@mudraforge/statutory 2.8.0 → 2.9.0

package/src/calculators.js

@@ -0,0 +1,780 @@
+/**
+ * ═══════════════════════════════════════════════════════════════════════════
+ * @mudraforge/statutory — Deterministic Statutory Calculators
+ * ═══════════════════════════════════════════════════════════════════════════
+ * Pure, zero-dependency, mathematically deterministic calculation engines
+ * for Corporate Finance, Direct Tax, Indirect Tax (GST), International Tax,
+ * and Restructuring.
+ *
+ * Invariant Envelopes:
+ * 1. Zero dependencies. Native ES Modules.
+ * 2. Integer/paisa-level rounding preventing floating-point precision drift.
+ * 3. Enforces isAuthorizedToDisburse: false across all calculations (statutory
+ *    computation never authorizes payment disbursement autonomously).
+ * 4. Grounded in primary statutory citations, gazette notifications, and judicial rulings.
+ */
+
+/**
+ * Rounds a financial number to exactly 2 decimal places (paisa).
+ * Safeguards against -0, NaN, and non-finite inputs.
+ *
+ * @param {number|string} amount
+ * @returns {number}
+ */
+export function roundToPaisa(amount) {
+    const n = Number(amount);
+    if (!Number.isFinite(n) || isNaN(n) || Object.is(n, -0)) return 0;
+    return Math.round(n * 100) / 100;
+}
+
+/**
+ * Section 288B Rounding (Rounding off of tax):
+ * The amount of tax under the Income-tax Act is rounded off to the nearest rupee,
+ * and if the fraction is 50 paise or more, it is rounded up; otherwise ignored.
+ *
+ * @param {number|string} amount
+ * @returns {number}
+ */
+export function roundSection288B(amount) {
+    const n = Number(amount);
+    if (!Number.isFinite(n) || isNaN(n) || Object.is(n, -0)) return 0;
+    return Math.round(n);
+}
+
+/**
+ * ─────────────────────────────────────────────────────────────────────────────
+ * 1. CORPORATE TAX: MAT (SECTION 115JB) VS CONCESSIONAL REGIME (SECTION 115BAA)
+ * ─────────────────────────────────────────────────────────────────────────────
+ * Evaluates:
+ * 1. Normal Corporate Tax: 25% (turnover <= 400 Cr) or 30%, plus 7%/12% surcharge, plus 4% cess.
+ * 2. Minimum Alternate Tax (MAT u/s 115JB): 15% on Adjusted Book Profit, plus 7%/12% surcharge, plus 4% cess.
+ * 3. Section 115JAA MAT Credit: Set-off against normal tax or newly generated.
+ * 4. Section 115BAA Concessional Regime: Flat 22% + 10% surcharge + 4% cess = 25.168% effective.
+ *    Exempt from Section 115JB MAT u/s 115JB(5A). Forfeits accumulated MAT credit.
+ */
+export function calculateCorporateTaxMatVsConcessional({
+    financialYear = '2025-26',
+    assessmentYear = null,
+    turnoverPrecedingFyInr = 0,
+    netProfitBeforeTaxInr = 0,
+    normalTaxAdditionsInr = 0,
+    normalTaxDeductionsInr = 0,
+    accumulatedMatCreditInr = 0,
+    bookProfitAdjustments = null,
+    adjustedBookProfitInr = null,
+    optedSection115BAA = null
+} = {}) {
+    const fy = financialYear || '2025-26';
+    const ay = assessmentYear || (fy === '2025-26' ? '2026-27' : '2027-28');
+    const turnover = Number(turnoverPrecedingFyInr) || 0;
+    const npbt = Number(netProfitBeforeTaxInr) || 0;
+    const additions = Number(normalTaxAdditionsInr) || 0;
+    const deductions = Number(normalTaxDeductionsInr) || 0;
+    const priorMatCredit = Number(accumulatedMatCreditInr) || 0;
+
+    // A. Normal Corporate Tax Regime
+    const taxableIncomeNormal = Math.max(0, roundToPaisa(npbt + additions - deductions));
+    const baseRateNormal = turnover <= 4000000000 ? 0.25 : 0.30;
+    const baseTaxNormal = roundToPaisa(taxableIncomeNormal * baseRateNormal);
+
+    let surchargeRateNormal = 0;
+    if (taxableIncomeNormal > 100000000) {
+        surchargeRateNormal = 0.12;
+    } else if (taxableIncomeNormal > 10000000) {
+        surchargeRateNormal = 0.07;
+    }
+    const surchargeNormal = roundToPaisa(baseTaxNormal * surchargeRateNormal);
+    const cessNormal = roundToPaisa((baseTaxNormal + surchargeNormal) * 0.04);
+    const grossNormalTax = roundToPaisa(baseTaxNormal + surchargeNormal + cessNormal);
+
+    // B. Minimum Alternate Tax (Section 115JB)
+    let adjBookProfit = 0;
+    if (adjustedBookProfitInr !== null && adjustedBookProfitInr !== undefined) {
+        adjBookProfit = Math.max(0, Number(adjustedBookProfitInr) || 0);
+    } else if (bookProfitAdjustments && typeof bookProfitAdjustments === 'object') {
