Swachh Bharat cess (SBC) was introduced at 0.5% on the value of all taxable services from November 15, 2015 to fund clean India initiatives. SBC is calculated on the value of services, not the tax amount. It will be added to the existing 14% service tax rate, bringing the total effective tax rate to 14.5%. SBC must be shown separately on invoices and accounted for in separate ledgers. Late payment of SBC will attract interest penalties as with service tax.
INCOME TAX – INTERNATIONAL TAXATION
Tax Residency Certificate – DTAA Benefits
The Punjab and Haryana High Court, has held that Tax Residency Certificate issued by a foreign country can be considered valid for the purpose of claiming benefit under the Indo – Mauritius DTAA. The Court reversed the AAR Ruling and relied upon CBDT Circular No. 789 to the effect that certificate of residence issued by the Mauritius Authorities constitute sufficient evidence for residential status.
INCOME TAX – INTERNATIONAL TAXATION
Tax Residency Certificate – DTAA Benefits
The Punjab and Haryana High Court, has held that Tax Residency Certificate issued by a foreign country can be considered valid for the purpose of claiming benefit under the Indo – Mauritius DTAA. The Court reversed the AAR Ruling and relied upon CBDT Circular No. 789 to the effect that certificate of residence issued by the Mauritius Authorities constitute sufficient evidence for residential status.
Basic tenets of GST - Dr Sanjiv Agarwal - Article published in Business Advisor, dated May 10, 2016 - http://www.magzter.com/IN/Shrinikethan/Business-Advisor/Business/
Tweeted on www.twitter.com/BusinessAdvDM #BusinessAdvisorArchives
Fraudsters & Defaulters Beware!,
Tax Authorities & Intelligent System Watching You,
Essenpee Business Solutions,
E-Invoice,
E-Waybill Blocking,
20% / 10% ITC Restriction,
New Alert For Tax Payers – CGST Rule 86A,
Powers of Officials to block credit under Rule 86A,
SOP for Tax Officers on Dealing with Non-Return Filers,
Non-filing of GST Returns - Attachment of Bank Accounts,
No anticipatory bail, GST violators can be arrested without FIR,
Generation and Quoting of Document Identification Number (DIN)
GST Rules: Here're the list of 25 key takeaways of final GST rules passed by GST council in meeting. Visit https://www.taxmann.com/BlogPost.aspx for more details on GST.
Important terms and conditions to get the complete version of cashback credit...onlinebanking01
Get to know the terms and conditions related to cashback credit cards such as annual membership fees, cash advances fees, credit limits, etc. To know more, visit https://www.hsbc.co.in/credit-cards/products/visa-cashback/
The following presentation enumerates E-way Bill -jurisprudence, the constitutional validity of E-Way bill, governing sections, modes of e-way bill generation, registration, validity, verification, offenses, and penalties. It also states about grievance redressal and documents to be carried during movement.
Learn about what is GST e way bill, how to generate it, about its rules, eligibility and validation for e-way bills. The Electronic Way bill can be generated on the portal of GSTN.
Tally introduces at the leading GST Suvidha Provider with a powerful GST enabled accounting software. Are you ready for GST? KMPL is the leading certified 5 Star partner of Tally Solutions
EXPLAINING ABT GST CLAUSE, RULES REGULATION
Executive Summary…………………………………………….1
i
Background of GST within and outside India
ii
Preparation for GST
iii
Need for GST
2
Objective of Study……………………………………………....9
i
Benefits and simplification of GST model in India
3
Scope of GST…………………………………………………...16
4
Literature Review……………………………………………...17
5
Research model………………………………………………...18
6
Data Collection………………………………………………...18
i
Dual GST model to be introduced in India
ii
GST Portal
iii
GST Registration, GSTIN
iv
Composition Dealer, Applicability
v
Migration to GST
vi
Penalties of not registering under GST
vii
Multiple Registration under GST
viii
Input tax credit
ix
x
GST software
GST rate comparison existing tax system v/s new tax system
7
xi
GST return procedure
Data Analysis…………………………………………..............37
i
GST calculation
ii
GST benefit to common man
iii
Impact of GST (Overall, On India, Indian Economy)
8
Negative List…………………………………………………...46
9
List of Tax not considered under GST……………………….48
10
Limitation (Why no to GST)………………………………….49
11
Conclusion……………………………………………………...51
12
Recommendation…………………………………………........53
Migration to GST- Will a retailer get TAX Credit for the Excise duty?Piyali Parashari
As the GST date draws closer, retailers are worried about what to do with Stocks lying with them on 30th June 2017. Will they get credit for Excise Duty on these stocks? Also what steps are to be taken for being GST ready........
