Daily Archives: June 4, 2018

GST Settlement of Funds (Second Amendment) Rules 2018 : Notification

By | June 4, 2018

GST Settlement of Funds (Second Amendment) Rules 2018 Govt. has notified the GST Settlement of Funds (Second Amendment) Rules, 2018 wherein Rule 11(3) has been substituted in which collected IGST (which has not been settled so far) will be adjusted in subsequent months, based on the returns filed by taxpayers. MINISTRY OF FINANCE (Department of… Read More »

TCS under Income Tax : Free Study Material

By | June 4, 2018

Income Tax Collection at Source (TCS) : Free Study Material TCS Rates for FY 2018-19 (AY 2019-20) TCS-Section 206C ; Complete Guide Section 206C(1F) TCS on Sale of motor Vehicle above Rs 10 Lakh w.e.f 01.06.2016 No TCS on Cash Sale of Goods or Services or Jewellery w.e.f 01.04.2017 Section 206C Seller Need not take… Read More »

TCS Rates for FY 2018-19 (AY 2019-20)

By | June 4, 2018

TCS Rates for FY 2018-19 (AY 2019-20) RATES FOR TAX COLLECTION AT SOURCE Notes on TCS Rates for FY 2018-19 (AY 2019-20) :- During the financial year 2018-19, tax shall be collected under section 206C of Income Tax Act at the rates given in the table (infra). If PAN of collectee is not intimated to the collector, tax will… Read More »

Goods couldn’t be seized if Part-B of e-way bill not filled : HC

By | June 4, 2018

Counsel for the petitioner has submitted that in view of the decision taken by the Government that if the goods are transported within a distance of 50 km in the case of intra-state transaction, there is no requirement to fill up ‘Part B’. Notification no.12 of 2018 dated 07-03-2018 craves out an exception and provides… Read More »

Can Stock brokers take GST registration for separate Business Verticals : CBIC Clarify

By | June 4, 2018

Stock brokers provide many other  services like Depository Participant Services / Portfolio Management Services, etc. Do they require registration as separate Business Verticals? Section 2(18) of the CGST Act, 2017 defines “business vertical” to mean “a  distinguishable component of an enterprise that is engaged in the supply of individual goods or services or a group of related goods… Read More »

Category: GST

GST on Stock Brokers services to non residents of India : CBIC Clarify

By | June 4, 2018

Stock Brokers deal with clients who  are not residents of India like  Foreign Portfolio Investors, Non Resident Indians, Persons of Indian Origin, etc. Will brokerage earned from such clients who are not resident in India qualify as “export of service” under section 2(6) of the IGST Act, 2017? The stock broker being an intermediary, this situation… Read More »

Category: GST

Place of business for stock broker : CBIC Clarify

By | June 4, 2018

What is the “place of business” for a  stock broker? Section 2(85) of the CGST Act, 2017 defines “place of business” to include: (i) a place from where the business is ordinarily carried on, and includes a   warehouse, a godown or any other place where a taxable person stores his goods, supplies or receives goods… Read More »

Category: GST

Sub-broker needs mandatory GST Registration : CBIC Clarify

By | June 4, 2018

Would sub-brokers/ Authorized  Persons fall in the definition of  “agent” under Section 2(5) of the CGST Act, 2017? What would be the registration requirement for sub-brokers/ Authorized Persons in the context of the Goods and Services  Tax Regime? As per Stock Brokers and Sub Brokers Regulation, 1992 issued by SEBI, a “sub-  broker” means “any person,… Read More »

GST on interest/ delayed  payment charges of brokerage amount/settlement obligations/margin trading facility : CBIC Clarify

By | June 4, 2018

Is GST leviable on interest/ delayed  payment charges charged to clients  for debit for settlement obligations/ margin trading facility? Any interest/ delayed payment charges charged for delay in payment of  brokerage amount/settlement obligations/margin trading facility shall be leviable to GST.   Q 80 of GST FAQs on Financial Services Sector published by CBIC

Category: GST

GST on stock  broking service : CBIC Clarify

By | June 4, 2018

Is brokerage earned in stock  broking service liable to Goods and  Services Tax? Yes. Since the stock brokers are engaged in the business of supplying the stock  broking service, appropriate GST is payable on the same. Q 78 of GST FAQs on Financial Services Sector published by CBIC

Category: GST

How GST will be paid on insurance policies issued to Non-Resident Indians : CBIC Clarify