+        const bpAdditions = (Number(bookProfitAdjustments.incomeTaxProvision) || 0) +
+            (Number(bookProfitAdjustments.reservesTransfer) || 0) +
+            (Number(bookProfitAdjustments.contingentLiabilities) || 0) +
+            (Number(bookProfitAdjustments.diminutionInAssetValue) || 0) +
+            (Number(bookProfitAdjustments.exemptIncomeExpenses) || 0);
+        const bfLoss = Number(bookProfitAdjustments.broughtForwardLoss) || 0;
+        const unabsDep = Number(bookProfitAdjustments.unabsorbedDepreciation) || 0;
+        const lossDepDeduction = (bfLoss > 0 && unabsDep > 0) ? Math.min(bfLoss, unabsDep) : Math.max(bfLoss, unabsDep);
+        const bpDeductions = lossDepDeduction + (Number(bookProfitAdjustments.exemptIncome) || 0);
+        adjBookProfit = Math.max(0, roundToPaisa(npbt + bpAdditions - bpDeductions));
+    } else {
+        adjBookProfit = npbt;
+    }
+
+    const baseMatRate = 0.15;
+    const baseMatTax = roundToPaisa(adjBookProfit * baseMatRate);
+    let surchargeRateMat = 0;
+    if (adjBookProfit > 100000000) {
+        surchargeRateMat = 0.12;
+    } else if (adjBookProfit > 10000000) {
+        surchargeRateMat = 0.07;
+    }
+    const surchargeMat = roundToPaisa(baseMatTax * surchargeRateMat);
+    const cessMat = roundToPaisa((baseMatTax + surchargeMat) * 0.04);
+    const grossMatTax = roundToPaisa(baseMatTax + surchargeMat + cessMat);
+
+    // C. Old Regime Set-off & MAT Credit Determination (Section 115JAA)
+    let matCreditUtilized = 0;
+    let newMatCreditGenerated = 0;
+    let netNormalTaxPayable = grossNormalTax;
+    let taxPayableOldRegime = 0;
+
+    if (grossMatTax > grossNormalTax) {
+        taxPayableOldRegime = grossMatTax;
+        newMatCreditGenerated = roundToPaisa(grossMatTax - grossNormalTax);
+    } else {
+        const maxCreditAllowable = roundToPaisa(grossNormalTax - grossMatTax);
+        matCreditUtilized = Math.min(priorMatCredit, maxCreditAllowable);
+        netNormalTaxPayable = roundToPaisa(grossNormalTax - matCreditUtilized);
+        taxPayableOldRegime = netNormalTaxPayable;
+    }
+    const closingMatCreditOldRegime = roundToPaisa(priorMatCredit - matCreditUtilized + newMatCreditGenerated);
+
+    // D. Section 115BAA Concessional Regime
+    const taxableIncome115BAA = Math.max(0, roundToPaisa(npbt + additions));
+    const baseRate115BAA = 0.22;
+    const baseTax115BAA = roundToPaisa(taxableIncome115BAA * baseRate115BAA);
+    const surcharge115BAA = roundToPaisa(baseTax115BAA * 0.10); // Flat 10% surcharge u/s 115BAA(1) proviso
+    const cess115BAA = roundToPaisa((baseTax115BAA + surcharge115BAA) * 0.04);
+    const totalTax115BAA = roundToPaisa(baseTax115BAA + surcharge115BAA + cess115BAA);
+
+    // Under Section 115JB(5A), MAT does not apply to 115BAA companies
+    // Under Section 115JAA, accumulated MAT credit cannot be utilized and is forfeited
+    const forfeitedMatCredit115BAA = priorMatCredit;
+
+    // E. Strategic Comparative Recommendation
+    let recommendedRegime = 'SECTION_115BAA';
+    let recommendationRationale = '';
+    let netCashSavingsInr = 0;
+
+    if (optedSection115BAA === true) {
+        recommendedRegime = 'SECTION_115BAA';
+        netCashSavingsInr = roundToPaisa(taxPayableOldRegime - totalTax115BAA);
+        recommendationRationale = `Assessee has explicitly opted for Section 115BAA (25.168% effective rate). Section 115JB MAT is inapplicable u/s 115JB(5A). Accumulated MAT credit of INR ${forfeitedMatCredit115BAA.toLocaleString('en-IN')} is forfeited.`;
+    } else if (optedSection115BAA === false) {
+        recommendedRegime = 'OLD_REGIME';
+        netCashSavingsInr = roundToPaisa(totalTax115BAA - taxPayableOldRegime);
+        recommendationRationale = `Assessee remains under Old Regime. Applicable tax is INR ${taxPayableOldRegime.toLocaleString('en-IN')} (Normal Tax: INR ${grossNormalTax.toLocaleString('en-IN')}, MAT: INR ${grossMatTax.toLocaleString('en-IN')}). Closing MAT credit balance: INR ${closingMatCreditOldRegime.toLocaleString('en-IN')}.`;
+    } else {
+        if (taxPayableOldRegime < totalTax115BAA) {
+            recommendedRegime = 'OLD_REGIME';
+            netCashSavingsInr = roundToPaisa(totalTax115BAA - taxPayableOldRegime);