Find out the detailed explanation of the provisions relating to Input Tax Credit under the dual GST Law from the presentation . Give it a read and we would love to know your feedback!
Now mortgage, sell or purchase a house on your own with the DIY Conveyancing kits in a easy & secure way.
For more info visit us at www.diyconveyancingkits.com.au
Basic tenets of GST - Dr Sanjiv Agarwal - Article published in Business Advisor, dated May 10, 2016 - http://www.magzter.com/IN/Shrinikethan/Business-Advisor/Business/
Tweeted on www.twitter.com/BusinessAdvDM #BusinessAdvisorArchives
Fraudsters & Defaulters Beware!,
Tax Authorities & Intelligent System Watching You,
Essenpee Business Solutions,
E-Invoice,
E-Waybill Blocking,
20% / 10% ITC Restriction,
New Alert For Tax Payers – CGST Rule 86A,
Powers of Officials to block credit under Rule 86A,
SOP for Tax Officers on Dealing with Non-Return Filers,
Non-filing of GST Returns - Attachment of Bank Accounts,
No anticipatory bail, GST violators can be arrested without FIR,
Generation and Quoting of Document Identification Number (DIN)
GST Rules: Here're the list of 25 key takeaways of final GST rules passed by GST council in meeting. Visit https://www.taxmann.com/BlogPost.aspx for more details on GST.
Important terms and conditions to get the complete version of cashback credit...onlinebanking01
Get to know the terms and conditions related to cashback credit cards such as annual membership fees, cash advances fees, credit limits, etc. To know more, visit https://www.hsbc.co.in/credit-cards/products/visa-cashback/
The following presentation enumerates E-way Bill -jurisprudence, the constitutional validity of E-Way bill, governing sections, modes of e-way bill generation, registration, validity, verification, offenses, and penalties. It also states about grievance redressal and documents to be carried during movement.
Learn about what is GST e way bill, how to generate it, about its rules, eligibility and validation for e-way bills. The Electronic Way bill can be generated on the portal of GSTN.
Tally introduces at the leading GST Suvidha Provider with a powerful GST enabled accounting software. Are you ready for GST? KMPL is the leading certified 5 Star partner of Tally Solutions
EXPLAINING ABT GST CLAUSE, RULES REGULATION
Executive Summary…………………………………………….1
i
Background of GST within and outside India
ii
Preparation for GST
iii
Need for GST
2
Objective of Study……………………………………………....9
i
Benefits and simplification of GST model in India
3
Scope of GST…………………………………………………...16
4
Literature Review……………………………………………...17
5
Research model………………………………………………...18
6
Data Collection………………………………………………...18
i
Dual GST model to be introduced in India
ii
GST Portal
iii
GST Registration, GSTIN
iv
Composition Dealer, Applicability
v
Migration to GST
vi
Penalties of not registering under GST
vii
Multiple Registration under GST
viii
Input tax credit
ix
x
GST software
GST rate comparison existing tax system v/s new tax system
7
xi
GST return procedure
Data Analysis…………………………………………..............37
i
GST calculation
ii
GST benefit to common man
iii
Impact of GST (Overall, On India, Indian Economy)
8
Negative List…………………………………………………...46
9
List of Tax not considered under GST……………………….48
10
Limitation (Why no to GST)………………………………….49
11
Conclusion……………………………………………………...51
12
Recommendation…………………………………………........53
Migration to GST- Will a retailer get TAX Credit for the Excise duty?Piyali Parashari
As the GST date draws closer, retailers are worried about what to do with Stocks lying with them on 30th June 2017. Will they get credit for Excise Duty on these stocks? Also what steps are to be taken for being GST ready........
