Whether sale of old Gold eligible to GST under RCM?

Section 9(4) of CGST Act mandates that tax on supply of taxable goods by an unregistered supplier to a registered supplier will be paid by the registered person under RCM. This provision , however, must be read in conjunction with Section 2(105) read with Section 7 of CGST Act. Section 2(105) defines supplier as a person supplying the goods or services. Section 7 provides that a supply is a transaction for a consideration by a person in the course or furtherance of business. Even though the "Sale of Old Gold" by an individual is for a consideration, it cannot be said to be in the course of furtherance of business (as selling of old gold jewellery is not the business of the said individual, and hence does not qualify to be a supply per se. Accordingly, the sale of old jewellery by an individual to a jeweller will not attract the provisions of Section 9(4) and jeweller will not be liable to pay tax under RCM on such purchases . However, if unregistered supplier is in a business of sale of old gold , then tax under RCM will apply.

Impact of GST on E-commerce

There has been a surge in the number of e-commerce websites popping up over the past few years. Physical Shopping has been replaced by e-commerce tremendously.

 In specific to the ecommerce sector, the GST Act introduces the concept of Tax Collection at Source (TCS) with an intent to check tax evasion by etailers.  It is proposed that every ecommerce operator collects tax at source out of the amount payable to the supplier of goods and services and such collection is reported to the Government.

Let’s understand the impact of GST on e-commerce in detail  through FAQ’s.

Q 1. What is Electronic Commerce?

Ans. Electronic Commerce has been defined to mean the supply of goods or services or both, including digital products over digital or electronic network.

Q 2. Who is an e-commerce operator?

Ans. Electronic Commerce Operator has been defined to mean any person who owns, operates or manages digital or electronic facility or platform for electronic commerce.

Q 3. Is it mandatory for e-commerce operator to obtain registration?

Ans. Yes. The benefit of threshold exemption is not available to e-commerce operators and they would be liable to be registered irrespective of the value of supply made by them.

FOR MORE REAT AT : http://akvassociate.com/blog/2017/05/17/impact-of-gst-on-ehttp://akvassociate.com/blog/2017/05/17/impact-of-gst-on-e-commerce/-commerce/

APPORTIONMENT OF CREDIT AND BLOCKED CREDITS

APPORTIONMENT OF CREDIT

FOR MORE READ AT http://akvassociate.com/blog/2017/05/14/apportionment-of-credit-and-blocked-credits/

ELIGIBILITY AND CONDITIONS FOR TAKING INPUT TAX CREDIT

http://akvassociate.com/blog/2017/05/12/eligibility-and-conditions-for-taking-input-tax-credit/

AUDIT UNDER GST ACT 2017

1.  Conducted by whom?

Ans.  Commissioner or any officer authorised by him by specific or general order.

2. Where can be audit conducted?

Ans. Principal place of business of registered person or his office.

3.  How registered person to be intimated?

Ans.  By way of a notice not less than fifteen working days prior to the conduct of audit.

4.  Period of completion of Audit?

Ans. Within a period of three months from the date of commencement of the audit.

FOR MORE READ AT http://akvassociate.com/blog/2017/05/10/audit-under-gst-act-2017/

UNDERSTANDING OF ISD (Input Service Distributor) through FAQ

Q 1. What is Input Service Distributor (ISD)?

Ans. ISD means an office of the supplier of goods or services or both which receives tax invoices towards receipt of input services and issues a prescribed document for the purposes of distributing the credit of central tax (CGST), State tax (SGST)/ Union territory tax (UTGST) or integrated tax (IGST) paid on the said services to a supplier of taxable goods or services or both having same PAN as that of the ISD.

Q 2. What are the requirements for registration as ISD?

Ans. An ISD is required to obtain a separate registration even though it may be separately registered. The threshold limit of registration is not applicable to ISD. The registration of ISD under the existing regime (i.e. under Service Tax) would not be migrated in GST regime. All the existing ISDs will be required to obtain fresh registration under new regime in case they want to operate as an ISD.

READ MORE AT : http://akvassociate.com/blog/2017/05/07/understanding-of-isd-input-service-distributor-through-faq/

ACCOUNTS AND RECORDS UNDER GST

Every registered person at his principal place of business shall kept following records:-

FOR MORE: READ AT http://akvassociate.com/blog/2017/05/05/accounts-and-other-records-in-gst/

INVOICING UNDER GST

Invoice is a simple document evidencing the list of goods sold or services rendered along with the consideration involved and the terms of payment for the transaction. Invoice has been used as an evidence to a transaction since about hundred years and with the basic idea of the invoice remaining the same, there have been variations of the formats for invoices and their requirements as mandated by the regulations. Yet again when the nation is gearing up for the biggest tax reform, the most basic change that comes for review is the invoicing process and an introduction of GST Tax Invoice by the Government.

