SALE OF USED CAR WHETHER TAXABLE UNDER GST??
|
|
- Bathsheba Stone
- 6 years ago
- Views:
Transcription
1 SALE OF USED CAR WHETHER TAXABLE UNDER GST?? INTRODUCTION Many times businessmen (other than persons providing passenger transportation services) purchase motor vehicles (for our discussion let us assume it a car) for transportation of its own people. Said car is capitalized in the books of account as capital assets. On purchase of car one must have paid indirect taxes (viz. Excise & VAT) if said purchase was made in the earlier regime. In the GST regime on purchase of same one must have paid GST including compensation cess, if applicable. In the earlier regime credit of indirect taxes paid on car was not available as it was for self-use in the business. Even in the GST regime as per Sec. 17(5)(a) of Central Goods & Services Tax ( CGST ) Act, 2017 credit is not available in respect of said car as it is for self-use in the business. When the car is subsequently sold after use, is GST payable on the same? Answering this question is very important because in the earlier regime, VAT of a nominal amount (1% of sale price subject to maximum of INR 2,000) was being paid on sale of used car as per Gujarat Value Added Tax Act, Hence nobody disputed the said levy. Excise duty was not payable on the removal as credit was not claimed on purchase. If GST is payable on the same it would result in double taxation as 28% plus compensation cess will again be payable. Thus such car would suffer tax twice. One on first supply by dealer and second on subsequent sale by purchaser. Let us analyze the legal position on the issue. LEGAL PROVISIONS Levy of GST is on supply. Sec. 7 of CGST Act, 2017 defines the term supply. Relevant portion is reproduced below for ready reference: 7. (1) For the purposes of this Act, the expression supply includes (a) all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be 1
2 made for a consideration by a person in the course or furtherance of business; If sale of used car is chargeable to tax, it must be covered under Sec. 7(1)(a). As seen above only sale made in the course or furtherance of business is covered. Business is defined u/s 2(17). As the definition is relevant for our analysis the same is reproduced below: Sec. 2(17) business includes (a) any trade, commerce, manufacture, profession, vocation, adventure, wager or any other similar activity, whether or not it is for a pecuniary benefit; (b) any activity or transaction in connection with or incidental or ancillary to sub-clause (a); (c) any activity or transaction in the nature of sub-clause (a), whether or not there is volume, frequency, continuity or regularity of such transaction; (d) supply or acquisition of goods including capital goods and services in connection with commencement or closure of business; (e) provision by a club, association, society, or any such body (for a subscription or any other consideration) of the facilities or benefits to its members; (f) admission, for a consideration, of persons to any premises; (g) services supplied by a person as the holder of an office which has been accepted by him in the course or furtherance of his trade, profession or vocation; (h) services provided by a race club by way of totalisator or a licence to book maker in such club ; and (i) any activity or transaction undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities; As selling used car is not the business of the supplier, the said transaction is not covered under clause (a) of above definition. Hence to be covered within the ambit of Sec. 7 sale of used car must be covered under clause (b). Let us now see whether the same can be covered under said clause. 2
3 LEGAL REASONING Before the definition of business was amended under various State Sales Tax Laws around 1965, only sales made in nature of any trade, commerce, manufacture, profession, vocation, adventure or any sales in connection with or ancillary to such trade, commerce, manufacture, profession, vocation, adventure was taxable. Thus intention of doing the business measured by volume, frequency, continuity or regularity as well as profit motive was essential to tax a sale transaction. Any sale of goods done without intention of doing a business in those goods or without profit motive was not taxable. In this context Apex Court in the case of State of Gujarat v. Raipur Manufacturing Co. Ltd. [1967] 19 STC 1 had taken a view that to bring ancillary sales under tax net it must be shown by the revenue that they were made with an intention to do business and earn profit. It relied on its own decision in the case of State Of Andhra Pradesh vs Abdul Bakhi and Bros (1965) AIR 531. It was held that when a person in the course of carrying on a business is required to dispose of what may be called his fixed assets or his discarded goods acquired in the course of the business, an inference that he desired to carry on the business of selling his machinery or fixed assets or discarded goods would not ordinarily arise. Hence the same will not be taxable. Legislators amended the definition of business by providing that any sale made in the nature of any trade, commerce, manufacture, profession, vocation, adventure; whether or not there was intention of making any gain or profit; as well as sales in connection with or incidental or ancillary to such trade, commerce, manufacture, profession, vocation, adventure shall be covered. First important decision on the issue post the amendment was rendered by Hon. Supreme Court in the case of State of Tamil Nadu v. Burmah Shell Oil Storage & Distribution Co of India Ltd (1973) AIR In this case the respondent under the Factories Act had to supply tea and edibles to its workmen for the Canteen established by it. It also supplied to its distributors calendars, purses and key chains. They also periodically sold items such as scraps, unserviceable oil drums, rubber hoses, jerry cans, rims etc. Issue before the Court was whether these sales were in connection with or incidental or ancillary to the business. Before the above case, Hon. Madras High Court in the case of Deputy Commissioner v. Sri Thirumagal Mills Limited STC 287 had taken a view that even if by way of amendment in the definition of business profit 3
4 motive is deleted as an ingredient, still the ancillary activity has to be of commercial nature. It should still partake the nature of trade, commerce, manufacture, etc. specified in the first limb and only then it can be taxed. Hence it was held that turnover of fair price shop run for the employees will not be leviable to tax. Hon. Andhra Pradesh High Court on the contrary in the case of Hyderabad Asbestos Cement Products Ltd. v. State of Andhra Pradesh had taken a view that for an ancillary sale to be taxed it is not required that the same must be done with an intention of doing business. Any ancillary sale connected with the business shall be taxable. Hon. Supreme Court in the case of Burmah Shell Oil Storage & Distribution Co of India Ltd (supra) did not agree with the decision of Hon. Madras High Court and affirmed the ratio decided by Hon. Andhra Pradesh High Court. It held that Hon. Madras High Court had not paid sufficient attention to word such as appearing in clause any transaction in connection with, or incidental or ancillary to, such trade, commerce, manufacture, adventure or concern. Hence it held that after the omission of profit motive, any sale which is ancillary to business whether