Blogs

Sep ‘19 The rate of tax for the accommodation services up to 30^th Sep ’19 is as below: Old rate

Valuation is the measurement of value on which any tax has to be paid. The typical construction contract is the composition of three components namely

• Land or an undivided portion of land in case of apartments
• Materials/goods like cement, steel etc.,
• Services like labour in construction, designing etc. 

Before GST was introduced, different indirect taxes were levied on the above mentioned three components. State government levied Stamp Duty on transfer of immovable...

Introduction: To ease out the GST compliances for the MSME sector, the Government has introduced a new scheme of tax for the suppliers of goods or services who are not covered under the existing composition scheme u/s 10 of the CGST Act, wherein the GST shall be discharged at a flat rate of 6% and annual returns need to be filed with monthly payment of taxes. This scheme could be recommended to the vendors of registered persons who are not in a position to avail ITC for various reasons,...

BACKGROUND

Indirect tax is normally paid by the supplier of the goods or the service provider. However, in certain cases, the receiver or the customer of such goods or services are made responsible to pay the taxes instead of the seller or service provider. This mechanism of paying taxes by the recipient is called payment of taxes under reverse charge mechanism [RCM].

The payment of tax liability fully under reverse charge by the recipient and partly by the supplier as well as the...

Background:  

There is a system prevalent in some states where the transfer of tenancy rights against tenancy premium which is also known as “Pagadi system”. This is similar to any other renting system that is prevalent across the world i.e. landlord and a tenant. However, the only deviating factor is that the tenant also becomes a part owner of the house but not of the land.  

In the Pagadi system, the tenant acquires the tenancy rights in the property against payment of...

Practicality of Reimbursement deduction in GST

The tug of war of the Revenue to include every cost incurred by the supplier in the value of goods and services and the efforts of tax payers seeking out deduction from the taxable values has been there in sales tax, central excise, service tax and now in GST. In this article we examine what exactly was the dispute in service tax (which were eventually decided in favour of the service provider) and whether the similar position can be taken in...

In GST regime, the number of exemptions / concessions have been brought down. A lot of effort has been put in drafting GST law and lot of litigated aspects are put to rest. However, there are still aspects like compensatory damages, employee notice period recovery which needs clarity as to taxation. In many private organisations, employees would be legally bound to serve for specified period which could vary from 1 month to 3 months depending on designation or role of a particular employee...

Introduction of GST has definitely changed the way in which business is being done due to change in indirect tax structure and law. Levy of tax has been changed from the act of sale or manufacture to act of supply. GST is levied on supply of goods or services for consideration. There are few activities which would be treated as supply even in absence of consideration. For example, stock transfer of goods to branches in other states are treated as supply to levy GST. There are doubts among...

Introduction:  

"Merchant Exporter" means a person engaged in trading activity and exporting or intending to export goods. Merchant exporters are instrumental to boost exports which contribute to growth of Indian economy. To support the same, special benefit of procurement of goods without payment of duty is provided under earlier indirect tax laws (Central Excise/ VAT etc.) on following the procedure prescribed. Under GST, the said benefit was discontinued till 23.10.2017....