Ca Pradeep Jain This update intends to discuss about the issues in cross empowerment of both the Central and the State tax authorities for enforcement of intelligence based action against the taxpayer. It has been clarified vide Letter D.O.F. No. CBEC/20/43/01/2017-GST (P.T.) dated 5th October 2018 that officers of both Central and State tax are authorised to initiate … Read more
The litigation as regards liability of the company to pay tax under reverse charge mechanism on payments made to its directors is not new and is continuing from the erstwhile service tax regime. The legacy has been travelled into the GST regime and various pronouncements rendered by Authority for Advance Rulings are instigating the fire … Read more
We are analysing the provisions of Notification no. 16/2020 – CT dt. 23.03.2020. One update is already forwarded to you. This is the second part on the same notification. Certain important amendments have been made in connection with refunds, in the CGST Rules, 2017, which are explained in this article. A new sub rule (4A) … Read more
The much awaited notifications with respect to GST Council’s decision as regards prescribing new GST rates for real estate sector being 1% without ITC for affordable residential housing and 5% without ITC for non-affordable residential housing have been released by the Government yesterday. The Government has issued around 14 notifications [CGST (Rate) and IGST (Rate)] … Read more
The concept of advance ruling was introduced in the GST regime to bring more clarity in the interpretation of law as the assessee was permitted to seek advance ruling not only with respect to proposed transactions but also with respect to already undertaken activities of the assessee. However, since the GST law is at its … Read more
The time limit of filing the refund claim is to be checked from the “relevant date”. This term is defined in explanation 2 to section 54. This update is about the interpretation of term “relevant date” & its significance in determining the time limit for filing the refund claim. Section 54(1) of CGST Act, 2017 … Read more
Section 17(5) of the CGST Act, 2017 prescribes the list of blocked credits and this lists allows the ITC on few goods and services on conditional basis. The relevant part of section 17(5) reads as follows:- “(5) Notwithstanding anything contained in sub-section (1) of section 16 and subsection (1) of section 18, input tax credit … Read more
In normal parlance, there are cases where the service recipient retains a certain portion of payments to be made to the service provider. The amount so retained is paid to the service provider only after the provision of service is complete. This update seeks to take an insight into various provisions for ascertaining whether the … Read more
In the previous update we canvassed the taxability of joint development agreements under GST Regime. Through this update we would like to enumerate the provisions concerning the time of supply and the valuation of service in respect to the joint development agreements. It is pertinent to mention that there is no express provision as regards … Read more
Joint Development Agreements are also called tri-partite agreements as three parties are involved in such contracts, namely a builder, land owning party and the contractor who undertakes construction services. The developer enters into a development agreement with landowner, whereby the developer acquires the development rights with respect to the land. The development right entitles the … Read more