+            recommendationRationale = `Old Regime is optimal for FY ${fy}: Net cash outflow is INR ${taxPayableOldRegime.toLocaleString('en-IN')} vs INR ${totalTax115BAA.toLocaleString('en-IN')} under Section 115BAA (Net saving: INR ${netCashSavingsInr.toLocaleString('en-IN')}). Utilizing MAT credit or Chapter VI-A deductions yields lower current cash drain.`;
+        } else {
+            recommendedRegime = 'SECTION_115BAA';
+            netCashSavingsInr = roundToPaisa(taxPayableOldRegime - totalTax115BAA);
+            recommendationRationale = `Section 115BAA is optimal for FY ${fy}: Net tax payable is INR ${totalTax115BAA.toLocaleString('en-IN')} vs INR ${taxPayableOldRegime.toLocaleString('en-IN')} under Old Regime (Net saving: INR ${netCashSavingsInr.toLocaleString('en-IN')}). Form 10-IC must be filed before the due date u/s 139(1). Note: INR ${forfeitedMatCredit115BAA.toLocaleString('en-IN')} in accumulated MAT credit will lapse.`;
+        }
+    }
+
+    return {
+        status: 'SUCCESS',
+        statutoryDetermination: 'APPLICABLE',
+        governingLaw: 'Income-tax Act, 1961 Sections 115BAA, 115JB & 115JAA',
+        financialYear: fy,
+        assessmentYear: ay,
+        taxableIncomeNormalInr: taxableIncomeNormal,
+        adjustedBookProfitInr: adjBookProfit,
+        normalTaxRegime: {
+            turnoverPrecedingFyInr: turnover,
+            baseTaxRate: baseRateNormal,
+            baseTaxInr: baseTaxNormal,
+            surchargeRate: surchargeRateNormal,
+            surchargeInr: surchargeNormal,
+            cessInr: cessNormal,
+            grossNormalTaxInr: grossNormalTax,
+            effectiveRate: taxableIncomeNormal > 0 ? roundToPaisa((grossNormalTax / taxableIncomeNormal) * 100) : 0
+        },
+        minimumAlternateTaxSec115JB: {
+            baseMatRate: baseMatRate,
+            baseMatTaxInr: baseMatTax,
+            surchargeRate: surchargeRateMat,
+            surchargeInr: surchargeMat,
+            cessInr: cessMat,
+            grossMatTaxInr: grossMatTax,
+            effectiveMatRate: adjBookProfit > 0 ? roundToPaisa((grossMatTax / adjBookProfit) * 100) : 0
+        },
+        matCreditScheduleSec115JAA: {
+            openingMatCreditInr: priorMatCredit,
+            matCreditUtilizedInr: matCreditUtilized,
+            newMatCreditGeneratedInr: newMatCreditGenerated,
+            closingMatCreditInr: closingMatCreditOldRegime,
+            expiryYears: '15 Assessment Years'
+        },
+        concessionalRegimeSec115BAA: {
+            taxableIncomeInr: taxableIncome115BAA,
+            baseTaxRate: 0.22,
+            baseTaxInr: baseTax115BAA,
+            surchargeRate: 0.10,
+            surchargeInr: surcharge115BAA,
+            cessInr: cess115BAA,
+            totalTaxInr: totalTax115BAA,
+            effectiveRate: 25.168,
+            matApplicable: false,
+            matExemptionClause: 'Section 115JB(5A)',
+            forfeitedMatCreditInr: forfeitedMatCredit115BAA
+        },
+        comparisonSummary: {
+            cashOutflowOldRegimeInr: taxPayableOldRegime,
+            cashOutflowSection115BAAInr: totalTax115BAA,
+            recommendedRegime,
+            netCashSavingsInr,
+            form10IcRequired: recommendedRegime === 'SECTION_115BAA'
+        },
+        isAuthorizedToDisburse: false,
+        statutoryRationale: recommendationRationale,
+        citations: [
+            'Income-tax Act, 1961 Section 115BAA (Tax on income of certain domestic companies)',
+            'Income-tax Act, 1961 Section 115JB (Special provision for payment of tax by certain companies)',
+            'Income-tax Act, 1961 Section 115JB(5A) (Non-applicability of MAT to Section 115BAA)',
+            'Income-tax Act, 1961 Section 115JAA (Tax credit in respect of tax paid on deemed income)'
+        ]
+    };
+}
+
+/**
+ * ─────────────────────────────────────────────────────────────────────────────
+ * 2. PLACE OF SUPPLY (POS) & ZERO-RATED EXPORT UNDER LUT (IGST ACT SECTIONS 10, 12, 16)
+ * ─────────────────────────────────────────────────────────────────────────────
+ * Evaluates:
+ * 1. Domestic B2B / B2C POS (Sec 10 for Goods, Sec 12 for Services).
+ * 2. Intra-State (CGST + SGST) vs Inter-State (IGST) classification.
+ * 3. Export of Services under Section 16 & Section 2(6) cumulative 5 conditions.
+ * 4. Letter of Undertaking (LUT) zero-rate export vs tax payment refund.
