HIGHLIGHTS OF GST COUNCIL MEETING HELD

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The GST Council in its 28th meeting held today at New Delhi has recommended certain amendments in the CGST Act, IGST Act, UTGST Act and the GST (Compensation to States) Act.

The major recommendations are as detailed below:

  • Upper limit of turnover for opting for composition scheme to be raised from Rs. 1 crore to Rs. 1.5 crore. Present limit of turnover can now be raised on the recommendations of the Council.
  • Composition dealers to be allowed to supply services (other than restaurant services), for upto a value not exceeding 10% of turnover in the preceding financial year, or Rs. 5 lakhs, whichever is higher.
  • Levy of GST on reverse charge mechanism on receipt of supplies from unregistered suppliers, to be applicable to only specified goods in case of certain notified classes of registered persons, on the recommendations of the GST Council.
  • The threshold exemption limit for registration in the States of Assam, Arunachal Pradesh, Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand to be increased to Rs. 20 Lakhs from Rs. 10 Lakhs.
  • Taxpayers may opt for multiple registrations within a State/Union territory in respect of multiple places of business located within the same State/Union territory.
  • Mandatory registration is required for only those e-commerce operators who are required to collect tax at source.
  • Registration to remain temporarily suspended while cancellation of registration is under process, so that the taxpayer is relieved of continued compliance under the law.
  • The following transactions to be treated as no supply (no tax payable) under Schedule III:
    • Supply of goods from a place in the non-taxable territory to another place in the non-taxable territory without such goods entering into India;
    • Supply of warehoused goods to any person before clearance for home consumption; and
    • Supply of goods in case of high sea sales.
  • Scope of input tax credit is being widened, and it would now be made available in respect of the following:
    • Most of the activities or transactions specified in Schedule III;
    • Motor vehicles for transportation of persons having seating capacity of more than thirteen (including driver), vessels and aircraft;
    • Motor vehicles for transportation of money for or by a banking company or financial institution;
    • Services of general insurance, repair and maintenance in respect of motor vehicles, vessels and aircraft on which credit is available; and
    • Goods or services which are obligatory for an employer to provide to its employees, under any law for the time being in force.
  • In case the recipient fails to pay the due amount to the supplier within 180 days from the date of issue of invoice, the input tax credit availed by the recipient will be reversed, but liability to pay interest is being done away with.
  • Registered persons may issue consolidated credit/debit notes in respect of multiple invoices issued in a Financial Year.
  • Amount of pre-deposit payable for filing of appeal before the Appellate Authority and the Appellate Tribunal to be capped at Rs. 25 Crores and Rs. 50 Crores, respectively.
  • Commissioner to be empowered to extend the time limit for return of inputs and capital sent on job work, upto a period of one year and two years, respectively.
  • Supply of services to qualify as exports, even if payment is received in Indian Rupees, where permitted by the RBI.
  • Place of supply in case of job work of any treatment or process done on goods temporarily imported into India and then exported without putting them to any other use in India, to be outside India.
  • Recovery can be made from distinct persons, even if present in different State/Union territories.
  • The order of cross-utilisation of input tax credit is being rationalised.

Simplified GST Return

  • GST Council approved the new return formats and associated changes in law.The formats and business process approved today were in line with the basic principles with one major change i.e the option of filing quarterly return with monthly payment of tax in a simplified return format by the small tax payers.
  • All taxpayers excluding small taxpayers and a few exceptions like ISD etc. shall file one monthly return. The return is simple with two main tables. One for reporting outward supplies and one for availing input tax credit based on invoices uploaded by the supplier
  • NIL return filers (no purchase and no sale) shall be given facility to file return by sending SMS.
  • Council approved quarterly filing of return for the small taxpayers having turnover below Rs. 5 Cr as an optional facility. Quarterly return shall be similar to main return with monthly payment facility.simplified returns have been designed called Sahaj and Sugam. In these returns details of information required to be filled is lesser than that in the regular return.

Reverse Charge Mechanism

  • GST Council has recommended to further defer/ suspend the Reverse Charge Mechanism (RCM) upto 30 Sept. 2018, as against already notified date of 31st March 2019.

migration window for taxpayers

  • hose who could not migrate or who are having provisional GST Registration, can migrate/ register under GST upto 31 Aug. 2018.

Reduction in GST Rates

  • The GST Council has recommended to reduce tax rates of about more than 50 items of Goods, including providing relief for women by way of exempting Sanitary Napkins, Rakhi, etc

For any query you can write to info@carajput.com. Hope the information will assist you in your Professional endeavors. For query or help, contact:   info@carajput.com or call at 09811322785/4 ,9555 5555 480)

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corporate and professional updates 6th JULY 2018

Image result for corporate and professionalDirect Tax :

  • Kerala HC reverses ITAT order and upholds re-assessment for AY 1999-2000, rejects assessee-company’s stand that no other issues can be dealt in re-opening other than what were recorded as reasons u/s. 148(2); Notes that reassessment was concluded on 4 issues, out of which 2 were part of the reasons recorded and the remaining 2 were detected in the course of re-assessment proceedings; [TS-351-HC-2018(KER)]
  • Madras HC allows assessee’s (Dr. Prathap Reddy, Chairman of Apollo Hospitals) writ, directs Income-tax Settlement Commission (‘ITSC’) to permit assessee to make good the short fall in payment of additional tax and interest and then proceed with the adjudication of the settlement application on merits; ITSC had treated assessee’s settlement application as ‘invalid’ u/s. 245D(2C) on the ground that the primary condition of payment of tax on the additional income was not satisfied to the extent of adjustment sought against refund due for AY 2016-17 (which was subsequently received by assessee and was not available for adjustment); [TS-350-HC-2018( MAD)]
  • Income Tax returns filing due date for non-auditable assesses is 30th July 2018. Kindly file it on or before otherwise a penalty will be livable on late filing.
  • The CBDT has extended the deadline for the PAN-Aadhaar linking to March 31 next year. This is the fifth time the government has extended the deadline for individuals to link their Permanent Account Number (PAN) to their biometric ID (Aadhaar).
  • Hyderabad ITAT holds that one-time payment by assessee-company under the trademark and license agreement entered with GMR Holdings Pvt. Ltd., is in the nature of ‘intangible asset’, allows depreciation u/s. 32(1)(iii) for AY 2010-11; Rejects assessee’s stand that since it was given only a license to use the trademark as part of its corporate name and no ownership rights were given, the amount was revenue in nature; ITAT remarks that “without acquiring the aforementioned trademark and license, assessee would have had to commence business from scratch and through the gestation period and by acquiring aforesaid business rights/ license, assessee could incidentally boost its revenues; [TS-347-ITAT-2018(HYD)]
  • ITAT adjudicates on comparable selection for Indian branch office of a foreign company (assessee) engaged in providing software development services for AY 2009-10; Rejects Cat Technologies due to diverse activities and lack of segmental information and Thirdware Solutions as it is engaged in sale of license and subscription; [TS-482-ITAT-2018(DEL)-TP]

