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The scheme of tax under GST for the real estate sector saw a sea change from 1^st Apr ’19. The changes though were more for the residential projects. However, there were changes brought about in some of the provisions relating to the commercial projects as well and in this article we are specifically looking into the valuation provisions that have changed for the commercial projects.

Without getting into the provisions that existed prior to 1^st Apr ’19, we would have a look at the...

In recent years, the issue of Service Tax/GST liability on the Notice period recovery is a subject matter of dispute. While certain conservative employers have made a choice to pay service tax on such recoveries, certain employers have made bold choices of not paying taxes which were followed by the issuance of the demand notices/orders confirming the service tax demand by the Revenue department. The demands are agitated before various forums and very recently the...

It is usual practice for all the exporters of goods/services to receive money in foreign currency. Few exporters would have EEFC (Exchange Earners' Foreign Currency Account) where they can directly deposit the foreign currency in their account which would be maintained in foreign currency in an Indian Bank. Majority of the exporters would receive money in Indian currency after deduction of remittance charges, conversion charges, etc.

The author in this article tried to explain the...

1. The Central Government had issued Notification No. 8/2017-Integrated Tax (Rate), dated 28.06.2017, notifying the rate of IGST for the services described therein and also the conditions in certain cases.

2. Section 9(3) of the CGST Act, 2017 and 5(3) of the IGST Act, 2017 empowers the Central Government, on the recommendation of the GST Council, may notify the supplies which are liable for payment of GST under RCM by the recipient.

3. Notification No. 10/2017-Integrated Tax (Rate),...

Taxpayers are now used to the frequent changes in the GST law, which may be either by way of a change in the provisions of the Act or the rules or by way of a change in the rate of tax, etc. Further, it has been seen that these changes take place due to various reasons, a few of which are listed below:

1. To clarify the intention of the lawmakers (eg: retrospective amendment made to the transition provisions, attempting to restrict the transition of cess credits into GST),
2. To cater to...

1. Need for Valuation Rules for Transactions Within Company

During the pre-GST era, for inter-State stock transfers, the major concern of the Industry was with regard to the additional cost of CST and the compliance burden of submission of statutory forms. However, there was no concept of deemed service between branches located in two different States and hence there was no requirement to pay Service Tax on such activities. With the introduction of GST, by virtue of Schedule I, the...

Background

Under GST, tax is levied on the taxable supply of goods/services. Tax is applicable on the taxable services supplied in India.

In the GST regime, intermediary services by Indian suppliers to foreign principals are taxed to GST. In common parlance, any person who enables the supply of goods/services between two persons is considered as an intermediary.

There has been a lot of confusion regarding tax implications on the pre-sales and post-sales services vs intermediary...

The GST law was with also the objective of reducing multiple litigations pertaining to erstwhile regime like VAT, Service Tax, and Excise etc. being put to rest. However, there are still aspects like compensatory damages, employee notice period recovery which needs clarity. In many private organizations, employees would be legally bound to serve for specified period which could vary from 1 month to 3 months depending on termination. If employee fails, then the security amount collected...

In respect of many of the durable goods, the manufacturers provide after-sale warranty services i.e. for a specified period of time after the sale of the product, the manufacturer assumes responsibility to provide service for any defect in the product and/or replaces any part free of cost (or as mentioned in the agreement in this regard). In some cases, a manufacturer is a person located outside India who supplies the equipment or any good through an Indian dealer/intermediary and then also...

Major retrospective benefit for exporters, EOUs etc. in the form of duty drawback availability for past supplies from 5^th December 2017. Claims for 2 years can be made by the suppliers to EOUs or EOU itself and others.

Ministry of commerce implements and monitors the Foreign Trade Policy (FTP) framed for export and import transactions. FTP provides the basic framework of policy and strategy to be followed for promoting exports and trade. The policy is periodically reviewed to incorporate...