+ */
+export function evaluatePlaceOfSupplyAndLut({
+    transactionType = 'DOMESTIC_SERVICES',
+    supplierStateCode = null,
+    supplierGstin = null,
+    recipientStateCode = null,
+    recipientGstin = null,
+    recipientCountryCode = 'IN',
+    invoiceAmountInr = 0,
+    gstRate = 0.18,
+    isB2B = true,
+    placeOfSupplyStateCode = null,
+    immovablePropertyLocationStateCode = null,
+    isSupplierInIndia = true,
+    isRecipientOutsideIndia = null,
+    isPlaceOfSupplyOutsideIndia = null,
+    isConvertibleForexReceivedOrRbiInr = null,
+    isDistinctPersonEstablishment = false,
+    isIntermediaryService = false,
+    hasValidLut = false,
+    lutArn = null
+} = {}) {
+    const amount = Number(invoiceAmountInr) || 0;
+    const rate = Number(gstRate) || 0.18;
+    const isTransExport = transactionType === 'EXPORT_SERVICES' || transactionType === 'EXPORT_GOODS' || (recipientCountryCode && recipientCountryCode.toUpperCase() !== 'IN');
+
+    // Extract state codes
+    let supState = supplierStateCode;
+    if (!supState && supplierGstin && typeof supplierGstin === 'string' && supplierGstin.length >= 2) {
+        supState = supplierGstin.slice(0, 2);
+    }
+    let recState = recipientStateCode;
+    if (!recState && recipientGstin && typeof recipientGstin === 'string' && recipientGstin.length >= 2) {
+        recState = recipientGstin.slice(0, 2);
+    }
+
+    if (isTransExport) {
+        // Evaluate Section 2(6) 5 Cumulative Conditions for Export of Services
+        const cond1SupplierInIndia = isSupplierInIndia === true;
+        const cond2RecipientOutsideIndia = recipientCountryCode.toUpperCase() !== 'IN' && (isRecipientOutsideIndia === null || isRecipientOutsideIndia === true);
+        // Intermediary services under Section 13(8)(b) have POS at supplier location in India
+        const cond3PosOutsideIndia = !isIntermediaryService && (isPlaceOfSupplyOutsideIndia === null || isPlaceOfSupplyOutsideIndia === true);
+        const cond4ForexReceived = isConvertibleForexReceivedOrRbiInr === true;
+        const cond5NotDistinctPersons = isDistinctPersonEstablishment === false;
+
+        const conditionAudit = [
+            { condition: '1. Supplier located in India (Sec 2(6)(i))', status: cond1SupplierInIndia ? 'PASS' : 'FAIL' },
+            { condition: '2. Recipient located outside India (Sec 2(6)(ii))', status: cond2RecipientOutsideIndia ? 'PASS' : 'FAIL' },
+            { condition: '3. Place of supply outside India (Sec 2(6)(iii) & Sec 13)', status: cond3PosOutsideIndia ? 'PASS' : (isIntermediaryService ? 'FAIL_INTERMEDIARY_SEC_13_8_B' : 'FAIL') },
+            { condition: '4. Convertible forex / RBI permitted INR received (Sec 2(6)(iv))', status: cond4ForexReceived ? 'PASS' : 'FAIL_NO_FIRC_EBRC' },
+            { condition: '5. Not merely establishments of distinct persons (Sec 2(6)(v))', status: cond5NotDistinctPersons ? 'PASS' : 'FAIL_DISTINCT_PERSON_BRANCH' }
+        ];
+
+        const isFullyQualifiedExport = cond1SupplierInIndia && cond2RecipientOutsideIndia && cond3PosOutsideIndia && cond4ForexReceived && cond5NotDistinctPersons;
+
+        if (isFullyQualifiedExport) {
+            if (hasValidLut) {
+                return {
+                    status: 'SUCCESS',
+                    statutoryDetermination: 'ZERO_RATED_EXPORT_UNDER_LUT',
+                    governingLaw: 'IGST Act, 2017 Sections 2(6), 16(1)(a) & 16(3)(a); CGST Rules, 2017 Rule 96A',
+                    transactionType: 'EXPORT_SERVICES',
+                    invoiceAmountInr: amount,
+                    gstRate: 0,
+                    igstPayableInr: 0,
+                    cgstPayableInr: 0,
+                    sgstPayableInr: 0,
+                    lutArn: lutArn || 'LUT_ARN_ACTIVE_ON_RECORD',
+                    isZeroRated: true,
+                    itcRefundEligible: true,
+                    reportingTable: 'GSTR-1 Table 6A (Export without payment of tax)',
+                    conditionAudit,
+                    isAuthorizedToDisburse: false,
+                    statutoryRationale: `Zero-Rated Export of Services under LUT: All 5 conditions of Section 2(6) IGST Act verified. Export proceeds in convertible foreign exchange/RBI INR confirmed. Supply is zero-rated at 0% IGST under valid LUT ARN ${lutArn || 'ACTIVE'}. Accumulated unutilized ITC is eligible for refund under Section 54(3).`
+                };
+            } else {
+                const igstTax = roundToPaisa(amount * rate);
+                return {
+                    status: 'SUCCESS',
+                    statutoryDetermination: 'ZERO_RATED_EXPORT_WITH_TAX_PAYMENT',
+                    governingLaw: 'IGST Act, 2017 Sections 2(6), 16(1)(a) & 16(3)(b); CGST Act Section 54',
+                    transactionType: 'EXPORT_SERVICES',
+                    invoiceAmountInr: amount,
+                    gstRate: rate,
+                    igstPayableInr: igstTax,
+                    cgstPayableInr: 0,
+                    sgstPayableInr: 0,
+                    isZeroRated: true,
+                    itcRefundEligible: true,
+                    reportingTable: 'GSTR-1 Table 6A (Export with payment of tax)',
+                    conditionAudit,
+                    isAuthorizedToDisburse: false,
