If you forgot to mention a HSN Code / SAC Code during GST Registration, don't worry no need to amend registration. You can trade in other items too.
Law can not restrict us
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There has been always a confusion whether credit of repair or maintenance expense of motor vehicle allowed ?
Answer is Yes because section 17 talks about Motor Vehicle only and not their expenses.
Answer is Yes because section 17 talks about Motor Vehicle only and not their expenses.
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CBDT notifies new Form no. 29B for MAT audit http://financebirds.com/tax/form-29b-mat-audit/
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As much as Rs 42,000 crore has already come in as taxes so far in the first monthly filing under the new Goods and Services Tax (GST) regime and the revenues are expected to swell further as the filing cycle closes this later this week.
A senior official said that about Rs 15,000 crore has come in as Integrated-GST, which is levied on inter-state movement of goods, and another Rs 5,000 crore by way of cess on demerit goods like cars and tobacco.
The remaining Rs 22,000 crore has come in as Central-GST and State-GST, which would be split equally between the Union and state government. "Tax deposited till this morning was Rs 42,000 crore," the official said.
So far, 10 lakh tax payers have filed returns and another 20 lakh have logged in and saved return forms. "We are seeing good compliance and our estimation is that 90-95 per cent of the assesses will file returns and pay taxes," he said.
Under the GST regime, which was implemented from July 1, businesses are expected to file the monthly tax return. Tax for the first month is to be filed by an extended deadline of August 25. The deadline was extended as the tax return filing website snapped just a day before the due date ended on August 20.
GST unifies more than a dozen central and state levies including excise duty, service tax and VAT, and the revenue generated is to be split equally between the Centre and states.
In July last year, Rs 31,782 crore of excise duty was collected and Rs 19,600 crore of service tax. Estimate for the combined sales tax or VAT collection by states was available.
While 72 lakh assessees of the old indirect tax regime have migrated to the GST Network portal, nearly 50 lakh have completed the migration process.
Besides, of the 15 lakh fresh registrations that have happened, as many as 10 lakh are expected to file returns for July. A total of 60 lakh businesses are expected to file returns and pay taxes for July, the official added.
As per the GST law, any registered person who fails to furnish the details of outward or inward supplies or returns required by the due date will have to pay a late fee of Rs 100 for -- every day during which such failure continues subject to a -- maximum amount of Rs 5,000.
Besides, every person who fails to pay the tax within the period prescribed, shall for the period for which the tax or any part thereof remains unpaid, will be required to pay interest at 18 per cent from the day succeeding the day on which such tax was due to be paid.
The collections from customs duty and IGST from imports post-implementation of GST have almost doubled to Rs 30,000 crore in July.
This compares to indirect tax collection of over Rs 16,000 crore of the same month of 2016
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NOTIFICATION No. KA.NI.-1158/XI-9(52)/17- U.P.Act01-2017-Ordcr-(38 )-2017 Dated :18th August, 2017
In exercise of the powers under Rule 138 of the Uttar Pradesh Goods and Services Tax Rules, 2017 framed under the Uttar Pradesh Goods and Services Tax Rules 2017 (U. P. Act No 1 of 2017), read with section 21 of the Uttar Pradesh General Clauses Act, 1904 (U. P. Act no 1of 1904), the Governor is pleased to make, with effect from August 18, 2017, the following amendment in Government notification no. KA.NI.-1014/XI-9(52)/17- U.P.GSTRules-2017-Ordcr-(31 )-2017dated July 21.2017:-
AMENDMENT
In the aforesaid noiilicalion.-
(a) in para-( 1) for the words and figures "Rs 5000 or more" the words and figures "Rs 50,000 or more" shall be substituted :
(b) in para-(2) for the words and figures "Rs 1 lakh or more" the words and figures "Rs 50,000 or more" shall be substituted ;
(c) for para-(3) following para shall be substituted, namely:-
"(3) In case of transportation of taxable goods valuing Rs 50,000 or more from a place outside Uttar Pradesh by e-commerce operators or by their authorized transporters, courier agents or delivery agents, for deliver, to a single person within Uttar Pradesh, the enclosed form e-way bill-03 shall be carried with such goods during the transportation of goods or transit and storage within the State.
