Robert & Associates, Chartered Accountants

07/09/2022

13/01/2018

My sketch on the day's events..

09/12/2017

உயில் பற்றிய 15 விளக்கங்கள் .உயில் அவசியமா....
உயில் எழுதவேண்டாம்.உயில் அவசியமா....
சொத்து இருப்பவர்தான் உயில் எழுதமுடியும்.
சொத்து இல்லாதவர்களுக்கு அதைப் பற்றிய கவலையே தேவையில்லை.
சொத்து இருப்பவர், அவரின் வாழ்நாளின் கடைசி காலங்களில் உயில் எழுதி வைப்பது, அவரின் வாரிசுகளுக்குள் சண்டையில்லாமல் இருக்க வழிவகுக்கும் என சட்டமும், அதைப்படித்த வக்கீல்களும், அனுபவமிக்க பெரியவர்களும் சொல்லி வருகிறார்கள்.ஆனால், எனக்கென்னவோ, அது சரி என்றுபடவில்லை. கட்டாயமாக உயில் எழுதிவைக்க வேண்டும் என்று எந்த அவசியமும் இல்லை. ஒவ்வொருவருக்கும் அவரவரின் குடும்ப சூழ்நிலை, தேவை, இவைகளைப் பொறுத்து உயில் அவசியமா இல்லையா என்பதை அவரவரே முடிவு செய்ய வேண்டும்.
சொத்து இருக்கிறது என்பதற்காகவே மட்டுமே உயில் எழுதி வைக்க வேண்டாம்.
தனக்கு வயதாகிவிட்டது என்பதற்காகவே மட்டுமே உயில் எழுதி வைக்க வேண்டாம்.
நாம் உயிருடன் இருக்கும்போதே, நம் சொத்துக்களை பிள்ளைகளுக்குப் பங்கிட்டுக் கொடுத்தால், நம் பிள்ளைகள் மகிழ்வார்கள் அல்லது சண்டையிருக்காது என்பதற்காக மட்டுமே உயில் எழுதவைக்க வேண்டாம்.
பிள்ளைகள், நம்மைக் கட்டாயப் படுத்துகிறார்கள் என்பதற்காக மட்டும் உயில் எழுத வேண்டாம்.
நமது ஒத்த வயதுடைய நண்பர்கள் அதுபோல உயில் எழுதி வைத்துள்ளார்கள் என்பதற்காகவோ, அவரைப்போலவே நாமும் எழுதி வைத்து விடுவோம் என்பதற்காகவோ மட்டும் உயில் எழுத வேண்டாம்.
நாம் இந்த உலகைவிட்டு சென்றபின், நமது பிள்ளைகள், 'உயிருடன் இருக்கும்போதே, இந்தப்பாவி சொத்தை பங்கிட்டுக் கொடுத்திருக்கலாம்' என்று நம்மை திட்டிவிடுவார்கள் என்பதற்காக பயந்து கொண்டு உயில் எழுதி வைக்க வேண்டும்.
ஒரு மகனோ/ மகளோ நம்மை நன்றாக பார்த்துக் கொண்டிருக்கிறார்கள் என்ற வாஞ்சையால் உயில் எழுதி வைக்க வேண்டாம்.
ஒரு மகனோ/ மகளோ நமது கொள்கைக்கு எதிராக நடந்து கொண்டார்கள் என்பதற்காக அவனுக்கு/அவளுக்கு மட்டும் சொத்து போய் சேரவே கூடாது என்பதற்காக மட்டும் ஒரு உயிலை எழுதி வைக்க வேண்டாம்.
கோபப்பட்டுக் கொண்டு கோயிலுக்கும், தர்மத்துக்கும் எழுதி வைக்க வேண்டாம். (தர்மத்துக்கு எழுதிய சொத்துக்கள் எல்லாம், கோர்ட்டில் வழக்குகளாக வாழ்ந்து கொண்டிருக்கின்றன.)
இதில் சொல்லியுள்ள எந்த காரணமும் உயில் எழுதுவதற்கு போதுமான காரணமாக கொள்ள முடியாது. நமது வாழ்நாளுக்குப் பின்னர் நமது பிள்ளைகளுக்குத்தான் அந்த சொத்து போய்ச் சேரப் போகிறது. இதில் எந்த சட்டப் பிரச்சனையும் வராது. வேறு மூன்றாம் மனிதர்களுக்கு எந்தக்காலத்திலும் அவை போய் சேராது. எல்லா மதங்களிலும் இதற்கென தெளிவான தனித்தனி சட்டங்கள் உள்ளன. எனவே உயில் எழுதும் எண்ணத்தை உங்களின் வாழ்நாள் வரை ஒத்தி போடுங்கள்.