INDIRECT TAX

  • Government has extended the exemption on intrastate and interstate supplies of goods and services or both received by a registered person from any supplier, who is not registered, from whole of the central tax livable under section 9(4) of the CGST Act, 2017 or integrated tax leviable under section 5(4) of IGST Act, 2017 till 30th September 2018.
  • No e-way bill in respect of movement of goods originating and terminating in the state of Delhi (i.e. intra state movement but without passing through any other state) shall be required where consignment value does not exceed Rs. 1,00,000.
  • Govt is looking at creating a centralized Authority for Advance Rulings (AAR) for GST after divergent rulings on identical issues fuelled confusion over applicability and the rate of tax.
  • CBIC notifies tariff concession on specified goods on Import from specified countries vide Notification No. 50/2018–Customs- seeks to provide the tariff concession to the goods of the description specified in column (3) of the Table hereto annexed and falling under the Chapter.
  • Govt is unlikely to insist on implementing the reverse charge mechanism, a key anti-evasion measure proposed under GST, on concerns that the rule will adversely impact small businesses while not yielding revenue gains.
  • Due date for filing GSTR -1 for m/o June 2018 – Applicable for taxpayers with turnover more than 1.50 crore- July 10, 2018.

FAQ on GST AUDIT:

  • Query: What happens at the end of an auditing session?
  • Answer: At the end of an auditing session, the findings will be declared and the audit report will be submitted to the Assistant Commissioner. These findings include discrepancies in tax refunds, tax payments, or input tax credit between the audited financial statement and the information furnished by the taxpayer. After the findings are declared, the taxpayer will be given a chance to be heard by the tax officials.
  • Query: What is a detention report under grievance menu?
  • Answer: If the goods or the vehicle of the taxpayer or transporter has been detained by the tax officers for more than 30 minutes, then the transporter can enter the detention report on EWB Portal, which will reach the designated officer immediately, so that he can take an appropriate action accordingly.

RBI Update :

  • It is hereby notified for information of public that the Reserve Bank of India is satisfied that in the public interest, it is necessary to extend the period of operation of the directive dated April 01, 2013 read with subsequent directives, last being dated December 21, 2017 issued to the Amanath Cooperative Bank Ltd, Bengaluru for a further period of six months.
  • The annual return on Foreign Liabilities and Assets (FLA) is required to be submitted directly by all the Indian companies which have received FDI (foreign direct investment) and/or made FDI abroad (i.e. overseas investment) in the previous year(s) including the current year i.e. who holds foreign Assets or Liabilities in their Balance Sheets on or before 15 TH JULY, 2018

SEBI UPDATES

  • Sebi enhanced the overseas investment limit of alternative investment funds and venture capital funds to USD 750 million from the current USD 500 million. The decision has been taken in consultation with the Reserve Bank of India, the Securities and Exchange Board of India (Sebi) said in a circular.

OTHER UPDATES

  • IBBI amends the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 by a press release dated 4th July, 2018 . Supreme Court of India refused to overturn a RBI ban on lenders from dealing in crypto currencies, a move that effectively outlaws the nascent industry in Asia’s third-largest economy

KEY DUE DATES

  • GSTR-3B (Jun 2018)-Jul 20th, 2018
  • GSTR-5 (Jun 2018)-Jul 20th, 2018
  • GSTR-6 (Jul’17 – Jun’18)- Jul 31st, 2018
  • GSTR-4 (Apr-Jun, 2018)-Jul 18th, 2018
  • GSTR-5A (Jun 2018)-Jul 20th, 2018
  • Quarterly return for registered persons with aggregate turnover up to Rs. 1.50 Crores- GSTR-1 (Apr-Jun, 2018)-Jul 31st, 2018
  • Turnover exceeding Rs. 1.5 Crores or opted to file monthly Return GSTR-1 (Jun 2018)- Jul 10th, 2018
Disclaimer:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. The author is a Chartered Accountant and the Chief Gardener & Founder Director of Rajput Jain & Associates , a leading Tax & Investment Planning Advisory Service Provider. His blog can be found at http://carajput.com/blog/For any query you can write to info@carajput.com. Hope the information will assist you in your Professional endeavors. For query or help, contact:   info@carajput.com or call at 09811322785/4 9555 5555 480)

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corporate and professional updates 29th JUNE 2018

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Direct Tax : 

  • ITAT notes the assessee-company’s conclusion of the MAP with USA in respect of ‘management charges’ payment and allows withdrawal of the ground of appeal against TPO’s determination of ALP at NIL; On the dispute of Revenue characterizing assessee company’s ‘engineering and design’ services as ITeS, ITAT rejects ITeS classification and remands the matter to the file of the TPO for fresh adjudication; ITAT notes TPO’s inconsistent position over the years and that the TPO’s characterisation was not in tune with the functional analysis and further that TPO had not brought any evidence to support ITeS classification; On the comparability analysis, ITAT allows additional ground raised by assessee for excluding certain comparables  by applying ‘employee-cost’ filter : Bangalore ITAT [TS-476-ITAT-2018(BANG)-TP]
  • ITAT Delhi held that  Hostel, mess and transport facility surplus cannot be considered as business income if these are incidental to the main object of the Society.  [Society for Educational Excellence Vs. DCIT (ITAT Delhi)]

Indirect Tax

  • CESTAT Delhi held that Custom Broker Licence cannot be refused merely for penalization U/s. 114 of Customs Act, 1962.  [M/s Global Marine Agencies Vs CC (Prev.) (CESTAT Delhi)]
  • The revenue department has decided to keep in abeyance GST provisions relating to reverse charge mechanism, tax deducted at source (TDS) and tax collected at source (TCS) for another three months till September-end.
  • CBEC has issued a circular to all its officers and Commissionerate for Non Initiation / Delay in recovery Proceedings as per the Audit Reports of CAG of India.
  • SBI has filed an appeal in the GST tribunal against a tax demand of Rs. 210 crore for providing various services in the 2013-16 period. The case pertains to tax liability on services provided by Sebi to entities such as stock exchanges, their members, brokers.