or not made with an intention to do business of such ancillary goods shall be taxable. Hon. Supreme Court thus held that once a transaction is covered within the ambit of terms in connection with or incidental or ancillary the same shall be taxable whether or not there was any intention to do business in the commercial sense of business in these ancillary goods. In the given case the Apex Court held that whether sale of scrap such unserviceable oil drums, rubber hoses, jerry cans, etc is ancillary to the business is a finding of fact. However it observed that as the respondent was an oil company, all these items are part of the business activity of trading in oil and hence the same is taxable. In respect of marketing items like calendars, wallets, etc. it was observed that such goods were given to dealers for increasing the sales. Hence the same is also ancillary to business. With regard to canteen sales it was observed that Government Order specifically provided for exemption to sales made by canteen and hence the same must be considered by lower authorities. In the above connection attention is also invited to another decision of Hon. Supreme Court in the case of State Of Tamil Nadu vs Binny Ltd. AIR 1980 SC 2038 where the issue was whether sale by canteen is incidental to business. It was held that such sale is indeed incidental to business. Relevant portion of judgment is reproduced below for ready reference (emphasis supplied): 4
5 It is indeed difficult to see how it can at all be said that the activity of selling provisions to the workmen in the Store was not incidental to the business of manufacture of textiles in the factory. The sales which were effected in the Store were to the workmen employed in the factory where textiles were being manufactured and the provision of this facility to the workmen was certainly incidental to the carrying on the business of manufacture of textiles. This view finds support from the decision of this Court in case of Royal Talkies Hyderabad vs. Employees State Insurance Corporation, where the question was as to whether a canteen maintained by a cinema owner in the premises of the cinema could be said to be incidental to the business of running the cinema. Krishna Iyer, J., speaking on behalf of the Court, pointed out that "a thing is incidental to another if it merely appertains to something else as primary. Surely, such work should not be extraneous or contrary to the purpose of the establishment but need not be integral to it either." Applying this test the Court held that it was impossible to contend that "a canteen or cycle stand or cinema magazine booth is not even incidental to the purpose of the theatre. The cinema goers ordinarily find such work an advantage, a facility an amenity and sometimes a necessity. All that the statute requires is that the work should not be irrelevant to the purpose of the establishment." Now if a canteen maintained by a cinema owner for the benefit of cinema goers can be regarded as incidental to the purpose of the cinema theatre which is to carry on the business of exhibiting films in the theatre, we fail to see how a Store run by the owner of a textile undertaking for sale of provisions to the workman employee in the factory can be said to be anything other than incidental to the business of manufacture of textiles. We are clearly of the view that the activity of selling provision to workmen in the Store was incidental to the business of manufacture of textiles and the sales were, therefore, transactions falling within the definition of 'business' in Clause (ii) of Section 2(d). Apex Court in the above case has interpreted the word incidental in a very broad sense. Any transaction which appertains to something else which is primary shall be regarded as incidental. It need not be integral to it. To summarize the principle laid by above referred cases, once it is factually proved that a sale is in connection with, incidental to or ancillary to business the same shall be chargeable to tax despite that fact that there was no intention to make such sales in the commercial sense of business i.e. transaction is invested with commercial character. For such ancillary sales of goods it would no more be necessary to establish "intention to carry on business" in those goods. 5
6 Hence if sale of used car is in connection with, incidental to or ancillary to business the same shall be chargeable to tax. On the issue of sale of used car by a dealer carrying on business of manufacturing, selling and supplying of chemicals Hon. Bombay High Court in the case of Morarji Brothers (I&E) Pvt. Ltd v. State of Maharashtra 1995 (99) STC 117 had an occasion to decide whether the same amounted to a transaction in connection with or incidental or ancillary to business. Hon. Bombay High Court relied on the decision of apex Court in the case of Raipur Manufacturing Co. Ltd (supra). As stated before, said decision was rendered before the definition of business was amended to exclude profit motive. Bombay High Court observed that though the main ratio laid down in the said decision that incidental sale of goods can be brought to tax only if done with an intention of doing business in those goods is not applicable in view of amendment in the definition, still the fact that incidental sales of unserviceable or discarded goods intended only for reduction of the space and to save accommodation were not so integrated with (or connected with) the main business even if they were of considerable volume and frequency. Hence Hon. Bombay High Court held that sale of three used motor cars by the assessee, who was a dealer carrying on business of manufacturing, selling and supplying of chemicals, did not amount to sale by a dealer within the meaning of section 3 read with clauses (11) and (5A) of section 2 of the Bombay Sales Tax Act, 1959 as it was not in connection with or incidental to or ancillary to the business of supplying chemicals. Relevant portion of the judgment is reproduced below for ready reference: Sale of used or discarded cars by the assessee in the present case would be governed by proposition No. 7 emerging from decision of Supreme Court in Raipur Manufacturing Co. [1967] 19 STC 1 which is reproduced below: 7. Where a person in the course of carrying on a business is required to dispose of what may be called his fixed assets or his discarded goods acquired in the course of his business, an inference that he desired to carry on the business of selling his fixed assets or discarded goods would not ordinarily arise. Following the same, such sales cannot be held to be part of or incident of the main business of the assessee, which in the present case comprised of manufacture and sale of chemicals. No sales tax can, therefore, be levied under the Act on such sales. 6