ஆனால், கீழ்கண்ட சூழ்நிலை இருந்தால் மட்டும் உயில் எழுதி வைக்க நீங்கள் முயற்சி எடுங்கள்.
உங்களிடம் ஒரேயொரு சொத்து மட்டும் இருந்து, உங்கள் மனைவிக்கு வேறு எந்த ஆதரவும் இல்லாமல் இருந்தால், அந்த சொத்தை, உங்களின் காலத்துக்குப் பின், அந்த சொத்து முழுவதையும் உங்களின் மனைவிக்கே கொடுத்து விடுவதாய் உயில் எழுதி வைத்து விடுங்கள். (உங்களின் பிள்ளைகளிடமோ, மருமகளிடமோ கையேந்த வைக்காதீர்கள்.)
உங்களிடம் பல சொத்துக்கள் இருந்து, உங்களுக்கும் நல்ல வசதி இருந்தால், ஆதரவற்ற உங்களின் உறவினர்கள் உங்களை எதிர்பார்த்து இருந்தால், (மகன், மகள் தவிர, அதாவது, உங்களின் இறந்த மகனின் மனைவி, உங்களின் இறந்த சகோதரன்/ சகோதரி வாரிசுகள், உங்களின் மனைவியின் இறந்த சகோதர/சகோதரி வாரிசுகள் போன்றோர் இருந்தால்) உங்களிடம் அதிகப்படியாக உள்ள சொத்துக்களை அவர்களுக்கு பிரித்து உயில் எழுதி வைத்து விடுங்கள்.
நாம் இறந்தபின்னும், இந்த உலகம் எந்த சிக்கலும் இன்றி இயங்கத்தான் போகிறது. எல்லாச் சட்டங்களும் இருக்கத்தான் போகிறது. நாமே எல்லாவற்றையும் சரிசெய்து வைத்துவிட்டுப் போய்விடுவோம் என்றும், இல்லையென்றால் மற்றவர்களுக்கு அது சிக்கலை உண்டாக்கிவிடும் என்றும் எண்ணிக் கொண்டு எதையும் செய்ய வேண்டாம். ஏனென்றால், உயிருடன் இருக்கும்போது எழுதி உயில்கள், செட்டில்மெண்ட் பத்திரங்கள் அதில் சொல்லியுள்ள நிபந்தனைகள் எல்லாம், அவர் மறைந்தபின்னர், அவசியமே இல்லாமல் போன பல நிகழ்வுகள் உண்டு; அதற்கு நேர்மாறாக நடந்த நிகழ்வுகள் பல உண்டு.
தன் வாழ்நாளிலேயே செட்டில்மெண்ட் பத்திரங்கள் மூலம் தனது வாரிசுகளுக்கு சொத்தை பங்கிட்டு கொடுத்துவிட்டு, அவரின் வாழ்நாளின் கடைசி காலங்களில் கண்ணீர் விட்டு அழுத சம்பவங்கள், ஏராளம்!! காரண-காரியங்கள் தேவையில்லை. பந்த-பாசங்கள் பொய் எனவும் சந்தேகிக்கும் சூழ்நிலைகள். ஏமாந்துவிட்டோம் என்ற ஏக்கங்கள். போக்கிடம் இல்லாத தனிமைத்துயரம்! வயதான காலத்தில் ஒருவர் தனக்கென சொத்தோ, பணமோ இல்லாமல் இருந்துவிடக் கூடாது. ஆனால், வறுமையில் இருந்தால், "ஏமாந்து, தனக்கு உதவிசெய்து காப்பாற்றும் பிள்ளையொன்று தனக்கு இருந்தால்", அவர் உண்மையில் அதிர்ஷ்டசாலியே!
நமது மறைவுக்குப் பின், இந்த உலகில் நமது பிள்ளைகள், 'நாம் சொல்லிச் சென்ற வார்த்தைகளை எத்தனைபேர் மதித்துள்ளார்கள். மிகக் குறைவே. நமக்கு முகத்துக்குநேர், மரியாதை செய்யும் நம் பிள்ளைகள், நமது கண்ணுக்குப் பின், எப்படி நடந்துகொள்கின்றனர் என்பது முக்கியம்.