Find out the detailed explanation of the provisions relating to Input Tax Credit under the dual GST Law from the presentation . Give it a read and we would love to know your feedback!
Now mortgage, sell or purchase a house on your own with the DIY Conveyancing kits in a easy & secure way.
For more info visit us at www.diyconveyancingkits.com.au
ABSTRACT
Chemical is right at the core of advance industrial systems, which is why it has attained a serious concern for disaster management. Chemical disasters are often traumatic in impact on humans usually resulting in casualties along with damage to nature and property. Unlike natural disasters, preventive and regulatory measures assume greater significance when we talk about chemical disasters. India too, has witnessed several chemical disasters in the past 50 years, highlighting the need for safeguards against such events. This paper’s focus lies on two of the most dangerous gas leaks India has witnessed until this date, i.e. the Bhopal Gas Leak and the Vizag Gas Leak. The author discusses in detail what went wrong prior to and during the Bhopal Gas leak, which is followed by an explanation on how the safety initiatives have evolved after the 1984 incident. In the next section, the author tries to decode the Vizag leak of 2020 with emphasis on how the company could bypass the safety norms in place. The author then discusses the gap in the present framework governing Chemical Disasters (including gas leaks) and proposes certain measures that could be implemented for effective management of such disasters.
RBSA-Budget-Finance Bill 2023-Key Proposals.pdfRBSA Advisors
Keeping a people-centric approach, various amendments in individual tax provisions and amendments providing benefits under the new tax-rate regime is a welcome move.
Renewed hopes on GST - Dr Sanjiv AgarwalD Murali ☆
Renewed hopes on GST - Dr Sanjiv Agarwal - Article published in Business Advisor, dated June 25, 2016 - http://www.magzter.com/IN/Shrinikethan/Business-Advisor/Business/
Tweeted on www.twitter.com/BusinessAdvDM
INDIAN ECONOMY THE SHOW MUST GO ON GROWTH PADDLENeha Sharma
The monsoon session of parliament was over without transacting any meaningful business.In this process, the government could not get the constitutional amendment passed by Rajya Sabha (Lok Sabha has already passed the bill) to bring Goods and Service Tax (GST) to replace Excise, VAT and few other indirect taxes. Even the Land Acquisition Bill to facilitate Industrial Development and other public purposes was deffered on the recommendation of the joint parliamentary comittees.
FAQ on SBC-GSC Intime Services Pvt. Ltd.-14.11.15-Update
1. Frequently Asked Questions on Swachh Bharat
Cess (SBC) @ 0.5% w.e.f. 15th
November, 2015
right advice at right time…
2/19 Nityanand Nagar, Sahar Road, Andheri (East), Mumbai-400 069.
14.11.2015
2. FAQs on Swachh Bharat Cess
Right advice at right time....
Address: 2/22, Nityapriya, Nityanand Nagar, Sahar Road, Andheri (East), Mumbai – 400 069.
Tel: +91 22 2683 6519; Email: info@gscintime.com Page 2 of 12
On the Budget date, Finance Minister, Mr. Arun Jaitley, had announced a new levy called
‘Swachh Bharat Cess’ (SBC) only on services if need arises for financing and promoting
initiatives towards ‘Swachh Bharat’. The provisions were introduced in Finance Act, 20151
but the levy was not introduced till date.