FAQ on E-WAY BILLS:

  • Query:Can the ‘consolidated e-way bill’ (CEWB) have the goods / e-way bills which are going to be delivered before reaching the destination defined for CEWB?
  • Answer: Yes, the consolidated e-way bill can have the goods or e-way bills which will be delivered to multiple locations as per the individual EWB included in the CEWB. That is, if the CEWB is generated with 10 EWBs to move 3 consignments to destination Y and 7 consignments to destination X, then on the way the transporter can deliver 3 consignments to destination Y out of 10 and move with remaining 7 consignments to the destination X with the same CEWB. Alternatively, two CEWB can be generated one for 3 consignments for destination Y and another CEWB for 7 consignments for destination

MCA UPDATES

  • MCA has issued notification that additional fee @ Rs.100/- per day, after30th June 2018 shall become payable in respect of the annual filing forms (MGT-7 (form for annual return), AoC-4 (Form for balance sheet and profit and loss account), in addition to the existing if filed after due date.

RBI UPDATES

  • RBI financial stability report released that Gross NPA ratio of banks to rise to 12.2% by March 2019 if economic conditions stay the same. Bad loans at Indian banks, especially those controlled by the government, will increase further in the year to March 31.

OTHER UPDATES

  • DGFT has notified the office address of DGFT and its Regional Authorities and their Jurisdiction and Private SEZs under the Foreign Trade Policy, 2015-20
  • Holders of shares in listed companies now face a December deadline to convert them into dematerialized form if they have to transfer or sell them. About 2.3 per cent of India’s $2-trillionplus market capitalization is still held in the form of physical stock.

KEY DATE:

  • QUARTERLY RETURN FOR REGISTERED PERSONS WITH AGGREGATE TURNOVER UP TO RS. 1.50 CRORES: GSTR-1 :-31. JULY 2018
  • DUE DATE FOR FILLING GST TRAN-2- 30.06.2018
Disclaimer:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. The author is a Chartered Accountant and the Chief Gardener & Founder Director of Rajput Jain & Associates , a leading Tax & Investment Planning Advisory Service Provider. His blog can be found at http://carajput.com/blog/For any query you can write to info@carajput.com. Hope the information will assist you in your Professional endeavors. For query or help, contact:   info@carajput.com or call at 09811322785/4 ,9555 5555 480)

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DON’T WORRY, CONTACT US FOR TOTAL GST RETURN SOLUTION

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Not able to file your GST Return – Don’t worry, contact us for total GST Return solution- file your GSTR-1 now with a per day penalty of Rs 50/-.

GST RETURNS

Owing to the issues with GSTR online portal and much to the relief of tax payers, the due date for filing of FORM GSTR-1 has been extended videNotification No. 71/2017-Central Tax and 72/2017-Central Tax dated 29thDecember 2017. The previously announced due date of 31st December 2017 has been extended to 10th January 2018. The relief has been provided to assessees with aggregate turnover upto 1.5 crore as well as those with aggregate turnover over 1.5 crore.

For assessees with aggregate turnover upto 1.5 crore, the period for which extension has been granted is July to September 2017. There is no modification in due dates for the quarter of October to December 2017 and January to March 2018. On similar lines, extension for assessees with aggregate turnover exceeding 1.5 crore is for the period July to October 2017 and no changes have been provided in due dates of subsequent months. Revised due dates for furnishing FORM GSTR-1 is summarized below-

If you have not been able file GSTR-1 for some problem or other please contact us for immediate solution. You can file your GSTR-1 now with a per day penalty of Rs 50/-.Our panel of Technical expert are able to resolve all the error in your return.

Due date for GSTR-1 for turnover uptoRs 1.5 cr

Period (Quarterly)Due dates

  1. no       Months involved Due Date for filing GSTR-1
  2. July – September 2017           10th January 2018
  3. October – November 2017     15th February 2018
  4. January – March 2018           30th April 2018

Due date for GSTR-1 for more than Rs 1.5 cr

  1. No.      Months involved      Due Date for filing GSTR-1
  2. July – November 2017     10th January 2018
  3. December 2017       10th February 2018
  4. January 2018           10th March 2018
  5. February 2018         10th April 2018
  6. March 2018           10th May 2018

GSTR-2  and GSTR-3 . GSTR-2 and  GSTR-3 have been putt off till Mach 2018 . GSTR-6 which is required to be filed monthly by ISD (Input Service Distributes) is open now the govtportal . Last date for GSTR-6 for July is also 31st December.

Others GSTR filing extensions

Return Revised Due Date Old Due Date
GSTR-5 (for Non Resident) 31st Jan 2018 11th Dec 2017
GSTR-5A(By person supplying OIDAR) 31st Jan 2018 15th Dec 2017
GSTR-4 (for Composition Dealers) 24th Dec 2017 18th October 2017
GSTR-6 (for Input Service Distributor) 31st Dec 2017 13th August 2017

All taxpayers would file return in FORM GSTR-3B along with payment of tax by 20th of the succeeding month till March, 2018.

Details of inputs or capital goods sent and received back from the job worker need to be furnished by the taxpayers on a quarterly basis in Form GST ITC-04. For preparing and uploading of this statement, an excel offline tool has been made available on GST Portal. GST Council Recommends Extension ST ITC-04 (Details of goods/ capital goods sent to job worker and received back) for the quarter July 2017 to Sept. 2017 Unto 31 Dec. 2017. 

GSTR-3B Return

GSTR-3B return will have to be filed by all taxpayers in addition to GSTR-1, GSTR-2 and GSTR-3 return.Earlier, GSTR-3B returns were to be filed for the month of July to December 2017.

 IN 23rd council meeting, it has been announced that GSTR-3B return must be filed for all months from July 2017 to March 2018. The due date for GSTR-3B return will be the 20th of every month. 

Late fees for GSTR-3B of July, Aug. and Sept waived. Any late fees paid for these months will be credited back in electronic cash ledger under Tax and can be utilized to make GST payments

 Reduction of GST Return Penalty

In addition to the waiver of GST Return Penalty, the Government has also announced a reduction in GST return penalty for NIL GST returns. From October 2017, the GST return penalty for not filing NIL GST return has been reduced to Rs.20 per day instead of Rs. 200 per day. 

GST on Advances Received

In 22nd GST Council, it has now been decided that taxpayers having annual aggregate turnover up to Rs. 1.5 crores will not be required to pay GST at the time of receipt of advances on account of supply of goods.

E-Way Bill

As per E-Way bill rules, any transportation of goods with a value of more than Rs.50, 000 would require an e-way bill. The GST council in earlier meeting in October had decided that E-way bill would be introduced in staggered manner from January 1 and subsequently nationwide from April1.

In the recent 24th GST council meeting was finally decided that the e-way bill is now introduced and will be applicable from 1st February 2018 across the nation. The nationwide e-way bill system will be ready to be rolled out on trail basis latest by 16 January 2018. Trade and transporters can start using thi system on voluntary basis from 16 January 2018.

