The financial life of a number of Indian will observe important changes in their financial life from tomorrow onwards. Since April 1 is the first day of the next financial year, 2018-19. All the proposals which were announced in the budget for the coming financial year will come into force from April 1. Here we will particularly talk about the key changes which will affect companies in India. From April 1, the companies will have to make use of more detailed revenue recognition ways after the Finance Ministry notified a new accounting standard.
From tomorrow, Indian Accounting Standard (Ind AS) 115 would be effective for the new financial year. In wake of this, the other two standards – Ind AS 18 and 11 – which are related to revenue and construction contracts, would cease to exist.
The businesses which transport goods of over Rs 50,000 in worth from one state to other will have to now carry an e-way bill from April 1. This measure is expected to clamp down on trade that presently occurs on cash basis. The e-way bill provision of the Goods and Services Tax (GST) was introduced on February 1, 2018.
Compensation on termination or modification of employment
At present, certain compensation in relation with employment is out of the purview of taxation, that leads to base erosion and loss of revenue. But from April 1 things will change. “It is proposed that any compensation or other payments due to or received by any person in connection with the termination or the modification of the terms and conditions of any contract relating to his employment shall be taxable under the head income from other sources,” as per a Deloitte report.