உயில் பற்றிய 15 விளக்கங்கள் .
1.உயில் என்றால் என்ன? ஒரு சொத்தினை தனது இறப்புக்கு பின்னர் யார் உரிமை கொண்டு அனுபவிக்கலாம் என்று தனது விருப்பத்தை எழுத்து வடிவில் எழுதுவது உயில் சாசனம் ஆகும்.
2.எத்தகைய சொத்துக்களை ஒருவர் உயில் எழுதலாம்? ஒரு நபர் தான் ,தனது சுய சம்பாத்தியத்தின் மூலம் பெற்று அனுபவித்து வரும் சொத்து,பரம்பரையாக ஒரு கூட்டுக் குடும்பம் அனுபவித்து ஒரு நபர் தனது பெயரில் மட்டும் பாகப்பிரிவினை பெற்று அனுபவித்து வரும் சொத்து, கொடை எனப்படும் தான செட்டில்மென்ட் மூலம் பாத்தியப்படுத்திய சொத்து கொடை பெற்ற நபரின் பாத்தியதை எனப்படும் அனுபவத்தில் இருந்துவர வேண்டும். இந்த சொத்துக்களை ஒரு நபர் உயில் எழுதலாம்.
3.உயில் எழுத ஆண்,பெண் என்று பாகுபாடு உண்டா? கண்டிப்பாகக் கிடையாது வயது வந்த தனது பெயரில் பாத்தியதை கொண்ட சொத்தினை ஆண்,பெண் இரு பாலரும் எழுதலாம்.
4.உறவினர்களுக்கு மட்டும் தான் உயில் எழுதி வைக்க முடியுமா? அப்படிப்பட்ட சட்ட நிபந்தனைகள் ஏதும் கிடையாது ,உறவினர் அல்லது உறவினர் அல்லாத யாருக்கு வேண்டுமானாலும் உயில் எழுதலாம்.
5.கருவில் உருவாகாத குழந்தைகளுக்கு உயில் எழுதலாமா? எழுதலாம் ஆனால் அது நடை பெறவில்லை என்றால் உயில் செயல் படாது ,வழியுரிமை மூலம் சொத்து தகுந்த வாரிசுகளை சென்றடையும்.
6.உயில் சாசனத்தை கட்டாயம் பதிவு செய்ய வேண்டுமா? அப்படிப்பட்ட சட்ட நிபந்தனைகள் ஏதும் கிடையாது.பதிவு செய்யலாம் செய்யாமலும் இருக்கலாம்.
7.உயில் சாசனத்தில் கட்டாயம் செய்ய வேண்டியது என்ன? கண்டிப்பாக இரண்டு சாட்சிகள் வேண்டும்,இவர்கள் முன்னிலையில் தான் உயில் சாசனம் இயற்றுபவர் கையொப்பம் இட வேண்டும்,சாட்சிகளும் உயில் சாசனம் இயற்றுபவர் முன்னிலையில் தான் சாசனத்தில் கையெழுத்திட வேண்டும்.
8.உயில் சாசனம் மூலம் சொத்தை அடைபவர் சாட்சி கையெழுத்து போடலாமா? கண்டிப்பாகக் கூடாது சட்டம் இதனை அனுமதிக்கவில்லை.
9.உயிலை ரத்து செய்ய முடியுமா? ஒரு நபர் தனது வாழ் நாளில் தனது சொத்து குறித்து எத்தனை உயில் வேண்டுமானாலும் இயற்றலாம்.கடைசியாக எழுதிய உயில் தான் செல்லும் .ஏற்கனவே எழுதிய உயிலை ரத்தும் செய்யலாம்.
10.உயில் எழுதியவுடன் சொத்தைப் பற்றிய சட்ட விளைவுகள் என்ன?யாரிடம் சொத்து இருக்கும்? உயில் என்பது எழுதிய நபரின் இறப்புக்குப் பின்னர் தான் சட்ட விளைவை உண்டாக்கும் ,அது வரை அந்த சொத்தின் உரிமை எழுதிய நபரிடம் தான் இருக்கும்.உயிலில் கண்டுள்ள நபர் அந்த சொத்திற்கு உரிமை கோர முடியாது.
11.உயில் எழுதிய பிறகு அந்த சொத்தினை உயில் எழுதிய நபர் விற்பனை செய்ய முடியுமா? கண்டிப்பாக முடியும் ,உயில் சாசனம் இயற்றிய நபர் இறக்கும் வரை அவர் தான் அந்த சொத்தின் உரிமையாளர் ,அவர் அதனை எப்படி வேண்டும் என்றாலும் அனுபவிக்கலாம்.
12.கொடை சாசனத்திற்கும் உயில் சாசனத்திற்கும் என்ன வித்தியாசம் ? கொடை சாசனம் எழுதியவுடன் அதில் கண்ட கொடை பெறுபவர் அந்த சொத்தின் அனுபவ பாத்தியத்தை பெற்றுக் கொள்ளலாம்,கொடை எழுதிய நபருக்கு அந்த சொத்தில் அதற்கு பின்னர் எந்த உரிமையும் கிடையாது.கொடை பெறுபவர் அந்த சொத்தினை பெற்றுக் கொள்ளவில்லை என்றால் கொடை கொடுத்தவர் அந்த சொத்தின் மீது உரிமை கொண்டிருப்பார்.
13.கொடை சாசனத்தை கட்டாயம் பதிவு செய்ய வேண்டுமா? 100ரூபாய்க்கு மேல் சொத்து மதிப்பு இருந்தால் கட்டாயம் கொடையை பதிவு செய்ய வேண்டும் ஆனால் உயிலை அப்படி கட்டாயம் பதிவு செய்ய வேண்டிய அவசியம் இல்லை.
14.எப்படிப்பட்ட சமூக சூழ்நிலைகளில் உயில் எழுதப்படலாம்? சட்டத்தில் இப்படிப்பட்ட சமூக சூழ்நிலையில் தான் உயில் எழுதப்பட வேண்டும் என்ற கட்டாயம் எதுவுமில்லை.பொதுவாக ஒரு நபருக்கு பல குழந்தைகள் இருந்து தனது இறப்பிற்கு பின்னர் யார் யார் எந்தெந்த சொத்துக்களை அடைய வேண்டும் என்று ஒரு முடிவை எடுத்து அதனை உயில் சாசனப் படுத்தினால் வருங்காலத்தில் குழந்தைகளுக்கிடையே சொத்திற்காக சண்டை சச்சரவு தேவையில்லாமல் ஏற்படாது.
15.உயில் எழுதவில்லை என்றால் என்ன நடக்கும்? ஒரு சொத்துக்குரிய நபர் தனது சொத்துக்களைப் பொறுத்து உயில் சாசனம் ஏதும் எழுதி வைக்கவில்லை என்றால் அவரது இறப்பிற்கு பின்னர் சட்டம் கூறும் வழியுரிமைப்படி சொத்து வாரிசுகளைச் சென்றடையும்.