7 .. This opinion of ours is fully supported by the decision of the same High Court in Commissioner of Sales Tax v. Sajjad Hussain Automotive Service [1991] 82 STC 335 where the sales of a second-hand car by a dealer in motor spirit and lubricants was held to be not covered by the term "business" for the purposes of taxation under the Madhya Pradesh General Sales Tax Act, The legislative intent of the Sales Tax Act and the charging section, as stated above, is not to levy tax on all sales or purchases of taxable goods made by a dealer. It is only the sales or purchases effected by persons who carry on business, within the meaning of clause (5A) of section 2 of the Act, of buying or selling such goods that are liable to tax under the Act. Had the legislative intent been otherwise, it was not necessary to provide in the charging section that tax would be payable only by "a dealer" and to define the expression "dealer" as a person who carries on the "business of buying or selling goods in the State" and to further define the expression "business" for that purpose and to amend the same from time to time with a view to widening the ambit thereof. All this would be rendered redundant, if "all purchases or sales" of taxable goods by a dealer, per se, are held to be taxable under the Act. Had it been so, section 3 would have provided that every person who is engaged in business and whose turnover of sales and purchases during the given period exceed the specified limits, would be liable to pay tax on the turnover of all sales or purchases made by him. Next important decision on the issue was rendered by Hon. Delhi High Court in the case of Panacea Biotech Ltd. v. Commissioner of Trade [2013] 52 NTN DX 171. In this case again the issue was whether transaction of sale of used car was covered in the definition of business. The issue was raised under the Delhi Sales Tax Act, 1975 which had pari materia definition of business with CGST Act, 2017 as far as clause (a) & (b) are concerned which are relevant for present discussion. Reference was made to Concise Oxford English Dictionary (10th ed.) wherein the word ancillary has been defined as something providing support to the primary activities of an organization; something which is additional or subsidiary. Reliance was also placed on the decision of Hon. Bombay High Court in the case of Morarji Brothers (I&E) Pvt. Ltd (supra). 7
8 It was held that selling of used cars cannot by any stretch of the imagination be characterized as ancillary or incidental to the business of a pharmaceutical company. It was not shown that the cars were of a special character e.g. air conditioned vehicles especially designed to store and ferry pharmacy products. They were purchased for use of company employees and executives, for office purposes. It was also observed that at the stage of purchase, they have suffered sales tax, which the assessee, as buyer, was bound to pay. However, the assessee never held them for the purpose of sale and purchase, but for using them. After their use, having regard to lapse of time, and their wear and tear, the assessee decided to replace them. These cars were then sold. Their sales, in a sense are twice removed from the business of the assesse. They cannot be called incidental or ancillary to the manufacture and sale of pharmaceutical products, which the assesse is engaged in. Hence the sale of used car will not be subjected to tax. Later on under the Delhi Value Added Tax ( Delhi VAT ) Act, 2004 definition of business u/s 2(d) contained an explanation which provided that any transaction of sale or purchase of capital assets pertaining to such service, trade, commerce, manufacture, adventure or concern shall be deemed to be business. However an exemption from tax on sale of such capital assets was also provided in cases where input tax credit has not been claimed on purchase of such capital assets and they were not used exclusively in making non-taxable sales. In this context, Hon. Delhi High Court in the case of Anand Decors v. Commissioner of Trade [2015] 53 taxmann.com 235 (Delhi) was called upon to decide whether the sale of used car, without availing input tax credit, by a trader dealing in other commodities will be subjected to tax. It was held that because of an explanation in the definition of business, providing that the sale of capital assets pertaining to trade shall be deemed to be regarded as business, sale of used car shall be covered. However in view of an exemption provided in law, where input tax credit has not been availed on the car and the same has not been used exclusively in business of sale of non-taxable goods, the sale of used car shall not be taxable. CONCLUSION From the above analysis we can conclude that element of profit motive or volume, frequency, continuity or regularity is not required to tax a transaction in connection with or incidental or ancillary to any trade, commerce, manufacture, profession, vocation, adventure, wager or any 8
9 other similar activity. Unlike Delhi VAT Act, 2004, definition of business under Sec. 2(17) of CGST Act, 2017 do not contain a deeming explanation providing that sale of all capital goods pertaining to business shall be covered even though the same may not be in connection with or incidental or ancillary to business. Whether a transaction is in connection with or incidental or ancillary to business is to be determined on the basis of facts. In case of sale of used car by a person dealing in other commodities, Hon. Bombay High Court in the case of Morarji Brothers (I&E) Pvt. Ltd (supra) as well as Hon. Delhi High Court in the case of Panacea Biotech Ltd. (supra) has held that the same will not be regarded as sale in connection with or incidental or ancillary to business and hence shall not be taxable. As definition of business under CGST Act, 2017 is pari materia to the extent of clauses under discussion, ratio of both the judgments shall squarely apply and hence we are of the opinion that GST shall not be paid on sale of used car. Even if viewed from the principle of equity, revenue has already got tax on sale of car once. Taxing the same again on resale after use will lead to double taxation. 9
Preliminary and Administration
Chapter I Preliminary and Administration FAQ s Definitions (Section 2) Section 2 of the Central Goods and Services Tax Act, 2017 ( the CGST Act, 2017 or the CGST Act ) Agriculturist [Section 2(7)] Q1.
More informationSUPPLY, LEVY AND COLLECTION
3 CHAPTER SUPPLY, LEVY AND COLLECTION 3.1 relevant definition 3.1.1 meaning of GSt It is a destination based tax on consumption of goods and services. It is proposed to be levied at all stages right from
More informationIN THE HIGH COURT OF DELHI AT NEW DELHI SUBJECT : CODE OF CIVIL PROCEDURE. FAO No. 250/1987 RESERVED ON: DATE OF DECISION:
IN THE HIGH COURT OF DELHI AT NEW DELHI SUBJECT : CODE OF CIVIL PROCEDURE FAO No. 250/1987 RESERVED ON: 4.01.2008 DATE OF DECISION: 15.01.2008 E.S.I.C.... Appellant through: Mr. N.S.Bajwa, Advocate VERSUS
More informationGST Concept and Road Map... Atul Gupta
GST Concept and Road Map... Atul Gupta Goods and Service Tax What will be incidence of tax (which Activity will attract GST Definition of Supply. Schedule 1 & 2 Classification Based on HSN, A/c Code for
More informationINDIRECT TAXES Central Excise and Customs Case Law Update
CA. Hasmukh Kamdar INDIRECT TAXES Central Excise and Customs Case Law Update Valuation Commissioner of Central Excise, Mumbai vs. Fiat India Pvt. Ltd. [2012 (283) ELT 161 (S.C.) decided on 29-8-12] Facts
More informationSUPER PACKAGING INDUSTRIES SALES TAX OFFICER, II CIRCLE, ERNAKULAM AND OTHERS
[2015] 86 VST 392 (Ker) [IN THE KERALA HIGH COURT] SUPER PACKAGING INDUSTRIES V. SALES TAX OFFICER, II CIRCLE, ERNAKULAM AND OTHERS HF Department. T. R. RAMACHANDRAN NAIR AND K. P. JYOTHINDRANATH JJ. July
More informationC. B. Thakar, Advocate
Refresher Course on GST by WIRC 26 th June,2017 Basic Concepts of GST Presentation by C. B. Thakar, Advocate B.Com., F.C.A., LLB C. B. THAKAR, Advocate 1 Journey towards GST 122 nd CAB Approved by Lok
More informationPresentation by CA Subhash Mittal, Secretary SRRF.
