Rohitashva Singhvi

UAE Corporate Tax – All in one basic info

Corporate Tax is a form of direct tax levied on the net income of corporations and other businesses.

Corporate Tax is sometimes also referred to as “Corporate Income Tax” or “Business Profits Tax” in other jurisdictions.

Broadly, Corporate Tax applies to the following “Taxable Persons”:

UAE companies and other juridical persons that are incorporated or effectively managed and controlled in the UAE;
Natural persons (individuals) who conduct a Business or Business Activity in the UAE as specified in a Cabinet Decision to be issued in due course; and
Non-resident juridical persons (foreign legal entities) that have a Permanent Establishment in the UAE (which is explained under [Section 8]).

Juridical persons established in a UAE Free Zone are also within the scope of Corporate Tax as “Taxable Persons” and will need to comply with the requirements set out in the Corporate Tax Law. However, a Free Zone Person that meets the conditions to be considered a Qualifying Free Zone Person can benefit from a Corporate Tax rate of 0% on their Qualifying Income (the conditions are included in [Section 14]).

Non-resident persons that do not have a Permanent Establishment in the UAE or that earn UAE sourced income that is not related to their Permanent Establishment may be subject to Withholding Tax (at the rate of 0%). Withholding tax is a form of Corporate Tax collected at source by the payer on behalf of the recipient of the income. Withholding taxes exist in many tax systems and typically apply to the cross-border payment of dividends, interest, royalties and other types of income.

Who is exempt from Corporate Tax?

Certain types of businesses or organisations are exempt from Corporate Tax given their importance and contribution to the social fabric and economy of the UAE. These are known as Exempt Persons and include:

Automatically exempt	● Government Entities● Government Controlled Entities that are specified in a Cabinet Decision
Exempt if notified to the Ministry of Finance (and subject to meeting certain conditions)	● Extractive Businesses● Non-Extractive Natural Resource Businesses
Exempt if listed in a Cabinet Decision	● Qualifying Public Benefit Entities
Exempt if applied to and approved by the Federal Tax Authority (and subject to meeting certain conditions)	● Public or private pension and social security funds● Qualifying Investment Funds● Wholly-owned and controlled UAE subsidiaries of a Government Entity, a Government Controlled Entity, a Qualifying Investment Fund, or a public or private pension or social security fund

In addition to not being subject to Corporate Tax, Government Entities, Government Controlled Entities that are specified in a Cabinet Decision, Extractive Businesses and Non-Extractive Natural Resource Businesses may also be exempted from any registration, filing and other compliance obligations imposed by the Corporate Tax Law, unless they engage in an activity which is within the charge of Corporate Tax.

How is a Taxable Person subject to Corporate Tax?

In line with the tax regimes of most countries, the Corporate Tax Law taxes income on both a residence and source basis. The applicable basis of taxation depends on the classification of the Taxable Person.

A “Resident Person” is taxed on income derived from both domestic and foreign sources (i.e. a residence basis).
A “Non-Resident Person” will be taxed only on income derived from sources within the UAE (i.e. a source basis).

Residence for Corporate Tax purposes is not determined by where a person resides or is domiciled but instead by specific factors that are set out in the Corporate Tax Law. If a Person does not satisfy the conditions for being either a Resident or a Non-Resident person then they will not be a Taxable Person and will not therefore be subject to Corporate Tax.

Who is a Resident Person?

Companies and other juridical persons that are incorporated or otherwise formed or recognised under the laws of the UAE will automatically be considered a Resident Person for Corporate Tax purposes. This covers juridical persons incorporated in the UAE under either mainland legislation or applicable Free Zone regulations, and would also include juridical persons created by a specific statute (e.g. by a special decree).

Foreign companies and other juridical persons may also be treated as Resident Persons for Corporate Tax purposes where they are effectively managed and controlled in the UAE. This shall be determined with regard to the specific circumstances of the entity and its activities, with a determining factor being where key management and commercial decisions are in substance made.

Natural persons will be subject to Corporate Tax as a “Resident Person” on income from both domestic and foreign sources, but only insofar as such income is derived from a Business or Business Activity conducted by the natural person in the UAE. Any other income earned by a natural person would not be within the scope of Corporate Tax.

Who is a Non-Resident Person?

Non-Resident Persons are juridical persons who are not Resident Persons and:

have a Permanent Establishment in the UAE; or
derive State Sourced Income.

Non-Resident Persons will be subject to Corporate Tax on Taxable Income that is attributable to their Permanent Establishment (which is explained under Section 8).

Certain UAE sourced income of a Non-Resident Person that is not attributable to a Permanent Establishment in the UAE will be subject to Withholding Tax at the rate of 0%.

What is a Permanent Establishment?

The concept of Permanent Establishment is an important principle of international tax law used in corporate tax regimes across the world. The main purpose of the Permanent Establishment concept in the UAE Corporate Tax Law is to determine if and when a foreign person has established sufficient presence in the UAE to warrant the business profits of that foreign person to be subject to Corporate Tax.

The definition of Permanent Establishment in the Corporate Tax Law has been designed on the basis of the definition provided in Article 5 of the OECD Model Tax Convention on Income and Capital and the position adopted by the UAE under the Multilateral Instrument to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting. This allows foreign persons to use the relevant Commentary of Article 5 of the OECD Model Tax Convention when assessing whether they have a Permanent Establishment or not in the UAE. This assessment should consider the provisions of any bilateral tax agreement between the country of residence of the Non-Resident Person and the UAE.

What is Corporate Tax imposed on?

Corporate Tax is imposed on Taxable Income earned by a Taxable Person in a Tax Period.