GST REGISTRATION

Registration under GST was mandatory for entities undertaking inter-state supply of goods and/or services, irrespective of aggregate annual turnover.In the 22nd GST Council, it has been decided to exempt service providers from this condition. Hence, service providers will now be allowed to undertake inter-state sales of upto Rs.20 lakhs without obtaining GST registration.Further, this is exemption is also available for service providers supplying services through an e-commerce operator.

But person supply goods will still be required to obtain GST registration mandatorily (in case of inter -state supply)

 GST COMPOSITION SCHEME

This scheme is intended for small businesses where compliance less.22nd GST Council has decided to increase the aggregate turnover to Rs.1 crore. (The aggregate turnover threshold for special category States, has also been   increased to Rs. 75 lacs from Rs. 50 lacs excepts J&K and Uttarakhand)

Person opting for composition scheme was restricted from providing any exempted/taxable service .but now a composite can provide exempted service also. 

In 23rd GSTcouncil meeting the due date for enrolling under the increased threshold has been made available to both migrated and new taxpayers up to 31.03.2018.

The GST rate payable by GST Composition dealers has been harmonized for all taxpayers (traders or manufactures) at 1%. However, not change has been announced on the GST rate for composition scheme for restaurants.

GSTR 4 return must be filed by taxpayer registered under the GST composition scheme. GSTR4 is a quarterly return that was originally due on the 18th of month following respective quarter. But in 23 council meeting composition returns, GSTR-4 due date extended to 24 /December/2017 for July-September quarter

Reverse Charge Mechanism

Registered taxpayers were required to pay GST on reverse charge basis when they purchased from an unregistered person, the 22ndGST Council has decided to suspend the reverse charge mechanism till 31.03.2018. Now, registered taxpayers can purchase from unregistered persons without having to pay GST on reverse charge basis.

TDS and TCS Provisions Postponed

The Government has decided to postpone the TDS/TCS registration and operationalization to 31st March 2018.

Email us on info@carajput.com or vist on www.carajput.comfor guaranteed GSTR filing solution. List of services we offer and charges involved in it.
1. Return filing assistance for Return GSTR 3B – Rs. 3000/- for monthly.

2. Return filing assistance including invoice upload from xls up to 200 inv /month
(a) Rs. 5000/- (3 monthly pack)
(b) Rs. 18000/- (Annual Pack)
(c) Rs. 3000/- (Monthly Pack)
3. Return filing assistance including invoice upload from xls from 201 to 500 inv /month
(a) Rs. 8000/- (3 Monthly Pack)
(b) Rs. 25,000/- (Annual Pack)
(c) Rs. 5000/- (Monthly Pack)

 

4. Return filing assistance including invoice upload from xls from 501 + per month –
(a) Rs. 30,000/- (3 Monthly Pack)
(b) Rs. 50,000/- (Annual Pack)
(c) Rs. 10,000/- (Monthly Pack)

5.GSTR 4 – Rs15000/- (Yearly pack)
6.GSTR 6 – Rs. 15000/- (Yearly pack)
7.ITC-04 – Rs. 15000/- (Yearly pack)
8. One-time assistance- Rs.5,000/-

Disclaimer:

All efforts are made to keep the content of this site correct and up-to-date. But, this site does not make any claim regarding the information provided on its pages as correct and up-to-date. The contents of this site cannot be treated or interpreted as a statement of law. In case, any loss or damage is caused to any person due to his/her treating or interpreting the contents of this site or any part thereof as correct, complete and up-to-date statement of law out of ignorance or otherwise, this site will not be liable in any manner whatsoever for such loss or damage.

 

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Due Dates of GSTR-1 Has been Extension and other GST Updates

Due Dates of GSTR-1 Has been Extension and other GST Updates

3 (2)

GST RETURNS

Owing to the issues with GSTR online portal and much to the relief of tax payers, the due date for filing of FORM GSTR-1 has been extended vide Notification No. 71/2017-Central Tax and 72/2017-Central Tax dated 29th December 2017. The previously announced due date of 31st December 2017 has been extended to 10th January 2018. The relief has been provided to assessees with aggregate turnover upto 1.5 crore as well as those with aggregate turnover over 1.5 crore.

For assessees with aggregate turnover upto 1.5 crore, the period for which extension has been granted is July to September 2017. There is no modification in due dates for the quarter of October to December 2017 and January to March 2018. On similar lines, extension for assessees with aggregate turnover exceeding 1.5 crore is for the period July to October 2017 and no changes have been provided in due dates of subsequent months. Revised due dates for furnishing FORM GSTR-1 is summarized below-

EXTENSION OF GSTR-1 FILING DUE DATES

For Assessees with aggregate turnover up to 1.5 crores

  1. No. Months involved  Due Date for filing GSTR-1
  2. July – September 2017        10th January 2018
  3. October – November 2017 15th February 2018
  4. January – March 2018           30th April 2018

Last date for filing of Monthly return in FORM GSTR-1 for for July-September , 2017 for Registered persons having Aggregate turnover of up to 1.5 crore ,  has been extended to 10thJanuary, 2018 from earlier due date of 31st December, 2017 ( NotificationNo.71/2017 ).

For assessees with aggregate turnover exceeding 1.5 crores

  1. No.  Months involved  Due Date for filing GSTR-1
  2. July – November 2017      10th January 2018
  3. December 2017          10th February 2018
  4. January 2018             10th March 2018
  5. February 2018           10th April 2018
  6. March 2018                10th May 2018

Last date for filing of Monthly return in FORM GSTR-1 for for July-October, 2017 for Registered persons having Aggregate turnover of more than Rs 1.5 crore , has been extended to 10th January, 2018 from earlier due date of 31st December, 2017 ( Notification No.72/2017 ).

OTHER GSTR FILLING EXTENSIONS

Return Due date               GSTR-5(for non-resident)

15-December-2017          GSTR-6(for input service distributor)

31-December-2017           ITC-04(for job worker ,for July-sept)

31-December-2017       GSTR-3B Return

GSTR-3B Return

GSTR-3B return will have to be filed by all taxpayers in addition to GSTR-1, GSTR-2 and GSTR-3 return.Earlier, GSTR-3B returns were to be filed for the month of July to December 2017.

IN 23rd council meeting, it has been announced that GSTR-3B return must be filed for all months from July 2017 to March 2018. The due date for GSTR-3B return will be the 20th of every month.

Late fees for GSTR-3B of July, Aug. and Sept waived. Any late fees paid for these months will be credited back in electronic cash ledger under Tax and can be utilized to make GST payments

Reduction of GST Return Penalty

In addition to the waiver of GST Return Penalty, the Government has also announced a reduction in GST return penalty for NIL GST returns. From October 2017, the GST return penalty for not filing NIL GST return has been reduced to Rs.20 per day instead of Rs. 200 per day.

