve delivered goods or services but haven’t been paid yet. If not handled properly, delayed payments can affect cash flow, stall operations, and even impact

GST Rate for Composition Scheme: A Simple Tax Option for Small Businesses Running a small business comes with plenty of challenges, and tax filing shouldn’t be one of them. That’s where the GST Composition Scheme comes in. It’s designed to help small businesses with simplified tax rates and reduced compliance. In this guide, we explain

GST on Healthcare Services in India Healthcare is a fundamental need, and the government has ensured that essential medical services remain affordable. But what about GST? Is it charged on hospital bills or doctors’ fees? Let’s break down the gst on healthcare services and understand which services are exempt and which are taxable under GST.

Hedge Accounting: Types and Strategies Businesses today face many financial risks—fluctuating currency rates, interest rate changes, and unstable commodity prices, to name a few. To protect themselves, companies use tools like derivatives and financial contracts. But how do these tools get recorded in financial statements? That’s where hedge accounting comes into the picture. BOOK A

GST on Online Gaming: Skill vs Chance-Based Classification Online gaming in India has evolved rapidly—from casual mobile games to high-stake fantasy sports, esports tournaments, and casino apps. But with this growth comes complexity in taxation. Understanding the gst on online gaming helps developers, platform owners, and gamers navigate the legal landscape and pricing better. BOOK

Asset Turnover Ratio: How Efficiently Is Your Business Using Its Assets? The asset turnover ratio is a financial metric that shows how well a business is using its assets to generate revenue. It helps assess how efficiently investments in equipment, buildings, and inventory are contributing to sales. If the ratio is high, it means the

GST for Vegetables: Fresh, Frozen, and Canned Vegetables are essential for every household, and they are sold in many forms—fresh, frozen, dehydrated, or canned. But how are they taxed under GST? This blog simplifies the gst for vegetables so sellers, retailers, and consumers can understand what’s taxed and what’s not. BOOK A FREE DEMO GST

GST for Electrical Items: Appliances and Wiring Products Electrical items are an essential part of every home, office, and industrial setup. From wires to appliances, switches to lighting systems—understanding the gst for electrical items helps consumers, retailers, and builders manage costs better and stay GST-compliant. BOOK A FREE DEMO What Falls Under Electrical Items? Electrical

GST on Under Construction Property: What Buyers Should Know If you’re planning to buy a house or office space that’s still being built, it’s important to understand how GST affects the final cost. This blog will simplify everything about gst on under construction property, including how rates vary for different types of projects. BOOK A

GST on Fabric: Yarn to Finished Textile Overview From cotton sarees to polyester blends, fabric plays a vital role in India’s textile and fashion industries. Whether you’re a manufacturer, retailer, or consumer, knowing how gst on fabric works is important for pricing, tax compliance, and business decisions. BOOK A FREE DEMO What is the GST

GST on Freight Charges: Transportation of Goods Freight charges are a vital part of transporting goods across the country. Whether you’re a business owner or a logistics provider, understanding the gst on freight charges is essential for proper billing and tax compliance. In this blog, we’ll simplify how GST applies to goods transportation services and

GST on Loans: Processing and Service Tax Explained Loans are an essential part of financial planning — whether it’s a personal loan, home loan, or business loan. But when it comes to taxation, many people are unsure about the gst on loan. Is GST charged on interest? What about processing fees? Let’s clear up the

GST on Rent: When and Where It Applies Renting property is common across residential and commercial sectors in India. But when does GST apply to rent? Is there GST on house rent or only for commercial use? In this blog, we’ll break down the rent gst rate, when GST applies, and how it affects both

What is the Consistency Concept in Accounting? Importance and Examples In accounting, accuracy and clarity are vital, but without consistency, comparing financial data from one year to another would become impossible. That’s where the consistency concept in accounting comes into play. In this blog, we’ll explain what the consistency concept means, why it matters, and

Accounting Policies: What They Are and Why They Matter in Financial Reporting Accounting policies are the rules and methods a business uses to record and show its financial information. These rules help make sure that all companies follow a similar way of reporting, so that their numbers are clear, accurate, and easy to understand. They