(d) in para (4) for the words and figures "Rs 5000 or more" the words and figures "Rs 50,000 or more" shall be substituted.
By Order,
(Rajendra Kumar Tiwari)
Apar Mukhya Sachiv
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An FAQ released by the Government on IT/ITES Industry
Question 1: Whether software is regarded as goods or services in GST?
Answer: In terms of Schedule II of the CGST Act 2017, development, design, programming, customisation, adaptation, upgradation, enhancement, implementation of information technology software and temporary transfer or permitting the use or enjoyment of any intellectual property right are treated as services.
But, if a pre-developed or pre-designed software is supplied in any medium/storage (commonly bought off-the-shelf) or made available through the use of encryption keys, the same is treated as a supply of goods classifiable under heading 8523.
Question 2: What are the implications of recognising the development, design, programming, customisation, adaptation, upgradation, enhancement, and implementation of information technology software as a service?
Answer: The primary implication is that the place of supply rules applicable to services would apply in determining taxability of the supply of software services. The same would be applicable in situations of supply of services involving a temporary transfer or permitting the use or enjoyment of any intellectual property right. The other implication is that the supplier of software services would not be eligible for the composition scheme.
Question 3: ‘A’ is a dealer in Computers and Computer parts having turnover of Rs. 8 lakh in a year; does‘A’ have to register under GST?
Answer: Every supplier located in a State or Union territory, whose “aggregate turnover” in a financial year exceeds twenty lakh rupees, is liable to be registered under GST. This limit of turnover for a special category State is ten lakh rupees. ‘A’, whose aggregate turnover is only Rs. 8 lakh in a year, is therefore not liable to registration.
Question 4: The registered person ‘B’ receives small portions of software code from individuals which he then integrates and supply as a package to clients. These individuals are having small turnover of Rs 5 to 10 lakh, and therefore are not registered in GST. Whether there is any liability on ‘B’ in respect of services provided by such individuals?
Answer: If the supplies are made by unregistered suppliers, GST is liable to be paid by the recipient, who is a registered person, under section 9(4) of the CGST Act, 2017. Therefore, in this case ‘B’ is liable to pay GST on services provided by these individuals. ‘B’ can claim credit of this tax paid by him on reverse charge.
Question 5: What is the rate of tax on IT services?
Answer: The rate of GST on IT services is 18%.
Question 6: Whether exports of software services attract GST?
Answer: Exports and supplies to SEZ units and SEZ developers are zero-rated in GST. Zero-rating effectively means that no tax is payable on exports but the exporter/supplier is entitled to the input tax credit on inputs/input services used in relation to exports. The exporters have two options for zero rating, which are as follows:
(1) To pay integrated tax on supplies meant to be exported and get refund of tax so paid after the supply is exported.
(2) To make export supplies under a bond or letter of undertaking and claim refund of taxes suffered on inputs and input services in relation to such exports.
Question 7: How do I determine whether IT services provided by me constitute export of service?
Answer: The supply of any service is considered an export of service, where the following conditions are met:
(1) the supplier of service is located in India;
(2) the recipient of service is located outside India;
(3) the place of supply of service is outside India;
(4) the payment for such service has been received by the supplier of service in convertible foreign exchange; and
(5) the supplier of service and the recipient of service are not merely establishments of a distinct person in accordance with explanation 1 of section 8 of the IGST Act, 2017.
Question 8: How do I determine the place of supply of IT/ITES services?
Answer: Place of supply of IT/ITES services is the location of the recipient in terms of section 12 and 13 of the IGST Act, 2017. However, if the recipient is not registered and his address is not available on the records of the supplier, the place of supply would be the location of the supplier.
Question 9: How to determine the location of the recipient?
Answer: Location of the recipient of service is defined in section 2(14) of the IGST Act. A recipient of services is treated as located outside India if his place of business where he receives services is outside India or, if he does not have a place of business, his usual place of residence is outside India.
Question 10: Would I be liable to pay GST on reverse charge even if the foreign supplier of software from whom I buy for use in my firm registered under GST was to accept the payment in Indian Rupees?