Effective from 15th
November, 20152
, SBC is leviable on value of all taxable services @
0.50%3
. As per provisions of Finance Act 2015, the present rate of 0.50% may be increased
to 2% by the Central Government. Various aspects of this new levy have been discussed
hereunder:
1. Whether SBC is leviable on specified services only?
SBC is leviable on all taxable services except Services listed under Section 66D of the Finance
Act, 1994 (i.e. negative list of services) and services exempted by way of various Exemption
1
Chapter VI of Finance Act, 2015
2
Notification No. 21/2015-ST dated 6th
November, 2015
3
Notification No. 22/2015-ST dated 6th
November, 2015
Swachh Bharat cess (SBC) introduced @ 0.5% on value of all taxable services from
15th
November, 2015
3. FAQs on Swachh Bharat Cess
Right advice at right time....
Address: 2/22, Nityapriya, Nityanand Nagar, Sahar Road, Andheri (East), Mumbai – 400 069.
Tel: +91 22 2683 6519; Email: info@gscintime.com Page 3 of 12
Notifications. Further, the assessee has to discharge SBC on services covered under Reverse
Charge Mechanism as well4
.
2. How to calculate SBC, is it on the amount of tax or value of services?
Unlike EC and SHEC, SBC would be chargeable on value of services and not on tax element.
Therefore, the effective rate of Service tax would be 14.50% (14%+0.50%).
3. In case of certain services, the valuation Rules5
provides for certain presumptive
values. How to calculate SBC in such cases?
It is clarified that SBC shall be applicable on taxable value of services as determined vide
Valuation Rules6
. Therefore, following would be the effective rate of Service tax on such
services:
Nature of Service Taxable
value (%)
Effective
Service Tax
Rate
SBC Effective
Rate (incl.
SBC)
Works Contract for Original works 40 5.60% 0.20% 5.80%
4
Notification No. 24/2015-ST dated 12th
November, 2015
5
Service tax (Determination of Value) Rules, 2006
6
Notification No. 23/2015-ST dated 12th
November, 2015
4. FAQs on Swachh Bharat Cess
Right advice at right time....
Address: 2/22, Nityapriya, Nityanand Nagar, Sahar Road, Andheri (East), Mumbai – 400 069.
Tel: +91 22 2683 6519; Email: info@gscintime.com Page 4 of 12
Nature of Service Taxable
value (%)
Effective
Service Tax
Rate
SBC Effective
Rate (incl.
SBC)
Other Works Contracts 70 9.80% 0.35% 10.15%
Money Changing Value
prescribed7
14% 0.5% 14.50%
Restaurant 40 5.60% 0.20% 5.80%
Outdoor Catering 60 8.40% 0.30% 8.70%
4. Certain services are exempted partially (abatement8
). How to discharge SBC on such
partially exempt services?
It is notified that the assessee shall levy SBC on abated value9
. Therefore, following would
be the effective rate of Service tax on such services:
7
Rule 2B of Service tax (Determination of Value) Rules, 2006
8
Notification No. 26/2012–ST dated 20th
June, 2012
9
Notification No. 23/2015-ST dated 12th
November, 2015
5. FAQs on Swachh Bharat Cess
Right advice at right time....
Address: 2/22, Nityapriya, Nityanand Nagar, Sahar Road, Andheri (East), Mumbai – 400 069.
Tel: +91 22 2683 6519; Email: info@gscintime.com Page 5 of 12
Nature of Service Taxable
Portion
(%)
Service Tax SBC Effective
Rate (incl.
