Supply

ITeS and backend support service, Intermediary or not
Supply
CA. Kapil Mittal

ITeS and backend support service, Intermediary or not

Supplier of ITes services will not be covered under the provision of Intermediary and quality for export of services however provide of certain backend support services to foreign customer will fall under the definition of intermediary and not qualified for export benefits under GST The Indian ITeS industry generates significant foreign exchange for India and is one of the emerging hubs of the world.  Nevertheless, the Indian ITeS industry has been facing significant competition from its Asian counterparts like Philippines, Vietnam etc.  In this context, the Government of India has provided various export incentives to make Indian ites backend support

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Impact of GST on Post sales Discount
Supply
CA. Sachin Jindal

Impact of GST on Post sales Discount

CBIC clarifies its stance on GST on Post sales Discount that if the post-sales discount has been given in pursuant to contract at or before the sale, GST would not be applicable on such discount however if given discount requires some action at dealer end, GST would be applicable on such discounts as a separate supply. Applicability and impact of Goods and Services Tax (‘GST’) on sale promotion schemes has always been a complex and litigious issue. The Central Board of Indirect Taxes and Customs (‘CBIC’) had earlier issued Circular No. 92/11/2019-GST dated 7 March 2019 providing clarifications on sales

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GST Treatment on Diamond imported to export back for cutting and polishing
Supply
CA. Kapil Mittal

GST Treatment on Diamond imported to export back for cutting and polishing

CBIC clarifies on the place of supply in relation in case of services by ports and place of supply in case of supply of various services on unpolished diamonds which are temporarily imported in to India for re export. The Place of Supply (‘POS’) determines the incidence of taxation under the GST law. As GST is a destination based taxation regime, determination of POS is critical to the taxability of a given transaction related to GST Treatment on Diamond imported. The determination of POS in the context of international trade assumes significance as the transaction could be subject to tax

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Taxability Of Tenancy Rights Under GST
Supply
CA. Kapil Mittal

Issue Related To Taxability Of Tenancy Rights Under GST

Doubts have been raised as to,— (i)  Whether transfer of tenancy rights to an incoming tenant, consideration for which is in form of tenancy premium, shall attract GST when stamp duty and registration charges are levied on the said premium, if yes what would be the applicable rate? (ii) Further, in case of transfer of tenancy rights, a part of the consideration for such transfer accrues to the outgoing tenant, whether such supplies will also attract GST? 2. The issue has been examined. The transfer of tenancy rights against tenancy premium which is also known as “pagadi system” is prevalent in some States.

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Principal Agent relationship under GST
Supply
CA. Sachin Jindal

Clarification on Principal Agent relationship under GST

The supply of goods by an agent on behalf of the principal without consideration has been deemed to be a supply. In this connection, various representations have been received regarding the scope and ambit of the principal agent relationship under GST. For Principal Agent relationship under GST Relevant entry of Schedule 1 – 3. Supply of goods— by a principal to his agent where the agent undertakes to supply such goods on behalf of the principal; or by an agent to his principal where the agent undertakes to receive such goods on behalf of the principal.  Hence, all the activities

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Treatment of supply by an artist in various states and supply of goods by artists from galleries

CLARIFICATION ON ISSUES REGARDING TREATMENT OF SUPPLY BY AN ARTIST IN VARIOUS STATES AND SUPPLY OF GOODS BY ARTISTS FROM GALLERIES In case of work of art given to galleries, Treatment of taxability in the hands of the artist when the handover to art galleries or at the time of actual supplies by the galleries, how will it be treated as supply of goods by artists. Clarification about supply of goods by artists is given below: As per combined reading of Rule55(1)(c ): Delivery challan shall be issued for transportation of goods where such transportation is for reason other than

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Permanent transfer of Intellectual Property is a supply of goods or service

To obviate dispute and litigation, CBEC vide Notification No. 41/2017-Central Tax (Rate) dated 14th November 2017 notified that irrespective of whether permanent transfer of Intellectual Property is a supply of goods or service: – Description Rate Permanent transfer of Intellectual Property other than Information Technology software attracts GST @ 12% Permanent transfer of Intellectual Property in respect of Information Technology software attracts GST @ 18%

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