+                    statutoryRationale: `Zero-Rated Export with payment of tax: All 5 conditions of Section 2(6) satisfied, but no valid LUT on record. IGST of INR ${igstTax.toLocaleString('en-IN')} (at ${(rate * 100)}%) is charged and eligible for refund under Section 54(1).`
+                };
+            }
+        } else {
+            const igstTax = roundToPaisa(amount * rate);
+            const failedReasons = conditionAudit.filter(c => c.status !== 'PASS').map(c => c.condition);
+            return {
+                status: 'SUCCESS',
+                statutoryDetermination: 'DISQUALIFIED_FROM_ZERO_RATING',
+                governingLaw: 'IGST Act, 2017 Sections 2(6), 7(5)(a) & 13',
+                transactionType: 'DISQUALIFIED_EXPORT_SERVICES',
+                invoiceAmountInr: amount,
+                gstRate: rate,
+                igstPayableInr: igstTax,
+                cgstPayableInr: 0,
+                sgstPayableInr: 0,
+                isZeroRated: false,
+                itcRefundEligible: false,
+                disqualificationReasons: failedReasons,
+                conditionAudit,
+                isAuthorizedToDisburse: false,
+                statutoryRationale: `Disqualified from Zero-Rated Export: Supply failed statutory condition(s): ${failedReasons.join('; ')}. Treated as standard domestic inter-state supply to foreign person subject to standard ${(rate * 100)}% IGST (INR ${igstTax.toLocaleString('en-IN')}).`
+            };
+        }
+    }
+
+    // Domestic Transaction Place of Supply Determination
+    let posState = placeOfSupplyStateCode;
+    let posLegalRule = '';
+
+    if (immovablePropertyLocationStateCode) {
+        posState = immovablePropertyLocationStateCode;
+        posLegalRule = 'IGST Act Section 12(3) (Directly related to immovable property - location of property)';
+    } else if (transactionType === 'DOMESTIC_GOODS') {
+        posState = posState || recState || supState;
+        posLegalRule = 'IGST Act Section 10(1)(a) (Location of goods at termination of delivery)';
+    } else {
+        if (isB2B && recState) {
+            posState = recState;
+            posLegalRule = 'IGST Act Section 12(2)(a) (B2B supply - location of registered recipient)';
+        } else if (recState) {
+            posState = recState;
+            posLegalRule = 'IGST Act Section 12(2)(b) (B2C supply with address on record)';
+        } else {
+            posState = supState;
+            posLegalRule = 'IGST Act Section 12(2)(b) proviso (B2C supply without address - location of supplier)';
+        }
+    }
+
+    const isIntraState = supState && posState && (supState === posState);
+    let cgstRate = 0, sgstRate = 0, igstRate = 0;
+    let cgstAmountInr = 0, sgstAmountInr = 0, igstAmountInr = 0;
+
+    if (isIntraState) {
+        cgstRate = rate / 2;
+        sgstRate = rate / 2;
+        cgstAmountInr = roundToPaisa(amount * cgstRate);
+        sgstAmountInr = roundToPaisa(amount * sgstRate);
+    } else {
+        igstRate = rate;
+        igstAmountInr = roundToPaisa(amount * igstRate);
+    }
+    const totalGstInr = roundToPaisa(cgstAmountInr + sgstAmountInr + igstAmountInr);
+
+    return {
+        status: 'SUCCESS',
+        statutoryDetermination: isIntraState ? 'INTRA_STATE_SUPPLY' : 'INTER_STATE_SUPPLY',
+        governingLaw: isIntraState ? 'CGST Act Section 9 & SGST Act Section 9' : 'IGST Act Section 5 & Section 7',
+        posLegalRule,
+        supplierStateCode: supState,
+        placeOfSupplyStateCode: posState,
+        recipientStateCode: recState,
+        invoiceAmountInr: amount,
+        supplyNature: isIntraState ? 'INTRA_STATE' : 'INTER_STATE',
+        taxBreakdown: {
+            cgstRate,
+            cgstAmountInr,
+            sgstRate,
+            sgstAmountInr,
+            igstRate,
+            igstAmountInr,
+            totalGstAmountInr: totalGstInr
+        },
+        isAuthorizedToDisburse: false,
+        statutoryRationale: isIntraState
+            ? `Intra-State Supply: Supplier state (${supState}) matches Place of Supply (${posState}). CGST (${(cgstRate * 100)}%: INR ${cgstAmountInr.toLocaleString('en-IN')}) and SGST (${(sgstRate * 100)}%: INR ${sgstAmountInr.toLocaleString('en-IN')}) levied under Section 9.`
+            : `Inter-State Supply: Supplier state (${supState}) differs from Place of Supply (${posState}). IGST (${(igstRate * 100)}%: INR ${igstAmountInr.toLocaleString('en-IN')}) levied under Section 5 of IGST Act.`
+    };
+}
+
+/**
+ * ─────────────────────────────────────────────────────────────────────────────
+ * 3. TRANSFER PRICING ARM'S LENGTH PRICE (ALP) ENGINE (SECTION 92C & RULE 10CA)
+ * ─────────────────────────────────────────────────────────────────────────────
+ * Computes Transfer Pricing compliance:
+ * 1. Associated Enterprise (AE) transaction validation under Section 92A.
+ * 2. 3% tolerance band for wholesale traders vs 1% for other businesses (proviso to Sec 92C(2)).
+ * 3. Rule 10CA Percentile Range: 35th to 65th percentile dataset evaluation for >= 6 comparables.
+ * 4. Rule 10CA(7) Median (50th percentile) primary adjustment if tested margin is outside range.
+ * 5. Section 92CE Secondary Adjustment threshold warning (> 1 Cr).
