Goods and Services Tax

GST Simplified for your Business

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What is Time of Supply for Services on Forward Charge
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What is Time of Supply for Goods on Forward Charge
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How to Determine Place of Supply for Services Provided at Immovable Properties
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Impact of GST on Stock Transfer between Branches
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Tax Impact on Goods Sold Prior to GST, but Returned after GST
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How to Determine the Place of Supply of Services
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How to Determine the Place of Supply in Case of Bill to-Ship to Transactions
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How to Determine the Place of Supply When there is No Movement of Goods
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The Sin of Being Small: How GST Law will Affect you
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How to Determine the Place of Supply when there is Movement of Goods

What is Time of Supply for Goods on Forward Charge

Point of Taxation (POT) refers to the point in time when tax is required to be paid. This is a mechanism which is used to determine the point in time when the tax liability will arise.

Under the current indirect tax regime, the point of taxation is different for each of the tax type.

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How to Determine Place of Supply for Services Provided at Immovable Properties

An immovable property is an immovable object, an item of property that cannot be moved without destroying or altering it. The property is fixed to the earth, for example, a piece of land or a house.

In the current tax regime, taxable services provided in relation to an immovable property are subject to Service Tax.
Service Tax, being a Central levy, is applicable irrespective of whether the service is provided intrastate or to a different state. Read More

Impact of GST on Stock Transfer between Branches

Our Nation is on the brink of GST, a single unified indirect tax system. This is the largest taxation reform in the indirect taxation regime and it subsumes a host of indirect taxes. GST introduces the concept of seamless flow of input tax credit across the supply chain (from manufacture till it reaches the consumer) and across state borders. Secondly, supply being the taxable event under GST, the concept of manufacture, trade and provision of services become irrelevant. Read More

Tax Impact on Goods Sold Prior to GST, but Returned after GST

In a business, return of goods sold is common. Under current regime, the return of goods are allowed to be reduced from the total turnover of sales, provided that the goods are returned within specified time limit. The eligibility to avail reduction from tax varies from state to state, but it is generally 6 months from the date of sale.

GST, a major reform in indirect taxation is expected to be implemented by 1st July, 2017. ‘Supply’ being the taxable event, it is very important for businesses to understand the tax implications on the goods sold prior to GST, but returned on or after the implementation of GST.

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How to Determine the Place of Supply of Services

In the current tax regime, the provision of a taxable service is subject to service tax.  Service tax is levied by the Central government and is applicable irrespective of whether the provision of service is interstate or intrastate.

However, under GST, the place of supply of service will determine the type of tax applicable on the service. This is based on the concept of GST being a ‘destination based consumption tax’, where tax will accrue to the State where the supply is consumed. Hence, it is important to determine the place of supply of services. Read More

How to Determine the Place of Supply in Case of Bill to-Ship to Transactions

In the Bill to – Ship to model, the billing and shipping of goods are done to two states and entities. In order to avoid the cascading of multiple taxes through the course of the transaction, the first sale will be taxable, and any subsequent sale during the movement of goods is exempt from tax. Today, Bill to – Ship to transactions are a common occurrence. Read More

How to Determine the Place of Supply When there is No Movement of Goods

1. When supply does not involve movement of goods, the location of the goods at the time of delivery to the recipient is the place of supply.

For example: Rex Cars, whose registered place of business is Chennai, Tamil Nadu, opens a showroom in Mysore, Karnataka. They purchase a pre-installed generator at the premises from Rohan Generators in Mysore, Karnataka. Read More

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