CA Robert Kennedy M

15/11/2017

How to Control Risk and Reap Rewards from your Investments?

“There is no gain without pain” is a common adage which many people believe in. Perhaps the gains which they have attained in the various spheres of life have been consistently greater than the proportion of risk and pain taken.

So what is it about ‘risk’? How does one identify risks beforehand and what measures do they take to safeguard themselves against such risks? While these questions are true for all aspects of our lives, for a serious investor ‘risk’ and its connotations acquire a high level of significance.

Let us try to define ‘risk’.

The Merriam-Webster dictionary defines risk simply as “the possibility that something bad or unpleasant will happen”.
Simplified Approach to GST – Online Certification Course?

The business dictionary defines it as “A probability or threat of damage, injury, liability, loss or negative occurrences that are caused by external or internal vulnerabilities, which may be avoided through preemptive action”. Now, that is quite a comprehensive definition and it gives a fair perception of risk.

An investor will perhaps like to substitute the word ‘avoided’ with ‘minimized’ in the definition above as market risks are an inherent part of the investor’s world.

Investing funds

Understanding Risk

Understanding Risk is a lesson which every investor needs to learn. An investor attracts risk when they invest in stocks whose prices are above their intrinsic value. It is a certain move towards uncertainty and the probability of incurring loss due to capital erosion is a distinct possibility.

There exists a feeling among st a section of investors’ that by taking more risks they gain more. This is nothing but a myth and has been proved historically and mathematically time and again. If the premise that greater risks leads to greater return would be true, then the element of risk would not exist and investors would be assured of good returns.

Investors often go ahead with a supposedly high-risk investment knowing well that they are treading on a treacherous path. Sometimes such investments do fetch handsome gains. They try to make a point that their dalliance with the risk factor helped them come up trumps.

For others watching from the sidelines, this move may be translated as courage and exceptional foresight, but what would happen if the investor touched a trough and lost everything instead of scaling the crest? It has to be understood that by shouldering undue risks the investor is only making his position vulnerable.

Unpredictability of the future is a cardinal truth. More often than not our perception regarding the worst scenario may be surpassed and this is usually what occurs. Very few people can actually understand and predict the future correctly on a consistent basis. The ability to assess how high a stock is priced above its intrinsic value is the key to understanding risk.

Recognizing Risk

Risks in the market are similar to winds in a storm. When the storm grows more fierce the wind speed increases causing more devastation. Risks, are no different, when the market rises, after a point, turbulence brews due to the occurrence of greater imbalances. This leads to a situation which is unpredictable and can cause the market to crash. The upheaval comes to a rest with the setting in of a recession.

The natural corollary to ‘understanding risk’ is ‘recognizing risk’. If people become very risk averse they will not pay heed to any warning or take cognizance of any perception of fear. It becomes a situation where “fools rush in where angels fear to tread” and they become tempted to purchase investments at high P/E multiples and wafer-thin spreads, depending on the class of asset.

Howard Marks has an interesting observation to make, he states that “The degree of risk present in the market derives from the behavior of the participants, not from the securities, strategies, and institutions. Regardless of what’s designed into market structures, risks will be low if investors behave prudently”.

It naturally follows that a financial climate which is healthy and safe will be characterized by risk aversion, skepticism, distrust, agnostic views, worry and awareness of the attitudes and behavior of its participants’.

The market cycle turns vicious as the demand for risky assets increases which in turn leads to a reduction in rates and yields. Investors who strive for greater returns in shorter periods bring more risk upon themselves.

When fixed return instruments begin to offer lower yields, investors get attracted to the capital market seeking to achieve commensurate or greater returns thus raising the risk bar a few notches higher. It needs to be remembered that this is not a market in which we operate but a market which operates because of us.

An ideal situation is one where all investors recognize risk and are averse to blind riskper se. This cuts out the aberrations which might otherwise crop up and the element of risk is mitigated.

Controlling Risks

Loss is the consequence of taking undue risks. The transformation of ‘risk’ into ‘loss’ occurs only when a catalyst acts upon risk and coverts it onto a loss. A parasite by itself might not cause damage but when it resides inside the body of a person and acts upon it, disease is caused.

Ability to control risks is what differentiates between a seasoned and a naïve investor. Positioning investments in a manner which negates or mitigates the risk element is the hallmark of a smart investor. It is very important for investors to be aware of two things which can prove to be effective safeguards against undue risk:

I. You do not know

II. You do not have the ability to control

This will result in making an objective assessment of risk factors associated with an investment and investing according to it. While an investor would definitely be congratulated during gloomy economic times, for investing in safe avenues like bonds and debt funds, a serious investor would want to have a larger pie and this is where the lessons on risk control can yield good results.

Practical Steps to control Risk

So at the end of the day here is what an average investor can do to avoid the pitfalls associated with too much risk:

I. Chart out an asset allocation based on age, risk taking propensity, and required rate of return

II. Identify the stocks or equity funds in which he or she is interested to invest

III. Make a thorough assessment of the stock, its price or valuations and its basic fundamentals

IV. If the risks associated with the stock or equity fund in either the short term or the long term is greater than normal (based on market knowledge as far as practicable), avoid such stocks or funds and look for better options for investment.

The above steps practiced diligently will help you control the risk and reap the reward from your investments.

15/11/2017

Refund Mechanism in GST

INTRODUCTION:

The Goods and Services Tax, which was implemented from July 1, subsumes all the indirect taxes that businesses earlier paid the Center and states separately, with the aim of creating a common market. It involved a complete overhaul of the tax filing system.