READ MORE AT: http://akvassociate.com/blog/2017/05/02/invoicing-under-gst/

MEANING OF CIN ,CPIN, E-FPB

Hello Readers,

There are some frequently used terms in GST though heard many times but still we do not have complete knowledge about them. Let’s have glance on three such terms related to GST Payments

1. CPIN

CPIN stands for Common Portal Identification Number (CPIN) given at the time of generation of challan. It is a 14-digit unique number to identify the challan. The CPIN remains valid for a period of 15 days

READ MORE AT http://akvassociate.com/blog/2017/04/29/meaning-of-cin-cpin-e-fpb/

GST COMPLIANCE RATING

According to Section 149 of GST Act ,2017:-

Trade and industry will be assigned a ‘compliance rating’ based on their credibility with regard to timely deposit of taxes to the exchequer and filing of returns under the goods and services tax structure.

A system of GST Compliance Rating will be put in place so that every trader or businessman will be rated based on their track record.

Once the rating is made public on the GSTN portal, a businessman can decide on whether to deal with another trader or entity who does not deposit tax with the government and therefore, has a low compliance score.

READ MORE AT - http://akvassociate.com/blog/2017/04/28/gst-compliance-rating/

ABBREVIATIONS AND THEIR FULL FORMS IN GST ACT, 2017

1) AA             Appellate Authority

2) AAAR        Appellate Authority for Advance Ruling

3) AAR           Authority for Advance Ruling

4) ARN           Application Reference Number

Read more at http://akvassociate.com/blog/2017/04/26/abbreviations-and-their-full-forms-in-gst-act-2017/           

COMPOSITION LEVY UNDER GST ACT, 2017

1. ELIGIBILITY TO OPT FOR COMPOSITION SCHEME

Read more at  http://akvassociate.com/blog/2017/04/17/composition-levy-under-gst-act-2017/

SCOPE OF SUPPLY IN GST 2017, (FLOWCHARTS)

FOR THE PURPOSE OF THE ACT, SUPPLY INCLUDES

FOR FULL ARTICLE READ AT  http://akvassociate.com/blog/2017/04/14/scope-of-supply-in-gst-act-2017/

PROPOSED TAXES TO BE SUBSUMED UNDER GST

The GST would replace the following taxes:

(i) Taxes currently levied and collected by the Centre:

a. Central Excise duty
b. Duties of Excise (Medicinal and Toilet Preparations)
c. Additional Duties of Excise (Goods of Special Importance)
d. Additional Duties of Excise (Textiles and Textile Products)

READ MORE AT:

http://akvassociate.com/blog/2017/01/29/proposed-taxes-to-be-subsumed-under-gst/

Meaning and Taxability of Mixed Supply and Composite Supply under GST

Mixed Supply and Composite Supply are the terms in GST which comprises of  supply of more than one goods and services. Let’s have better understanding to avoid the confusion regarding their meaning and chargeability.

“Mixed supply” means two or more individual supplies of goods or services, or any combination thereof, made in conjunction with each other by a taxable person for a single price where such supply does not constitute a composite supply;

Illustration: A supply of a package consisting of canned foods, sweets, chocolates, cakes, dry fruits, aerated drink and fruit juices when supplied for a single price is a mixed supply. Each of these items can be supplied separately and is not dependent on any other. It shall not be a mixed supply if these items are supplied separately.

“Composite supply” means a supply made by a taxable person to a recipient comprising two or more supplies of goods or services, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply;

Illustration : Where goods are packed and transported with insurance, the supply of goods, packing materials, transport and insurance is a composite supply and supply of goods is the principal supply.

for reading more:/http://akvassociate.com/blog/2017/01/27/meaning-and-taxability-of-mixed-supply-and-composite-supply-under-gst/

Migration from VAT to GST through GSTN

Beginning next month, the Goods and Services Tax Network (GSTN) will start migrating over 80 lakh taxpayers onto its system. This will facilitate the smooth implementation of the GST regime. “The first part of our software will be ready by end October. Existing taxpayers of value added tax, service tax and central excise will be migrated to GSTN,” said Navin Kumar, Chairman, GSTN.

Identities to be issued

He said the GSTN will begin issuing GST identity numbers (TIN) and generating passwords for these taxpayers. “They can log on to our system, familiarise themselves [with it] as well as provide us relevant information,” he said. The GSTN, which will provide the IT infrastructure for the new indirect tax levy, has already received a list of all the taxpayers, their Permanent Account Numbers (PAN), names of the business entities, and their constitution or form from the tax authorities.