Realisation Concept in Accounting: Definition, Importance, and Example Understanding when to record income is crucial to maintain accurate financial records. The realisation concept, also known as the realisation principle, helps businesses know when to recognize revenue. This concept ensures that income is recorded only when earned, not when the money is received or when the

Double Entry Bookkeeping System: Definition, Rules, and Examples The double-entry bookkeeping system is the backbone of modern accounting. It ensures financial accuracy and integrity by recording each transaction in two accounts: one as a debit and the other as a credit. This approach provides a comprehensive view of a business’s financial position, supporting transparency, compliance,

Indian Accounting Standards: Applicability & List Indian Accounting Standards (Ind AS) are a set of accounting principles developed by the Ministry of Corporate Affairs (MCA), converging Indian norms with the globally recognized International Financial Reporting Standards (IFRS). These standards provide a consistent framework for preparing and presenting financial statements, enhancing transparency, comparability, and accountability. Ind

GST on Cigarettes: Complete Tax Structure The GST rate on cigarettes in India is among the highest across all goods and services. This is done to both boost government revenue and discourage the use of tobacco products due to serious health risks. Whether you’re a consumer, retailer, or manufacturer, understanding the GST on cigarettes is

GST Rate for Bricks and Building Materials in India Bricks are one of the oldest and most essential building materials used in construction. Whether you’re building a house, a factory, or a commercial property, understanding the GST rate for bricks and other related materials can help you plan your budget better. In this blog, we

GST on Rice: Unpacked vs Branded Categories Rice is a staple food in nearly every Indian household. Whether it’s plain white rice, basmati rice, or parboiled rice, this essential grain plays a major role in everyday consumption. But when it comes to GST, not all rice is taxed the same. In this article, we explain

GST on Tobacco Products in India: Cigarettes, Chewing Tobacco & More Tobacco is one of the most heavily taxed products in India. Under the Goods and Services Tax (GST) regime, tobacco products like cigarettes, chewing tobacco, and gutkha are subject to both GST and an additional compensation cess. This dual-tax approach is designed to discourage

GST for Laptops in India: Updated Tax Rates, HSN Codes & Business Benefits In the digital age, laptops have become essential for everyone—from students and professionals to business owners. But when buying a laptop, it’s not just the hardware cost that counts—there’s also GST (Goods and Services Tax) to factor in. In this blog, we’ll

Understanding GST on Mobile Phones in India Goods and Services Tax (GST) is a unified tax system in India that has streamlined the taxation of goods and services, including mobile phones and their accessories. This article provides a comprehensive overview of the GST rates applicable to mobile phones, the corresponding Harmonized System of Nomenclature (HSN)

Introduction to Sundry Creditors and Debtors In accounting, managing finances effectively is crucial for the success of any business. These two terms are significant in this process: Sundry Creditors and Sundry Debtors. These terms may sound technical, but they are simply part of the day-to-day financial operations of a business. Whether you’re a business owner,

Impact of Union Budget 2025-26 on MSMEs: Key Announcements and Implications Finance Minister Nirmala Sitharaman presented the Union Budget 2025, marking her 8th consecutive budget and the first full budget of Prime Minister Narendra Modi’s third term. This budget comes at a critical time, with India’s economic growth at a four-year low and global challenges

Proforma Invoice Under GST: What It Is and How It Works Imagine you’re finalizing a deal, but the goods or services haven’t been delivered yet. How do you provide a detailed cost breakdown? Enter the proforma invoice—a crucial tool under GST that offers clarity before finalizing the transaction. Let’s uncover what it is, how it

The Crucial Role of WMS Software in E-commerce Fulfillment BOOK A FREE DEMO What is WMS Software? WMS Software refers to applications designed to manage, optimize, and streamline the operations of a Warehouse Management System (WMS). These software solutions are critical for inventory, distribution, and supply chain management businesses. Key Features of Warehouse Inventory Management

Key Benefits of Using Restaurant-Specific Accounting Software Restaurant-specific accounting software is a game-changer for food service businesses. It simplifies complex financial tasks, provides real-time insights, and boosts overall efficiency. In this blog, we will explore the key benefits of this software. BOOK A FREE DEMO What is Accounting Software for Restaurants? Accounting software tailored for