Under this regime, companies are given the opportunity to claim refunds for the taxes they pay while buying inputs for their businesses, such as raw materials. However technical glitches, among other things, have meant that the government has repeatedly pushed back the deadline for filing GST returns, delaying tax refunds too. Exporters claim that they are suffering the most.

Timely refund mechanism is essential in tax administration, as it facilitates trade through the release of blocked funds for working capital, expansion and modernization of existing business.

SITUATIONS LEADING TO REFUND CLAIMS:

The relevant date as per provisions of Section 54 and 77 of the CGST Act and the requirement of submission of relevant documents as listed in Rule 1(2) of Refund Rules.

A. Claim for refund may arise on account of:

1. Export of goods or services.

2. Supplies to SEZs units and developers.
Simplified Approach to GST – Online Certification Course?

3. Deemed exports.

4. Refund of taxes on purchase made by UN or embassies etc.

5. Refund arising on account of judgment, decree, order or direction of the Appellate Authority, Appellate Tribunal or any court.

6. Refund of accumulated Input Tax Credit on account of inverted duty structure

7. Finalization of provisional assessment.

8. Refund of pre- deposit.

9. Excess payment due to mistake.

10. Refunds to International tourists of GST paid on goods in India and carried abroad at the time of their departure from India.

11. Refund on account of issuance of refund vouchers for taxes paid on advances against which, goods or services have not been supplied

12. Refund of CGST & SGST paid by treating the supply as intra- State supply which is subsequently held as inter-State supply and vice versa.

Refund claim is to be filed within 2 years of relevant date.

Credit Notes:

Refund of tax on sales return or decrease in tax liability will be allowed to adjust against future tax liabilities. These credit is not covered under general refund provisions of section 54 of the CGST Act 2017.

Treatment for Zero Rated Supplies:

As per section 16 of the IGST Act 2017, following two are covered under zero rated supplies and eligible for refund as per section 54 of CGST Act 2017.

a) export of goods or services or both; or

b) supply of goods or services or both to a Special Economic Zone developer or a Special Economic Zone unit.

Refund of input tax credit even though non taxable and exempt supplies.

Every person making claim of refund on account of zero rated supplies has two options. Either he can export under Bond/LUT and claim refund of accumulated Input Tax Credit or he may export on payment of integrated tax and claim refund.

90% Provisional refund within 7 days of submission of acknowledgement of refund application.

Acknowledgement of refund generally issued within 14 days but in case of IGST paid on zero rated supply acknowledgement would be issued within 3 days.

No provisional refund who was, during any period of five years immediately preceding the refund period, was prosecuted.

Payment of Wrong Tax under GST:

Paid IGST instead of CGST and SGST or vice versa. No worries. Interest won’t be chargeable on correct tax payment and refund of wrongly paid tax will be allowed without subjecting it to the provision of unjust enrichment.

Claim by a Person who has Borne the Incidence of Tax:

More tax collected than due must be paid. Refund will be granted who has borne the incident of tax.

Refunds to Casual/Non-Resident Taxable Persons:

Casual/Non-resident taxable person has to pay tax in advance at the time of registration. Refund, if any due during the period of effective registration, will be granted subject to such person has filed all return due during the period of registration.

Refund to UN Bodies and Other Notified Agencies:

As per section 55 of the CGST Act, such taxable persons can claim refund on taxes paid on purchases made during the period.

The claim has to be made before the expiry of six months from the last day of the quarter in which such supply was received.

Refund to International Tourist:

International tourist procuring goods in India, may while leaving the country seek refund of integrated tax paid by them. The term, “tourist” has been defined and refers to any person who is not normally a resident of India and who enters India for a stay of not more than 6 months for legitimate non-immigrant purposes.

Unjust Enrichment:

Talking about unjust enrichment, a presumption is always drawn that the businessman will shift the incidence of tax to the final consumer. This is because GST is an indirect tax whose incidence is to be borne by the consumer. It is for this reason that every claim of refund (barring specified exceptions) needs to pass the test of unjust enrichment. And every such claim if sanctioned is first transferred to the Consumer Welfare Fund.

No unjust enrichment in following cases:

a. refund of accumulated ITC,

b. refund on account of exports,

c. refund of payment of wrong tax (integrated tax instead of central tax plus state tax and vice versa),

d. refund of tax paid on a supply, which is not provided or when refund voucher is issued or if the applicant shows that he has not passed on the incidence of tax to any other person.

In all other cases, the test of unjust enrichment needs to be satisfied for the claim to be paid to the applicant.

Refund less than 2 lakh:

A self-declaration of the applicant to the effect that the incidence of tax has not been passed to any other person will suffice to process the refund claim.

Refund claims exceeding Rs. 2 Lakhs:

A certificate from a Chartered Accountant/ Cost Accountant will have to be given.

Standardized procedure to claim refund under GST:

1. Online application in a standardized form.

2. Acknowledgement will be issued within 14 days.

3. The claim for refund of amount lying in the credit balance of the cash ledger can be made in the monthly returns also.

4. The Proper Officer has to convey deficiencies if any in the refund claim within 14 days and in such cases the claim will be sent back to the applicant along with the notified deficiencies, and the applicant can file the refund claim again after making goods the deficiencies.