Corporate Tax would generally be imposed annually, with the Corporate Tax liability calculated by the Taxable Person on a self-assessment basis. This means that the calculation and payment of Corporate Tax is done through the filing of a Corporate Tax Return with the Federal Tax Authority by the Taxable Person.

The starting point for calculating Taxable Income is the Taxable Person’s accounting income (i.e. net profit or loss before tax) as per their financial statements. The Taxable Person will then need to make certain adjustments to determine their Taxable Income for the relevant Tax Period. For example, adjustments to accounting income may need to be made for income that is exempt from Corporate Tax and for expenditure that is wholly or partially non-deductible for Corporate Tax purposes.

What income is exempt?

The Corporate Tax Law also exempts certain types of income from Corporate Tax. This means that a Taxable Persons will not be subject to Corporate Tax on such income and cannot claim a deduction for any related expenditure. Taxable Persons who earn exempt income will remain subject to Corporate Tax on their Taxable Income.

The main purpose of certain income being exempt from Corporate Tax is to prevent double taxation on certain types of income. Specifically, dividends and capital gains earned from domestic and foreign shareholdings will generally be exempt from Corporate Tax. Furthermore, a Resident Person can elect, subject to certain conditions, to not take into account income from a foreign Permanent Establishment for UAE Corporate Tax purposes.

What expenses are deductible?

In principle, all legitimate business expenses incurred wholly and exclusively for the purposes of deriving Taxable Income will be deductible, although the timing of the deduction may vary for different types of expenses and the accounting method applied. For capital assets, expenditure would generally be recognised by way of depreciation or amortisation deductions over the economic life of the asset or benefit.

Expenditure that has a dual purpose, such as expenses incurred for both personal and business purposes, will need to be apportioned with the relevant portion of the expenditure treated as deductible if incurred wholly and exclusively for the purpose of the taxable person’s business.

Certain expenses which are deductible under general accounting rules may not be fully deductible for Corporate Tax purposes. These will need to be added back to the Accounting Income for the purposes of determining the Taxable Income. Examples of expenditure that is or may not be deductible (partially or in full) include:

Types of Expenditures	Limitation to deductibility
BribesFines and penalties (other than amounts awarded as compensation for damages or breach of contract)Donations, grants or gifts made to an entity that is not a Qualifying Public Benefit EntityDividends and other profits distributionsCorporate Tax imposed under the Corporate Tax LawExpenditure not incurred wholly and exclusively for the purposes of the Taxable person’s BusinessExpenditure incurred in deriving income that is exempt from Corporate Tax	No deduction
Client entertainment expenditure	Partial deduction of 50% of the amount of the expenditure
Interest expenditure	Deduction of net interest expenditure exceeding a certain de minimis thresholdup to 30% of the amount of earnings before the deduction of interest, tax, depreciation and amortisation (except for certain activities)

What is the Corporate Tax rate?

Corporate Tax will be levied at a headline rate of 9% on Taxable Income exceeding AED 375,000. Taxable Income below this threshold will be subject to a 0% rate of Corporate Tax.

Corporate Tax will be charged on Taxable Income as follows:

Resident Taxable Persons
Taxable Income not exceeding AED 375,000(this amount is to be confirmed in a Cabinet Decision)	0%
Taxable Income exceeding AED 375,000	9%
Qualifying Free Zone Persons
Qualifying Income	0%
Taxable Income that does not meet the Qualifying Income definition	9%

What is the Withholding Tax rate?

A 0% withholding tax may apply to certain types of UAE sourced income paid to non-residents. Because of the 0% rate, in practice, no withholding tax would be due and there will be no withholding tax related registration and filing obligations for UAE businesses or foreign recipients of UAE sourced income.

Withholding tax does not apply to transactions between UAE resident persons.

When can a Free Zone Person be a Qualifying Free Zone Person?

A Free Zone Person that is a Qualifying Free Zone Person can benefit from a preferential Corporate Tax rate of 0% on their “Qualifying Income” only.

In order to be considered a Qualifying Free Zone Person, the Free Zone Person must:

maintain adequate substance in the UAE;
derive ‘Qualifying Income’;
not have made an election to be subject to Corporate Tax at the standard rates; and
comply with the transfer pricing requirements under the Corporate Tax Law.

The Minister may prescribe additional conditions that a Qualifying Free Zone Person must meet.

If a Qualifying Free Zone Person fails to meet any of the conditions, or makes an election to be subject to the regular Corporate Tax regime, they will be subject to the standard rates of Corporate Tax from the beginning of the Tax Period where they failed to meet the conditions.

What are Tax Groups, and when can they be formed?

Two or more Taxable Persons who meet certain conditions (see below) can apply to form a “Tax Group” and be treated as a single Taxable Person for Corporate Tax purposes.

To form a Tax Group, both the parent company and its subsidiaries must be resident juridical persons, have the same Financial Year and prepare their financial statements using the same accounting standards.

Additionally, to form a Tax Group, the parent company must:

own at least 95% of the share capital of the subsidiary;
hold at least 95% of the voting rights in the subsidiary; and
is entitled to at least 95% of the subsidiary’s profits and net assets.

The ownership, rights and entitlement can be held either directly or indirectly through subsidiaries, but a Tax Group cannot include an Exempt Person or Qualifying Free Zone Person.

How to calculate the Taxable Income of a Tax Group?

To determine the Taxable Income of a Tax Group, the parent company must prepare consolidated financial accounts covering each subsidiary that is a member of the Tax Group for the relevant Tax Period. Transactions between the parent company and each group member and transactions between the group members would be eliminated for the purposes of calculating the Taxable Income of the Tax Group.

