The document provides an overview of export refunds under GST. It discusses key concepts like zero rated supplies, which include exports and supplies to SEZ. It outlines the different types of export refunds available under GST such as export of goods/services upon payment of IGST or under bond/LUT. The document then analyzes section 54 of the CGST Act regarding refund procedures. It discusses refund eligibility for zero rated supplies and supplies with an inverted tax structure. Key points like time limits for refund claims and restrictions are also summarized.
These slides provide an overview of Goods And Service Tax. I have covered some of the Definitions related to GST here.
Ms. Suchitra Kumari has assisted in editing these slides.
Your guide on the most crucial pillar of GST - Input Tax Credit.
We hope this guide can help you understand the contours of Input Tax credit with regard what you are eligible for and what is explicitly denied in the law.
This document provides information about input tax credit under GST including definitions, eligibility conditions, and procedures. It discusses what constitutes input, input services, capital goods, and the electronic credit ledger. It outlines the primary conditions for claiming ITC including the invoice, payment, and filing of returns. Special scenarios where ITC can be claimed are described. The document also discusses blocked credits, apportionment of credit, and the process for determining and reversing ITC.
The key elements necessary to constitute a taxable supply under GST are: 1) the supply must occur within a taxable territory, 2) the supply must be made by a registered taxable person, 3) the supply must involve goods or services, and 4) the supply must be made for consideration in the course or furtherance of business. A taxable supply is defined as a supply of goods or services that is chargeable to GST. For a supply to be considered a taxable supply, it must meet the requirements outlined in the document.
The document discusses concepts related to input tax credit under GST, including definitions of key terms like input, capital goods, input services, and exceptions. It outlines eligibility and features of input tax credit provisions, such as conditions for claiming ITC, time limits, and utilization of credits. Examples are provided comparing tax implications of intra-state and inter-state supplies under the current system versus GST.
The document provides an overview of export refunds under GST. It discusses key concepts like zero rated supplies, which include exports and supplies to SEZ. It outlines the different types of export refunds available under GST such as export of goods/services upon payment of IGST or under bond/LUT. The document then analyzes section 54 of the CGST Act regarding refund procedures. It discusses refund eligibility for zero rated supplies and supplies with an inverted tax structure. Key points like time limits for refund claims and restrictions are also summarized.
These slides provide an overview of Goods And Service Tax. I have covered some of the Definitions related to GST here.
Ms. Suchitra Kumari has assisted in editing these slides.
Your guide on the most crucial pillar of GST - Input Tax Credit.
We hope this guide can help you understand the contours of Input Tax credit with regard what you are eligible for and what is explicitly denied in the law.
This document provides information about input tax credit under GST including definitions, eligibility conditions, and procedures. It discusses what constitutes input, input services, capital goods, and the electronic credit ledger. It outlines the primary conditions for claiming ITC including the invoice, payment, and filing of returns. Special scenarios where ITC can be claimed are described. The document also discusses blocked credits, apportionment of credit, and the process for determining and reversing ITC.
The key elements necessary to constitute a taxable supply under GST are: 1) the supply must occur within a taxable territory, 2) the supply must be made by a registered taxable person, 3) the supply must involve goods or services, and 4) the supply must be made for consideration in the course or furtherance of business. A taxable supply is defined as a supply of goods or services that is chargeable to GST. For a supply to be considered a taxable supply, it must meet the requirements outlined in the document.
The document discusses concepts related to input tax credit under GST, including definitions of key terms like input, capital goods, input services, and exceptions. It outlines eligibility and features of input tax credit provisions, such as conditions for claiming ITC, time limits, and utilization of credits. Examples are provided comparing tax implications of intra-state and inter-state supplies under the current system versus GST.
IGST is levied on inter-state supply of goods and services to monitor inter-state trade and ensure SGST accrues to the consuming state. IGST rate is equal to CGST plus SGST rate and is collected by the central government on inter-state transactions. Export of goods or services are considered zero-rated supplies under IGST and the exporter can claim refund of IGST paid or supply under bond without paying tax and claim refund of unutilized ITC. Import of goods is subject to IGST in addition to customs duty, while import of services where supplier is outside India, recipient within India and place of supply is India are liable to IGST on reverse charge.