+ */
+export function calculateTransferPricingAlp({
+    transactionDescription = 'International Transaction with Associated Enterprise',
+    testedParty = 'Indian Enterprise',
+    associatedEnterpriseName = 'Foreign AE',
+    isAssociatedEnterprise = true,
+    internationalTransactionAmountInr = 0,
+    testedPartyOperatingMarginPercent = 0,
+    isWholesaleTrading = false,
+    comparablesData = [],
+    transferPricingMethod = 'TNMM'
+} = {}) {
+    const amount = Number(internationalTransactionAmountInr) || 0;
+    const testedMargin = Number(testedPartyOperatingMarginPercent) || 0;
+    const tolerancePercent = isWholesaleTrading ? 3.0 : 1.0;
+
+    if (!isAssociatedEnterprise) {
+        return {
+            status: 'SUCCESS',
+            statutoryDetermination: 'NOT_APPLICABLE',
+            governingLaw: 'Income-tax Act, 1961 Section 92A & 92C',
+            transactionDescription,
+            isAssociatedEnterprise: false,
+            statutoryRationale: 'Counterparty is not an Associated Enterprise under Section 92A. Transfer Pricing provisions u/s 92C do not apply to third-party transactions.',
+            isAuthorizedToDisburse: false
+        };
+    }
+
+    const comparables = Array.isArray(comparablesData)
+        ? comparablesData.map(x => Number(typeof x === 'object' && x !== null ? (x.operatingMargin || x.margin || 0) : x)).filter(x => !isNaN(x)).sort((a, b) => a - b)
+        : [];
+
+    let isArmLengthCompliant = false;
+    let primaryAdjustmentInr = 0;
+    let percentile35 = null;
+    let percentile65 = null;
+    let median50 = null;
+    let arithmeticMean = null;
+    let appliedRule = '';
+
+    if (comparables.length >= 6) {
+        appliedRule = 'Rule 10CA Percentile Range (Dataset >= 6 Comparables)';
+        const n = comparables.length;
+
+        const getPercentileValue = (p) => {
+            const index = (n * p);
+            if (Number.isInteger(index)) {
+                const i = index - 1;
+                return (comparables[i] + comparables[Math.min(i + 1, n - 1)]) / 2;
+            } else {
+                const i = Math.floor(index);
+                return comparables[Math.min(i, n - 1)];
+            }
+        };
+
+        percentile35 = roundToPaisa(getPercentileValue(0.35));
+        percentile65 = roundToPaisa(getPercentileValue(0.65));
+        median50 = roundToPaisa(getPercentileValue(0.50));
+
+        if (testedMargin >= percentile35 && testedMargin <= percentile65) {
+            isArmLengthCompliant = true;
+            primaryAdjustmentInr = 0;
+        } else if (testedMargin > percentile65) {
+            isArmLengthCompliant = true;
+            primaryAdjustmentInr = 0;
+        } else {
+            isArmLengthCompliant = false;
+            const marginShortfall = roundToPaisa(median50 - testedMargin);
+            primaryAdjustmentInr = roundToPaisa(amount * (marginShortfall / 100));
+        }
+    } else if (comparables.length > 0) {
+        appliedRule = 'Proviso to Section 92C(2) Arithmetic Mean & Tolerance Band (< 6 Comparables)';
+        arithmeticMean = roundToPaisa(comparables.reduce((sum, x) => sum + x, 0) / comparables.length);
+        const variationPercent = Math.abs(testedMargin - arithmeticMean);
+
+        if (variationPercent <= tolerancePercent || testedMargin >= arithmeticMean) {
+            isArmLengthCompliant = true;
+            primaryAdjustmentInr = 0;
+        } else {
+            isArmLengthCompliant = false;
+            const marginShortfall = roundToPaisa(arithmeticMean - testedMargin);
+            primaryAdjustmentInr = roundToPaisa(amount * (marginShortfall / 100));
+        }
+    } else {
+        appliedRule = 'Single Transaction Assessment (No Dataset)';
+        isArmLengthCompliant = true;
+        primaryAdjustmentInr = 0;
+    }
+
+    const requiresSecondaryAdjustment = primaryAdjustmentInr > 10000000;
+
+    return {
+        status: 'SUCCESS',
+        statutoryDetermination: isArmLengthCompliant ? 'ARM_LENGTH_COMPLIANT' : 'PRIMARY_ADJUSTMENT_REQUIRED',
+        governingLaw: 'Income-tax Act, 1961 Section 92C, Rule 10B & Rule 10CA',
+        testedParty,
+        associatedEnterpriseName,
+        transferPricingMethod,
+        internationalTransactionAmountInr: amount,
+        testedPartyOperatingMarginPercent: testedMargin,
+        appliedRule,
+        toleranceBandPercent: tolerancePercent,
+        datasetSummary: {
+            comparablesCount: comparables.length,
+            percentile35,
+            percentile65,
+            median50,
+            arithmeticMean,
+            armLengthRange: percentile35 !== null ? [percentile35, percentile65] : null
+        },
+        primaryAdjustmentInr,
+        secondaryAdjustmentAlert: requiresSecondaryAdjustment ? {
+            applicable: true,
+            section: 'Section 92CE',
+            threshold: 'Exceeds INR 1,00,00,000',
+            repatriationPeriodDays: 90,
+            statutoryConsequence: 'Excess money must be repatriated into India within 90 days, failing which interest at SBI 1-yr MCLR + 325 bps applies.'
+        } : { applicable: false },
+        isAuthorizedToDisburse: false,
+        statutoryRationale: isArmLengthCompliant
+            ? `Transfer Pricing Compliant: Tested party operating margin of ${testedMargin}% is within the statutory arm's length range [${percentile35 ?? arithmeticMean}%, ${percentile65 ?? arithmeticMean}%]. Primary adjustment is INR 0.`
+            : `Primary Adjustment Required: Tested margin (${testedMargin}%) falls below statutory arm's length range. Under Rule 10CA(7), adjustment is made to the Median (50th percentile: ${median50}%). Primary TP addition to income: INR ${primaryAdjustmentInr.toLocaleString('en-IN')}.${requiresSecondaryAdjustment ? ' Section 92CE secondary adjustment mandatory.' : ''}`
+    };
+}
+
+/**
+ * ─────────────────────────────────────────────────────────────────────────────
+ * 4. SECTION 79 TAX LOSS CARRY-FORWARD & SHAREHOLDING CONTINUITY
+ * ─────────────────────────────────────────────────────────────────────────────
+ * Evaluates carry forward and set off of accumulated business losses:
+ * 1. General Rule (Sec 79(1)): Denied if >= 51% change in voting power.
+ * 2. Startup Carve-Out (Sec 79(2)): Preserved for DPIIT startups u/s 80-IAC if all original shareholders continue.
+ * 3. IBC Carve-Out (Sec 79(2)(c)): Preserved for NCLT resolution plans.
+ * 4. Section 32(2) Invariant: Unabsorbed depreciation carries forward INDEFINITELY regardless of Section 79.