Answer: Yes, you would be liable to pay GST. A supply is treated as an import of service if the following conditions are satisfied:
(1) the supplier of service is located outside India;
(2) the recipient of service is located in India; and
(3) the place of supply of service is in India.
The place of such supply would be taken to be the location where the firm is registered (in GST) and the supplies would attract integrated tax (IGST). The factum of which currency was used to pay the consideration is immaterial.
Question 11: I am an Indian Company who makes software and sells it outside the country. I have hired a firm (not a related party) ‘C’ located abroad to facilitate the supply of software in Europe and the USA; would I be liable to pay GST on the payments that I make to this entity abroad?
Answer: No. In this case, ‘C’ is covered by the definition of ‘intermediary’ [section 2(13) of the IGST Act, 2017]. The place of supply of such intermediary service is location of the supplier in terms of section 13(8) of the IGST Act, 2017. As ‘C’ is located outside India, GST is not payable in this case.
Question 12: What factors determine the location of ‘C’ (in question 11) as being outside India?
Answer: In terms of section 2 (15) of the IGST Act, 2017, the location of a service provider is to be determined by applying the following steps sequentially:
(1) where a supply is made from a place of business for which the registration has been obtained, the location of such place of business;
(2) where a supply is made from a place other than the place of business for which registration has been obtained (a fixed establishment elsewhere), the location of such fixed establishment;
(3) where a supply is made from more than one establishment, whether the place of business or fixed establishment, the location of the establishment most directly concerned with the provision of the supply; and
(4) in absence of such places, the location of the usual place of residence of the supplier.
The location of ‘C’ is to be determined by applying the criterion from (2), or (3), or as the case may be, (4).
Question 13: I am an agent in India of a foreign IT/ITES provider (principal located outside India). For agency services, I bill the principal in convertible foreign exchange. Whether GST liability arises in this case?
Answer: You are an intermediary and the place of supply of the service provided by you to the principal is in India irrespective of the mode of payment. Hence, GST is payable on the services provided by you as an intermediary to the principal.
Question 14: I have more than one SEZ unit in different States; do I need to take separate registrations? Also, I have two SEZ units in one State. Can I take a single registration?
Answer:
(1) Yes. Under GST, every entity shall take GST registration in each State from which it makes taxable supplies. However, a single registration can be taken for all your SEZ units within a State, whether located in one SEZ or more than one SEZ.
(2) A person having unit(s) in a Special Economic Zone as well as outside the SEZ in a State shall make a separate application for registration for SEZ unit(s) as a business vertical distinct from his other units located outside the Special Economic Zone in that State (Refer Rule 8(1) of CGST Rules, 2017).
Question 15: I have a unit in the DTA and another in the SEZ; can I take a common registration?
Answer: No. A person having unit(s) in a Special Economic Zone as well as outside the SEZ in a State, shall make a separate application for registration for SEZ unit(s) as a business vertical distinct from his other units located outside the Special Economic Zone in that State (Refer Rule 8(1) of CGST Rules, 2017).
Question 16: If I supply a laptop bag along with the laptop to my customer, what would be the rate of tax leviable?
Answer: If the laptop bag is supplied along with the laptop in the ordinary course of business, the principal supply is that of the laptop and the bag is an ancillary. Therefore, it is a composite supply and the rate of tax would that as applicable to the laptop.
Question 17: I am obtaining online database access services from a company abroad over the net, would I have to pay tax on reverse charge?
Answer: The recipient, if registered, has to pay the applicable IGST on reverse charge basis. If the recipient is not registered, the matter is treated as an online information and database access or retrieval service (OIDAR) and the OIDAR service provider is liable to take registration and pay tax.
Question 18: When would it be construed that I have made a supply of services involving temporary transfer or permitting the use or enjoyment of any intellectual property right?
Answer: Generally, the End User Licence Agreement (EULA) is the legal contract between a software application author or publisher and the user of that application governing the usage. The agreement is renewable and/or could be amended from time to time. To find out as to whether there is an element of supply involved when software is delivered to its customer, the terms and conditions of EULA are material.
The contract for supply therefore assumes significance in this test to decide whether or not there has been ‘temporary transfer or permitting the use or enjoyment of any intellectual property right’.