A Comprehensive Guide to Setting Up Accounting Software for Your New Business Setting up accounting software is crucial for new businesses looking to streamline their financial processes. The right software can simplify bookkeeping, manage transactions, and generate accurate financial reports. This guide will help you understand your business needs, explore different software options, and ensure

Managing and Monitoring Personal Account Rule Compliance: Best Practices Personal accounts are crucial in tracking financial transactions with clients, vendors, and other business entities. They enable businesses to maintain accurate records of financial interactions, generate precise statements, and make data-driven decisions that support strategic goals. BOOK A FREE DEMO Role of Personal Accounts in Financial

How Does the Accounting Equation Reveal Your Business’s Funding Sources? The accounting equation is a fundamental business principle that supports a company’s financial health. It states that a company’s assets must always equal its liabilities plus equity. This equation helps maintain the accuracy and consistency of a business’s financial statements. BOOK A FREE DEMO Importance

How to Choose the Right Accounting Software for Managing Equity? Managing the daily operations of a business is a difficult job. In addition, other responsibilities like managing equities can take a considerable amount of time and energy. This can indirectly hinder the efficiency of your business operations. However, you do not need to worry, as

How to Adapt Ledger Formats for Tax Preparation? A well-organised ledger ensures that all transactions are properly recorded, making tracking income, expenses, and tax liabilities easier. This not only simplifies the tax filing process but also helps in avoiding errors and potential penalties. By adapting your ledger formats to meet specific tax requirements, you can

How Accounting Software Improve Productivity Of Small Business Accounting software enhances productivity and allows businesses to generate and maintain financial records, record sales and expenses, and pay customer bills. It is less expensive to use accounting software to increase a business’s productivity as transactions are recorded automatically, accurately, and efficiently quickly, compared to repetitive manual

How to Choose the Best GST Accounting Software for Your Business Accounting software has become crucial for managing financials for all kinds of businesses. With stringent GST regulations, it has become more important than ever to have GST accounting software in place to avoid errors and file the GST accurately. There are now so many

Inventory Accounting: Definition, How It Works, Advantages BOOK A FREE DEMO What Is Inventory Accounting? As per the inventory definition accounting, is a systematic process of tracking and managing a company’s stocked goods, including raw materials, work-in-progress, and finished products. The goal is to maintain accurate records of quantities, values, and costs associated with inventory.

Management Accounting – Definition, Objective, Techniques & Limitations BOOK A FREE DEMO What is Management Accounting? Management Accounting is a branch of accounting that focuses on providing relevant financial information to internal stakeholders within an organisation. Unlike financial accounting, which is primarily concerned with external reporting to investors and regulatory bodies, managerial accounting supports management

Financial Accounting – Rules, Types and How Financial Accounting Works BOOK A FREE DEMO What is Financial Accounting Financial accounting is like the language of business numbers. It’s how companies keep a record of their financial activities, like sales, expenses, and profits, in a way that everyone can understand. Think of financial accounting as a

Tax Accounting – Definition, Types With Tips and Example vs Financial Accounting BOOK A FREE DEMO What is Tax Accounting? Tax Accounting is a part of accounting methods majorly focused on tax considerations rather than the representation of public financial transactions. In short, Tax Accounting can be defined as accounting that is solely for tax

Accounting Equation – Rules, Types and How It Works BOOK A FREE DEMO What is The Accounting Equation? The accounting equation formula is used to show a company’s financial position. It states: Assets = Liabilities + Equity Assets are what the company owns, like cash and inventory. Liabilities are what the company owes, like loans

Trial Balance Definition, How It Works, Purpose, and Requirements A trial balance is a summary of a company’s financial position at a specific point in time, typically at the end of an accounting period. It comprises a list of all the general ledger accounts and their respective balances. The primary purpose of the trial balance

Equity in Accounting – Definition, Types & Functions The word “equity” has diverse meanings, from property value to investments. In accounting, it can refer to an owner’s interest in a company after subtracting all liabilities. This overview delves into the specifics of equity in accounting and its calculation. BOOK A FREE DEMO What is Equity

