The income of NRIs can be taxable, but how will the tax department keep a track of payments or Ticket to send money abroad made abroad? Form 15CA & 15CB is the answer! It is mandatory for anyone to file these forms before remitting payments abroad if certain conditions prevail.
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In CA In Delhi’s previous blog, we discussed what are Form 15CA & 15CB, and when do you need them. Form 15CA & 15CB are required to be filed before remitting any International Payments, payments outside India if certain conditions are prevailing.
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Beware of Cash Transactions From April 1, 2017, be careful while accepting cash for more than Rs 2,00,000/- or pay 100% penalty for accepting it. Remember, it is the cash receiver who needs to pay the penalty and not the cash payer. It is a move towards eliminating cash transactions and shift towards cashless economy.
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EBITDA is the pulse rate of your company, and that’s also what makes it a sweet apple of investors eye. You just cannot ignore it, just cannot! It gives a clear reflection of your company’s ‘operating’ performance. There are many more ratios to check operating efficiency, but why this ratio stands away from the crowd is its ability to facilitate comparisons in the industry. Let’s dig into more.This post will cover EBITDA Margin Meaning, Formula, Calculation, how to calculate, and all you need to know.
Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA). See, the name itself reveals more than half of the meaning as it is calculated as operating earnings before deduction of interest, tax and depreciation (Example at the end of this article).
EBITDA = Earnings Before Interest and Tax + Depreciation + Amortization
EBITDA, when compared with net sales, gives EBITDA Margin.
It gives you a ‘standard measure’ to compare your business’s earnings with your peers in the industry, irrespective of their capital investments, debt and tax profiles. It eliminates the interest and tax components, and depreciation component, which is a non cash expenditure.
Let’s say there are two different companies with different investments in assets or different amounts of debts, how would you judge the operating performance of those companies? EBITDA margin is your solution.
Investors use this measure to compare similar companies across the same industry. EBITDA multiple is also used in company valuation after its division from Enterprise Value (EV). Hence, entrepreneurs must keep an eye on EBITDA margin to constantly measure where they stand against their rivals in terms of operating performance.
It gives you a fair picture of your operations, but it does have drawbacks.
If companies are more debt laden, and interest costs are higher than they should be, EBITDA won’t give you that picture, since it excludes interest costs. Companies that require constant equipment upgradation should also be careful while using it as it excludes depreciation.
It can manipulate you to believe a company is performing well, even if it is not. EBITDA can be impressive, but net profit of the company may be low due to interest cost or depreciation or tax rates. So, it is better to not overlook the net profits too for comparison.
Itwill always be more than your net profits.
Despite its limitations, it serves as a tool to compare your company with other companies and locate the points of your strengths and weakness, if you use it wisely.
Revenue= Rs 1 Crore
Expenses other than depreciation, interest and taxes= Rs 70,00,000
| Particulars | Amount (Rs) | In Words |
| Revenue | 10,00,00,000 | 10 Cr |
| Expenses other than Depreciation, Interest and Taxes | 7,00,00,000 | 7 Cr |
| EBITDA | 3,00,00,000 | 3 Cr |
| Depreciation | 50,00,000 | 50 Lakh |
| EBIT | 2,50,00,000 | 2.5 Cr |
| Interest Cost | 30,00,000 | 30 Lakh |
| PBT | 2,20,00,000 | 2.2 Cr |
| Taxes @ 30% | 66,00,000 | 66 Lakh |
| PAT | 1,54,00,000 | 1.54 Cr |
| EBITDA Margin | 30% | |
| Net Profit Margin | 15.4% |
EBT and PBT have been assumed to be equal in this case.
Such a simple calculation, and you can figure out so much from it.
For any queries, feel free to reach out to Chartered Accountants on CA in Delhi ‘s homepage
Namaste from CA In Delhi! MSMEs, you are the powerhouse of India’s economy. Feel proud of it. The government recognizes your importance and hence, promotes you, provides you enormous benefits. Udyog Aadhaar is a valuable present that the government has provided for small and medium businesses.
To register your business as SME (Small and Medium Enterprises), you are required to register under Udyog Aadhaar, which was earlier called MSME registration.
First, why do I need to register?
The Ministry of Micro, Small and Medium Enterprises (MSME) have been assigned a task to support, promote, and regulate the MSMEs in the country. Financial and technical support is provided to the Indian entrepreneurs and small businesses, beside capacity building programs.
The following benefits are provided to the businesses by MSME departments:
Udyog Aadhaar is a great way to get these perks.
Information/Documents required
Qualifications & Disqualifications Of Auditor is a person or a firm appointed by a company to execute an audit. To act as an auditor, a person should be certified by the regulatory authority of accounting and auditing or possess certain specified qualifications.
A Chartered Accountant holding a valid Certificate of Practice.
A firm shall also be considered to appointed by its firm name whereof majority of partners practicing in India are qualified for appointment as auditor of a company.
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Act before March-end, so that you don’t have to regret it in July! So many clients put their palms on their heads when it is time to pay taxes and file a return, in July. Taxes have already fired at them, they have done nothing to save themselves against the tax shots.
They could have saved a pretty good amount of taxes, but their lethargy proved to be costly for them. Now is the time! The financial year is about to end, build up your weapons. If you make appropriate investments, you can save a lot of tax. CA In Delhi‘s guide will help you answer a much-asked question – How to save tax and different options to save tax …
Let’s understand about the process of registering under Startup India Scheme.
See, you are a startup, and fostering an environment of innovation, something which the government is promoting. You do deserve some benefits for that. Startup India Plan of the government provides you those benefits.
Benefits are amazing for ‘startups’. Are you a startup? What?!?! Yes, the government has defined what would a ‘Startup’ mean.
Any Legal entity will be identified as a startup:
You are a startup only if you aim to develop and commercialise – a new product or a service or a process or significantly improve a product or service or process which will add significant value for customers or workflow.
So if your Startup is like another Ecommerce Startup Website or IT Sector, then there is not a positive news for you. It is not a startup.
Point to be noted, my lord: Sole Proprietorship Firm is not under the Startup India Scheme.
In order to obtain tax benefits, one has to obtain a certificate from the Inter-Ministerial Board of certification.
The department will review your application and register you under the scheme if you meet the requirements. For more details, contact CA In Delhi at [email protected] or choose from a list of chartered accountants available on CA In Delhi ‘s homepage
Namaste from CA In Delhi!
Probably, you chose to start LLP over company because it is less costly and compliances for an LLP is relatively lesser. But, you might be unaware of the fact that if you don’t comply with mandatory requirements for an LLP, you will end up paying such heavy penalties that it can even force you to shut down your business. …
Giving a birth to a baby is not enough. You also need to take due care of that baby. Similarly, forming a private limited company is not enough, you also need to make sure that the company is following all the compliance for a private limited company and should not get into any trouble for violation.
CA In Delhi will tell you major compliance that you just cannot afford to avoid. …