Question 19: What special provisions are attracted in GST with regard to associated enterprises?
Answer: An enterprise which participates, either directly or indirectly, through one or more intermediaries, in the management, or control or capital of the other enterprise is an associated enterprise. In the context of GST, associated enterprise is particularly relevant in the case of supply of services, where the supplier is located outside India. In such cases, the time of supply will be the earlier of date of entry in the books of account of the recipient of supply or the date of payment – thus, within ‘associated enterprises’, the levy under GST is attracted once such book entries are made even if no actual payment takes place or no invoice is issued.
Question 20: What would be the tax liability on replacement of parts (no consideration is charged from a customer) under a warranty and whether the supplier is required to reverse the input tax credit?
Answer: As parts are provided to the customer without a consideration under warranty, no GST is chargeable on such replacement. The value of supply made earlier includes the charges to be incurred during the warranty period. Therefore, the supplier who has undertaken the warranty replacement is not required to reverse the input tax credit on the parts/components replaced.
Question 21: An Original Equipment Manufacturer (OEM) has an obligation to provide repair services to their customers in the warranty period. This activity is outsourced by OEM to ‘D’, who bills the OEM for the services he provides to the customer. What is the tax liability of ‘D’?
Answer: ‘D’ is providing service to the OEM. GST is payable on the value of any supplies made by ‘D’ to OEM i.e. in respect of bills raised by ‘D’ on the OEM.
Question 22: How will the defective parts be sent to the mother warehouse/repairing centre for repair by the downstream repairing centres? What is the tax liability?
Answer: The defective parts shall be sent for repair on a delivery challan accompanied by such e-way bill as may be prescribed. GST shall be chargeable on the repair amount, including the cost of parts, charged by the repairing centre.
Question 23: What is the tax liability in a scenario where supplies are made from multiple locations (in different States) of the supplier to the recipient under a single contract?
Answer: Delivering services from various locations and integrated pricing for the contract as a whole is the norm in IT/ITES industry. Normally the contract or agreement with the recipient is entered into by one of the branches (let us say “Main Branch”). Therefore, in such cases of service delivery from multiple locations of the supplier to the recipient, the supply could be visualized as consisting of two distinct supplies. First supply- the different branches of the supplier located across different States are making the supply to the main branch which entered into a contact or an agreement with the recipient for the supply of such service. Second supply- main branch is making a supply to the customer. GST is to be levied accordingly. In such a scenario, the main branch would get input tax credit of GST paid by the other branches on supplies made by them to the main branch.
Question 24: In the scenario envisaged in previous question, the main branch is said to be entitled to ITC of the GST paid by the other branches. Thus, it is a revenue neutral situation. What are the valuation guidelines for such services?
Answer: The second proviso to rule 28 of the CGST Rules, 2017 provides that where the recipient is eligible for full input tax credit, the value declared in the invoice shall be deemed to be the open market value of goods and services.
Question 25: Can payment of IGST on reverse charge basis on import of goods/services be done through book entry or ITC?
Answer: No. GST payable on reverse charge basis is to be discharged through cash only. Rule 85(4) of the CGST Rules, 2017 refers.
Question 26: Is the requirement of transferring of credit through ISD mechanism mandatory?
Answer: The ISD provision under the CGST Act, 2017 is not mandatory. It only provides the manner of distribution of ITC wherever the business entity wishes to distribute the ITC as an Input Service Distributor.
Question 27: What is the format for invoices to be issued in the case of reverse charge payment of GST?
Answer: No separate format for any type of invoicing including self-invoicing has been prescribed. The contents of the invoice have been prescribed in Rule 46 of the CGST Rules, 2017.
Question 28: I am a software provider, registered at Mumbai. I supply software to my clients in Bangalore - would I be required to take a registration in Karnataka?
Answer: No. The supplies would be treated as inter –State supplies and IGST is chargeable on the same.
Question 29: I am an exporter of services. Would I be entitled to refund after the 1st of July (appointed day)?
Answer: For exports upto 30th June, 2017 refund may be claimed under the provisions of the Chapter V of the Finance Act, 1994. Exports made on and after 1st July would be eligible for refund under the GST law.