GST on Advances Received

In 22nd GST Council, it has now been decided that taxpayers having annual aggregate turnover up to Rs. 1.5 crores will not be required to pay GST at the time of receipt of advances on account of supply of goods.

E-Way Bill

As per E-Way bill rules, any transportation of goods with a value of more than Rs.50, 000 would require an e-way bill. The GST council in earlier meeting in October had decided that E-way bill would be introduced in staggered manner from January 1 and subsequently nationwide from April1.

In the recent 24th GST council meeting was finally decided that the e-way bill is now introduced and will be applicable from 1st February 2018 across the nation. The nationwide e-way bill system will be ready to be rolled out on trail basis latest by 16 January 2018. Trade and transporters can start using thi system on voluntary basis from 16 January 2018.

GST REGISTRATION

Registration under GST was mandatory for entities undertaking inter-state supply of goods and/or services, irrespective of aggregate annual turnover.In the 22nd GST Council, it has been decided to exempt service providers from this condition. Hence, service providers will now be allowed to undertake inter-state sales of upto Rs.20 lakhs without obtaining GST registration.Further, this is exemption is also available for service providers supplying services through an e-commerce operator.

But person supply goods will still be required to obtain GST registration mandatorily (in case of inter -state supply)

GST COMPOSITION SCHEME

This scheme is intended for small businesses where compliance less.22nd GST Council has decided to increase the aggregate turnover to Rs.1 crore. (The aggregate turnover threshold for special category States, has also been   increased to Rs. 75 lacs from Rs. 50 lacs excepts J&K and Uttarakhand)

Person opting for composition scheme was restricted from providing any exempted/taxable service .but now a composite can provide exempted service also.

In 23rd GSTcouncil meeting the due date for enrolling under the increased threshold has been made available to both migrated and new taxpayers up to 31.03.2018.

The GST rate payable by GST Composition dealers has been harmonized for all taxpayers (traders or manufactures) at 1%. However, not change has been announced on the GST rate for composition scheme for restaurants.

GSTR 4 return must be filed by taxpayer registered under the GST composition scheme. GSTR4 is a quarterly return that was originally due on the 18th of month following respective quarter. But in 23 council meeting composition returns, GSTR-4 due date extended to 24 /December/2017 for July-September quarter

Reverse Charge Mechanism

Registered taxpayers were required to pay GST on reverse charge basis when they purchased from an unregistered person, the 22ndGST Council has decided to suspend the reverse charge mechanism till 31.03.2018. Now, registered taxpayers can purchase from unregistered persons without having to pay GST on reverse charge basis.

TDS and TCS Provisions Postponed

The Government has decided to postpone the TDS/TCS registration and operationalization to 31st March 2018.

Disclaimer:

All efforts are made to keep the content of this site correct and up-to-date. But, this site does not make any claim regarding the information provided on its pages as correct and up-to-date. The contents of this site cannot be treated or interpreted as a statement of law. In case, any loss or damage is caused to any person due to his/her treating or interpreting the contents of this site or any part thereof as correct, complete and up-to-date statement of law out of ignorance or otherwise, this site will not be liable in any manner whatsoever for such loss or damage.

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REPORT SUBMITTED BY GST LAW PANEL TO REVENUE SECRETARY REGARDING CHANGES IN GST ACT

gstgloval (1)

Although GST LAW PANEL has given more than 100 recommendations but some of them are as follows:
  • Reverse Charge Mechanism should be abolished
  • E-Way bill should be deferred till 2019 and efforts may be made to bring some alternate method in place of E-Way Bill.
  • Inter-state transactions should be allowed in Composition Scheme.
  • 1% tax in Composition for traders, manufacturers and restaurants.
  • Refund process should be automated
  • In place of all other returns there should be a single consolidated return.
  • Return process should be simplified and rationalised.
  • The ITC should be released within same month. Matching and adjustment may be done later.
  • FORM 3B is to be continued till March 2018
  • Return should be filed quarterly but tax may be paid monthly.
  • Doing away with HSN code in the invoice for easier return filing.
  • Classification of items should be such that the raw material and finished product are in the same slab. This would make refunds process easier.
  • Exempted or Nil rated goods should not be counted in aggregate turnover.
  • All job work should be taxed@5%
  • Service providers should also be allowed to take composition schemes
  • Allowing revision in returns.
  • Formation of a National Advance Ruling Authority
  • Search/raid only if Authority is having credible evidence against a person and that too only with orders of Commissioner.
  • Scrutiny of returns should be 0.5% to 1% only.
  • Registration of persons even after July should be granted registration with retrospective effect from 1st July 2017
  • Purchasers can claim ITC provided has made payment of tax and received the goods. If supplier does not pay tax the purchaser cannot be asked to reverse the credit.
  • GST on interest charged for late payment should not be charged.
  • Formula of deemed credit to weavers and fabric traders on the stock held as on 30.6.2017.
  • No requirement of reversal of VAT credit in the absence of Form C, F, H.
  • ITC on business expenses like, food, insurance, gift to employees, business assets
  • Consolidated debit note instead of invoice wise debit note.
  • Threshold exemption of Rs.20lakhs to all types of commission agents
  • Place of supply in many cases should be the registered place of the recipient in case of B2B transactions.
  • Withdrawal of Form ITC-4.
  • Many relaxations to casual taxable person.
  • Common tax pool for payment of tax.
  • No restrictions on  refund of accumulated credit.
  • Premises of assessee cannot be visited casually by the officers, prior written permission of the Commissioner required
  • No penalty in case of wrong classification
  • No denial of credit on the purchases made from 1.7.2017 till the date of registration for textile traders and other segment as well.

​The panel received more than 700 representations on problems faced by industry over return filing, the E-way bill, Input tax credit, and Exports.

All the above Recommendations are some major out of many more Recommendations of A 6 -Member Advisory Group set up by Ministry of Finance on 2nd November 2017 and Group was asked to submit its report by 30th November on proposed changes in GST Act.

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No GST on sale of old gold jewellery, cars by individuals

No GST on sale of old gold jewellery, cars by individuals, clarifies govt

Image result for jewellery images

Individuals who want to sell their old jewellery or old vehicles will not have to pay GST  as the sale is not for furthering any business, the Revenue department clarified on Thursday.

On Wednesday,  Revenue Secretary Hasmukh Adhia had said that ‘purchase of old gold jewellery by a jeweller from a consumer will be subject to GST at the rate of 3 percent under reverse charge mechanism in terms of the provisions contained in Section 9(4) of the Central GST Act, 2017.’