Registering, filing and paying Corporate Tax

All Taxable Persons (including Free Zone Persons) will be required to register for Corporate Tax and obtain a Corporate Tax Registration Number. The Federal Tax Authority may also request certain Exempt Persons to register for Corporate Tax.

Taxable Persons are required to file a Corporate Tax return for each Tax Period within 9 months from the end of the relevant period. The same deadline would generally apply for the payment of any Corporate Tax due in respect of the Tax Period for which a return is filed.

Illustrated below are examples of the registration, filing and payment deadlines associated for Taxable Persons with a Tax Period (Financial Year) ending on 31 May or 31 December (respectively).

filing and payment deadlines associated for Taxable Persons with a Tax Period (Financial Year) ending on 31 May or 31 December (respectively).

How to prepare for Corporate Tax?

Read the Corporate Tax Law and the supporting information available on the websites of the Ministry of Finance and the Federal Tax Authority.
Use the available information to determine whether your business will be subject to Corporate Tax and if so, from what date.
Understand the requirements for your business under the Corporate Tax Law, including, for example:
1. Whether and by when your business needs to register for Corporate Tax;
2. What is the accounting / Tax Period for your business;
3. By when your business would need to file a Corporate Tax return;
4. What elections or applications your business may or should make for Corporate Tax purposes;
5. What financial information and records your business will need to keep for Corporate Tax purposes;
Regularly check the websites of the Ministry of Finance and the Federal Tax Authority for further information and guidance on the Corporate Tax regime.

Sources: FTA

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June 23, 2023

How to use Spell number Function in excel

The “spell number” function is a tool used by accountants and finance professionals to convert numerical values into their written word form. This function is typically used to generate the written representation of a specific amount or value, such as converting “1234.56” to “one thousand two hundred thirty-four and 56/100 dollars.”

The spell number function can be beneficial in various accounting and financial scenarios, including:

Writing checks: When preparing checks, it is customary to write out the amount in words to minimize the risk of alteration or fraud. The spell number function allows accountants to automatically generate the written form of the check amount.
Financial reports: In financial reports, especially those prepared for presentation or legal purposes, it can be useful to provide both the numerical value and the written form of amounts. The spell number function assists in generating the written representation of numbers, enhancing the clarity and comprehensibility of financial statements.
Invoicing and billing: Some organizations or industries may require invoices or billing statements to include the written form of the invoiced amounts. The spell number function helps automate this process, ensuring accuracy and consistency in the presentation of financial information.
Compliance and regulatory requirements: Certain regulations or jurisdictions might mandate the inclusion of written amounts in specific financial documents. The spell number function can facilitate compliance with these requirements, reducing the risk of non-compliance or errors.
Presentations and proposals: When delivering financial presentations or proposals, using the written form of amounts can enhance professionalism and improve the audience’s understanding. The spell number function allows accountants to quickly convert numerical data into a more easily digestible format.

It’s worth noting that the specific implementation and availability of a spell number function may vary depending on the accounting software, spreadsheet application, or programming language being used.

To update the code in your Excel workbook, follow these steps:

Open your Excel workbook.

Press Alt + F11 to open the VBA Editor.

In the VBA Editor, find the module where the code is currently
located. It may have the same name as the worksheet containing the
cell you want to use the spell-in-numbers function.

Double-click on the module to open it.

Replace the existing code with the updated code you received earlier.

Save the workbook by pressing Ctrl + S or by clicking on the save button.

Close the VBA Editor by clicking the close button (X) or by pressing Alt + Q.

Now you can use the SpellNumber function in your Excel worksheet.

In a cell where you want to display the spell-in-numbers conversion,
enter the following formula: =SpellNumber(A1) (assuming the number you
want to convert is in cell A1).

Press Enter to see the converted number in words.

Make sure to replace A1 with the cell reference that contains the
number you want to convert.

That’s it! The code is now updated in your Excel workbook, and you can
use the SpellNumber function to convert numbers to words.

Below codes (USD & Dirham) for your use(enjoy the benefits)

What-is-the-best-way-to-learn-Excel-online ?

USD Codes:

Option Explicit

'Main Function
Function SpellNumber(ByVal MyNumber)
    Dim Dollars, Cents, Temp
    Dim DecimalPlace, Count
    ReDim Place(9) As String
    Place(2) = " Thousand "
    Place(3) = " Million "
    Place(4) = " Billion "
    Place(5) = " Trillion "

    ' String representation of amount.
    MyNumber = Trim(Str(MyNumber))

    ' Position of decimal place 0 if none.
    DecimalPlace = InStr(MyNumber, ".")

    ' Convert cents and set MyNumber to dollar amount.
    If DecimalPlace > 0 Then
        Cents = GetTens(Left(Mid(MyNumber, DecimalPlace + 1) & "00", 2))
        MyNumber = Trim(Left(MyNumber, DecimalPlace - 1))
    End If

    Count = 1

    Do While MyNumber <> ""
        Temp = GetHundreds(Right(MyNumber, 3))
        If Temp <> "" Then Dollars = Temp & Place(Count) & Dollars
        If Len(MyNumber) > 3 Then
            MyNumber = Left(MyNumber, Len(MyNumber) - 3)
        Else
            MyNumber = ""
        End If
        Count = Count + 1
    Loop

    Select Case Dollars
        Case ""
            Dollars = "No Dollars"
        Case "One"
            Dollars = "One Dollar"
        Case Else
            Dollars = Dollars & " Dollars"
    End Select

    Select Case Cents
        Case ""
            Cents = " and No Cents"
        Case "One"
            Cents = " and One Cent"
        Case Else
            Cents = " and " & Cents & " Cents"
    End Select

    SpellNumber = Dollars & Cents
End Function

' Converts a number from 100-999 into text
Function GetHundreds(ByVal MyNumber)
    Dim Result As String
    If Val(MyNumber) = 0 Then Exit Function
    MyNumber = Right("000" & MyNumber, 3)

    ' Convert the hundreds place.
    If Mid(MyNumber, 1, 1) <> "0" Then
        Result = GetDigit(Mid(MyNumber, 1, 1)) & " Hundred "
    End If

    ' Convert the tens and ones place.
    If Mid(MyNumber, 2, 1) <> "0" Then
        Result = Result & GetTens(Mid(MyNumber, 2))
    Else
        Result = Result & GetDigit(Mid(MyNumber, 3))
    End If

    GetHundreds = Result
End Function

' Converts a number from 10 to 99 into text.
Function GetTens(TensText)
    Dim Result As String
    Result = "" ' Null out the temporary function value.