5. No deficiency memos can be raised after the mandatory 14 day period. The claim, if in order, has to be sanctioned within a period of 60 days from the date of receipt of the claim.

6. Interest at the rate of 6% or 9% on payment of refund after 60 days as per section 56 of the CGST Act 2017.

Documentation:

1. A statement of relevant invoices (NOT THE INVOICES ITSELF) pertaining to the claim.

2. In case refund is on account of export of services, apart from the statement of invoices, the relevant bank realization and certificates evidencing receipt of payment in foreign currency is also required to be submitted.

3. If it is a claim made by the supplier to the SEZ unit, an endorsement from the Proper Officer evidencing receipt of such goods/services in SEZ also needs to be submitted. Further Declaration is also required from the SEZ unit to the effect that they have not availed ITC of the tax paid by the supplier.

4. If the claim is for refund of accumulated ITC, only a statement containing invoice details as prescribed in the Refund rules need to be given.

5. In case of claim of refund on account of any order or judgment of appellate authority or court, the reference number of the order giving rise to refund should also be given.

6. For crossing the bar of unjust enrichment, if the refund claim is less than Rs.2 Lakhs, then a self-declaration by the applicant to the effect that the incidence of tax has not been passed to any other person will suffice to process the refund claim. For refund claims exceeding Rs. 2 Lakhs, a certificate from a Chartered Accountant/Cost Accountant will have to be given.

Rejection of refund application:

In case the claim is sought to be rejected by the Proper Officer, a notice has to be given online to the applicant stating the ground on which the refund is sought to be rejected. The applicant needs to respond online within 15 days from the receipt of such notice. Thus no claim can be rejected without putting the applicant to notice.

Payment to be Credited Online:

The refund claim, wherever due, will be directly credited to the bank account of the applicant.

15/11/2017

FAQs on Registration by Casual Taxable Person

1. I want to take a Registration as a Casual Taxable Person but I can’t find the option.

The option to register is in the New Registration Application for a normal taxpayer.

In PART A of the New Registration Application, select Taxpayer (Reference screenshot (highlighted in red)):

New Registration
2. In PART B of the New Registration Application in the Business Details section, select Yes under ‘Are you applying for registration as a casual taxable person?’ as shown in the screenshot below:
Simplified Approach to GST – Online Certification Course?

Business Details

3. Enter the estimated values of supplies and estimated net tax liability as CGST + SGST / IGST and cess for the period for which registration is applied and click the GENERATE CHALLAN button. This option is also available after all tabs of Part B of the Registration application is filled up.

4. Make the advance tax payment using the payment modes available on the GST Portal and then complete Part B of the registration application and submit it.

5. Your registration will be granted after due processing by the concerned Tax Official.

➢ Can a Casual Taxable Person opt for Composition?

Casual Taxable Person cannot opt for composition.

➢ When should I apply for a Registration as a Casual Taxable Person?

You should apply for Registration as a Casual Taxable Person at least 5 days prior to the commencement of business.

➢ How long is the Registration as a Casual Taxable Person valid?

The certificate of registration issued to a casual taxable person shall be valid for the period specified in the application for Registration or ninety days from the effective date of registration, whichever is earlier.

➢ Can I extend my Registration as a Casual Taxable Person?

Yes, you can extend your Registration as a Casual Taxable Person once for an additional period of 90 days, if you apply for extension of registration before the expiry of the initial period for which registration was granted.

➢ I have already extended my initial registration once and cannot extend it a second time as per prevailing laws. What do I do if my extension is about to expire and my business has not concluded?

In such a case, you are required to obtain registration as a normal taxpayer in the concerned state.

➢ The moment I select Registration as a Casual Taxable Person option, the New Registration Application prompts me to fill a GST Challan. Why?

In case of Registration as a Casual Taxable Person, you are required by law to deposit the tax in advance equivalent to the estimated tax liability based on the estimated turnover for the period for which the casual registration has been obtained. A provisional GSTIN will also be generated and prefilled in the challan. The status of this GSTIN will be provisional until your application is approved by the tax authority and the casual registration is officially granted.

➢ Is there a fixed amount I must deposit with the GST authorities before taking a Registration as a Casual Taxable Person?

No, you are required by law to deposit the tax in advance equivalent to the estimated tax liability based on the estimated turnover for the period for which the casual registration is being obtained by you.

➢ Can a Casual Taxable Person take multiple registrations in a State?

In case a Casual taxable person has multiple business verticals within one state, the Casual taxable person can apply for multiple registrations within the state.

➢ I have deposited advance tax but do not want to continue the business. How shall I get my money back?

You can apply for refund of advance tax deposited at the time of filing of application for surrender of registration.

15/11/2017

Tax On Education Services- An Analysis

TAXATION PROFESSIONAL

Education is one of the key factors for generation of human capital in the Country. Education plays an important role for the Nation building process. The right to Education is one of the Fundamental Rights of the Constitution of India. The Government has a constitutional obligation to provide free and compulsory elementary education to every child in India. Thus, the prime responsibility of the Government to promote education in the country and it should be exempted from taxes. GST Law recognizes this principle and framed the provisions accordingly to ensure that the core educational services are fully exempt from tax.

The author has made an attempt by this article to analysis the provision of tax on Education Services in the erstwhile Service Tax Law as well as under GST Law.