+ */
+export function evaluateSection79LossContinuity({
+    companyType = 'CLOSELY_HELD_COMPANY',
+    isDpiitRecognizedStartup = false,
+    isIbcResolutionPlan = false,
+    accumulatedBroughtForwardLossInr = 0,
+    unabsorbedDepreciationInr = 0,
+    shareholdingInLossYear = [],
+    shareholdingInSetOffYear = [],
+    votingPowerHeldByOriginalShareholdersPercent = null
+} = {}) {
+    const bfLoss = Math.max(0, Number(accumulatedBroughtForwardLossInr) || 0);
+    const unabsDep = Math.max(0, Number(unabsorbedDepreciationInr) || 0);
+
+    let continuityPercent = votingPowerHeldByOriginalShareholdersPercent !== null
+        ? Number(votingPowerHeldByOriginalShareholdersPercent)
+        : null;
+
+    let allOriginalShareholdersContinue = false;
+
+    if (continuityPercent === null && Array.isArray(shareholdingInLossYear) && shareholdingInLossYear.length > 0 && Array.isArray(shareholdingInSetOffYear)) {
+        let commonVotingPower = 0;
+        let originalFoundCount = 0;
+
+        for (const orig of shareholdingInLossYear) {
+            const pan = orig.shareholderPan || orig.pan || orig.name;
+            const origPct = Number(orig.percentage || orig.votingPower || 0);
+            const current = shareholdingInSetOffYear.find(x => (x.shareholderPan || x.pan || x.name) === pan);
+
+            if (current && Number(current.percentage || current.votingPower || 0) > 0) {
+                originalFoundCount++;
+                commonVotingPower += Math.min(origPct, Number(current.percentage || current.votingPower || 0));
+            }
+        }
+        continuityPercent = roundToPaisa(commonVotingPower);
+        allOriginalShareholdersContinue = (originalFoundCount === shareholdingInLossYear.length);
+    } else if (continuityPercent !== null) {
+        allOriginalShareholdersContinue = continuityPercent > 0;
+    } else {
+        continuityPercent = 100;
+        allOriginalShareholdersContinue = true;
+    }
+
+    let isLossCarryForwardAllowed = false;
+    let governingClause = 'Section 79(1)';
+    let rationale = '';
+
+    if (isIbcResolutionPlan) {
+        isLossCarryForwardAllowed = true;
+        governingClause = 'Section 79(2)(c) (Insolvency and Bankruptcy Code Resolution Plan)';
+        rationale = 'Accumulated business losses are protected under Section 79(2)(c): Change in shareholding pursuant to NCLT approved resolution plan under the IBC, 2016 is exempt from Section 79 restrictions.';
+    } else if (isDpiitRecognizedStartup) {
+        governingClause = 'Section 79(2) (DPIIT Recognized Startup under Section 80-IAC)';
+        if (allOriginalShareholdersContinue) {
+            isLossCarryForwardAllowed = true;
+            rationale = `Accumulated business losses protected under Section 79(2) startup carve-out: Although original voting power is ${continuityPercent}%, all original shareholders continue to hold shares in the company.`;
+        } else {
+            isLossCarryForwardAllowed = continuityPercent >= 51.0;
+            rationale = isLossCarryForwardAllowed
+                ? `Section 79 satisfied: Original shareholders retain ${continuityPercent}% voting power (>= 51%).`
+                : `Section 79(2) startup carve-out failed: Not all original shareholders continue to hold shares, and retained voting power (${continuityPercent}%) is below 51%. Business loss lapsed.`;
+        }
+    } else {
+        governingClause = 'Section 79(1) General Corporate Rule';
+        if (continuityPercent >= 51.0) {
+            isLossCarryForwardAllowed = true;
+            rationale = `Section 79(1) compliant: Original shareholders hold ${continuityPercent}% of voting power on the last day of the financial year (threshold: >= 51%). Business losses can be set off.`;
+        } else {
+            isLossCarryForwardAllowed = false;
+            rationale = `Section 79(1) violation: Voting power held by original shareholders has fallen to ${continuityPercent}% (< 51%). Accumulated business losses of INR ${bfLoss.toLocaleString('en-IN')} are legally lapsed and forfeited.`;
+        }
+    }
+
+    const allowableLossSetOffInr = isLossCarryForwardAllowed ? bfLoss : 0;
+    const lapsedBusinessLossInr = isLossCarryForwardAllowed ? 0 : bfLoss;
+
+    return {
+        status: 'SUCCESS',
+        statutoryDetermination: isLossCarryForwardAllowed ? 'LOSS_CARRYFORWARD_ALLOWED' : 'LOSS_CARRYFORWARD_DENIED',
+        governingLaw: 'Income-tax Act, 1961 Section 79 & Section 32(2)',
+        governingClause,
+        companyType,
+        isDpiitRecognizedStartup,
+        isIbcResolutionPlan,
+        beneficialOwnershipContinuityPercent: continuityPercent,
+        allOriginalShareholdersContinue,
+        lossSchedule: {
+            broughtForwardBusinessLossInr: bfLoss,
+            allowableLossSetOffInr,
+            lapsedBusinessLossInr,
+            unabsorbedDepreciationInr: unabsDep,
+            unabsorbedDepreciationStatutoryStatus: 'Fully protected under Section 32(2) -- Indefinite carry forward unaffected by shareholding changes.'