    If Val(Left(TensText, 1)) = 1 Then ' If value between 10-19...
        Select Case Val(TensText)
            Case 10: Result = "Ten"
            Case 11: Result = "Eleven"
            Case 12: Result = "Twelve"
            Case 13: Result = "Thirteen"
            Case 14: Result = "Fourteen"
            Case 15: Result = "Fifteen"
            Case 16: Result = "Sixteen"
            Case 17: Result = "Seventeen"
            Case 18: Result = "Eighteen"
            Case 19: Result = "Nineteen"
            Case Else
        End Select
    Else ' If value between 20-99...
        Select Case Val(Left(TensText, 1))
            Case 2: Result = "Twenty "
            Case 3: Result = "Thirty "
            Case 4: Result = "Forty "
            Case 5: Result = "Fifty "
            Case 6: Result = "Sixty "
            Case 7: Result = "Seventy "
            Case 8: Result = "Eighty "
            Case 9: Result = "Ninety "
            Case Else
        End Select
        Result = Result & GetDigit(Right(TensText, 1)) ' Retrieve ones place.
    End If

    GetTens = Result
End Function

' Converts a number from 1 to 9 into text.
Function GetDigit(Digit)
    Select Case Val(Digit)
        Case 1: GetDigit = "One"
        Case 2: GetDigit = "Two"
        Case 3: GetDigit = "Three"
        Case 4: GetDigit = "Four"
        Case 5: GetDigit = "Five"
        Case 6: GetDigit = "Six"
        Case 7: GetDigit = "Seven"
        Case 8: GetDigit = "Eight"
        Case 9: GetDigit = "Nine"
        Case Else: GetDigit = ""
    End Select
End Function

How-do-I-learn-Microsoft-Excel-quickly ?

Dirham Code:

Option Explicit

'Main Function
Function SpellNumber(ByVal MyNumber)
    Dim Dirhams, Fils, Temp
    Dim DecimalPlace, Count
    ReDim Place(9) As String
    Place(2) = " Thousand "
    Place(3) = " Million "
    Place(4) = " Billion "
    Place(5) = " Trillion "

    ' String representation of amount.
    MyNumber = Trim(Str(MyNumber))

    ' Position of decimal place 0 if none.
    DecimalPlace = InStr(MyNumber, ".")

    ' Convert fils and set MyNumber to dirham amount.
    If DecimalPlace > 0 Then
        Fils = GetTens(Left(Mid(MyNumber, DecimalPlace + 1) & "00", 2))
        MyNumber = Trim(Left(MyNumber, DecimalPlace - 1))
    End If

    Count = 1

    Do While MyNumber <> ""
        Temp = GetHundreds(Right(MyNumber, 3))
        If Temp <> "" Then Dirhams = Temp & Place(Count) & Dirhams
        If Len(MyNumber) > 3 Then
            MyNumber = Left(MyNumber, Len(MyNumber) - 3)
        Else
            MyNumber = ""
        End If
        Count = Count + 1
    Loop

    Select Case Dirhams
        Case ""
            Dirhams = "No Dirhams"
        Case "One"
            Dirhams = "One Dirham"
        Case Else
            Dirhams = Dirhams & " Dirhams"
    End Select

    Select Case Fils
        Case ""
            Fils = " and No Fils"
        Case "One"
            Fils = " and One Fil"
        Case Else
            Fils = " and " & Fils & " Fils"
    End Select

    SpellNumber = Dirhams & Fils
End Function

' Converts a number from 100-999 into text
Function GetHundreds(ByVal MyNumber)
    Dim Result As String
    If Val(MyNumber) = 0 Then Exit Function
    MyNumber = Right("000" & MyNumber, 3)

    ' Convert the hundreds place.
    If Mid(MyNumber, 1, 1) <> "0" Then
        Result = GetDigit(Mid(MyNumber, 1, 1)) & " Hundred "
    End If

    ' Convert the tens and ones place.
    If Mid(MyNumber, 2, 1) <> "0" Then
        Result = Result & GetTens(Mid(MyNumber, 2))
    Else
        Result = Result & GetDigit(Mid(MyNumber, 3))
    End If

    GetHundreds = Result
End Function

' Converts a number from 10 to 99 into text.
Function GetTens(TensText)
    Dim Result As String
    Result = "" ' Null out the temporary function value.
    If Val(Left(TensText, 1)) = 1 Then ' If value between 10-19...
        Select Case Val(TensText)
            Case 10: Result = "Ten"
            Case 11: Result = "Eleven"
            Case 12: Result = "Twelve"
            Case 13: Result = "Thirteen"
            Case 14: Result = "Fourteen"
            Case 15: Result = "Fifteen"
            Case 16: Result = "Sixteen"
            Case 17: Result = "Seventeen"
            Case 18: Result = "Eighteen"
            Case 19: Result = "Nineteen"
            Case Else
        End Select
    Else ' If value between 20-99...
        Select Case Val(Left(TensText, 1))
            Case 2: Result = "Twenty "
            Case 3: Result = "Thirty "
            Case 4: Result = "Forty "
            Case 5: Result = "Fifty "
            Case 6: Result = "Sixty "
            Case 7: Result = "Seventy "
            Case 8: Result = "Eighty "
            Case 9: Result = "Ninety "
            Case Else
        End Select
        Result = Result & GetDigit(Right(TensText, 1)) ' Retrieve ones place.
    End If
    GetTens = Result
End Function