Tax on Education Services in Pre – GST era:

In terms of Section 66B of the Finance Act, 1994, service tax will be leviable on all services provided in the taxable territory by a person to another for a consideration other than services specified in the negative list. The following services relating to education are specified in the negative list and exempted from tax:-

(a) pre- school education and education up to higher secondary school or equivalent;

(b) education as a part of a prescribed curriculum for obtaining a qualification recognized by law for the time being in force;

(c) education as a part of an approved vocational education course.
Simplified Approach to GST – Online Certification Course?

It is clarified that education as a part of curriculum for obtaining a qualification recognized by law means only such educational services are in the negative list as are related to delivery of education as ‘ a part’ of the curriculum that has been prescribed for obtaining a qualification prescribed by law. It is important to understand that to be in the negative list the service should be delivered as part of curriculum. Conduct of degree courses by colleges, universities or institutions which lead grant of qualifications recognized by law would be covered. Training given by private coaching institutes would not be covered as such training does not lead to grant of a recognized qualification.

Further, clarified that services provided by way of education as a part of a prescribed curriculum for obtaining a qualification recognized by a law of a foreign country is not covered under negative list. To be covered in the negative list a course should be recognized by an Indian law.

Apart from the services covered under the negative list there are certain services provided to or by education institutions are separately exempted under the mega-notification. These are services provided to or by an educational institution in respect of education exempted from service tax, by way of; (a) auxiliary educational services; or (b) renting of immovable property. The private coaching centers relating education are not covered under the negative list but such private tutors can avail the benefit of threshold exemption.

Tax on Education Services under GST regime:-

“Education “is not defined in the CGST Act but as per Apex Court decision in the case of “Loka Shikshana Trust vs. CIT “ , education is process of training and developing knowledge , skill and character of students by normal schooling. GST on services being a legacy carried from the Service Tax provisions was prevailed in the pre-GST era. The GST Act has exempted the core educational services and taxed other services at the standard rate of 18%.

Classification of Education Services under GST:-

Educations Services are classified into six groups vide Notification No. 11/2017- Central Tax (Rate), dated 28.06.2017. The details of classification of education services as under:
(1) Pre- primary education services’

(2) Primary education Services;

(3) Secondary education Services.

(4) Higher education Services.

(5) Specialized education Services.

(6) Other education & training services and educational support services.

Tax Rate of GST on Education Services: – The rates of GST on education services (as per Notification No. 11/2017-Central Tax (Rate) and Notification No. 12/2017-Central Tax (Rate) all dated 28-06-2017 as amended) are as below Table:
Chapter/Section/Heading Description of Services Rate / Notification
9992 Education Services 18% ( 9% Central Tax + 9% State Tax ) / Serial 30 of Notification No. 11/2017- Central Tax (Rate) dated 28th June, 2017
9992 Services Provided –

(a) by an education institution to its students, faculty and staff;

(b) to an educational institution , by way of ,-

(i) transportation of students, faculty and staff;

(ii) catering, including any mid-day meals scheme sponsored by the Central Government, State Government or Union territory;

(iii) security or cleaning or housekeeping services performed in such educational institution;

(iv) services relating to admission to, or conduct of examination by , such institution; up to higher secondary :

Provided that nothing contained in entry (b) shall apply to an educational institution other than an institution providing services by way of pre- school education and education up to higher secondary school or equivalent.
NIL / Serial No. 66 of Notification No. 12/2017-Central Tax (Rate) dated 28th June, 2017
9992 Services provided by the Indian Institutes of Management, as per the guidelines of the Central Government, to their students, by way of the following educational programmes, except Executive Development programme:- (a) two year full time Post Graduate Programmes in Management for the Post Graduate Diploma in Management, to which admissions are made on the basis of Common Admission Test ( CAT) conducted by the Indian Institute of Management; (b) fellow programme in Management; (c) five year integrated programme in Management. NIL / Serial No. 67 of Notification No. 12/2017-Central Tax(Rate) dated 28th June, 2017
90 or any chapter Technical aids for education, rehabilitation, vocational training and employment of the blind such as Braille typewriters, braille watches, teaching and learning aids, games and other instruments and vocational aids specifically adapted for use of the blind Braille instruments, paper etc. 5% / Serial No. 257 of Schedule-I of the Notification No. 11/2017-Central Tax (Rate) dated 28th June, 2017
9023 Instruments, apparatus and models, designed for demonstrational purposes (for example, in education or exhibitions), unsuitable for other uses. 28% / Serial No. 191 of Schedule-IV of the Notification No. 11/2017-Central Tax (Rate) dated 28th June, 2017

Thus, services by an educational institution to students, faculty and staff are exempt. Educational Institution means an institution providing services by way of:

(i) Pre- education and education up to higher secondary school or equivalent;

(ii) Education as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force ;

(iii) Education as a part of an approved vocational education course.

From the above, it is clear that education institution up to higher secondary school or equivalent is free from tax under GST, which is similar to earlier provision of Service Tax.

Within the term “educational institution”, sub-clause (ii) covers institution providing services by way of education as a part of curriculum for obtaining a qualification recognized by any law for the time being in force, which has been explained in the forgoing paras under erstwhile Service tax provision.