Presentation by CA Subhash Mittal, Secretary SRRF E-mail: socio-research@sma.net.in Important terms from Applicability point of view Incidence of GST - S. 9(1) Supply - S. 7 (1) Consideration - S. 2(31)
More informationCONNECT. Changes in the Composition scheme Government leaving no stone unturned to make the scheme successful
CONNECT. Changes in the Composition scheme Government leaving no stone unturned to make the scheme successful Deemed exports notified under GST, are we going in the reverse gear-shift again in GST? May
More informationNATIONAL TAX NEWS &VIEWS (NTN) A FORTNIGHTLY VAT/GST LAW REPORTER
2011 NTN (Vol. 46)-229 [UTTARAKHAND HIGH COURT] Hon ble Tarun Agarwala, J.] Writ Petition No.1611 of 2009 (M/S) Along With Writ Petition No. 1627-28, 1634, 1639, 1642 of 2009, 2019, 2026, 2160, 2227 of
More informationInput Tax Credit Under GST Law, Rules & Forms. 2 December 2017 Copyrights Reserved of 33
Input Tax Credit Under GST Law, Rules & Forms www.alankitgst.com 2 December 2017 Copyrights Reserved 2017 1 of 33 What is GST? Goods & Services Tax Law in India is a comprehensive, multi-stage, destinationbased
More informationNOTES ON CENTRAL SALES TAX Sec.3, Sec.4, Sec.5, Sec.6A & Sec. 6(2)
NOTES ON CENTRAL SALES TAX Sec.3, Sec.4, Sec.5, Sec.6A & Sec. 6(2) Introduction:- Sales Tax is a state subject. Entry 92A of List I and entry 54 of List II of the constitution of India demarcates the power
More informationIMPACT OF GST ON CONSTRUCTION INDUSTRY
IMPACT OF GST ON CONSTRUCTION INDUSTRY DISCLAIMER: The views expressed in this article are of the author(s). The Institute of Chartered Accountants of India may not necessarily subscribe to the views expressed
More informationGOODS AND SERVICE TAX (GST) TRANSITIONAL PROVISIONS COMPILED AND PREPARED BY : CA SAGAR THAKKAR
GOODS AND SERVICE TAX (GST) TRANSITIONAL PROVISIONS COMPILED AND PREPARED BY : CA SAGAR THAKKAR PRESENTATION COVERAGE TRANSITIONAL PROVISIONS UNDER CGST/SGST ACT SEC. 139 TO 142 OF CGST ACT TRANSITIONAL
More informationCIT v. Reliance Petroproducts (P) Ltd. ()
(2010) 322 ITR 0158 :(2010) 032 (I) ITCL 0600 :(2010) 230 CTR 0320 :(2010) 036 DTR 0449 CIT v. Reliance Petroproducts (P) Ltd. () INCOME TAX ACT, 1961 --Penalty under section 271(1)(c)--Inaccurate particulars
More informationImpact of GST on Free Supplies & Free Samples:
Impact of GST on Free Supplies & Free Samples: DISCLAIMER: The views expressed in this article are of the author(s). The Institute of Chartered Accountants of India may not necessarily subscribe to the
More informationGST. Valuation and Job Work under GST
372 Valuation and Job Work under With the passage of the Constitution (122 nd Amendment) Bill, 2014, (popularly known as Bill) in Parliament, a uniform indirect tax regime across India is one step closer
More informationEY Tax Alert. Executive summary
27 March 2015 EY Tax Alert SC over-rules AP High Court judgment, holds that beedi leaves purchased in auction by branch in AP and transferred to HO in Maharashtra not to be an inter-state sale Executive
More informationCHAPTER 2. GST Acts : CGST ACT, SGST ACT (KARNATAKA STATE) IGST ACT
CHAPTER 2 GST Acts : CGST ACT, SGST ACT (KARNATAKA STATE) IGST ACT SALIENT FEATURES OF CGST ACT, 2017 1. A state-wise single registration for a taxpayer for filing returns, paying taxes, and to fulfil
More informationDownloaded from :
Downloaded from : http://abcaus.in PETITIONER: BHARAT COMMERCE & INDUSTRIES LTD. Vs. RESPONDENT: THE COMMISSIONER OF INCOME TAX, CENTRAL II DATE OF JUDGMENT: 05/03/1998 BENCH: SUJATA V.MANOHAR, D.P. WADHWA
More informationWhat is Manufacture under Excise?
What is Manufacture under Excise? Manufacture - Sec. 2(f) Process - Incidental/ ancilliary for the completion of main product Land Mark Case - UOI V. DCM Any process amounting to manufacture as specified
More informationGST on free supplies by customers - CA Venkat Prasad - CA. Haritha Komma
GST on free supplies by customers - CA Venkat Prasad - CA. Haritha Komma Introduction: It is common practice prevailing in many industries that certain materials are provided by the customer to the manufacturer
More informationGST- COMPOSITION SCHEME - BOON FOR SMALL TAXABLE PERSONS
GST- COMPOSITION SCHEME - BOON FOR SMALL TAXABLE PERSONS BY: PRADEEP K. MITTAL, ADVOCATE 1 INTRODUCTION: 1: The new composition scheme provides for a simple and easy method of charge and payment of tax
More informationSampat & Mehta GST - FAQ
Sr. No. Particulars Suggestions 1. What documents are required to accompany movement of Goods outside own premises E Way Bill to be generated from GSTN Portal before or at the time of movement of Goods
More informationA Fresh look at disallowances u/s 14A of Income Tax Act - By CA. K.K.Chhaparia
A Fresh look at disallowances u/s 14A of Income Tax Act - By CA. K.K.Chhaparia Now a days, every assessee who is doing investment or trading in shares are getting hit hard by the impact of section 14A.
