What is e-invoicing?
e-invoicing refers as per Rule 48(4) of CGST Rules, notified class of registered persons have to prepare invoice by uploading specified particulars of invoice (in FORM GST INV-01) on Invoice Registration Portal (IRP) and obtain an Invoice Reference Number (IRN)
Notified persons: A registered person, other than an SEZ unit*, Insurance Company, banking company, financial institution including non-banking financial institution, GTA, supplier of passenger...Read more
There has been a lot of buzz with regard to applicability of GST notional interest. A recent Karnataka AAR in the case of M/s Midcon Polymers Pvt. Ltd. has been issued which discussed extensively in this regard and answered the question- “Whether notional interest on refundable security deposit would form part of value of supply?”
Let us first understand the concept of notional interest being discussed in the AAR. In a case where a house is given on rent, it is an industry...Read more
The Government of India is keen on implementing the GST law from 01.04.2017. In previous two articles, we wrote on impact of GST on sales and procurement function in case of manufacturers. Though these are the two main functions having big impact under GST, the accounting function cannot be ignored. It is accounting function which has to take care of compliances such as tax payment, return filing, registration etc. In this article, we have discussed few aspects having impact on accounting...Read more
Audit documentation is the written record (including electronic record) prepared during the course of audit which forms foundation for auditor’s in preserving the various observations identified during the audit, acts as a proof of performance of audit and safeguard the auditor at the time of dispute. Besides, documents are keys to determine the trail of any transaction, it plays pivotal role in all the audits under GST law and in general. Further, the audit documentation...Read more
In a conventional sense, audit means scrutiny, verification of documents, events and processes in order to verify facts and to draw conclusions regarding the correctness of recording of facts and the efficiency of system under study. Today, the concept of audit in general has undergone change from a transactional audit to a risk based one.
GST law mainly functions under the principles of self-assessment wherein the tax payers assess / determine the tax liability and...Read more
Input tax credit is sole of any indirect tax law. It is property of the assessee which accrues to him on fulfilment of conditions specified in the law for availment of ITC. It has been held in case of Eicher Motors by Honourable Supreme Court that the ITC is nothing, but tax paid to the Government and hence the same is legitimate right of the assessee.
However, the statute inbuilds some checks on the right to make sure that it is not abused. One of such checks is ensuring...Read more
In these times of Global trade wars with President Trump taking aggressive stand and not making a differentiation between developing countries and USA, exporters of goods and services have to be competitive.
The Ministry of Commerce and the Ministry of Finance sometimes may not be working in a well co–ordinated manner leading to some intended benefits not reaching the exporter. Delays in benefits as well as the denial of just refund or inordinate delay plays havoc with the working...Read more
SEZ schemes are being promoted with an intention to create competitive environment for goods / services exported thereby to increase the foreign exchange inflow into India. The objectives of government for SEZs include allowing tax-free procurement of goods and services with support in basic essential infrastructure facility for production of goods or services. Such facilities have led to increase in foreign entities participation in India. Section 7 of the SEZ Act 2005 provides for an...Read more
Unlike in FY 2017-18 where the assesses were provided with extension of time limit for rectifying the errors or omissions and availment of input tax credit through removal of difficulties (ROD) order no. 02/2018, the time limits for FY 2018-19 have yet been extended. However, considering significant delay in FY 2017-18 GST compliances, in order to provide an opportunity to the assesses it would be expected to extend the time limit for ITC claim (probably upto 31st December...Read more