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22 June, 2018

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Taxability of Transfer of Development Rights in Positive List, Negative List and GST ERA - A Comparative Analysis of Indirect Tax Applicability

Taxability of Transfer of Development Rights in Positive List, Negative List and GST ERA - A Comparative Analysis of Indirect Tax Applicability 

By CA Ankit Gulgulia (Jain) 
22th June, 2018

Respected Friends,

As you all are aware that Real Estate Industry has always been an Industry prune to a lot of tax disputes and grey tax areas due to complexity of transactions and multiple state and central laws applicable simultaneously on every single transaction. 

One of the several issues that has been keenly watched and studies in the Industry has been taxability on transfer of development rights (hereinafter referred to as “TDR”). In this technical paper, I intend to discuss in detail my view and supports in its favour on taxability of TDR’s in Service Tax Regime (both Positive List & Negative List) and in GST Regime w.e.f 1st July, 2017.

14 June, 2018

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Applicable GST Rate on SEIS, MEIS Scrips, PSLCs & RECs and other similar scrips

Applicable GST Rate on SEIS, MEIS Scrips, PSLCs & RECs and other similar scrips 

The CBIC recently issued Circular No. 46 / 20 /2018 -GST F.No. 354 / 149 / 2017 –TRU dated 6th June, 2018 regarding the classification and applicable GST rate on the Renewable Energy Certificates (RECs) and Priority Sector Lending Certificates (PSLCs).

Earlier, in response to a FAQ, it was clarified (vide advertisement dated 27.07.2017), that MEIS and other scrips like SEIS and IEIS are goods classified under heading 4907 and attract 12% GST, which is the general GST rate for goods falling under heading 4907.

Subsequently, the duty credit scrips classifiable under 4907 were exempted from GST, while stock, share or bond certificates and similar documents of title [other than Duty Credit Scrips], classifiable under heading 4907, attract 12% GST.

13 June, 2018

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Can this West Bengal AAR GST Ruling Can Disrupt Export of Services & Legal Analysis

Can this West Bengal AAR GST Ruling Can Disrupt Export of Services & Legal Analysis 

In case of M/s Global Reach Education Services Pvt Ltd the WEST BENGAL AUTHORITY FOR ADVANCE RULING dated 21st March, 2018 has given a ruling that will come as setback to many and can open Tax Issues in BPO, KPO, Outsourcing to Foreign Clients Industry. 

Applicant was providing Overseas Education Advisory whereby it promotes the courses of foreign universities among prospective students and wants a ruling on whether the service provided to the Universities abroad is to be considered “export” within the meaning of Section 2(6) of the Integrated Goods and Services Act, 2017, (hereinafter referred to as “the IGST Act”), and, therefore, a zero-rated supply under the CGST / WBGST Act 2017 (hereinafter referred to as “GST Act”).

11 June, 2018

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NEW FACILITIES ON GST PORTAL


Dear Taxpayer,

Given below are updates on functionalities which were made available on GST Portal recently: 

(A) Registrations:

(i) Facility to apply for Revocation of cancellation of Registration has been enabled on GST Portal. This form will enable Tax payers whose registration has been cancelled via Suo-moto Cancellation process, to apply for revocation of cancellation of registration. 

25 April, 2018

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Audit Under GST - Basics Concepts and Advantages

GST Audit – Some Basics

1. Introduction

1.1   The concept of audit by a Chartered Accountant in the area of Indirect Taxes was confined to State Value Added Tax and Central Sales Tax laws of certain States. In Central Excise and Service tax only in case of suspicion of undervaluation or excessive credit special audits were prescribed (not much used) which continue in GST. Therefore, Chartered Accountants engaged in rendering professional services in the areas of State taxes would be familiar with those provisions. The GST law has subsumed several Indirect Tax laws – among others, it subsumed Central Excise, Service Tax, Luxury Tax, Entertainment Tax, VAT/CST, Entry tax laws etc.; certain levies under the Customs laws have also been subsumed into the GST laws.

