Para 1 Mr. Harsh Chawda, is a practising Chartered Accountant, resident of Pune. The marriage of his daughter, Seema Chawda, has been finalized with…

Para 1 Mr. Harsh Chawda, is a practising Chartered Accountant, resident of Pune. The marriage of his daughter, Seema Chawda, has been finalized with Mr. Dharmesh Raval, an NRI settled in Argentina. The marriage is scheduled on 21st October in Pune during the Diwali Festival. Mr. Harsh Chawda wanted to send 2,000 marriage invitation cards to all his relatives and friends in India to attend the marriage. He had to send invitations by inland letters. He also wished to provide a gift pack of food items to his relatives at the Haldi programme of his daughter for which he provided order to M/s Goyal Sweets for 500 packs, made as per its Diwali offer. Para 2 M/s Goyal Sweets, a store located and registered under GST in Maharashtra, had come out with big discount offer at the time of Diwali on various gift items. In order to attract more customers, it had decided to supply a gift pack containing 5 packets of Ladila's Namkeen (200 gram each) taxable @ 12%, 1 packet of Roasted Smoked Almonds (100 gram) taxable @ 18%, 1 packet of Cournville Chocolate (50 mg) taxable @ 28% and 1 bottle of Teal Fresh Juice (1 litre) taxable @ 18% in a single basket for a single price of 600 (GST inclusive). Para 3 Mr. Harsh Chawda also provides management consultancy and internal audit services to his clients. Looking at his expertise in financial management, Mr. Jaman, a student of Chartered Accountancy course, is very much impressed with his knowledge. He approached Mr. Harsh to take guidance on some topics of financial management subject related to his course. Mr. Harsh, on request, decided to spare some time and started providing classes to Mr. Jaman along with some other aspirants for 3 days in a week and for 1 hours in a day. However, he had not taken any specific permission for such private tutorship from the Council. Para 4 Mr. Harsh was appointed as internal auditor of Khwab Pharma Ltd., a company engaged in manufacturing of medicines based at Pune, Maharashtra, as the company was required to appoint internal auditor in accordance with statutory provisions given in the Companies Act, 2013. The company is registered under GST in the state of Maharashtra. BMK & Co. was appointed to conduct statutory audit of Khwab Pharma Ltd. The engagement partner of the firm, Mr. Rajan asked Mr. Harsh to provide direct assistance to him regarding evaluating significant accounting estimates by the management and assessing the risk of material misstatements. He also sought his direct assistance in assembling the information necessary to resolve exceptions in confirmation responses with respect to external confirmation requests. Para 5 Khwab Pharma Ltd. was considering its projects namely ‘Dehradun Plant' and 'Borsad Plant', respectively, for establishing its manufacturing units, for which it took assistance of Mr. Harsh for providing project appraisal, based on following information: Project Expected NPV (₹) Standard deviation (₹) Dehradun Plant 2,44,00,000 1,80,00,000 Borsad Plant 4,50,00,000 2,40,00,000 Also, Mr. Harsh was asked to provide a brief that how project appraisal is done under inflammatory conditions, as the aforesaid projects faced the similar situation. Para 6 Khwab Pharma Ltd. has 200 employees, who are each entitled to five working days of paid sick leaves for each year. Unused sick leave may be carried forward for one calendar year. Sick leave is taken first out of the current year's entitlement and then out of any balance brought forward from the previous year (LIFO basis). At 31st March, 2024, the average unused entitlement is two days per employee. The entity, on the basis of experience, expects that 184 employees will take not more than five days of paid sick leaves in 2024-2025 and that the remaining sixteen employees will take on an average six and half days each. The entity expects that it will pay an additional 24 days of sick pay as a result of the unused entitlement that has accumulated at 31st March, 2024 (one and a half days each, for sixteen employees). Further, the company has a post-employment medical plan which will reimburse 15% of an employee's post-employment medical costs if the employee leaves after more than ten and less than twenty years of service and 40% of those costs if the employee leaves after twenty or more years of service. Para 7 The Assessing Officer having proper jurisdiction surveyed the principal business place of Khwab Pharma Ltd. at 8 p.m. in night for the purpose of collecting information which may be useful for the purposes of the Income-tax Act, 1961. The place of business of the company is kept open for business every day between 10 a.m. and 9 p.m. He impounded and retained in his custody, books of account and other documents inspected by him, after recording his reasons for doing so, for 12 days. Further, he made an inventory of valuable articles in form of gold biscuits found at such place weighing 3 kgs each. The Commissioner of Income-tax had issued notice to revise the order passed by an Assessing Officer under section 143 in case of Khwab Pharma Ltd. During the pendency of proceedings before the Commissioner, on the basis of material gathered during the aforesaid survey under section 133A after issue of the first notice, the Commissioner of Income-tax issued a second notice, the contents of which were different from the contents of the first notice. Para 8 During the November month, the company entered into an agreement to sell a consignment of some medicines to Rajratna Medicines of Rampur, Uttar Pradesh. While the goods were being packed in Pune factory of the company, Rajratna Medicines got an order from Saras Med Pvt. Ltd. of Udupi, Karnataka for the said goods. Rajratna Medicines agreed to supply the said goods to Saras Med Pvt. Ltd. and asked the company to deliver the goods to Saras Med Pvt. Ltd. at Udupi. For determining the place of supply in case of aforesaid situation, Mr. Arvind, the tax manager of the company, made discussion with Mr. Harsh. Further, during the December month, the company had availed input tax credit of 84,500 for one of the invoices during December month under IGST head, instead of availing - 42,250 under CGST & SGST heads. Mr. Arvind asked the accountant to use Form GST PMT-09 for making a transfer from IGST head to respective CGST & SGST heads.