More informationWIRC. Controversial Issues Relating To Overlaps In Indirect Taxes. CA Ranjeet Mahtani. Media & Entertainment Sector. 20 th August, 2011
WIRC Controversial Issues Relating To Overlaps In Indirect Taxes Media & Entertainment Sector CA Ranjeet Mahtani 20 th August, 2011 And in my opinion, entertainment in its broadest sense has become a necessity
More informationTHE CENTRAL GOODS AND SERVICES TAX ACT, 2017 CHAPTER I PRELIMINARY
THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 NO. 12 OF 2017 [12th April, 2017.] An Act to make a provision for levy and collection of tax on intra-state supply of goods or services or both by the Central
More informationInsurance Key Indirect Tax Issues
CA. S.S. Gupta & CA. Nidhi Mapuskar Insurance Key Indirect Tax Issues The insurance sector is divided into two parts namely Life and General. The Government of India had introduced Service Tax on General
More informationCASES AND COMMENTS Sale in the course of export Wadeyar v. Daulatram Rameshwarlal.
CASES AND COMMENTS Sale in the course of export Wadeyar v. Daulatram Rameshwarlal. After the two Travancore 1 cases, the Supreme Court decision in Wadeyar v. Daulatram Rameshwarlal 2 constitutes another
More information[2016] CESTAT) CESTAT, MUMBAI BENCH
[2016] 67 taxmann.com 251 (Mumbai - CESTAT) CESTAT, MUMBAI BENCH Nirlon Ltd. Vs. Commissioner of Central Excise, Mumbai* M.V. RAVINDRAN, JUDICIAL MEMBER AND C.J. MATHEW, TECHNICAL MEMBER ORDER NOS. A/85680-85681/2016/STB
More informationIssue 1: Treatment of Supply without consideration under GST
Series of Articles on issues in Goods and Services Tax Issue 1: Treatment of Supply without consideration under GST By CA Atul Gupta & CA Rashi Paliwal The proposed Goods and Services Tax (GST) draft model
More informationDecoding the Model GST law Impact on Telecom Companies
www.pwc.in Decoding the Model GST law Impact on Telecom Companies June 2016 India on the brink of GST There has been significant progress on the GST front recently. With the release of the draft Model
More informationRespected Sir, Subject: Representation on Model GST Law
Honorable Finance Minister Government of India, Ministry of Finance, North Block, Parliament Street, New Delhi 110001. 7 th September, 2016 Respected Sir, Subject: Representation on Model GST Law The Chamber
More informationSupreme Court rules that VAT is not leviable on transactions constituting inter-state trade and sale or purchase in course of import
3 May 2016 EY Tax Alert Supreme Court rules that VAT is not leviable on transactions constituting inter-state trade and sale or purchase in course of import Executive summary Tax Alerts cover significant
More informationAPPLICABILITY OF GST TO NGOS
APPLICABILITY OF GST TO NGOS Considering widespread likely impact of GST, legal provisions, rules and available circulars were studied to understand its applicability for NGOs. While one cannot say that
More informationGoods and Service Tax (GST)
Goods and Service Tax (GST) 1. Basics of GST 2. Working Model of GST 3. GST Compliances- Monthly and Annual Filings 4. GST Impact on E-Commerce 5. GST Impact on Services ( IT/ITES) BASICS of GST GST is
More informationSUPPY PROPOSED MODEL GST LAW B Y C A A S H I S H C H A U D H A R Y
SUPPY PROPOSED MODEL GST LAW B Y C A A S H I S H C H A U D H A R Y Coverage Some Facts Supply Supply for consideration Importation of service Supply without consideration Supply between principal & job
More informationTAXATION OF CO-OPERATIVE SOCIETIES
TAXATION OF CO-OPERATIVE SOCIETIES CA Pramod Shingte Pune In recognition of the importance of co-operative movement in modern society the governments of all states in India and the Central Government have
More informationTransitional Provisions
FAQ s Migration of Existing Tax Payers (Section 139) Similar provisions have been specified in the UTGST Act, 2017 Chapter XVIII Transitional Provisions Q1. What is the primary condition for provisional
More informationControversies surrounding Section 14A of the Income Tax Act
Controversies surrounding Section 14A of the Income Tax Act CA Vivek Newatia vnewatia@sjaykishan.com CA Puja Borar pujaborar@sjaykishan.com Background and Rationale for introduction Section 14A introduced
More informationSupply of Goods and Services
C H A P T E R 4 Supply of Goods and Services 4.1 MEANING OF SUPPLY 4.1-1 A layman meaning of supply is To Deliver, To Provide, or To Render. 4.1-2 In the matter of Levob Verzekeringen BV, OV Bank NV v.