' Converts a number from 1 to 9 into text.
Function GetDigit(Digit)
    Select Case Val(Digit)
        Case 1: GetDigit = "One"
        Case 2: GetDigit = "Two"
        Case 3: GetDigit = "Three"
        Case 4: GetDigit = "Four"
        Case 5: GetDigit = "Five"
        Case 6: GetDigit = "Six"
        Case 7: GetDigit = "Seven"
        Case 8: GetDigit = "Eight"
        Case 9: GetDigit = "Nine"
        Case Else: GetDigit = ""
    End Select
End Function

Hope this will help you.

Thanks
Rohitashva Singhvi

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June 10, 2023

Top 5 best-selling books for personal development by Indian authors

I am in phase of improving myself as a person and develop adaptability to work with various people so trying to catch important learning points from some books. Why I chosen these books, as they have been praised by critics and readers alike, and they have helped millions of people around the world to make positive changes in their lives.

The Monk Who Sold His Ferrari by Robin Sharma

The Monk Who Sold His Ferrari is a self-help book that tells the story of Julian Mantle, a successful lawyer who has a heart attack and realizes that his life is empty and meaningless. He sells his Ferrari, his mansion, and all of his possessions and travels to the Himalayas to study with a wise monk. The monk teaches Julian about the importance of living in the present moment, following his dreams, and finding his purpose in life. Julian returns to his old life a changed man, and he uses his newfound wisdom to help others.

You Can Win by Shiv Khera

You Can Win is a self-help book that offers a step-by-step guide to achieving your goals. The book covers a variety of topics, such as goal setting, time management, and overcoming obstacles. Khera argues that anyone can achieve their goals if they are willing to work hard and never give up.

Think Like A Monk by Jay Shetty

Think Like A Monk is a self-help book that draws on Jay Shetty’s time as a monk to offer insights into how to live a more mindful and intentional life. The book covers a variety of topics, such as meditation, gratitude, and compassion. Shetty argues that by following the principles of mindfulness, we can live happier, more fulfilling lives.

Life’s Amazing Secrets by Gaur Gopal Das

Life’s Amazing Secrets is a self-help book that distills Gaur Gopal Das’s insights into the human condition into a series of short, easy-to-read chapters. The book covers a variety of topics, such as happiness, success, and relationships. Das argues that by following the simple principles in his book, we can live happier, more fulfilling lives.

The Power of Now by Eckhart Tolle

The Power of Now is a self-help book that explores the importance of living in the present moment. The book argues that the past and the future are illusions, and that the only way to truly be happy is to focus on the present moment. Tolle argues that by living in the present moment, we can free ourselves from our pain and suffering and experience true peace and happiness.

It is important to note that these books are just a starting point for your personal development journey. There are many other great books out there that can help you to improve your life. The most important thing is to find books that resonate with you and that you can apply to your own life.

Here are the key takeaways from these books:

The Monk Who Sold His Ferrari by Robin Sharma

Live in the present moment. The past is gone, and the future is not yet here. The only moment we have is the present moment.
Follow your dreams. Don’t let anyone tell you that you can’t achieve your dreams. If you want something, go for it.
Find your purpose in life. What are you passionate about? What makes you feel alive? Find your purpose and live it to the fullest.

You Can Win by Shiv Khera

Set goals and work towards them. What do you want to achieve in life? Set goals and make a plan to achieve them.
Never give up. No matter how hard things get, never give up on your dreams. Keep working hard and never give up.
Believe in yourself. You are capable of achieving anything you set your mind to. Believe in yourself and never let anyone tell you otherwise.

Think Like A Monk by Jay Shetty

Meditate. Meditation is a powerful tool that can help you to focus your mind, reduce stress, and improve your overall well-being.
Be grateful. Gratitude is a powerful emotion that can help you to appreciate the good things in your life. Make a habit of expressing gratitude every day.
Be compassionate. Compassion is the ability to understand and share the feelings of others. Be compassionate to yourself and to others.

Life’s Amazing Secrets by Gaur Gopal Das

Happiness is a choice. You can choose to be happy, no matter what is going on in your life. Choose to focus on the positive and to be grateful for what you have.
Love is the answer. Love is the most powerful force in the world. Love yourself, love others, and love the world around you.
Live in the present moment. The past is gone, and the future is not yet here. The only moment we have is the present moment. Make the most of it.

The Power of Now by Eckhart Tolle

The past is gone, and the future is not yet here. The only moment we have is the present moment.
Don’t judge yourself or others. Judging is a form of resistance to the present moment. Accept yourself and others as they are.
Be present with your thoughts and feelings. Don’t try to push away your thoughts or feelings. Observe them without judgment.
Let go of your attachments. Attachments are the cause of suffering. Let go of your attachments and live in the present moment.

If you have any suggestion, then please don’t hesitate to write!

Hope this information shared by me will help other’s too, Thanks for Reading.

Rohitashva Singhvi

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May 18, 2023

How to proceed with Financial Reporting Consolidation

Financial reporting consolidation is the process of combining financial data from various business units or subsidiaries within an organization to produce a consolidated set of financial statements. This process involves collecting, validating, and aggregating financial information from various sources to provide a comprehensive view of an organization’s financial position, performance, and cash flow.