The Revenue department on Thursday said that the said section has to be read in conjunction with another section and “even though the sale of old gold by an individual is for a consideration, it cannot be said to be in the course or furtherance of his business (as selling old gold jewellery is not the business of the said individual), and hence does not qualify to be a supply per se.”ge. Reuters

“Accordingly, the sale of old jewellery by an individual to a jeweller will not attract the provisions of Section 9(4) and jeweller will not be liable to pay tax under reverse charge mechanism (RCM) on such purchases,” it said.

Revenue department officials said the same principal will apply on sale of old cars or two-wheelers and no GST will be payable even though the supply would be for a consideration.

The statement said that Section 9(4) of the said Act mandates that tax on supply of taxable goods (gold in this case) by an unregistered supplier (an individual in this case) to a registered person (the jeweller in this case) will be paid by the registered person (the jeweller in this case) under reverse charge mechanism.

But since the sale is not in consideration for the furtherance of business no tax will apply.

It however said the tax would apply if an unregistered business sells gold ornaments to registered supplier.

“However, if an unregistered supplier of gold ornaments sells it to registered supplier, the tax under RCM will apply,” it added.

A supplier is defined as the one who buys or sells in furtherance of his business. We look forward for your valuable comment www.carajput.com

FOR FURTHER QUERIES CONTACT US:

W: www.carajput.com    E: info@carajput.com   T: 011-233-4-3333, 9-555-555-480

Disclaimer:

All efforts are made to keep the content of this site correct and up-to-date. But, this site does not make any claim regarding the information provided on its pages as correct and up-to-date. The contents of this site cannot be treated or interpreted as a statement of law. In case, any loss or damage is caused to any person due to his/her treating or interpreting the contents of this site or any part thereof as correct, complete and up-to-date statement of law out of ignorance or otherwise, this site will not be liable in any manner whatsoever for such loss or damage.

The visitors may visit the web site of Government site Like Income Tax Department, Services Tax, Excise, Etc for resolving their doubts or for clarifications

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Update on services provided by Government or Local Authority

Update on services provided by Government or Local Authority

Untitled33

Services (except few) provided by Government or Local Authority to business entities are covered under Reverse Charge Mechanism w.e.f 1st April, 2016 meaning thereby business entities are required to pay Service Tax on services received from Government or Local Authority. To curtail dilemma regrading non-taxability of various charges received by government like registration fee, Central Government has issued Notification No. 22/2016-ST. In addition, changes have been made in Point of Taxation Rules, 2011 and Service Tax (Determination of Value) Rules, 2006 vide Notification No. 23/2016-ST and Notification No. 24/2016-ST, respectively.

Changes in Mega Exemption Notification to exempt following services:-

  1. In entry 39, benefit of exemption has been extended to services provided by Government or Local Authorities by way of any activity in relation to any function entrusted to a municipality under article 243 W of the Constitution. Earlier this exemption is available only to Governmental Authorities.
  2. Services provided by Government or a local authority to another Government or local authority:
    Provided that nothing contained in this entry shall apply to services specified in sub-clauses (i), (ii) and (iii) of clause (a) of section 66D of the Finance Act, 1994
  3. Services provided by Government or a local authority by way of issuance of passport, visa, driving licence, birth certificate or death certificate
  4. Services provided by Government or a local authority where the gross amount charged for such services does not exceed Rs. 5000/-
    Provided that nothing contained in this entry shall apply to services specified in sub-clauses (i), (ii) and (iii) of clause (a) of section 66D of the Finance Act, 1994
    Provided further that in case where continuous supply of service, as defined in clause (c) of rule 2 of the Point of Taxation Rules, 2011, is provided by the Government or a local authority, the exemption shall apply only where the gross amount charged for such service does not exceed Rs. 5000/- in a financial year.
  5. Services provided by Government or a local authority by way of tolerating non-performance of a contract for which consideration in the form of fines or liquidated damages is payable to the Government or the local authority under such contract
  • Services provided by Government or a local authority by way of-
    (i) registration required under any law for the time being in force;
    (ii) testing, calibration, safety check or certification relating to protection or safety of workers, consumers or public at large, required under any law for the time being in force
  1. Services provided by Government or a local authority by way of assignment of right to use natural resources to an individual farmer for the purposes of agriculture
  2. Services by Government, a local authority or a governmental authority by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution
  3. Services provided by Government or a local authority by way of assignment of right to use any natural resource where such right to use was assigned by the Government or the local authority before the 1st April, 2016
    Provided that the exemption shall apply only to service tax payable on one time charge payable, in full upfront or in installments, for assignment of right to use such natural resource
  4. Services provided by Government or a local authority by way of allowing a business entity to operate as a telecom service provider or use radiofrequency spectrum during the financial year 2015-16 on payment of licence fee or spectrum user charges, as the case may be
  5. Services provided by Government by way of deputing officers after office hours or on holidays for inspection or container stuffing or such other duties in relation to import export cargo on payment of Merchant Overtime charges (MOT).

Changes in Point of Taxation Rules, 2011:-

Generally, point of taxation in case of reverse charge is date of payment. Further, in case payment is not made within a period of three months the point of taxation shall be the date immediately following period of three months.

Now in specific case where services are provided by the Government or local authority to any business entity; the point of taxation shall be the earlier of the dates on which, -

  1. Any payment, part or full, in respect of such service becomes due, as specified in the invoice, bill, challan or any other document issued by the Government or local authority demanding such payment; or
  2. Payment for such services is made.

Changes in Service Tax (Determination of Value) Rules, 2006:-

As per rule 6, in sub-rule (2), in clause (IV), the value of taxable service, does not include interest on delayed payment of any consideration for the provision of services or sale of property, whether moveable or immoveable. Now following proviso has been inserted:

“Provided that this clause shall not apply to any service provided by Government or a local authority to a business entity where payment for such service is allowed to be deferred on payment of interest or any other consideration.”