More informationCORPORATE UPDATE IN THIS ISSUE DIRECT TAX INTERNATIONAL TAXATION TRANSFER PRICING DOMESTIC TAXATION. September, 2018
CORPORATE UPDATE DIRECT TAX INTERNATIONAL TAXATION I. High Court upholds grossing up for withholding tax purpose where taxes are borne by customer on fees for technical services paid to non-resident even
More informationTaxability of RTO Tax and RTO Registration Facilitation Charges under GST
GST Alert 09/2017-18 Date 24.07.2017 Taxability of RTO Tax and RTO Registration Facilitation Charges under GST Post GST, there has been discussion in many forums that while calculating the taxable value
More informationIN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B, HYDERABAD
IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B, HYDERABAD BEFORE SHRI P.MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA No. 503/Hyd/2012 Assessment Year: 2008-09,
More informationAnswer to MTP_Final_Syllabus 2016_Dec 2018_Set 1 Paper 18- Indirect Tax Laws and Practice
Paper 18- Indirect Tax Laws and Practice DoS, The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 1 Paper 18- Indirect Tax Laws and Practice Full Marks: 100 Time
More informationthe income was received from letting out of the properties, it was in the nature of rental income. He, thus, held that it would be treated as income f
'REPORTABLE' IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NO. 4494 OF 2004 M/S CHENNAI PROPERTIES & INVESTMENTS LTD., CHENNAI... Appellant VERSUS THE COMMISSIONER OF INCOME TAX
More informationVirtual Certificate Course on GST Organised by: IDT Committee of ICAI
1 Virtual Certificate Course on GST Organised by: IDT Committee of ICAI Sector Specific Studies on Construction Information Technology Tourism Service Trader Manufacturer 23 of June 2017 2 HIGHLIGHTS OF
More informationR U L I N G (By Mr. Justice Syed Shah Mohammed Quadri)
BEFORE THE AUTHORITY FOR ADVANCE RULINGS (INCOME TAX) NEW DELHI ========== P R E S E N T Hon ble Mr. Justice Syed Shah Mohammed Quadri (Chairman) Mr. K.D. Singh (Member) Monday, eighteenth October two
More informationIN THE HIGH COURT OF KARNATAKA AT BANGALORE
1 IN THE HIGH COURT OF KARNATAKA AT BANGALORE Dated this the 20 th day of June, 2012 PRESENT THE HON BLE MR JUSTICE D V SHYLENDRA KUMAR AND THE HON BLE MR JUSTICE B MANOHAR Between: Sales Tax Revision
More informationGoods and Services Tax CA. Sathish V & CA. Krishna J August 2017
Goods and Services Tax CA. Sathish V & CA. Krishna J August 2017 Slide 1 Table of Contents 1 Input service distribution 2 E-Commerce in GST 3 Job work - an overview 4 Job work procedures in GST 5 Transition
More informationIndirect Tax Alert PUNJAB & HARYANA HIGH COURT HOLDS NON-TAXABILITY OF LAND TRANSFER IN BUILDING CONTRACTS (WORKS CONTRACT)
Indirect Tax Alert April, 2015 PUNJAB & HARYANA HIGH COURT HOLDS NON-TAXABILITY OF LAND TRANSFER IN BUILDING CONTRACTS (WORKS CONTRACT) The two member bench of the Hon ble High Court of Punjab and Haryana
More informationVikram S. Nankani (Sr. Adv.) Bombay Chartered Accountants Society
Vikram S. Nankani (Sr. Adv.) Bombay Chartered Accountants Society Recent Decisions under GST JCB India Ltd (Bom HC) Issue Held Challenge to restriction of one year provided under Section 140(3)(iv) of
More informationCase Laws of The Week 21 st January 2019
Case Laws of The Week 21 st January 2019 This alert summaries the AAR Rulings under the GST Regime, rulings of courts and tribunals under the erstwhile Indirect Tax Regime along with an expected amendment
More informationApplicability of GST on Import Clearances other than Port of Importation
Goods are imported in India and normally Bill of Entry for home consumption is filed. However, there will be a cases, where one needs to study the applicability of duty. Type of Sale Documents Applicable
More informationC. B. MOR CELLULAR COMMISSIONER OF CENTRAL EXCISE, NAGPUR
[2015] 85 VST 58 (CESTAT) [CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL] (MUMBAI BENCH) C. B. MOR CELLULAR V. COMMISSIONER OF CENTRAL EXCISE, NAGPUR RAMESH NAIR Judicial Member January 16, 2015 HF
More informationGST VALUATION H DAVE & CO. CHARTERED ACCOUNTANT FOR WIRC, MUMBAI
GST VALUATION H DAVE & CO. CHARTERED ACCOUNTANT FOR WIRC, MUMBAI Valuation under MVAT Act,2002 Incidence of TAX is on the basis of Turnover of Sales and Purchases There are no Provisions for Valuation
More informationSai Om Journal of Commerce & Management A Peer Reviewed International Journal
Volume 4, Issue 6 (June, 2017) UGC APPROVED Online ISSN-2347-7571 Published by: Sai Om Publications GOODS AND SERVICES TAX (GST) VS CURRENT INDIRECT TAX ENVIRONMENT IN INDIA AND IMPACT OF GST ON REAL ESTATE
More informationCurrent Tax Structure in India
History of GST More than 150 countries have already introduced GST. France was the first country to introduce GST system in 1954. Typically it is a single rate system but two/three rate systems are also
More informationSectoral Impact- Outsourced Manufacturing or Job Work - GST Revised Law
Sectoral Impact- Outsourced Manufacturing or Job Work - GST Revised Law DISCLAIMER: The views expressed in this article are of the author(s). The Institute of Chartered Accountants of India may not necessarily
More informationWorks Contract - VAT and Service Tax Planning
279 Works Contract - and Tax Planning Even after about 30 years of the 46 th Amendment to the Constitution of India, taxation of Works Contract is a subject matter of interpretations, controversies and
More informationUnderstanding GST Model Law Input Tax Credit
05.12.2016 Understanding GST Model Law Input Tax Credit By CA Madhukar N Hiregange CA Roopa Nayak This is the eight in the series of proposed articles on the GST Model law. No 7 was on Input Services tax
More informationIN THE INCOME TAX APPELLATE TRIBUNAL BENCH 'B' NEW DELHI. ITA Nos.2337 & 4337/Del/2010 Assessment Years: &
IN THE INCOME TAX APPELLATE TRIBUNAL BENCH 'B' NEW DELHI ITA Nos.2337 & 4337/Del/2010 Assessment Years: 2006-07 & 2007-2008 DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-11(1), NEW DELHI Vs M/s ENERGY INFRASTRUCTURE
More informationIN THE GUJARAT VALUE ADDED TAX TRIBUNAL AT AHMEDABAD.
SALE PRICE Octroi collected and paid to Surat Municipality - Not part of Sale Price - Decision of Jayantilal Bhimji 32 STC 527 and Mahavir Ice Factory (SA Nos. 292 & 293 of 1984) dt. 23-2-1987 followed
More informationProposed Amendments in GST Law
Proposed Amendments in GST Law On 09.07.2018, the Goods and Service Tax Council has issued draft proposal for the amendment in the "Goods and Services Tax" Law. The entire proposal gives brief view on
More informationBy: CA Sunnay Jariwala
By: CA Sunnay Jariwala Existing Indirect Tax Structure Source: cbec.gov.in What is Goods and Services Tax? Article 366 (12A) Tax on supply of goods or services or both. Except on supply of alcoholic liquor
More informationS. No. Questions / Tweets Received Replies Registration 1. Does aggregate turnover include value of inward supplies Refer Section 2(6) of CGST Act.