Requirements

On receiving their ID and passwords, taxpayers will be expected to log on to the GSTN and provide three additional inputs — place and address of business, name(s) of directors or proprietors, and details of bank accounts — which will become part of the GST records.

“Though the taxpayers will have time up to six months after the roll out of GST to provide this information, but we thought we will give them an opportunity to come on the system now itself and familiarise themselves,” said Kumar, adding that annually about four lakh new taxpayers are estimated to enrol on the IT network.

He also expressed confidence that the GSTN will be ready to meet the roll-out target of the indirect tax levy from April 1, 2017. “We will have a beta run from the end of February to end March and will go live from April 1,” he stressed.

Jaitley meets Sikka

Finance Minister Arun Jaitley on Thursday held a meeting where Infosys CEO Vishal Sikka made a presentation on the GSTN and its roadmap. Infosys is the technology partner for GSTN and is developing the system.

On Wednesday, Prime Minister Narendra Modi held a review meeting on the matter with Jaitley and Finance Ministry officials.

Source: Business Line

for more blogs visit us: www.akvassociate.com

PROFESSIONAL UPDATES

http://akvassociate.com/blog/2016/07/29/109/

EMPANELMENT AS CONCURRENT AUDITOR

EMPANELMENT AS CONCURRENT AUDITOR
http://akvassociate.com/…/empanelment-as-concurrent-auditor/

IDEA TO MERGE 13 STATE OIL COMPANIES

http://akvassociate.com/blog/2016/07/25/idea-to-merge-13-state-oil-companies/

INDIA START UP INITIATIVE - KEY POINTS

Start Up Initiative by our PM Mr. Modi is an action plan to boost such ventures which are seen as key to employment generation and wealth creation. This is the beginning of big bang start up boom in India.

Lets understand the basic motive and benefits of the above stated Action Plan .

1.) Objective

The objective of compliance regime based on self certification is to reduce the regulatory burden on startups. This self-certification will apply to laws like payment of gratuity, contract labour, employees provident fund, water and air pollution acts.

2. Startup India hub

A startup India hub will be created as a single point of contact for the entire startup ecosystem to enable knowledge exchange and access to funding.

3. Simplifying the startup process

 A startup will be to able to set up by just filling up a short form through a mobile app and online portal.  A mobile app will be launched on April 1 through which startups can be registered in a day. There will also be a portal for clearances, approvals and registrations

4. Patent protection

The government is also working on a legal support for fast-tracking patent examination at lower costs. It will promote awareness and adoption of Intellectual Property Rights (IPRs) by startups and help them protect and commercialise IPRs.

5. Funds of funds with a corpus of Rs 10,000 crore

In order to provide funding support to startups, the government will set up a fund with an initial corpus of Rs 2,500 crore and a total corpus of Rs 10,000 crore over four years. The fund would be managed by private professionals drawn from the industry while LIC will be a co-investor in the fund. The credit guarantee fund for start-ups would help flow of venture debt from the banking system to start-ups by standing guarantee against risks.

6. Credit Guarantee Fund

A National Credit Guarantee Trust Company is being envisaged with a budgetary allocation of Rs 500 crore per year for the next four years.

7. Exemption from Capital Gains Tax

Currently, investments by venture capital funds in startups are exempt from this law. Now, the same is being extended to investments made by incubators in startups.

8. Tax exemption for startups

Income tax exemption to startups announced for three years

9. Tax exemption on investments above Fair Market Value

10. Startup fests

Innovation core programs for students in 5 lakh schools. There will also be an annual incubator grand challenge to create world class incubators

11. Launch of Atal Innovation Mission

Atal Innovation Mission started to give an impetus to innovation and encourage the talent among the people

12. Setting up of 35 new incubators in institutions

PPP model being considered for 35 new incubators, 31 innovation centres at national institutes

13. Setting up of 7 new research parks

Government shall set up seven new research parks - six in IITs, one in IISc with an initial investment of Rs 100 crore each.

14. Promote entrepreneurship in biotechnology

Five new bio clusters, 50 new bio incubators, 150 technology transfer offices and 20 bio connect offices will be established.

15. Innovation focused programmes for students

There will be innovation core programs for students in 5 lakh schools.

16. Panel of facilitators to provide legal support and assist in filing of patent application

17. 80 per cent rebate on filing patent applications by startups

18. Relaxed norms of public procurement for startups

19. Faster exits for startups

If a start-up fails, the government will also assist the entrepreneurs to find suitable solutions for their problems. If they fail again, the government will provide an easy way out.

By-www.akvassociate.com

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