The process of financial statement consolidation includes the following steps:

Collection of financial data:
This includes collecting financial data from various sources such as sub-financial statements, general ledger, balance sheet, bank statement, etc.

Reconciliation of intragroup transactions:
Where multiple business units or subsidiaries are involved, there may be intercompany transactions that need to be eliminated or adjusted to avoid double counting revenues and expenses.

Elimination of minority shareholders:
If the parent company does not own 100% of the subsidiary’s shares, the portion of the subsidiary’s results belonging to minority shareholders is excluded from the consolidated financial statements. Currency conversion:
If subsidiaries operate in different countries with different currencies, their financial data must be converted into a common currency for consolidation purposes.

Create a delete entry:
A deletion posting is made to remove all intercompany transactions and balances adjusted in step 2.

Consolidated financial statements:
After all customizations are complete, consolidate your financial statements to create a single set of financial statements for your entire organization.

Analysis of Consolidated Financial Statements:
The final step is to analyze the consolidated financial statements to assess the organization’s overall financial performance.

In summary, the process of consolidating financial reporting involves combining financial data from various business units or subsidiaries to obtain a comprehensive view of an organization’s financial position, performance, and cash flow. This process is critical to providing stakeholders with accurate and reliable information for decision-making and compliance purposes.

To avoid repeated postings during consolidation, it is important to conduct a thorough review and analysis of the financial data being consolidated. Here are some steps you can take to prevent repeated entries:

Create an integration plan.
Before you consolidate your financial statements, it is important to develop a consolidation plan that outlines the steps you will take to avoid duplicate entries. This plan should include reviewing the chart of accounts, reviewing intercompany transactions, and reviewing other areas where duplicate entries may occur.

Check your chart of accounts.
One of the first steps to verify your entries is to check your chart of accounts. This allows you to identify duplicate or misclassified accounts. This review should include a comparison of the chart of accounts of each consolidated subsidiary or entity to ensure that there are no duplicates.

Check intercompany transactions.
Intercompany transactions can be a significant source of duplicate entries. These transactions occur when a subsidiary or business unit within an organization transacts with another subsidiary or business unit. It is important to review intercompany transactions to ensure they are properly recorded and duplicate entries are removed.

Use integrated software.
Consolidation software automates the consolidation process and helps identify duplicate entries. The software flags potential duplicate entries for quick and efficient review and elimination.

Do a detailed check.
Finally, it is important to conduct a detailed review of consolidated financial data. This review should include a general ledger comparison for each consolidated subsidiary or business unit and a review of all other financial data such as: B. Includes balance sheet and bank statement. A full scan allows you to identify potential duplicate entries and take action to eliminate them.

Overall, avoiding repeated postings during consolidation requires careful planning and review of financial data. Following these procedures will help ensure the accuracy and reliability of our consolidated financial statements.

What-is-the-objective-of-financial-reporting ?

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April 6, 2023

Brief Summary of Bhagwat Geeta Teachings by Lord Krishna

The Bhagavad Gita is a sacred Hindu scripture that is considered one of the most important texts in the world. It is a dialogue between Lord Krishna and Arjuna, which takes place on the battlefield of Kurukshetra, just before the start of the great war of Mahabharata. The Gita consists of 18 chapters and is written in Sanskrit. Below is a brief summary of the teachings of the Bhagavad Gita.

Chapter 1: Arjuna’s Dilemma

Arjuna, a skilled warrior, finds himself in a dilemma on the battlefield. He is faced with the prospect of fighting and killing his own relatives and loved ones. Lord Krishna advises him to fulfill his duty as a warrior and fight for what is right.

Chapter 2: The Yoga of Knowledge

Krishna explains the concept of the Atman (the individual soul) and the Brahman (the universal soul). He stresses the importance of self-realization and detachment from material desires. He also teaches the importance of performing one’s duty without being attached to the fruits of one’s actions.

Chapter 3: The Yoga of Action

Krishna explains the importance of performing one’s duty in life without being attached to the results. He also discusses the concept of karma and how it affects one’s life.

Chapter 4: The Yoga of Wisdom

Krishna explains how knowledge and wisdom can lead one to liberation. He also discusses the concept of the avatar (divine incarnation) and how it relates to the world.

Chapter 5: The Yoga of Renunciation

Krishna discusses the concept of renunciation and how it relates to spiritual growth. He stresses the importance of self-discipline and control of the senses.

Chapter 6: The Yoga of Meditation

Krishna explains the practice of meditation and how it can lead to spiritual growth. He also discusses the concept of the Self and how it relates to the individual.

Chapter 7: The Yoga of Knowledge and Wisdom

Krishna explains the difference between knowledge and wisdom and how they relate to spiritual growth. He also discusses the concept of the divine and how it is present in all things.

Chapter 8: The Yoga of Imperishable Brahman

Krishna discusses the concept of Brahman and how it relates to the individual soul. He also explains the importance of devotion and surrender to the divine.

Why-dont-Indian-parents-give-basic-knowledge-of-Bhagwat-Geet-to-their-children ?

Chapter 9: The Yoga of Sovereign Knowledge and Secret

Krishna explains the concept of the ultimate reality and how it relates to the individual soul. He also discusses the importance of devotion to the divine.

Chapter 10: The Yoga of Divine Manifestations

Krishna discusses the various manifestations of the divine and how they relate to the individual soul. He also stresses the importance of devotion to the divine.

Chapter 11: The Yoga of the Vision of the Cosmic Form

Krishna shows Arjuna his cosmic form, revealing the true nature of the divine. Arjuna is overwhelmed by the experience and gains a deeper understanding of the nature of reality.