What is a Profit and Loss Appropriation Account? The Profit and Loss Appropriation Account is an important component of a company’s financial statements, specifically designed to outline the distribution of profits among various stakeholders, such as partners or shareholders. This account provides transparency regarding how the net profits earned during a specific accounting period are

Golden Rules of Accounting Overview & Types Every economic unit presents its financial information to all of its stakeholders. The information must be precise and to the point in the financial data of that particular unit. Since all the economic units are correlated to understand their financial status, there has to be precision in accounting.

What is Ledger Account A ledger account is essentially a detailed record-keeping tool for your finances. It’s a place where you document all the specific money-related actions within your business or personal financial life. Think of a ledger account as a categorised logbook. In this logbook, you create different accounts, each designated for a particular

Accounting Principles Accounting principles are based on set of guidelines and rules that dictate how financial accounting transactions should be recorded, reported, and interpreted. These principles form the foundation for the preparation of financial statements, ensuring consistency, comparability, and accuracy in financial reporting across different organisations. BOOK A FREE DEMO Accounting Principles Fundamental Accrual Principle:

Work in Progress (WIP) Inventory In inventory management, when an input used in the production process has undergone some level of processing but has not yet been completely transformed into the final and finished product that is ready to be sold, it is known as a ‘work-in-progress’. In other words, the goods are partially finished,

What is Dead Stock? Inventory is a critical aspect of any retail business, but it can also be a source of significant financial loss. Deadstock, or unsold products accumulating over time, can harm a retailer’s bottom line. To maintain strong profit margins, it’s crucial to have effective inventory management methods in place. As eCommerce businesses

Checksum Validation Failed Error In GST Return Many GST return filers get the “Checksum Validation: Failed” problem when submitting GSTR-3B. When users click “Offsets Liability” in GSTR-3B, they encounter this problem. This problem causes the return filer’s inability to submit their GST Returns effectively. Get Here: BUSYwin Software Free Download BOOK A FREE DEMO The

Interest Calculator In GSTR-3B Explained H1 The monthly return form GSTR-3B is essential for all registered taxpayers under India’s Goods and Services Tax (GST) regime. It is a comprehensive summary of all outward and inward supplies made during a particular tax period, including tax liability and input tax credit (ITC) claimed. The Interest Calculator GST

How to Report a Fake GSTIN Number? There have been reports of fake GST number registrations in recent months. This is found to be performed by obtaining a GST registration using another person’s identification. Through such a GST Registration, the impostor conducts illegal business and acquires GST through made-up transactions. Authorities frequently pursue the person

Different Types of Json Errors While Filing GSTR-9C BOOK A FREE DEMO Definition of GSTR-9C GSTR-9C is a reconciliation statement that businesses in India must file annually as part of their GST return (GSTR-9). It is a certification of the reconciliation between the data declared in the annual return (GSTR-9) and the books of accounts

Applicability of GST on Real Estate The supply of goods and services related to both movable and immovable property is also subject to the implementation of the e-invoicing system in stages. The National Informatics Center was the first designated invoice registration portal (IRP) for this (NIC). A trial version of einvoice1-trial.nic.in was made available to

Guide to GSTR-2 GSTR-2 is a crucial GST Return form that needs to be filed by registered taxpayers in India as part of the Goods and Services Tax (GST) system. It contains details of all the inward supplies of goods and services received by the taxpayer during a particular tax period. Filing GSTR-2 is important

Who is a Casual Taxable Person under GST? BOOK A FREE DEMO Under the Goods and Services Tax (GST) regime, a Casual Taxable Person (CTP) is an individual or business entity who occasionally supplies goods or services in a state or union territory where they do not have a fixed place of business. CTPs are

Highlights of the new GST Amendments The finance minister conducted a GST Council Meeting on June 28th and 29th, 2022. The council made several significant amendments in the meeting, ranging from GST return filings to GST rate changes. Below are highlights of the new GST amendments made in the discussion: BOOK A FREE DEMO Annual