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Taxation

Taxation

AMENDMENT AND CASE LAW

Taxation

*Service Tax under Reverse Charge Mechanism (RCM)-* The appellant has received services of overseas trading partner and the same has been used for export of goods and discharged service tax under RCM. Further, the appellant has not sought refund or exemption from payment of service tax under any other provisions or Notification and has taken CENVAT credit of the service tax paid. The CENVAT credit availed on commission should be allowed under CENVAT Credit Rules in view of the Export Policy of Government. The appeal is allowed. *2019-VIL-282-CESTAT-BLR-ST*

Breaking News

  • All Agency Banks to remain open for public on March 31, 2019 - RBI.
  • GST & compensation cess exemption to EOUs on imports till 31.03.2020.
  • Exemption from IGST & Compensation Cess upto 31.03.2020.
  • CBIC revises format of Shipping Bill for Export of Goods.

Conditions to claim Composition Scheme for Services.

  • Turnover* in Previous Year (i.e. FY 2018-19) should be *Rs. 50 lacs or below*
  • Not opted for composition* under section 10(1) of CGST Act.
  • Not engaged* in making any supply which is *not leviable* to tax under GST.
  • No Inter-State Supply.
  • Neither a Casual Person nor a Non-Resident Taxable Person.
  • More than one registrations* taken on same PAN then *all* registered persons should pay *tax @6%*.
  • No Tax shall be collected* from the recipient.
  • No ITC* available. *10. ‘BILL OF SUPPLY’* shall be issued instead of Tax Invoice.
  • Following shall be mention at the top of bill of supply: *‘taxable person paying tax in terms of notification No. 2/2019-Central Tax (Rate) dated 07.03.2019, not eligible to collect tax on supplies’.
  • Paying tax under this notification then he i

Central government is planning to lower the employee's ESI contribution rate to 1% and that of employer's to 4%. Draft Rules published on 15-02-2019, for information of all persons likely to be affected.
*They shall come into force on the date of its final publication in the Official Gazette* [09/03, 4:12 PM] Ashisharora Shilpa: Highlights of 33rd GST Council meeting held on 24.2.2019

*Key amendments made applicable from 1st Feb, 2019 are as under:*

  • Earlier supplier of goods and services were not allowed to opt for composition scheme but now they can apply if the value of supply of service does not exceed – higher of the amount - 10% of the state turnover in the previous financial year and Rs. 500000
    For Ex. If a taxpayer supplies goods as well as services and had turnover of Rs.40 lakh in the previous Financial year then he can opt in composition scheme if the supply Value of services do not exceed Rs.500000 (Higher of (40 lakh*10% = 400000 or Rs.500000)).
  • Reverse charge mechanism shall be applicable to notified registered persons for the purchases made of notified goods but until now neither the class of registered persons nor the category of the specified goods has been prescribed by the Govt. Therefore until and unless notified, RCM will not applicable.
  • Input Tax Credit in relation to Passenger Vehicle having seating capacity of more than 13 , used for other than Personal purpose would be allowed. Due to this input tax credit would now be available in respect of dumpers, work-trucks, fork-lift trucks and other special purpose motor vehicles when used for other than personal purpose.
    For Ex. If a company purchases a bus for its employees conveyance, the ITC of tax paid on such bus purchased would now be available as its more than 13 seater and also not used for personal purpose.
  • If ITC is allowed for purchase of motor vehicle as above then, ITC in respect of services of general insurance, servicing, repair and maintenance in respect of those motor vehicles, vessels and aircraft would also be allowed.
  • ITC was not available in respect of food and beverages, health services, travel benefits to employees etc. But now it has been amended, to allow ITC in respect of such goods or services or both, where the provision of such goods or services or both is obligatory for an employer to provide to its employees under any law for the time being in force.
  • Government has now allowed a person having multiple places of business within the state to obtain separate registration for each place of business irrespective of nature of goods etc. as the definition of business vertical is omitted from the act.
  • Taxpayer can now issue single debit/credit note against multiple invoices there is no need to link the notes to individual invoices. This is a welcomed change, as the compliance burden on the taxpayers would be reduced.