Chapter 12: The Yoga of Devotion

Krishna stresses the importance of devotion to the divine and explains how it can lead to spiritual growth. He also discusses the importance of detachment and self-control.

Chapter 13: The Yoga of Discrimination

Krishna discusses the concept of discrimination and how it relates to spiritual growth. He stresses the importance of understanding the difference between the body and the soul.

Chapter 14: The Yoga of the Three Qualities

Krishna explains the three gunas (qualities) and how they relate to the individual soul. He also discusses the importance of transcending the gunas and attaining liberation.

Chapter 15: The Yoga of the Supreme Self

Krishna explains the concept of the supreme self and how it relates to the individual soul. He also discusses the importance of understanding the nature of the divine and the true nature of reality.

Chapter 16: The Yoga of the Division between the Divine and the Demoniacal

Krishna discusses the difference between divine and demoniacal qualities and how they relate to the individual soul. He stresses the importance of cultivating divine qualities and transcending demoniacal qualities.

Chapter 17: The Yoga of the Threefold Faith

Krishna discusses the three types of faith – sattvic, rajasic, and tamasic – and how they relate to spiritual growth. He also discusses the importance of performing one’s duty without being attached to the results.

Chapter 18: The Yoga of Liberation through Renunciation

Krishna summarizes the teachings of the Bhagavad Gita and stresses the importance of performing one’s duty without being attached to the results. He also discusses the concept of renunciation and how it can lead to liberation.

In summary, the Bhagavad Gita teaches the importance of performing one’s duty without being attached to the results, the importance of self-realization and detachment from material desires, and the importance of devotion to the divine. It also discusses the concepts of karma, the Atman, Brahman, and the nature of reality. The Gita provides a guide for spiritual growth and enlightenment, and its teachings continue to inspire and guide people around the world.

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April 3, 2023

Important Guidelines for Uniform Customs and Practice for Documentary Credits (UCP 600)

The International Chamber of Commerce (ICC) has published the Uniform Customs and Practice for Documentary Credits (UCP 600) as a set of guidelines for banks and businesses engaged in international trade. Some of the key provisions of UCP 600 include:

General provisions: The UCP 600 outlines the general principles that govern the use of documentary credits in international trade, including the obligation of banks to act in accordance with the terms and conditions of the credit, and the requirement that all documents be presented within a specified time frame.
Obligations and liabilities: The UCP 600 sets out the obligations and liabilities of the various parties involved in a documentary credit transaction, including the buyer, seller, issuing bank, and advising bank.
Examination of documents: The UCP 600 provides guidelines for the examination of documents by banks, including the requirement that all documents be examined within a reasonable time frame, and that banks may only reject documents that do not comply with the terms and conditions of the credit.
Discrepancies and waivers: The UCP 600 provides guidelines for dealing with discrepancies in documents, including the requirement that banks must notify the buyer and seller of any discrepancies, and the procedures for obtaining waivers or amendments to the credit.
Transferable credits: The UCP 600 outlines the rules and procedures for transferring a documentary credit to a third party.
Confirmation: The UCP 600 provides guidelines for confirming banks, including the requirements for a confirming bank to undertake to pay, accept or negotiate documents under the credit.
Electronic documents: The UCP 600 recognizes the use of electronic documents in documentary credit transactions and sets out guidelines for the use of electronic documents, including the requirements for electronic signatures and the use of secure messaging systems.
Availability of funds: The UCP 600 sets out the rules and procedures for the availability of funds under a documentary credit, including the requirement that banks may only pay or negotiate documents if funds are available.

Why it is important to follow International Standard Banking Practice (ISBP 745) for LC (Letter of Credit) Payment Request?

International Standard Banking Practice (ISBP 745) is a set of guidelines established by the International Chamber of Commerce (ICC) to provide guidance on the interpretation of the Uniform Customs and Practice for Documentary Credits (UCP 600) in the context of documentary credit transactions. Following the ISBP 745 guidelines is important for LC payment requests for several reasons:

Ensure compliance with UCP 600: The ISBP 745 guidelines are designed to provide a practical interpretation of the UCP 600 rules. By following these guidelines, parties involved in LC transactions can ensure compliance with the UCP 600, which is the globally recognized standard for LC transactions. Download link! below:
eUCP VERSION 2.0 – Uniform Customs Practice V2.0 | ICC Knowledge 2 Go – International Chamber of Commerce (iccwbo.org)

For detailed study if you want to buy then check out below link:
UCP 600 – Uniform Rules for Documentary Credits (iccwbo.org)

Reduce discrepancies: The ISBP 745 guidelines provide a detailed checklist of the documents required for LC transactions, and the specific requirements for each document. By following these guidelines, parties involved in LC transactions can reduce the risk of discrepancies in the documents presented, which can delay or even prevent payment under the LC. Check out books below for your detailed study:
International Standard Banking Practice ISBP – For the Examination of Documents under UCP 600 | ICC Knowledge 2 Go – International Chamber of Commerce (iccwbo.org)

Facilitate document examination: The ISBP 745 guidelines provide guidance on the examination of documents by banks, including the standards for document preparation, the acceptance of electronic documents, and the handling of discrepancies. By following these guidelines, parties involved in LC transactions can facilitate the examination of documents by banks, which can help to speed up the payment process.

Reduce costs and delays: By following the ISBP 745 guidelines, parties involved in LC transactions can reduce the risk of discrepancies and delays in the payment process. This can help to reduce costs associated with delays and additional document preparation, and improve the efficiency of the payment process.

