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v3.24.3

Income Taxes | 12 Months Ended
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Mar. 31, 2024
Income Tax Disclosure [Abstract] |
Income Taxes | Note 13 - Income Taxes The Company’s income tax expense majorly pertains to the Indian jurisdiction. Income before income taxes for the year ended March 31, 2024 and 2023, are as follows:
Schedule of income taxes majorly pertains |  |  |  |  |  |  |  |
|  | Year Ended March 31, |
|  | 2024 |  |  | 2023 |
United States |  | $ | (309 | ) |  | $ | 267 |
India |  |  | 3,095 |  |  |  | 2,508 |
Cayman Islands |  |  | 13,330 |  |  |  | - |
UAE |  |  | (25 | ) |  |  | - |
Singapore |  |  | 2,957 |  |  |  | (64 | )
Mexico |  |  | 79 |  |  |  | 55 |
Total |  | $ | 19,127 |  |  | $ | 2,766 |
Provision for income taxes for the year ended March 31, 2024 and March 31, 2023, consisted of the following:
Schedule of provision for income taxes |  |  |  |  |  |  |  |
|  | Year Ended March 31, |
|  | 2024 |  |  | 2023 |
Current tax provision |  | $ | 2,589 |  |  | $ | 1,221 |
Deferred tax benefit |  |  | (718 | ) |  |  | (161 | )
Provision for Income Taxes |  | $ | 1,871 |  |  | $ | 1,060 |
Income tax expense for the years ended March 31, 2024 and, 2023 is allocated as follows:
Schedule of income tax expense |  |  |  |  |  |  |  |
|  | Year Ended March 31, |
|  | 2024 |  |  | 2023 |
Income from operations |  | $ | 1,871 |  |  | $ | 1,060 |
Other comprehensive income |  |  |  |  |  |  |  |
Defined benefit plan |  |  | 4 |  |  |  | (39 | )
Total |  | $ | 1,875 |  |  | $ | 1,021 |
A reconciliation of the provision for income taxes, with the amount computed by applying the income tax rate for the Company to income before provision for income taxes for year ended March 31, 2024 and March 31, 2023, is as follows:
Schedule of income tax rate |  |  |  |  |  |  |  |
|  | Year Ended March 31, |
|  | 2024 |  |  | 2023 |
Income before income tax expense |  | $ | 19,127 |  |  | $ | 2,766 |
Income tax expense at tax rates applicable to the Company (i.e., 17%) |  |  | - |  |  |  | 470 |
Increase (decrease) in income taxes resulting from: |  |  |  |  |  |  |  |
Non-deductible expenses |  |  | 383 |  |  |  | 241 |
Non-taxable income |  |  | - |  |  |  | - |
Reversal of deferred tax asset / liability |  |  | 7 |  |  |  | 36 |
Valuation allowance |  |  | - |  |  |  | 36 |
Tax of earlier year |  |  | 221 |  |  |  | 9 |
True up /down |  |  | 78 |  |  |  | 89 |
Loss / (income) taxed at different tax rate |  |  | 2 |  |  |  | (3 | )
Adjustments for change in rates due to different tax jurisdiction |  |  | 1,254 |  |  |  | 223 |
Set off against brought forward losses |  |  | (60 | ) |  |  | (60 | )
GILTI inclusion |  |  | 42 |  |  |  | 27 |
Others |  |  | (56 | ) |  |  | (8 | )
Provision for income tax |  | $ | 1,871 |  |  | $ | 1,060 |
Effective tax rate |  |  | 9.78 | % |  |  | 38.33 | %
Significant components of the Company’s deferred taxes as of March 31, 2024 and 2023, are as follows:
Schedule of deferred taxes |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | As of March 31, |
|  | 2024 |  |  | 2023 |
|  | India |  |  | Singapore |  |  | USA |  |  | Mexico |  |  | India |  |  | Singapore |  |  | USA |  |  | Mexico |
Deferred tax assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Property and equipment |  |  | 271 |  |  |  | - |  |  |  | - |  |  |  | 1 |  |  |  | 231 |  |  |  | - |  |  |  | - |  |  |  | - |
Gratuity |  |  | 479 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 341 |  |  |  | - |  |  |  | - |  |  |  | - |
Deferred rent liability |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Compensated absences |  |  | 660 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 481 |  |  |  | - |  |  |  | - |  |  |  | - |
Expenses allowed on payment basis / upon deposit of withholding taxes under section 43B / 40(a)(ia) of Indian Income Tax Act, 1961 |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 12 |  |  |  | - |  |  |  | - |  |  |  | - |
Net operating losses |  |  | 30 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 34 |  |  |  | 35 |  |  |  | - |  |  |  | - |
Finance lease |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 137 |  |  |  | - |  |  |  | - |  |  |  | - |