Within the term “ educational institution “, sub-clause (iii) covers institution providing services by way of education as a part of “ approved vocational education course” , which means ,-

A course run by an industrial training institute or an industrial training center affiliated to the National Council for Vocational Training or State Council Vocational Training offering course in designated trades notified under the Apprentices Act, 1961 (52 of 1961); or

(ii) A Modular Employable Skill Course, approved by the National Council of Vocational Training, run by a person registered with the Director General Training, Ministry of Skill Development and Entrepreneurship.

Therefore, only those intuitions whose operations conform to the specifies given in the definition of the term “Educational Institution”, would be treated as one and entitled to avail exemptions provided by the law. Thus implies that private coaching centers or other unrecognized institutions would not be treated as “educational institutions under GST and cannot avail exemptions from payment of tax under GST.

Key features of exemption on Educational Services:

1. The educational institutions up to Higher Secondary School level do not suffer tax on output services and also on most of the important input services under GST regime.

2. There are certain input services like canteen, repairs and maintenance etc. provided by private persons to educational institutions were subject to service tax in Pre-GST era and the same tax treatment has been continued in GST regime.

3. The output services of lodging / boarding in hostels provided by such educational institutions which are providing pre- school education and education up to higher secondary school or equivalent or education leading to a qualification recognized by law, are fully exempt from GST.

4. The Annual subscription / fees charged as lodging /boarding charges by such educational institutions from its students for hostel accommodation shall not attract GST.

5. The Output services related to the specified courses provided by IIM’s would be exempt from Tax.

6. The program such as Executive Development Programs run by the IIM’s would be subject to GST.

7. The following four categories of Auxiliary educational services have been exempted from Tax under GST:

(i) any services relating to imparting any skill, knowledge or education, or

(ii) development of course content, or

(iii) any other knowledge – enhancement activity, whether for the students or the faculty , or

(iv) any other services which educational institutions ordinarily carry out themselves but may obtain as outsourced services from any other person, including following services relating to:

(a) admission to such institution

(b) conduct of examination

(c) catering for the students under any mid-day meals scheme sponsored by Government

(d) transportation of students, faculty or staff of such institution.

8. The Auxiliary educational services other than what is specified above would not be entitled to any exemption.

9. The services of conducting admission tests for admission to colleges in case of educational institutions are providing qualification recognized by law for the time being in force shall not be liable to GST.

Who will pay GST on Education Services?

Education Services are under forward charge. Therefore, GST shall be paid by the supplier of services.

Treatment of supply of Educational Services:-

The concept of supply plays an important role under GST regime for determination of tax, so it is better to focus on the place of supply in various situations of Educational Services as under:

(a) What will be the place of supply of Educational Services where the location of supplier of services and the location of the recipient of services is in India?

As per Section 12(6) of the IGST Act, 2017 the place of supply of services provided by way of admission to an educational or other place and services ancillary thereto, shall be the place where the event is actually held or such other place is located.

As per section 12(7) of the IGST Act, 2017 the place of supply of services provided by way of ,- (a) organization of a cultural, artistic, sporting, scientific, educational or entertainment event including supply of services in relation to a conference, fair, exhibition, celebration or similar events; or (b) services ancillary to organization of any of the events or services referred to in clause (a), or assigning of sponsorship to such events:-

(i) To a registered person, shall be the location of such person;

(ii) To a person other than a registered person, shall be the place where the event is actually held and if the event is held outside India, the place of supply shall be the location of the recipient.

(b) What will be the Place of supply of Educational Services where the location of the supplier of services or the location of the recipient of services is outside India?

As per Section 13(5) of the IGST Act, 2017, the place of supply of services supplied by way of admission to, or organization of a cultural, artistic, sporting, scientific, educational or entertainment event, or a celebration, conference, fair, exhibition or similar events, and of services ancillary to such admission or organization, shall be the place where the event is actually held.

Educational Institution runs by charitable organization:

Charitable Trust running schools, colleges or any Educational services or performing activities related to advance of educational programmes specifically for abandoned , orphans, homeless children, physically or mentally abused persons, prisoners or person above 65 years in a rural area and these services shall be wholly exempted from GST.

Composite and Mixed supply of Educational Services:

The supply of education services when provided by Boarding schools for service of education coupled with other services like providing dwelling units for residence and food, this is the case of composite or bundled services where the charges for education, lodging and boarding is inseparable. Their tax ability will be determined in terms of the principles laid down in Section 2(30) read with Section 8 of the CGST Act, 2017. In this case since the predominant nature is determined by the service of education, the other services for the purpose of determining tax liability the entire consideration for the supply will be exempt.

If an artificial bundle of service is created by clubbing two courses together, only one of which leads to a qualification recognised by law, then by application of the rule of determination of tax ability of a supply which is not bundled in the ordinary course of business, it shall be treated as a mixed supply as per provisions contained in Section 2(74) read with Section 8 of the CGST Act, 2017. The tax ability will be determined by the supply which attracts highest rate of GST.

Conclusion: To sum up, the taxability of Educational Services has been exempted upto Higher Secondary School level including certain ancillary input services. The output services of lodging / boarding in hostels provided by such educational institutions which are providing pre- school education and education upto higher secondary school or equivalent or education leading to a qualification recognized by law, are fully exempt from GST. Similarly, output services related to the specified courses provided by IIM’s are exempted. Executive programme run by the IIM’s are specifically excluded, hence such courses would be subject to GST. However, it is observed that commercialization of education in realty is defeating the very objective of the Government policy.