SBC)
Financial Leasing including hire
purchase
10 1.40% 0.05% 1.45%
Transport of Goods by Rail 30 4.20% 0.15% 4.35%
Transport of Passenger by Rail 30 4.20% 0.15% 4.35%
Mandap Keeper 70 9.80% 0.35% 10.15%
Transport of passengers by Air –
Economy
40 5.60% 0.20% 5.80%
Transport of passengers by Air –
Other than Economy
60 8.40% 0.30% 8.70%
Renting of hotels, guest houses etc. 60 8.40% 0.30% 8.70%
Goods Transport Agency 30 4.20% 0.15% 4.35%
Renting of motor cab 40 5.60% 0.20% 5.80%
Transport of passengers by contract
carriage/ radio taxi
40 5.60% 0.20% 5.80%
Transport of goods in a vessel 30 4.20% 0.15% 4.35%
6. FAQs on Swachh Bharat Cess
Right advice at right time....
Address: 2/22, Nityapriya, Nityanand Nagar, Sahar Road, Andheri (East), Mumbai – 400 069.
Tel: +91 22 2683 6519; Email: info@gscintime.com Page 6 of 12
Nature of Service Taxable
Portion
(%)
Service Tax SBC Effective
Rate (incl.
SBC)
Tour Operator’s services – Package
Tour
25 3.50% 0.125% 3.625%
Tour Operator’s services – Only
arranging or booking accommodation
in relation to tour
10 1.40% 0.05% 1.45%
Tour Operator’s services – Other than
above
40 5.60% 0.20% 5.80%
Construction of Complex – (In cases
where the Unit is residential, the
Carpet area is upto 2000 sq. feet and
the value is less than Rs. 1 Crore)
25 3.50% 0.125% 3.625%
Construction of Complex – Others 30 4.20% 0.15% 4.35%
5. How to discharge SBC in case of services liable to presumptive rates of taxation?
In respect of following specified services, optional presumptive rate of Service tax has been
prescribed10
:
10
Rules 6 (7), (7A), (7B) and (7C) of Service tax Rules, 1994
7. FAQs on Swachh Bharat Cess
Right advice at right time....
Address: 2/22, Nityapriya, Nityanand Nagar, Sahar Road, Andheri (East), Mumbai – 400 069.
Tel: +91 22 2683 6519; Email: info@gscintime.com Page 7 of 12
Air travel agent
Insurer carrying on life insurance business
Purchase or sale of foreign currency including money changing
Distributor or selling agent in relation to lottery
Now, for such specified services, optional presumptive rate for discharge of SBC is also
introduced11
which has to be calculated vide following formula:
Service tax Liability * 0.5
14
6. In case of prospective charge, whether services provided by assessee before 15th
November, 2015 would attract levy of SBC?
A table summarising the effective rate of tax applicable to assessee in various situations has
been pasted hereunder for ready reference12
:
Situation Payment received Invoice raised SBC
leviable?
Invoice issued and payment
received prior to 15.11.2015
Prior to 15.11. 2015 Prior to 15.11.2015 No
Payment received before Prior to 15.11.2015 Upto 28.11.2015 No
11
Notification No. 25/2015-ST dated 12th
November, 2015
12
Rule 5 of Point of Taxation Rules, 2011
8. FAQs on Swachh Bharat Cess
Right advice at right time....
Address: 2/22, Nityapriya, Nityanand Nagar, Sahar Road, Andheri (East), Mumbai – 400 069.
Tel: +91 22 2683 6519; Email: info@gscintime.com Page 8 of 12
Situation Payment received Invoice raised SBC
leviable?
15.11.2015 and invoice
issued within specified time
Prior to 15.11.2015 Post 28.11.2015 Yes
Invoice issued and payment
received post 15.11.2015
(Services provided post
15.11.2015)
Post 15.11.2015 Post 15.11.2015 Yes
However, to avoid any controversy, it is advisable to raise invoice by 14th
November, 2015
itself for the services completed till 14th
November 2015.
7. In case of Reverse Charge Mechanism, if the services are received and invoice is raised
prior to 15th
November, 2015 but payment is made post 15th
November, 2015,
whether the assessee has to discharge SBC as well?