Improve communication and understanding: The ISBP 745 guidelines help to improve communication and understanding between the parties involved in LC transactions. By following these guidelines, parties can ensure a common understanding of the requirements for LC transactions, and reduce the risk of misunderstandings or disputes.

In summary, following the ISBP 745 guidelines is important for LC payment requests because it helps to ensure compliance with the UCP 600, reduce discrepancies, facilitate document examination, reduce costs and delays, and improve communication and understanding between the parties involved in LC transactions.

What is Letter of Credit & How to get it financed?

What is LC (Letter of Credit)?

“LC” typically stands for “Letter of Credit.” A Letter of Credit is a document issued by a bank that guarantees payment to a seller for goods or services, provided that certain conditions are met. Essentially, the bank acts as an intermediary between the buyer and the seller, ensuring that the seller will receive payment if they fulfill the terms of the Letter of Credit.

LC discounting, also known as “LC financing,” is a process in which a seller obtains cash from a bank or financial institution by selling their Letter of Credit at a discount. This allows the seller to receive payment for their goods or services more quickly than they would if they had to wait for the buyer to pay the bank directly.

How to understand it in practical situation?

In a practical situation, LC discounting may be used in international trade when the seller needs access to cash before the buyer has paid for the goods or services. The seller can sell the Letter of Credit to a bank or financial institution at a discount, and receive cash immediately. The bank then assumes the risk that the buyer will not pay, and takes on the responsibility of collecting payment from the buyer when it is due.

To do LC discounting in a practical situation, the seller would typically need to find a bank or financial institution that is willing to purchase their Letter of Credit at a discount. The discount rate would depend on factors such as the creditworthiness of the buyer and the terms of the Letter of Credit. The bank or financial institution would then provide the seller with the cash they need and assume the risk of collecting payment from the buyer at a later date.

Accounts Receivable Interview Q & A Session

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Accounts Receivable interview questions by Singhvi Online

March 15, 2023

Accounts Payable Vs Accounts Receivable

AP and AR are both important accounting terms used to manage a company’s finances.

AP stands for Accounts Payable, which refers to the amount of money that a company owes to its vendors, suppliers, or other creditors for goods and services that have been received but not yet paid for. Essentially, it’s the amount that a company owes to others.

AR stands for Accounts Receivable, which refers to the amount of money that a company is owed by its customers for goods and services that have been sold but not yet paid for. Essentially, it’s the amount that others owe to the company.

Accounts Payable (AP) is a term used in accounting to refer to the amount of money that a company owes to its vendors or suppliers for goods or services that have been purchased but not yet paid for. AP is considered a liability on the company’s balance sheet.

When a company purchases goods or services on credit, it creates an accounts payable entry in its books. This entry records the amount owed to the vendor, the invoice date, the due date, and other details. Once the company pays the vendor, it records a corresponding entry in its books to reduce the AP balance and reflect the payment.

Managing AP involves processing invoices, reconciling statements, and making payments to vendors in a timely manner. Companies often have AP departments or personnel responsible for these tasks. Efficient AP management is important for maintaining good relationships with vendors and for ensuring that the company’s financial records are accurate and up-to-date.

Accounts Receivable (AR) refers to the money that a company is owed by its customers for goods or services that have been delivered or rendered but not yet paid for. It is an asset on the balance sheet of a company, representing the amount of money that is expected to be received in the future from its customers.

When a company sells its products or services on credit, it creates an account for each customer to whom it extends credit. The account is then recorded as an account receivable, indicating the amount owed by the customer to the company. The company keeps track of these accounts, and once the customer pays, the company records the transaction as a reduction in the accounts receivable balance and an increase in cash or another payment method.

Accounts Receivable are important for a company’s cash flow management, as they represent a significant portion of its current assets. Efficient management of accounts receivable is necessary to ensure that a company has enough cash to cover its operational expenses and to invest in its growth.

In other words, Accounts Payable is the money that a company needs to pay, and Accounts Receivable is the money that a company expects to receive. Managing both AP and AR effectively are crucial for a company’s financial health and cash flow management.

The AP (Accounts Payable) and AR (Accounts Receivable) processes are important financial processes in any organization. Here is a high-level overview of the typical flow of each process:

Accounts Payable (AP) Process Flow:

Purchase Request: The process begins with a purchase request from a department within the organization.
Purchase Order: The purchase request is reviewed and approved by the procurement department, which then issues a purchase order to the vendor.
Invoice Receipt: Once the goods or services are received, the vendor issues an invoice to the organization.
Invoice Verification: The invoice is verified against the purchase order and goods receipt to ensure accuracy.
Approval: The invoice is then approved for payment by the appropriate department or individual within the organization.
Payment: Payment is then made to the vendor according to the payment terms outlined in the contract.
Recording: Finally, the payment is recorded in the organization’s accounting system.

Accounts Receivable (AR) Process Flow:

Sales Order: The process begins with a sales order from a customer.
Invoice Creation: An invoice is created based on the sales order and sent to the customer.
Invoice Delivery: The invoice is delivered to the customer through various channels such as email or mail.
Payment Receipt: The customer pays the invoice either through check, credit card or other payment options.
Payment Verification: The payment received is verified against the invoice.
Payment Recording: The payment is recorded in the organization’s accounting system.
Follow-up: If payment is not received, follow-up is done with the customer to collect the payment.

Note that these are high-level overviews, and the details of the AP and AR processes can vary depending on the organization and the industry.

For Accounts Payable Interview Questions please check out below:

Accounts Payable Interview Q & A Session – Rohitashva Singhvi

For Accounts Receivable Interview Questions please check out below:

Accounts Receivable Interview Q & A Session – Rohitashva Singhvi

March 15, 2023

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What is LC (Letter of Credit)?