Articles
The firm's Chartered Accountants write these notes for owners and finance heads of manufacturing businesses and groups. Their subjects are GST (including job work, ITC, notices, demands and appeals), income tax and TDS, MSME payment rules, stock statements for bank finance, transfer pricing and factory costing.
Every article carries its author's name and the date of the law it reflects, and the date of its last review is shown beside them. Where income tax applies, we give section numbers under both the Income-tax Act, 2025, which applies from 1 April 2026, and the Income-tax Act, 1961, so that they can be matched to older notices, orders and returns. The sources cited are the Acts, rules, notifications and circulars, with links to the official sites.
When the law changes, the article is revised or marked as superseded. It gives general information on the law as at its date, and advice on the facts of a particular business is a separate matter. For such advice, contact the firm.
- GST, 3 October 2026
GST demand orders, rectification and appeals: from DRC-07 to the Appellate Authority and GSTAT
A manufacturer that receives a demand order in Form DRC-07 after a GST show cause notice has three months from communication on the portal to appeal under section 107. This article explains how the order is read and when rectification under section 161 is worth filing. It also sets out the pre-deposit arithmetic and the position of the GST Appellate Tribunal as at 1 October 2026.
- Manufacturing finance, 3 October 2026
Inventory valuation, monthly stock statements and bank drawing power
A manufacturer with a bank working-capital limit files a monthly stock statement, and drawing power is computed from it. That statement, the books and the GST records often disagree, and a stock audit that finds the gap reduces drawing power. This article also covers the projections banks request at renewal.
- Income tax, 3 October 2026
The MSME 45-day payment rule: cash cycle, interest and income-tax disallowance
Section 15 of the MSMED Act fixes the date by which a buyer must pay a micro or small supplier. Late payment carries compound interest. Under section 37(2)(g) of the Income-tax Act 2025 (section 43B(h) of the 1961 Act), the income-tax deduction is also deferred to the year of actual payment.
- Income tax, 3 October 2026
TDS for manufacturing businesses: contractors, rent, fees, purchases and the quarterly return
Tax deducted at source on the payments a factory makes every month: job work and contracts, rent, professional and technical fees, and purchase of goods where the thresholds apply. Deposit and return deadlines under the Income-tax Act 2025, with the 1961 section numbers in brackets.
- Manufacturing finance, 2 October 2026
Product cost sheets for manufacturers: material, labour, overheads and why the books disagree
Factory owners price from a product cost sheet. A reliable one carries material with scrap and rejection, labour at a fully loaded rate and overheads at normal capacity. This article explains why it disagrees with the profit and loss account, with a Satpur worked example and the cost records rules under section 148 of the Companies Act.
- GST, 2 October 2026
Input tax credit for manufacturers: capital goods, common credits, blocked credits and the time limit
Manufacturers claim GST input tax credit each month in GSTR-3B. This article covers capital goods, rules 42 and 43 worked in rupees, credits blocked by section 17(5), the reversals factories often miss and the 30 November limit in section 16(4), with a worked example from a Nashik food-processing unit.
- GST, 2 October 2026
A GST notice has arrived: what to do, and not do, in the first seven days
A day-by-day guide for a factory that has received a GST notice on the portal: how to identify it (ASMT-10, DRC-01B, DRC-01C, DRC-01A or a show cause notice in DRC-01), the time limits under sections 73, 74 and 74A, the documents to collect, and the mistakes that turn a small query into a demand.
- Accounting, 2 October 2026
Year-end review for manufacturing companies: stock, related parties, GST, TDS, MSME dues and provisions
For manufacturing companies closing the year to 31 March 2027 under the Income-tax Act 2025: a checklist of stock, related parties, GST and TDS reconciliations, MSME dues, fixed assets, provisions and audit schedules, with a worked example from Sinnar.
- GST, 1 October 2026
GST on job work: a practical guide for manufacturers
Section 143 of the CGST Act lets a registered manufacturer send inputs and capital goods to a job worker without tax, under a challan and Form ITC-04. Inputs must return within one year, capital goods within three, or they are taxed as supplied on dispatch, with interest. A worked example from Nashik's auto-components belt follows.
- Transfer pricing, 1 October 2026
Transfer pricing for Indian group companies: when it applies and what to file
Indian groups with overseas or related entities must price those transactions at arm's length and obtain an accountant's report: Form 3CEB for 2025-26 and Form 48 from tax year 2026-27, due one month before the return. This note explains when the rules apply and how a Nashik group complies.