+        },
+        isAuthorizedToDisburse: false,
+        statutoryRationale: `${rationale} Note: Unabsorbed depreciation of INR ${unabsDep.toLocaleString('en-IN')} is unaffected by Section 79 per Supreme Court precedent (CIT v. Virmani Industries) and carries forward indefinitely.`
+    };
+}
+
+/**
+ * ─────────────────────────────────────────────────────────────────────────────
+ * 5. FOREIGN EXCHANGE MONETARY REVALUATION (IND AS 21 & IND AS 109)
+ * ─────────────────────────────────────────────────────────────────────────────
+ * Revalues foreign currency monetary items at closing reporting spot rates:
+ * 1. Monetary Assets (Receivables, Bank) vs Monetary Liabilities (Payables, Loans).
+ * 2. Net Unrealized Gain/Loss routing: P&L vs Other Comprehensive Income (OCI - Cash Flow Hedge Reserve).
+ * 3. Ind AS 109 Balance Sheet schedule generation.
+ */
+export function revalueForeignExchangeIndAs109({
+    asOfDate = null,
+    reportingCurrency = 'INR',
+    items = []
+} = {}) {
+    const dAsOf = asOfDate ? new Date(asOfDate) : new Date();
+    const asOfIso = !isNaN(dAsOf.getTime()) ? dAsOf.toISOString().split('T')[0] : new Date().toISOString().split('T')[0];
+
+    const revaluedItems = [];
+    let totalPnlGainInr = 0;
+    let totalPnlLossInr = 0;
+    let totalOciGainInr = 0;
+    let totalOciLossInr = 0;
+
+    const itemList = Array.isArray(items) ? items : [];
+
+    for (const item of itemList) {
+        const desc = item.description || item.itemDescription || 'FX Item';
+        const itemType = (item.itemType || 'MONETARY_ASSET').toUpperCase();
+        const ccy = item.foreignCurrency || item.currency || 'USD';
+        const fcyAmt = Number(item.foreignAmount || item.amount || 0);
+        const bookRate = Number(item.bookingRate || item.historicalRate || 1);
+        const closeRate = Number(item.closingRate || item.spotRate || bookRate);
+        const isHedge = item.isDesignatedCashFlowHedge === true;
+
+        if (itemType === 'NON_MONETARY') {
+            revaluedItems.push({
+                description: desc,
+                itemType: 'NON_MONETARY',
+                foreignCurrency: ccy,
+                foreignAmount: fcyAmt,
+                bookingRate: bookRate,
+                closingRate: closeRate,
+                carryingAmountInr: roundToPaisa(fcyAmt * bookRate),
+                unrealizedGainLossInr: 0,
+                accountingTreatment: 'Carried at historical cost per Ind AS 21.23(b) -- No closing rate revaluation.'
+            });
+            continue;
+        }
+
+        const carryingAmountInr = roundToPaisa(fcyAmt * bookRate);
+        const revaluedAmountInr = roundToPaisa(fcyAmt * closeRate);
+
+        let gainLoss = 0;
+        if (itemType === 'MONETARY_ASSET') {
+            gainLoss = roundToPaisa(revaluedAmountInr - carryingAmountInr);
+        } else {
+            gainLoss = roundToPaisa(carryingAmountInr - revaluedAmountInr);
+        }
+
+        let routing = '';
+        if (isHedge) {
+            routing = 'OTHER_COMPREHENSIVE_INCOME (Cash Flow Hedge Reserve)';
+            if (gainLoss >= 0) totalOciGainInr += gainLoss;
+            else totalOciLossInr += Math.abs(gainLoss);
+        } else {
+            routing = 'PROFIT_AND_LOSS (Foreign Exchange Fluctuation Account)';
+            if (gainLoss >= 0) totalPnlGainInr += gainLoss;
+            else totalPnlLossInr += Math.abs(gainLoss);
+        }
+
+        revaluedItems.push({
+            description: desc,
+            itemType,
+            foreignCurrency: ccy,
+            foreignAmount: fcyAmt,
+            bookingRate: bookRate,
+            closingRate: closeRate,
+            carryingAmountInr,
+            revaluedAmountInr,
+            unrealizedGainLossInr: gainLoss,
+            isGain: gainLoss >= 0,
+            accountingTreatment: routing
+        });
+    }
+
+    const netPnlGainLossInr = roundToPaisa(totalPnlGainInr - totalPnlLossInr);
+    const netOciGainLossInr = roundToPaisa(totalOciGainInr - totalOciLossInr);
+
+    return {
+        status: 'SUCCESS',
+        statutoryDetermination: 'APPLICABLE',
+        governingLaw: 'Ind AS 21 (The Effects of Changes in Foreign Exchange Rates) & Ind AS 109 (Financial Instruments)',
+        asOfDate: asOfIso,
+        reportingCurrency,
+        totalItemsEvaluated: revaluedItems.length,
+        summary: {
+            netPnlImpactInr: netPnlGainLossInr,
+            netPnlStatus: netPnlGainLossInr >= 0 ? 'NET_UNREALIZED_GAIN' : 'NET_UNREALIZED_LOSS',
+            netOciImpactInr: netOciGainLossInr,
+            netOciStatus: netOciGainLossInr >= 0 ? 'NET_HEDGE_RESERVE_GAIN' : 'NET_HEDGE_RESERVE_LOSS',
+            totalPnlGainInr: roundToPaisa(totalPnlGainInr),
+            totalPnlLossInr: roundToPaisa(totalPnlLossInr)
+        },
+        revaluedItems,
+        isAuthorizedToDisburse: false,
+        statutoryRationale: `Ind AS 21 & 109 Revaluation: ${revaluedItems.length} items evaluated as of ${asOfIso}. Net P&L FX impact: INR ${netPnlGainLossInr.toLocaleString('en-IN')}; Net OCI Hedge impact: INR ${netOciGainLossInr.toLocaleString('en-IN')}. Accounting revaluations do not authorize payment disbursement.`
+    };
+}