S. No. Questions / Tweets Received Replies Registration 1. Does aggregate turnover include value of inward supplies Refer Section 2(6) of CGST Act. received on which RCM is payable? Aggregate turnover
More informationISSUES ON GST FOR PANEL DISCUSSION TO BE HELD ON 13 th AUGUST, 2017
ISSUES ON GST FOR PANEL DISCUSSION TO BE HELD ON 13 th AUGUST, 2017 1. Developer has given work contract to construct the building to a work contractor in 2016. Developer had made the payment after deducting
More informationIN THE HIGH COURT OF DELHI AT NEW DELHI SUBJECT : INCOME TAX ACT ITA 3/2001 Date of Decision: 5th September, 2013
IN THE HIGH COURT OF DELHI AT NEW DELHI SUBJECT : INCOME TAX ACT ITA 3/2001 Date of Decision: 5th September, 2013 COMMISSIONER OF INCOME TAX Through: Mr. Amol Sinha, Adv.... Appellant versus M/S HANDICRAFTS
More informationLevy and Collection of Tax
FAQ Levy and collection of Tax (Section 5) Q 1. What type of tax is levied on inter-state supply? Chapter I Levy and Collection of Tax Ans. In terms of Section 5 of the IGST Act, 2017, inter-state supplies
More informationIN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B, PUNE BEFORE SHRI G.S. PANNU, ACCOUNTANT MEMBER AND MS. SUSHMA CHOWLA, JUDICIAL MEMBER ITA Nos.2220
IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B, PUNE BEFORE SHRI G.S. PANNU, ACCOUNTANT MEMBER AND MS. SUSHMA CHOWLA, JUDICIAL MEMBER (Assessment Years : 2009-10 & 2010-11) Asstt. Commissioner of Income
More informationWHETHER TAX HAS TO BE CHARGED & COLLECTED BY A DEALER ON PURCHASES AND SALES OF GOODS IN THE COURSE OF EXPORT OUT OF TERRITORY OF INDIA UNDER U.
WHETHER TAX HAS TO BE CHARGED & COLLECTED BY A DEALER ON PURCHASES AND SALES OF GOODS IN THE COURSE OF EXPORT OUT OF TERRITORY OF INDIA UNDER U.P. VAT ACT, 2008? 11 Rakesh Gupta Advocate G-6, Panchwati
More informationCircular No.4 / 2011, relating to section 281, which deals with certain transfers to be void - S.K.Tyagi
Circular No.4 / 2011, relating to section 281, which deals with certain transfers to be void - S.K.Tyagi 1 The Central Board of Direct Taxes (CBDT) has recently issued Circular No.4 / 2011, dated 19.7.2011,
More information2. Briefly stated facts of the case are that the assessee. is an AOP being the Apex body of consumers co-operative
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES, B, MUMBAI BEFORE S/SHRI D.K.AGARWAL (JM) AND RAJENDRA SINGH(A.M) ITA No.5828/Mum/2008 (Assessment Year:2005-06) Income Tax Officer, 13(2)(2), Room No.412,
More informationMTP_Intermediate_Syllabus 2016_Jun2018_Set 1 Paper 11- Indirect Taxation
Paper 11- Indirect Taxation DoS, The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 1 Paper 11- Indirect Taxation Full Marks: 100 Time allowed: 3 hours The figures
More informationInput Service Distributor and Concept of Cross Charge. As per section 2(61) of the CGST Act, Input Service Distributor has following characteristics
DISCLAIMER: Input Service Distributor and Concept of Cross Charge The views expressed in this article are of the author(s). The Institute of Chartered Accountants of India may not necessarily subscribe
More informationTransferring efficiency Advancing new options. Indirect Tax Seminar Issues and Prospects June 22, 2013 Anjlika Chopra
Transferring efficiency Advancing new options Indirect Tax Seminar Issues and Prospects June 22, 2013 Anjlika Chopra Contents Important obligations under VAT Registration Returns and payment of taxes VAT
More informationTaxability of Inter-Branch movement of Conveyances and Goods
GST Alert 24/2017-18 Date 12.12.2017 Taxability of Inter-Branch movement of Conveyances and Goods Companies are required to move goods like tools, spares, machinery, equipment by loading them into various
More informationIN THE HIGH COURT OF MADHYA PRADESH. ITR No.192/1997 COMMISSIONER OF INCOME TAX, JABALPUR. M/s VINDHYA TELELINKS LTD JUDGEMENT
IN THE HIGH COURT OF MADHYA PRADESH ITR No.192/1997 COMMISSIONER OF INCOME TAX, JABALPUR Vs M/s VINDHYA TELELINKS LTD Krishn Kumar Lahoti and Smt Sushma Shrivastava JUDGEMENT Dated: February 22, 2011 The
More informationCLARIFICATION ON ISSUES RELATING TO CENVAT CREDIT RULES 2004
May 25, 2011 CLARIFICATION ON ISSUES RELATING TO CENVAT CREDIT RULES 2004 The Board has issued Circular No. 943/04/2011 CX, dated: April 29, 2011 and has clarified the eligibility of credit with respect
More informationDecoding the Model GST law Impact on the Pharma sector
www.pwc.in Decoding the Model GST law Impact on the Pharma sector June 2016 India on the brink of GST The current Indirect Tax regime in India provides for a complex tax environment due to multiplicity
More informationGST Concept and Design
GST Concept and Design GST Understanding from the First discussion paper released by the Empowered Committee of State Finance Ministers on November 10, 2009 1 Understanding GST Brief History Need for GST
More informationFAQs. Yes. He is liable for registration as he is engaged in Inter State supplies.
