Professional Consortium India Pvt. Ltd.

04/10/2022

Kela maiya ki jai

21/06/2020

Advance Rulings Aurhority can create miraculous tax revenues.

If all merchant trading transactions are subjected to IGST even though all transactions happen in non taxable territories - The Government can create thousands of crores.

The ruling by the Gujarat-Bench of the AAR states that GST will be levied on Merchant Trade Transactions

A domestic company buying goods from abroad and selling to another country will have to pay GST on such transactions even if the said products are not entering the Indian territory, the Authority for advance ruling (AAR) has said.

On an application filed by Sterlite Technologies, the Gujarat-Bench of AAR has ruled that GST is payable on goods sold to customer located outside India, where goods are shipped directly from the vendor’s premises (located outside India) to the customer’s premises.

The applicant had sought to know whether the goods and services tax (GST) would be levied on merchant trade transactions (MTT).

“It appears that the transaction is covered under the ambit of inter-State supply and is neither exempted nor covered under export of services. Thus, the theory of elimination takes us to the conclusion that such supplies will be subject to levy of IGST (integrated GST),” the AAR has ruled.

The AAR verdict means that GST would be levied on MTT where applicant will receive an order from the customer located outside India and as per their instruction, the vendor would directly ship the goods to customer located outside India.

Vendor would issue invoice on applicant against which payment would be made in foreign currency and applicant would raise invoice on customer and would receive consideration in foreign currency.

In the above transaction, goods would not physically come into India, but would move from place outside India to another place outside India.

Schedule-III states that transactions where “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” shall be treated neither as supply of goods or services and hence not liable to GST.

11/06/2020

*GST UPDATE:*

*Source*- Circular no. 140/10/2020 dated the 10th June, 2020.

🔶️Independent Directors terms of section 149(6) of the Companies Act, 2013:
✅The said Director is not an employee
✅RCM is Applicable and Taxable

🔶️Director not an employee of the company (including Non Whole Time Director):
✅The said director not an employee
✅RCM is Applicable and Taxable

🔶️Director who is an employee of the company (including Whole Time Director in employment)
✅The said director an employee
✅RCM NOT Applicable and No Supply

🔶️Whole Time Director not in employment of the company (Illogical to certain extent)
✅The said Director is not an employee
✅RCM is Applicable and Taxable

🔶️Managing Director (Who is an employee)
✅The said director an employee
✅RCM NOT Applicable and No Supply

*NOTE:*
🌟“contract of service” or “contract for service” is an important element to be ascertained for an employee director.

🌟contractual relationship of master and servant

🌟Director's remuneration which are declared as "Salaries‟ in the books of a company and subjected to TDS under Section 192 of the IT Act:
TO BE TREATED AS SALARIES (SCHEDULE III) AND NO RCM

🌟Director's remuneration which is declared separately other than "salaries‟ in the Company‟s accounts and subjected to TDS under Section 194J of the IT Act (Fees for professional or Technical Services):
TO BE TREATED AS TAXABLE AND RCM APPLICABLE

🌟Company, is liable to discharge the applicable GST on it on reverse charge basis.

02/06/2020

Form 26AS will now be a complete profile of the taxpayer w.e.f. 01.06.2020


CBDT vide Notification dated May 28, 2020 amended Form 26AS in Sec 285BB w.e.f. 01.06.2020. Key takeaways are:

New form 26AS will also provide information in respect of “Specified financial transactions” which include transactions of purchase/ sale of goods, property, services, works contract, investment, expenditure, taking or accepting any loan or deposits of such value as may be prescribed but not less than of Rs 50,000.

Information about income tax demand, refund, proceedings pending, and proceedings completed which may include assessment, reassessment under section 148,153A 153C, revision, appeal will also be shared in this form 26AS.

Information on this form 26AS will not be a one-time affair at year end. This will be a live 26AS, as this will be updated regularly within 3 months from the end of the month in which such information is received.

Form 26AS will now be a complete profile of the taxpayer for that particular year as against earlier form 26AS which just provided the information about taxes paid by way of TDS/TCS or self-assessing.

This form will also have mobile no, email I’d and Aadhar no. of the taxpayer.

Further an enabling provision has been notified empowering the CBDT to authorise DG Systems or any other officer to upload in this form, information received from any other officer, authority under any law. Thus any adverse action initiated or taken or found or order passed under any other law such as custom , GST , Benami Law etc. including information about Turnover , import , export etc. will also be put in this form 26AS so that not only the concerned taxpayer but also all the Income Tax authorities will know and have access to such information.

This form 26AS will also provide information received by Tax Deptt from any other country under the treaty /exchange of information about income or assets of the taxpayer located outside India.

The implication of this new form 26AS will be that banks , financial institutions or any other authority or customer , buyer etc. while carrying out due diligence of the person/ corporate concerned will now ask for form 26AS so as to be sure that there are not any major issues about such person/corporates.

This will now make difficult for any taxpayer to hide information from any bank / financial institution/ authority about any proceedings against under any law or tax demand, tax disputes etc.

24/05/2020

Vide G.S.R.304(E) dt 20th May, 2020, CBDT notifies changes in rules relating to Safe Harbour in ALP determination of international transactions. Safe harbour rates for prior 3 years have been made applicable to FY 2019-20 as well.

“Vide G.S.R.304(E) dt 20th May, 2020, CBDT notifies changes in rules relating to Safe Harbour in ALP determination of international transactions. Safe harbour rates for prior 3 years have been made applicable to FY 2019-20 as well.”

24/05/2020

CBDT issues clarification with respect to the prescribed electronic modes under section 269SU of the Income-tax Act, 1961 vide Circular No.12/2020 dated 20th May, 2020.

“CBDT issues clarification with respect to the prescribed electronic modes under section 269SU of the Income-tax Act, 1961 vide Circular No.12/2020 dated 20th May, 2020.”

24/05/2020

Central Board of Direct Taxes (CBDT) has issued tax refunds worth Rs. 26,242 crore to 16,84,298 assessees since 1st April, 2020 to 21st May, 2020.

The detailed press release can be accessed at https://t.co/KOf2TS0air https://t.co/EOQt3Z5XWJ

24/05/2020

Hyderabad CGST Zone has sanctioned GST refunds in respect of 357 claims amounting to Rs 286.21 crore while Working from Home by leveraging remote access technology provided by CBIC in these challenging times of Covid-19 during 25.03.2020 to 22.05.2020
, https://t.co/YXm69enM27

13/09/2018

*GST Updates*
1) *Extension of due date for GSTR-1* : Due date for filing of GSTR-1 return for the period July 2017 to September 2018 extended till 31.10.2018 for all registered persons vide notification 43/2018-CT & 44/2018-CT St.10.09.18. Late fee also waived.

2) *Extension of due date for TRAN-1 & TRAN-2*: Notification 48/2018-CT dt. 10.09.2018 amends CGST rule to insert sub-rule (1A) to rule 117 and empower Commissioner to extend date for submission of TRAN-1 upto 31.03.2019 on recommendation of GST council for cases where the assessee could not submit TRAN-1 due to technical difficulties on the Common Portal. Further due date for TRAN-2 extended till 30.04.2019 for cases where TRAN-1 declaration as per sub-rule (1A) as above is filed.