Hence interest or any other consideration paid for deferment of payment against services provided by Government or a local authority will not be excluded for the purpose of calculation of value of taxable service.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances ;Hope the information will assist you in your Professional   endeavors. For query or help, contact:  info@carajput.com or call at  9555555480

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CORPORATE & OTHER LAWS UPDATE NOVEMBER 19 ,2015

Corporate and Professional Update NOVEMBER 19 ,2015

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  • Media should refrain from publishing unauthenticated stories on conciliation in Vodafone case: CBDT
  • Booking rights of fictional property not to be deemed as transferable capital assets
  • IT : Rights in a property couldn’t be deemed as transferable capital assets when such property was neither in existence nor its building plan or specifications were approved from the Municipal Corporation and neither any construction activity nor commencement of the project had started [2015]  184 (Mumbai – Trib.) S. Narendrakumar & Co. v. DCIT
  • extends time limit for establishing ‘Central KYC Records Registry’ under PMLA norms
  • Now NRs or NRIs may acquire units of ‘Real Estate Investment Trusts’
  • Now Delhi dealers required to submit details of goods sold via each e-commerce website
  • Delhi Govt. devised mechanism to prohibit misuse of auto downloading facility for DVAT forms
  • CCI slapped penalty on Jet Airways, Indigo and Spice Jet for forming cartel to fix fuel surcharge
  • MCA releases new Form MGT 7 with more clarifications
  • DIPP issues a draft list containing various activities with relevant para of FDI Policy
  • amends FDI Policy for various sectors including construction and defence sectors
  • CBDT lays Std. Operating Procedure for allocation/transfer of cases and curing of defective appeals
  • No penalty due to non-charging of ST on bank’s commission as issue of its taxability was sub-judice in various forums [2015] 348 (Mumbai – CESTAT)  Y. M. Motors (P.) Ltd. v. Commissioner of Central Excise
  • Tax Authorities can’t attach Cash Credit Account of taxpayer to recover tax dues
  • Excise & Customs : ‘Tankers’ cannot be regarded as ‘bulk packs'; therefore, receiving chemicals in tankers and transferring same to drums cannot be regarded as ‘repacking from bulk pack to retail packs’ and hence, said activity cannot amount to manufacture [2015]  5 (Mumbai – CESTAT) JPB Chemical Industries (P.) Ltd. v. Commissioner of Central Excise
  • No service-tax on course fee retained by franchisor just because it was referred in franchisee agreement
  • Reverse Charge mechanism shall be applicable for purposes of Swachh Bharat Cess
  • No Swachh Bharat Cess if payment for services is received prior to Nov 15, 2015; Govt. clarifies
  • Excise & Customs : In case three different MRPs are affixed on ‘same package’ even though for ‘different areas’, goods will be assessed to duty as per Explanation 2(a) to section 4A taking highest MRP as the basis. [2015]  84 (SC)Sarup Tanneries Ltd. v. Commissioner of Central Excise
  • Service Tax : Training/Course fee shared in ratio of 25:75 between assessee and centres providing training, is akin to revenue sharing model for training services and therefore, 25 per cent retained by assessee cannot be taxed under franchise services [2015] 312 (Mumbai – CESTAT) Centre for Development of Advance Computing v. Commissioner of Central Excise
  • Cenvat Credit : Service tax paid on insurance services received for insurance of (a) existing as well as retired employees, and (b) stock stored in foreign warehouses, is eligible for input service credit [2015]  370 (Mumbai – CESTAT)  Reliance Industries Ltd. v. Commissioner, Central Excise & Service Tax
  • Swatch BHARAT Cess :
  • Whether SBC would be required to be mentioned separately in invoice?
  • Ans. SBC would be levied, charged, collected and paid to Government independent of service tax. This needs to be charged separately on the invoice, accounted for separately in the books of account and paid separately under separate accounting code which would be notified shortly. SBC may be charged separately after service tax as a different line item in invoice. It can be accounted and treated similarly to Education cesses.
  • Rates of ST after SBC
  • GTA.     4.35%
  • Original Works Contract(OWC)                          5.8%
  • Other than (OWC)                         10.15%
  • Restaurant Services 5.8%
  • Whether Cenvat Credit of the SBC is available?
  • Ans. SBC is not integrated in the Cenvat Credit Chain. Therefore, credit of SBC cannot be availed. Further, SBC cannot be paid by utilizing credit of any other duty or tax.
  • SBC shall be applicable on Reverse Charge Mechanism also
  • 5 key takeaways from Bankruptcy Bill
  • New Bankruptcy Bill was drafted to speed up the process of revival of financially distressed companies and limited liability entities.
  • Key takeaways from draft bill are given hereunder:
  • Insolvency process to be fast tracked: insolvency resolution process has to be completed within a period of 90 days from the insolvency commencement date.
  • Formation of Insolvency Regulator: Further time-limit of 180 days (which can be reduced to 90 days under fast track process) has been given for regulator to deal with insolvency resolution cases.
  • Insolvency professionals: The draft Bill proposes to regulate insolvency professionals and insolvency professional agencies.
  • Creation of insolvency information utilities: It suggests creation of information utilities which would collect, collate, authenticate and disseminate financial information from listed companies and financial and operational creditors of companies.
  • Procedure for insolvency resolution- The draft bill provides following procedure:
    • For companies and Limited Liability Entities: Timeline of 180 days has been fixed for insolvency resolution. extended further by 90 days. Insolvency resolution process can be initiated with the approval of 75 % of creditors.
    • For individuals and Unlimited Liability Partnerships: As a precursor to a bankruptcy process, there can be two processes that shall be followed.
    • In the fresh-start process, individuals with annual gross income of less than Rs.60,000 and aggregate asset value of less than Rs.20,000 shall be eligible to make a fresh start through a specified process.
    • In the insolvency resolution process creditors and debtors will engage in negotiations to arrive at an agreeable repayment plan, supervised by a resolution professional.
  • There could be no motive in mis-declaration of value when goods were wholly exempt
    Excise & Customs : Where, based on opinion of expert body, Tribunal found that : (a) goods were software and exempt from duty and (b) declared value thereof was not excessive, said findings, being findings of fact, were not to be interfered with [2015]  330 (SC) Commissioner of Customs  v. Contessa Commercial Co. Ltd.
  • No input tax credit of VAT paid on coal which was used as fuel in manufacturing
    CST & VAT : West Bengal VAT – Where assessee purchased coal after payment of VAT and used same both as raw material and fuel in manufacture of sponge iron, it was entitled to input tax credit only on that part of purchase price of coal which was utilised solely as raw material [2015]  331 (WBTT) Sova Ispat Ltd. v. JCCT, Bankura Charge
  • Condition of recording satisfaction u/s 153C can’t be bypassed even if AO of searched person and other person is same
  • IT: Recording of satisfaction by Assessing Officer having jurisdiction over person searched is an essential and prerequisite condition for bestowing jurisdiction to Assessing Officer of ‘other person’ under section 153C; even where Assessing Officer of searched person and such other person is same, Assessing Officer has to carry out dual exercise, first as Assessing Officer of person searched in which he has to record satisfaction and second as Assessing Officer of ‘other person’ [2015]  327 (Delhi – Trib.)Deputy Commissioner of Income-tax v. Satkar Roadlines (P.) Ltd
  • IT: Where assessee handed over chassises to fabricating agency on account of its expertise with an understanding that bus as a finished product would be delivered to assessee, said activity was a sale not works contract and assessee was not liable to TDS on payment to said agency [2015]  377 (Andhra Pradesh and Telangana) Commissioner of Income-tax v. A.P. State Road Transport Corporation
  • IT : Where in terms of directions issued by CLB, assessee-company paid certain amount over and above face value of shares to departing group of shareholders, amount so paid was to be allowed as revenue expenditure [2015] 13 (Bombay) CIT v. Bramha Bazar Hotels Ltd.
  • IT : Where assessee-company had received an amount of Rs. 35 lakhs from its directors towards share application money in cash, provisions of section 269SS were not applicable in instant case [2015] 15 (Hyderabad – Trib.) ITO v. Sunder Synthetics (P.) Ltd.
  • can’t file FIR against assessee due to default in payment of service tax
  • Service Tax : Finance Act, 1994, being a special and complete Code, prevails over general provisions of IPC and, accordingly, for alleged non-payment of service tax, department cannot filed FIR under provisions of IPC [2015] 281 (Punjab & Haryana) Ajay Kumar Sandhu v. State of Haryana
  • Receipt shown in P&L A/c liable to MAT even if it is shown as capital receipt in notes to accounts 2015]  122 (Bangalore – Trib.) B & B Infotech Ltd. v. ITO
  • IT: Auditor’s report cannot override provisions of Act and, thus, merely because assessee’s false claim for deduction is supported by a Chartered Accountant’s opinion, this fact per se cannot absolve assessee from penalty under section 271(1)(c) [2015]  89 (Chennai – Trib.) DCIT v. Rattha Citadines Boulevard Chennai (P.) Ltd.
  • IT: Where Assessing Officer raised huge tax demand upon assessee and in meantime bank account including cash credit account of assessee had been attached by income tax authorities, in view of decision of Madras High Court in case of K.M. Adam v. ITO [1958] 33 ITR 26, cash credit account of assessee could not be attached and it was entitled to be discharged [2015] 38 (Calcutta) P. C. Chandra & Sons (India) Ltd. v. DCIT
  • IT: Where refunds accrued to assessee for earlier assessment years were not processed, action of Assessing Officer by resorting to section 245 and adjusting same for any new subsisting due could not be valid [2015]  339 (Madras)  ACIT v. Sundaram Asset Management Co. Ltd.
  • CBDT to set-up a ‘Taxpayers’ Lounge’ at Pragati Maidan Trade Fair, Delhi