Vide POTR, Service tax liability crystalises on the date of payment for all the cases covered
under Reverse Charge Mechanism13
. Therefore, SBC will be applicable on all payments made
post 15th
November, 2015, by the service recipient in respect of cases covered under
Reverse Charge Mechanism.
13
Rule 7 of POTR
9. FAQs on Swachh Bharat Cess
Right advice at right time....
Address: 2/22, Nityapriya, Nityanand Nagar, Sahar Road, Andheri (East), Mumbai – 400 069.
Tel: +91 22 2683 6519; Email: info@gscintime.com Page 9 of 12
8. Whether assessee may collect SBC from service receiver? If yes, whether the same
needs to be shown separately on the invoice?
Since SBC is levied and collected as Service tax, assessee may collect the same from service
receiver. Further, assessee shall show SBC separately on the invoice.
9. Whether assessee has to create separate ledger in the accounting/ERP system for
SBC?
Since this is a separate Cess, assessee would have to open new ledgers with respect to SBC
in Books of Accounts.
10. How to make payment of SBC in Government Treasury?
As of now, there is no accounting code allocated to SBC to make payment to Government
Treasury. As per FAQs released by CBEC, the accounting code would be notified shortly in
consultation with the Principal Chief Controller of Accounts.
11. What would be the consequence of delayed payment of SBC?
Delayed payment of SBC would attract interest as applicable to Service tax14
.
14
Section 119 (5) of the Finance Act, 2015
10. FAQs on Swachh Bharat Cess
Right advice at right time....
Address: 2/22, Nityapriya, Nityanand Nagar, Sahar Road, Andheri (East), Mumbai – 400 069.
Tel: +91 22 2683 6519; Email: info@gscintime.com Page 10 of 12
12. What would be the consequence of non-payment of SBC?
Provisions relating to penalty, prosecution, recovery etc. may be squarely applicable in case
of non-payment of SBC.
13. Whether assessee can take CENVAT Credit of SBC?
Section 119 (2) of Finance Act, 2015 contains wordings as, ‘there shall be levied ...a cess to
be called as ‘Swachha Bharat Cess’ as service tax on all or any of taxable service...’.
Therefore, analysed from this angle, it appears that SBC is nothing but a part of Service tax,
though collected additionally and separately for specific purpose. Therefore, it appears that
CENVAT credit of SBC may be available. However, in view of absence of express provisions
on credit availability or suitable amendments in CENVAT Credit Rules, 2004 till date, credit
availability or otherwise is still a question.
However, it would be worth noting that as per FAQs published by CBEC on its website, it has
been stated that credit of SBC cannot be availed and SBC cannot be paid by utilizing CENVAT
Credit.
11. FAQs on Swachh Bharat Cess
Right advice at right time....
Address: 2/22, Nityapriya, Nityanand Nagar, Sahar Road, Andheri (East), Mumbai – 400 069.
Tel: +91 22 2683 6519; Email: info@gscintime.com Page 11 of 12
Disclaimer
This document is not a written opinion. This document is meant for internal circulation for
introduction/basic understanding purposes only. A detailed consultation with us is required
before taking any tax/business decision based on this document. GSC, its employees or
directors are in no way responsible for any loss arising due to reliance placed on this
document.
12. FAQs on Swachh Bharat Cess
Right advice at right time....
Address: 2/22, Nityapriya, Nityanand Nagar, Sahar Road, Andheri (East), Mumbai – 400 069.
Tel: +91 22 2683 6519; Email: info@gscintime.com Page 12 of 12
Right advice at right time…
2/19 Nityanand Nagar, Sahar Road, Andheri (East), Mumbai-400 069.
+91 22 268 365 19
info@gscintime.com
Areas of Focus…
• Corporate Retainerships
• Tax Structuring/optimization
• Opinions/Notes
• Obtaining Advance Rulings
• Litigation Support
• Refunds
• ERP Implementation
• Tax Reviews/Due Diligence
• Transaction Manuals
• Corporate Trainings
• Representation to Governments