By | June 4, 2018

Whether insurance policies issued  to Non-Resident Indians, where the premium is paid through the Non-Resident External Bank account, will be ‘export of services’? Would the insurance premiums be taxable in cases where the same is not  received in convertible foreign exchange or from the NRE Accounts? No. The amounts paid from the Non-Resident External Accounts are paid in … Read More »

Category: GST

How GST will be paid on commission to insurance agents : CBIC Clarify

By | June 4, 2018

Whether commission paid to  insurance agents shall be construed  as supplies received under Section 9(3) of CGST Act, 2017? If yes, whether the Life Insurance Company can raise a consolidated invoice for such commission  payments? Sr. No. 7 of notification No. 13/2017-Central Tax (Rate), dated 28th June, 2017 as amended covers supplies received from Insurance Agents and… Read More »

Category: GST

location of supplier for fund management charges in ULIP policies : CBIC clarify

By | June 4, 2018

What is the location of the supplier  of service for fund management charges in ULIP policies? The fund management charges are charges towards managing and  administering the fund. These funds are managed by the Fund Management team. The location of the supplier of service for fund management charges shall be the location / office which manages the… Read More »

GST on  securitization transactions undertaken by banks : CBIC Clarify

By | June 4, 2018

What is the leviability of GST on  securitization transactions undertaken by banks? Securitized assets are in the nature of securities and hence not liable to GST. However, if some service charges or service fees or documentation fees or broking charges or such like fees or charges are charged, the same would be a consideration for provision… Read More »

GST on services by Bank to its branch / head-office outside India : CBIC Clarify

By | June 4, 2018

Are services supplied by a Bank to  its branch / head-office outside India, which are neither intermediary services nor services to account holders, taxable under GST? GST is a destination based consumption tax. Such services provided by a Bank  or the branch of a foreign Bank in India to its offshore branch / head-office, which are neither intermediary… Read More »

Category: GST

On which services Bank and Financial institutions needs to pay GST : CBIC

By | June 4, 2018

What is the manner of dealing with  various services provided by banks  and other financial institutions? Banks and financial institutions provide a bouquet of financial services relating  to lending or borrowing of money or investments in money and other related services. For such services invariably a variety of instruments are used in the financial markets.… Read More »

Category: GST

Location of supplier if Services provided from multiple locations in case of banking and other financial services

By | June 4, 2018

What is the location of the supplier  in case of banking and other financial services where multiple locations are involved in providing the services to a customer? Banking services emanate from the bank account opened by a customer with  the branch of a bank or through a contractual relationship between the branch of a bank and the… Read More »

Category: GST

Example of services provided to ‘account holder’ u/s 13(8) of IGST Act

By | June 4, 2018

Which services will qualify as  services provided to ‘account holder’ as per Section 13(8) of the IGST Act, 2017? The place of supply of services supplied by a banking company located in India  to account holders located outside India is the location of the service provider i.e. banking company. “Account” has been defined in Explanation (a) to… Read More »

Category: GST

GST if Bad Debts happens : CBIC Clarify

By | June 4, 2018

Where GST is charged on a supply of  service and the amounts due from the customer become irrecoverable as a bad debt in commercial  practice, would such GST paid on  accrual basis be refundable to the service provider by the Government? The adjustment of GST already paid is allowed only by way of issuance of credit  /debit… Read More »

GST on interest on a finance lease transaction : CBIC Clarify

By | June 4, 2018

Whether interest on a finance lease transaction is taxable under GST? A finance lease is a method of borrowing against the asset. The interest  represents the time value of the money expended by the Bank in financing the  asset. Services by way of extending deposits, loans or advances in so far as the consideration is represented… Read More »

GST on additional interest charged for default in instalment payment by customer : CBIC Clarify

By | June 4, 2018

Is GST required to be paid on  additional interest charged in case  of default in instalment payment by  the customer? As per Section 15(2) of CGST Act, 2017, the value of supply includes, inter alia,  interest for delayed payment of any consideration for any supply. Additional Interest charged for default in payment of instalment in… Read More »

Category: GST

GST on invoice  discounting or cheque discounting : CBIC Clarify

By | June 4, 2018

To what extent is invoice  discounting or cheque discounting or any other similar form of discounting exempt under GST? Discounting of invoices or cheques falls within the meaning of “services by way  of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount”. Such discounting is exempt from… Read More »

Category: GST