Note: Reference to CGST Act, 2017 includes reference to SGST Act, 2017 and UTGST Act, 2017 also.
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Royalty Paid to Govt for the Right to Use Natural Resources subject to GST under Reverse Charge: CBEC releases FAQs on Govt Services
Read more at: http://www.taxscan.in/royalty-paid-govt-right-use-natural-resources-subject-gst-reverse-charge-cbec-releases-faqs-govt-services/10397/
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Govt Notifies New Form- 29B for Computing Book Profits of the Company under MAT Provisions [Read Notification]
Read more at: http://www.taxscan.in/govt-notifies-revised-form-29b-computing-book-profits-company-mat-provisions-read-notification/10392/
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TDS Not Payable on License Fee paid to IRCTC: Gujarat HC [Read Order]
Read more at: http://www.taxscan.in/tds-not-payable-license-fee-paid-irctc-gujarat-hc/10388/
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# *CBEC* extends GST Payment & GSTR-3B filing date by 5 days to 25AUG2017 for all category of tax payers EXCEPT for those who have pre-GST credit, the extended date is 28 AUG 2017.
# *ICAI*: Not enough evidence to nail CAs for money-laundering. ICAI’s disciplinary mechanism ensures action against erring member and not against the firm – President.
# *MCA* is in the process of identifying and deregistering around 200 LLPs that have been inactive for long, as stepped up efforts continue against illicit fund flows.
# *MCA* has approved the revision of Secretarial Standards by the ICSI. The revised version of SS-l and SS-2 as approved by the MCA, shall be applicable to all the companies (except the exempted class of companies) w.e.f. 1st October, 2017 and will supersede the text of earlier SS-l and SS-2.
# *IBBI* has brought in a special provision to protect the homebuyers of Jaypee Infratech Ltd.’s undelivered properties in 27 projects in 3 land parcels in Noida to make them part of the committee of creditors and stake a claim equivalent to the amount they have paid to realtors.
# *IT*: Exemption u/s 11 - violation of provisions of section 13(1)(c) - providing food to the officers and their guests - 73 meals coupons utilized by the Chairman - exemption can’t be denied – ACIT (Exem.) Vs Kolli Ramaiah Educational Society (2017 (8) TMI 656 - ITAT Visakh)
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*As per Notification 12/17, Central Tax(Rate) Entry Number 74 Following Exemption is Provided-:*
Services by way of-
(a) health care services by a clinical establishment, an authorised medical practitioner or para-medics;
(b) services provided by way of transportation of a patient in an ambulance, other than those specified in (a) above
(a) health care services by a clinical establishment, an authorised medical practitioner or para-medics;
(b) services provided by way of transportation of a patient in an ambulance, other than those specified in (a) above
Here word Clinical Establishment holds prime importance, we tried to analyse this.
As per Clinical Establishment (Registration and Regulation) Act, 2010, word Clinical Establishment is as defined-:
As per Clinical Establishment (Registration and Regulation) Act, 2010, word Clinical Establishment is as defined-:
“clinical establishment” means— (i) a hospital, maternity home, nursing home, dispensary, clinic, sanatorium or an institution by whatever name called that offers services, facilities requiring diagnosis, treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognised system of medicine established and administered or maintained by any person or body of persons, whether incorporated or not; or
ii) a place established as an independent entity or part of an establishment referred to in sub-clause (i), in connection with the diagnosis or treatment of diseases where pathological, bacteriological, genetic, radiological, chemical, biological investigations or other diagnostic or investigative services with the aid of laboratory or other medical equipment, are usually carried on, established and administered or maintained by any person or body of persons, whether incorporated or not, and shall include a clinical establishment owned, controlled or managed by— (a) the Government or a department of the Government; (b) a trust, whether public or private
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Income Tax Dept received 2.79 Cr Returns this Year: Govt clarifies number of taxpayers added after Demonetisation.
The Govt release a Press Note , that time of Filing of GSTR-3B for the Month of July,2017 has been extend upto 25-08-2017 and for those who want to fill up TRAN-1 this month the last date for filing GSTR-3B will be 28-08-2017 as announced earlier.
