Critical issues in logistics sector

  • Category: sector specific
  • Date: 14-04-2020
  • Writers: CA Anil Kumar Bezwada, CA Ashish Chaudhary

Introduction:

Logistics industry has a critical role to play in the manufacturing industry and trading activities. It is considered as backbone of the economy. In simple words logistics can be considered as movement of goods from point of origin to point of consumption. After raw materials cost, transportation cost is major one to play critical role in fixing the price. Logistics activities involves loading, unloading, packing, storage, warehousing and transportation. The new tax reform...

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GST on Director Remuneration

  • Category: Levy and supply
  • Date: 08-04-2020
  • Writer: CA Sudhir VS

The recent article in the economic times reporting that the remuneration paid by the Company to its director would attract GST under reverse charge mechanism under RCM has created lot of confusion and unrest among the corporates, this article aims at giving an insight on this subject.

 

The levy of GST is governed by Section 9 of the Central Goods and Service Tax Act, 2017 (for brevity hereinafter referred to as ‘CGST Act’) and the respective Sate and Union Territory GST Acts on...

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Critical aspects of GST – Hotel Industry

  • Category: sector specific
  • Date: 08-04-2020
  • Writer: CA Rajesh Maddi

Hotel industry is one of the major impacted industries due to Corona virus (Covid 19) Pandemic. It is high time for the industry to reduce their costs and ensure that they are not hit with GST non-compliance notices. Since, the substantial business of the industry would be B2C (business to customer), any future demands by GST authorities would become cost.

Considering the vast experience in the hotel industry, the author wishes to explain the GST related burning issues faced by the hotel...

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Input Service Distributor : Plenty of Compliances

  • Category: Input Tax Credit
  • Date: 08-04-2020
  • Writers: CA Ashish Chaudhary, Mayank Saini

The concept of Input Service Distributor (hereinafter in this article referred as “ISD”) is not new in Goods and Service Tax law. It carries the legacy from the Service Tax law.

 

The Concept

The need for ISD arose for providing a chance to the businesses who have multiple units in different locations to receive common invoice for the services attributable to different units at centralised location, in doing so the input credit is accumulated at the centralised unit. The ISD...

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APPLICABILITY OF GST ON EXTRA NEUTRAL ALCOHOL (‘ENA’) : THE MYSTERY CONTINUES

  • Category: Levy and supply
  • Date: 03-04-2020
  • Writers: CA Madhukar N Hiregange, CA Vikram Katariya

It is now more than 1000 days of GST in India. The accepted fact by many was that the new law would have lot of challenges and uncertainty in the first two years, which would require numerous changes and amendments. Many issues have been resolved, some aspects have been deferred and some have been left in the balance. One issue which has been left in the balance, is the issue of taxability of Extra Neutral Alcohol (‘ENA’) under GST.

 

There is no dispute on the levy of GST on...

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CV-5 Insights - Investigation, Search, Summons in GST

  • Category: Others
  • Date: 29-03-2020
  • Writer: CA Madhukar N Hiregange

These are activities which fill the tax payers – even the compliant with dread due to past practice- unfortunately continued. This article provides some tips/ insights the knowledge of which maybe useful in dealing with such officers in a more confident manner. Adv. MS Nagaraja shared his views. Listed hereunder as per understanding:

1. To start investigation JCC or above needs to have reason to believe a) supressed / undervalued supplies, b) Excess claim of ITC, c) Contravenes Act/...

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CV-4 Finer Issues in Levy- supply

  • Category: Others
  • Date: 28-03-2020
  • Writer: CA Madhukar N Hiregange

We had the learning presentation by CA Rajesh Kumar TR last week. Readers are advised to keep the bare act with them while reading the series of finer issues which would be discussed. It  is very important that when professionals advice on compliances or do audit then they need to be conservative. In case of dispute then the observations in this article would be useful.

The insights as understood were as under:

1. Need to understand the 3 baskets of levy Vs assessment Vs collection as...

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CV-3 Tips for Reading GST - Relevant Decisions

  • Category: Others
  • Date: 27-03-2020
  • Writer: CA Madhukar N Hiregange

The advice to clients in GST needs study and analysis of the judicial decisions in the earlier laws like Central Excise, Service Tax and Local VAT. The decision in Customs [ old and current] would also be relevant to understand some of the concepts. Some insights were provided by CA Rajesh Kumar TR which are shared hereunder:

1. Judicial precedents lay down the principle or rule to be followed by lower forums. Judicial discipline requires the hierarchy of courts to be followed.

2. In...

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CV 2: Understanding the Revenue Officer/ Their Perspective

  • Category: Others
  • Date: 26-03-2020
  • Writers: Adv Naveen Kumar K.S, CA Madhukar N Hiregange

Understanding the background of revenue officers could provide some insights in dealing adequately with the tax officers. We have Adv. BSV Murthy [ Retd. CESTAT Member] who shared as understood by me as under:

1.      The mindset of officers to be understood. We got a colonial legacy from the British. Officers considered themselves rulers. Some still have this way of being.

2.      Revenue Bias: Job is to safeguard tax; they fear the CVC, CAG, CBI (allegation of graft- for...

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CV 1 – GST Learning Series

  • Category: Others
  • Date: 25-03-2020
  • Writers: Adv Naveen Kumar K.S, CA Madhukar N Hiregange

Now that we are stuck at home in addition to bonding with family, exercising, we can empower ourselves a bit. We have started an internal learning by partners, experts and qualified in our office.

In this series will share what was the insight on each topic in brief gained by me in the form of bullet points. Am sure it would be useful. First Session was on Drafting of Opinions, replies and appeals- presented by Advocate. Naveen Kumar KS.

1.      Importance: Someones liberty maybe...

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