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com  or call at 9555555480

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CORPORATE AND PROFESSIONAL UPDATE

SERVICE TAX AMENDMENTS

Untitled22Clarification about the Rate of Service Tax

The rate of Service Tax will continue @12.36% until the new rate is notified. The increase in service tax rate from 12.36% to 14% is yet to be notified.

 Service Tax amendments applicable from 01 April 2015.

 New Exemptions provided

  1. Services provided by way of transportation of a patient in an ambulance would now be exempt from Service Tax. The scope of this exemption is being widened to include all ambulance services in addition to health care services.
  2. Life insurance services provided under Varishtha Pension Bima Yojna scheme would now be exempted.
  3. The scope of exemption on transportation of goods by road has been extended from the place of removal to an inland container depot, a container freight station, a port, airport or Land Customs Station is exempt from Service Tax vide notification No. 31/12-ST dated 20 June 2012.
  4. Service provided by a Common Effluent Treatment Plant operator for treatment of effluent would now be exempted.
  5. Services by way of pre-conditioning, pre-cooling, ripening, waxing, retail packing, labeling of fruits and vegetables would now be exempted.
  6. Service provided by way of admission to a museum, zoo, national park, wild life sanctuary and a tiger reserve would now be exempted.
  7. Service provided by way of exhibition of movie by the exhibitor (theatre owner) to the distributor or an association of persons consisting of such exhibitor as one of its members would now be exempted.

Withdrawal of Exemptions

  1. The following services provided to government, local authority or a governmental authority by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of:
  1. A civil structure meant for use other than for commerce, industry, etc.
  2. A structure meant predominantly for use as an educational, clinical, or an art or cultural establishment.
  • A residential complex predominantly meant for self-use or the use of their employees would be taxable.
  1. Services provided by way of construction, erection, commissioning or installation of original works pertaining to an airport or port would now be taxable.
  1. Exemption to services provided by a performing artist in folk or classical art form
  2. music, or
  3. Dance, or
  4. Theater,

Will be limited only to such cases where amount charged is uptoRs. 1, 00,000 for a performance would be taxable. It is further clarified that the exemption shall not apply if services provided by artist as a brand ambassador;

  1. Goods Transport services by rail or water in respect of following products which were exempt earlier will now be taxable with regards to fruits, vegetables and eggs. Hence, Goods transport services by rail or water will not be taxable in case of Milk, Salt and food grain including flours, pulses and rice.
  2. Goods transportation by roadin respect of following products which were exempt earlier will now be taxable with regards to tea, coffee, Jaggery, Sugar, Milk Products and edible oil Hence, GTA (road) will not be taxable in case of Milk, Salt and food grain including flours, pulses and rice.
  3. The following services provided would be taxable:
  • distributor to a mutual fund or AMC,
  • a mutual fund agent to a mutual fund or assets management company,
  • Selling or marketing agent of lottery ticket to a distributor.
  • These services are now covered under reverse charge basis.
  • Departmentally run public telephone, guaranteed public telephone operating only local calls; Service by way of making telephone calls from free telephone at airport and hospital where no bill is issued would be taxable.

Changes in Abatement

  1. Currently, the Service Tax is payable on 70% of the fees, commission or any such amount in case of Chit Funds.  The abatement is being withdrawn from services provided in relation to chit fund business.
  2. The service tax abatement is several transportation services have been changed to bring them to same rate of service tax and related conditions.  In the table below, we have summarized the old and new rate of service tax:
Services Old Rate and Conditions New Rate and Conditions
Goods Transport Agency 25% and no cenvat credit shall be allowed on inputs, capital goods and input services 30% and no cenvat credit shall be allowed on inputs, capital goods and input services
Rail Transportation of Goods 30% and no further conditions Same as above
Rail transport of Passengers 40% and no cenvat credit shall be allowed on inputs and capital goods Same as above
Transportation of goods by Vessel 50% and no cenvat credit shall be allowed on inputs, capital goods and input services Same as above
  1. Currently, the Service Tax is payable on 40% of the value of air transport of passenger irrespective of the class.  The service tax would now be payable on 60% of the value in case of classes above economy class.

Reverse Charge Mechanism

  1. Manpower supply and security services when provided by an individual, HUF, or partnership firm to a body corporate are being brought to full reverse charge. Currently, the service receiver pays 75% of the service tax due and balance is paid by service provider.
  2. The following servicers are brought under reverse charge mechanism:

            Mutual fund agents,

            Mutual fund distributors and

            Agents of lottery distributor.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 9555555480

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