Finance Minister has written to all Chief Ministers urging them to reduce VAT on petroleum products used in the manufacture of goods as the current system was leading to cascading of taxes on such goods under the GST regime.
RBI identifies 40 more large loan defaulter accounts for clean-up, along with the 12 cases where bankruptcy proceedings have already started, these would account for 60-65% of the bad loans clogging the banking system.
Even as participatory notes (P-notes) become unattractive for taking positions, many investors are now looking to enter India using the foreign portfolio investment (FPI) route either through Mauritius or directly.
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*GST Update:*
1. Last Date for Payment of GST and Filing of Return For July 2017 Extended By 5 Days. See full circular - http://pib.nic.in/newsite/PrintRelease.aspx?relid=170103
1. Last Date for Payment of GST and Filing of Return For July 2017 Extended By 5 Days. See full circular - http://pib.nic.in/newsite/PrintRelease.aspx?relid=170103
2. Transitional form is now available online in gst portal - Under services / returns option.
3. Goods and Services Tax: IGST Rate Schedule u/s 5(1) - notifying rates of IGST @ 5%, 12%, 18%, 28%, 3% and 0.25% - As amended by notification dated 18-8-2017
4. 18% GST on takeaway food from non-AC area of AC restaurant
*ICSI withdraws SS-1 and SS-2 w.e.f. 30th September, 2017*
(i) SS-1: Secretarial Standard on Meetings of the Board of Directors and (ii) SS-2: Secretarial Standard on General Meetings, stands withdrawn
*Case Study:* Insurance services- Tax paid on insurance service is an input service and CENVAT Credit can be availed. Such insurance being integrally connected with the business, the credit is admissible. 2017-TIOL-2849- CESTAT-MUM.
*August 25, 2017: MEF - The Last Date* of filing of online MEF for the year 2017-18 and submission of duly signed hard copy of declaration till 30 AUG 2017.
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GST payable at the rate of 3% of the total transaction value of Jewellery, whether the making charges shown separately or not.
If jewellery sent to Registered job worker then It would be required to pay 5% GST on job charges only, ITC can be used to set off GST payable otherwise RCM applicable.
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*Updates*
➡1. Operation of power plant couldn’t be classified as ‘Maintenance of repair service’
➡2. Pendency of proceeding before DRT isn’t a ground to reject application for initiation of insolvency proceedings
SREI Infrastructure Finance Ltd.
v. K.S. Oils Ltd.
SREI Infrastructure Finance Ltd.
v. K.S. Oils Ltd.
➡3. Shares issued to bank at time of taking loan could be sold to third party if they were not pledged as security.
Prag Bosimi Synthetics Ltd. v. 3A Capital Ltd.
Prag Bosimi Synthetics Ltd. v. 3A Capital Ltd.
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#Economy:Services at public sector banks may take a hit on Tuesday as all unions under the aegis of UFBU have threatened to go on strike against the Govt's proposed consolidation move besides raising a host of other demands. Most banks have already informed their customers that functioning of branches and offices will be impacted if the strike takes off. Operations at private lenders like ICICI Bank, HDFC Bank, Axis Bank and Kotak Mahindra Bank are expected to be normal except delay in cheque clearances. The United Forum of Bank Unions (UFBU) is an umbrella body of nine unions, including All India Bank Officers' Confederation, All India Bank Employees Association and National Organisation of Bank Workers. The demands include no write-off policy for NPAs of corporate loans, declaring wilful default of loans as criminal offence and implementation of recommendations of Parliamentary Committee on recovery of NPAs.
#Finance:Foreign portfolio investors have pulled out more than Rs 7,300 crore from the equity markets this month so far as they flee to safe haven assets amid geopolitical tensions and some domestic concerns. However, FPIs have invested about Rs 9,364 crore in debt markets during this period. This comes following a net inflow of over Rs 62,000 crore in last six months from February-July 2017. Prior to that, they withdrew close to Rs 1,200 crore. After taking into the account latest outflow, the total investment in equity markets stood at Rs 53,610 crore this year. Market analysts attributed the latest outflow from equities to geopolitical tension between the US and North Korea over the latter's ballistic missile programme and a deadly attack in Spain.