Impact of Stock Transfer to Branches: Under Central Excise, a registered manufacturer making a stock transfer of excisable goods, should pay excise duty on 100% plus 10 % of cost of production, and under VAT, on furnishing Form F, stock transfers are not taxable. Under GST, ‘Supply’ includes transfers. The taxability of certain specific supplies without consideration and the
1) Unlike in Service tax today there is no more exemption available to Job worker from payment of GST even though his process amounts to manufacture or even if his principal has paid GST on the final product supplied. 2) Presently the Job workers are exempted from payment of service tax if the principal manufacturer has paid appropriate duty of
That barter or exchange is also liable to GST being covered under definition of Supply if in course or furtherance of business. Eg, Say IPL has travel partner sponsored from Jet airways for its Admin or other staff. IPL get free tickets and Jet airways gets a branding/ promotion. Today these kind of transactions are not liable to service tax
Under GST, Works Contract are deemed to be supply of Services thus, there will be no need to bifurcate the value of goods and services when the transaction has item rate as service and supply and tax would be levied on entire value at full rate. suppose someone has got Rs. 100 cr contract for Civil works from
In the recent GST Regime tax @ 5% have been imposed on many food items like Rice, Cereals, Daals, Flour, Besan etc. subject to the condition that they are sold in a unit container under a registered trademark. In the GST Rate Notifications the definition of ‘Unit container’ and ‘Registered Trademark’ have been given as under:- “The phrase “unit container”
Transitional Provisions under GST regarding Cenvat Credit.
By CA Nitin Goel
While much has already been spoken about the seamless flow of credit under the GST regime by the GST campaigners, any transition to a new law should be impartial for the migrating tax payers to ensure its smooth acceptability. The transitional provisions covered in Section 140 to Section 142 of the CGST Bill, 2017 give clarity relating to events that may not have been finished as on the appointed day like closing balance of CENVAT credit, goods in transit, material sent for job work, stock of exempted goods which have now become taxable, etc. However, at the same time, these provisions also leave certain areas of doubt that would throw up certain challenges. The Article below summarizes the transitional provisions relating to CENVAT credit and input tax credit as per the CGST Bill, 2017 and UTGST Bill, 2017 as approved by the Lok Sabha on 29 March 2017.
E- Commerce, a term unheard of a few years ago has now become “Apnidukaan” in the words of Amazon. On one hand, consumers get the advantage of comparing wide variety of products and their prices from the comfort of their homes, while on the other, E Commerce provides the seller an opportunity to grow their businesses beyond the brick and
As per Sub-Section 5 of Section 140 of CGST Act, 2017 a registered person shall be entitled to take credit of eligible duties and taxes in respect of inputs or input services received on or after the appointed day but the duty or tax in respect of which has been paid by the supplier under the existing law.