Intangible assets under development |  |  | 4 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 4 |  |  |  | - |  |  |  | - |  |  |  | - |
Provision for expenses |  |  | 288 |  |  |  | 61 |  |  |  | 37 |  |  |  | 90 |  |  |  | 122 |  |  |  | - |  |  |  | - |  |  |  | - |
Operating lease liabilities |  |  | 1,879 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 1,487 |  |  |  | - |  |  |  | - |  |  |  | - |
Others |  |  | 76 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 15 |  |  |  | - |  |  |  | - |  |  |  | - |
Deferred tax asset before valuation allowance |  |  | 3,687 |  |  |  | 61 |  |  |  | 37 |  |  |  | 91 |  |  |  | 2,864 |  |  |  | 35 |  |  |  | - |  |  |  | - |
Valuation Allowance |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (158 | ) |  |  | (35 | ) |  |  | - |  |  |  | - |
Deferred tax asset, net of valuation allowance |  |  | 3,687 |  |  |  | 61 |  |  |  | 37 |  |  |  | 91 |  |  |  | 2,706 |  |  |  | - |  |  |  | - |  |  |  | - |
|  | As of March 31, |
|  | 2024 |  |  | 2023 |
|  | India |  |  | Singapore |  |  | USA |  |  | Mexico |  |  | India |  |  | Singapore |  |  | USA |  |  | Mexico |
Deferred tax liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investments |  |  | (139 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (136 | ) |  |  | - |  |  |  | - |  |  |  | - |
Property and equipment |  |  | - |  |  |  | - |  |  |  | (3 | ) |  |  | - |  |  |  | (29 | ) |  |  | - |  |  |  | (2 | ) |  |  | - |
Operating right-of-use assets |  |  | (1,784 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (1,416 | ) |  |  | - |  |  |  | - |  |  |  | - |
Others |  |  | (33 | ) |  |  | - |  |  |  | - |  |  |  | (76 | ) |  |  | (54 | ) |  |  | - |  |  |  | - |  |  |  | - |
Deferred tax liability |  |  | (1,956 | ) |  |  | - |  |  |  | (3 | ) |  |  | (76 | ) |  |  | (1,635 | ) |  |  | - |  |  |  | (2 | ) |  |  | - |
Net deferred tax asset (liability) |  |  | 1,731 |  |  |  | 61 |  |  |  | 34 |  |  |  | 15 |  |  |  | 1,071 |  |  |  | - |  |  |  | (2 | ) |  |  | - |
Components of deferred taxes |  |  |  |  |  |  |  |
|  | As of March 31, |
Classified as |  | 2024 |  |  | 2023 |
Deferred tax assets non-current |  | $ | 1,933 |  |  | $ | 1,237 |
Deferred tax liabilities non-current |  |  | 92 |  |  |  | 168 |
|  | $ | 1,841 |  |  | $ | 1,069 |
Net operating loss The Company has carry forward losses of $40 and $79 in the Indian jurisdiction, which will get expired in financial years 2028-29 and 2029-30, respectively. With certain immaterial exceptions, the Company is no longer subject to U.S. federal, state and local or other U.S. income tax examinations by taxing authorities for years prior to 2021. The Company’s subsidiaries in India are open to examination by relevant taxing authorities for tax years beginning on or after April 1, 2014. The Company regularly reviews the likelihood of additional tax assessments and adjusts its unrecognized tax benefits as additional information or events require. Unrecognized tax benefits The Company recognizes financial statement benefit of a tax position only after determining that the relevant tax authority would more-likely-than-not sustain the position following an audit. As of March 31, 2024 and March 31, 2023, the Company does not have any unrecognized tax benefits with a significant impact on its consolidated financial statements. The Company’s major tax jurisdictions are Singapore, India, the United States, and Mexico. Generally accepted accounting principles requires the Company’s management to evaluate tax positions taken by the Company and recognize a tax liability for any uncertain positions that more likely than not would not be sustained upon examination by the Internal Revenue System (the “IRS”) or a foreign jurisdiction taxing authority. The Company is subject to routine audits by tax authorities. Income tax has not been recognized on the excess of the amount for financial reporting over the tax basis of investments in foreign subsidiaries that is indefinitely reinvested outside the United States. This amount becomes taxable upon a repatriation of assets from the subsidiary or a sale or liquidation of the subsidiary. The amount of such temporary differences totalled approximately $6,883, with an income tax impact of approximately $409 as of March 31, 2024.

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