FAQs 1. A registered person s business is in many states. All supplies are below 10 lakhs. He makes an Inter State supply from one state. Is he liable for registration? Yes. He is liable for registration
More informationCERTIFICATE COURSE ON INDIRECT TAXES
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA Indirect Taxes Committee CERTIFICATE COURSE ON INDIRECT TAXES SUGGESTED ANSWERS OF THE ASSESSMENT TEST HELD ON 25 TH AUGUST, 2012 PART A Write the correct
More informationCA IPCC Taxation Nov 2014 solutions (Both Direct and Indirect taxes) CA N Rajasekhar M.Com FCA DISA (ICAI) Chennai
CA IPCC Taxation Nov 2014 solutions (Both Direct and Indirect taxes) Compiled by This questions were solved by me under examination conditions within 2 hours 40 minutes and later on typed adding solution
More informationIN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH. Vs. CORAM:- HON'BLE MR. JUSTICE ADARSH KUMAR GOEL HON'BLE MR. JUSTICE AJAY KUMAR MITTAL
IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH. C.W.P. No.21427 of 2010 Date of decision: 01.12.2010 M/s G.S. Promoters. The Union of India & others. Vs. -----Petitioner. -----Respondents CORAM:-
More informationGST Audit: Issue in Supply/Output
Live Webcast organised by Indirect Taxes Committee of ICAI GST Audit: Issue in Supply/Output CA. Shivam Mehta ICAI 07 th July, 2018 Indirect Taxes Committee, ICAI 1 Legal provisions. Indirect Taxes Committee,
More informationThe Commissioner of Income Tax 2. Knight Frank (India) Pvt. Ltd. DATED : 16 th AUGUST, 2016.
IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO. 247 OF 2014 WITH INCOME TAX APPEAL NO. 255 OF 2014 The Commissioner of Income Tax 2 Mumbai v/s. Knight
More informationTweet FAQs. The tweets received by askgst_goi handle were scrutinized and developed into a short FAQ of 100 tweets.
Tweet FAQs The tweets received by askgst_goi handle were scrutinized and developed into a short FAQ of 100 tweets. S. No. Questions / Tweets Received Replies Registration 1. Does aggregate turnover include
More informationIN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : BANGALORE. BEFORE SHRI VIJAY PAL RAO, JUDICIAL MEMBER and SHRI JASON P BOAZ, ACCOUNTANT MEMBER
IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : BANGALORE BEFORE SHRI VIJAY PAL RAO, JUDICIAL MEMBER and SHRI JASON P BOAZ, ACCOUNTANT MEMBER ITA No.726/Bang/2014 (Assessment year: 2005-06) M/s.B & B Infotech
More informationIN THE HIGH COURT OF KARNATAKA AT BANGALORE PRESENT THE HON BLE MR JUSTICE N. KUMAR AND THE HON BLE MR JUSTICE B. MANOHAR
1 IN THE HIGH COURT OF KARNATAKA AT BANGALORE DATED THIS THE 18 th DAY OF JUNE 2014 PRESENT THE HON BLE MR JUSTICE N. KUMAR AND THE HON BLE MR JUSTICE B. MANOHAR STRP NO.18/2010 & STRP.NOS.106-125/2010
More informationCommissioner of Income-tax v. Artex Mfg. Co. SUPREME COURT OF INDIA CIVIL APPEAL NO (NT) OF 1981 JULY 8, 1997
Commissioner of Income-tax v. Artex Mfg. Co. SUPREME COURT OF INDIA CIVIL APPEAL NO. 2276 (NT) OF 1981 JULY 8, 1997 S.C. AGRAWAL AND G.B. PATTANAIK, JJ. Counsels appeared Mr. Ganesh on behalf of the assessee.
More informationSummary of Notifications, Circulars from 16 th January2018 to 15 th February 2018
Summary of Notifications, Circulars from 16 th January2018 to 15 th February 2018 Collection of Revenue from Indirect Taxes Post introduction of GST, Central Revenue from Indirect Taxes has been estimated
More informationDecoding the Model GST law Impact on Automobile sector
www.pwc.in Decoding the Model GST law Impact on Automobile sector June 2016 India on the brink of GST The current Indirect tax regime in India provides for a complex tax environment due to multiplicity
More informationWorks Contract' and 'Contract for Sale': In light of Forty Sixth Amendment to the Indian Constitution
Works Contract' and 'Contract for Sale': In light of Forty Sixth Amendment to the Indian Constitution An analysis of judgment in Kone Elevator India (P.) Ltd. v. State of Tamil Nadu INTRODUCTION 1. Distinction
More informationTime allowed : 3 hours Maximum marks : 100. Total number of questions : 6 Total number of printed pages : 11
Roll No... : 1 : 337 Time allowed : 3 hours Maximum marks : 100 Total number of questions : 6 Total number of printed pages : 11 NOTE : 1. Answer ALL Questions. 2. All the references to sections in Part-A
More informationLevy and Collection of Tax
FAQ Meaning and scope of supply (Section 7) Chapter I Levy and Collection of Tax Q1. What is the scope of the term supply as defined in CGST Act, 2017? Ans. As per Sub-section (1) of Section 7, Supply
More informationCAPTIVATING CAPTIVE CONSUMPTION
CAPTIVATING CAPTIVE CONSUMPTION (S. Jaikumar, G. Natarajan & M. Karthikeyan) We have received an interesting poser, which is the feedstock of this article. The query goes, as to whether the pallets, racks,
More informationENTRY TAX ACT
Section Content Page No. Short title and commencement 2 2 Definitions 2 3 Incidence of taxation 4 4 Rate at which entry tax to be charged 7 5 Principles governing levy of entry tax on 32 [dealer or person]
More informationWIRC of ICAI. Indirect Tax Information Technology Software. CA Bharat Shemlani 20/08/2011
WIRC of ICAI Controversial Issues Indirect Tax Information Technology Software CA Bharat Shemlani 20/08/2011 Background ASSOCIATED CEMENT COMPANIES LTD. 2001 (128) ELT 21 (SC) Goods (Customs) - Drawings
More informationEY Tax Alert. Executive summary
26 July 2016 EY Tax Alert Services provided by SEZ unit to the DTA unit of the same legal entity held liable to Service tax, however no tax payable in absence of consideration Executive summary Tax Alerts
More information