1.2   It would be relevant to note that the skill sets acquired in the understanding of the statutes that have been subsumed into the GST laws would help in better understanding of the GST laws since several provisions of the Central and State enactments have been replicated (fully or partially) in the GST laws – say, for instance, the provisions of Place of Supply of Services, Time of Supply of Services, Valuation of Supply Rules, etc. That being said, one needs to exercise caution in reading and understanding the subtle departures or changes in the statute in comparison with the erstwhile legislations, in which case, one has to enhance the understanding of the fully taken forward provisions. He also needs to unlearn the old laws and learn the GST laws afresh for a complete understanding of the taxing statute.

10 April, 2018

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Intra State EWAY Bill Rollout for Andhra Pradesh, Gujarat, Kerala, Telangana and Uttar Pradesh from 15th April, 2018

Roll-out of e-Way Bill system for Intra-State movement of goods in the States of Andhra Pradesh, Gujarat, Kerala, Telangana and Uttar Pradesh from 15th April, 2018.

Posted On: 10 APR 2018 11:26AM by PIB Delhi
As per the decision of GST Council, e-Way Bill system for all inter-State movement of goods has been rolled-out from 01stApril, 2018. E-way Bill system for Intra-State movement of goods in the State of Karnataka is also operational from the said date.  E-Way Bills are getting generated successfully and till 09thApril, 2018 more than sixty three lakh e-Way Bills have been successfully generated.
It is hereby informed that e-Way Bill system for Intra-State movement of goods would be implemented from 15th April, 2018 in the following States:-
(i)         Andhra Pradesh
(ii)        Gujarat                                               
(iii)       Kerala
(iv)       Telangana
(v)        Uttar Pradesh

05 April, 2018

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Are You Making NRI Property Investment in India – Here are Few Things You Should Know about FEMA, Income Taxes & GST !


NRI Property Investment in India – FEMA, Income Taxes & GST Viewpoints !

By CA Ankit Gulgulia (Jain)

Non Residents Indians have always been keen and interested to make property acquisitions in India for either Return purpose or for staying in old age etc. If you are a NRI reading this post, know this that we will quickly sum up few FEMA Compliances, Impact of Income tax and Applicability of GST on your Property Purchase in this post.

QUICK FACT à Overseas investments have surged 137 per cent, from USD 3.2 billion during 2011-13 to USD 7.6 billion during 2014-16.

21 March, 2018

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Real Estate ALERT – INCOME Tax Will Only Consider Turnover as per ICDS


Real Estate ALERT – INCOME Tax Will Only Consider Turnover as per ICDS

BY CA Ankit Gulgulia (Jain)

Finance Bill, 2018 has newly inserted Section 43CB which provides that profits and gains arising from Construction Contract shall be determined in accordance with PUCM Method of ICDS Only
"43CB. ( 1) The profits and gains arising from a construction contract or a contract for providing services shall be determined on the basis of percentage of completion method in accordance with the income computation and disclosure standards notified under sub-section (2) of section 145:
Provided that profits and gains arising from a contract for providing services,-
(i) with duration of not more than ninety days shall be determined on the basis of project completion method;

15 March, 2018

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Benefits of Chapter VIA Deductions only allowable now if Return filed within Deadlines of 139(1)


Benefits of Chapter VIA Deductions only allowable now if Return filed within Deadlines of 139(1)

By CA Ankit Gulgulia (Jain)

All Chapter VIA – Heading C Deduction shall now be allowable only if the assessee has duly filed the returns on or before the Due Dates Prescribed under Section 139(1). Note that Chapter VIA heading C Includes following Sections. Note Deduction under Section 80C not covered and deduction will comtinue to be eligible even if filed after due dates.

28 February, 2018

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Supreme Court Painfully Surprises- Denies Cenvat Credit on Outward Goods Transportation !


Cenvat Credit on Outward Goods Transportation Denied! – Supreme Court Judgement Will Hurt Many Assesses

By CA Ankit Gulgulia (Jain)

Supreme Court set aside all High Courts and Tribunals orders to decide that Outward GTA shall not be allowed as Input services making all such cenvat claims by assessee as ineligible