Meaning of supply under gst model law indiaDeepak Vachher
The document provides an overview and analysis of Section 3 of the Indian Goods and Services Tax (GST) Act, which defines the meaning and scope of supply. Key points include:
1) Section 3(1) defines "supply" to include all forms of supply of goods/services for consideration, import of services, and supplies specified in Schedule I without consideration.
2) Section 3(2) states that Schedule II applies to determine what constitutes supply of goods or services. It includes matters like transfer of business assets.
3) Section 3(2A) deems transactions between a principal and agent to be a supply.
4) Section 3(3) allows the central/state government
This document discusses the meaning of "supply" under the Integrated Goods and Services Tax (IGST) Act of 2016 in India. It defines supply as the levying of tax on the supply of any goods and/or services in the course of inter-state trade or commerce. A supply includes various forms of supply of goods and services for consideration during the course of business. It also discusses what types of transactions are considered a supply, including those in Schedules II and I of the IGST Act, and those that are specifically excluded from being a supply under Schedules III and IV. Composite and mixed supplies are also summarized.
The Indian Taxation structure has witnessed many reforms since inception. The current taxation system streamlines two broad categorizations viz: Direct Taxation and Indirect Taxation. Among the two, Indirect Taxation has always been a matter of deportment because of the series of taxes involved therein such as Excise Duty, Service Tax, Value Added Tax, etc. Also these taxes have been divided into two subdivisions on the basis of the authority of levy viz: State Levy and Central Levy. This further creates a confusion and situation of ambiguity among the people. Further, implication of such taxes has somewhere lead to distortionary and cascading effect i.e. leviability of tax on tax, which eventually has been hard hitting on the pockets of the final consumers.
Considering all these facts and circumstances, the Government of India has finally made a move in the direction of substituting 17 indirect taxes into one Indirect Tax known as The Goods and Services Tax commonly known as GST. The GST structure has been designed and modeled as a value added tax, which will be levied on each stage of a transaction as the supply moves from one level to another. The tax paid at one level will subsequently be allowed as credit on another level.
The document discusses input tax credit (ITC) under the Goods and Services Tax (GST) regime in India. Some key points:
1. ITC aims to ensure tax is levied only on value addition at each stage of supply chain to eliminate cascading of taxes. Only registered taxpayers can claim ITC subject to certain conditions.
2. Eligible inputs/services include those used in business. Capital goods are eligible for ITC over multiple years. ITC must be claimed within prescribed time limits and supported by valid documents.
3. ITC is allowed for taxable and zero-rated supplies but not for exempt, non-taxable or personal consumption. Credit must be apportioned
This document discusses the taxation of composite contracts under the proposed GST bill of 2017 in India. It addresses some key points:
1) Works contracts related to immovable property, including sale of under-construction apartments, will be taxed as services under GST. This aims to avoid double taxation that can currently occur under VAT and service tax.
2) The treatment of composite contracts related to movable property under GST concepts of composite and mixed supplies is unclear and will need further clarification.
3) Once works contracts are defined as services under GST, the distinction between goods and services is only relevant for determining the place of supply and taxation point.
Article is about when to apply GST Refund when goods or services are exported out of India. Legal provisions for process of GST refund scheme. GST is a destination based consumption tax where in the levy of tax moves along with goods and /or services.where a goods exporter is not in position to utilize the GST paid in inputs such as raw material , inputs etc. which are used for export of goods shall apply for refund of GST paid by goods exporter. By taking GST Refund Exporter of Goods can increase its business working capital.
The document discusses the key provisions related to Input Tax Credit (ITC) under the GST law in India. It begins by defining ITC and input tax. It then outlines some of the major ITC provisions under the Central GST Act and rules, including those relating to eligibility for ITC, documentation requirements, blocked credits, and time limits. Specific provisions covered in more detail include Section 16 on eligibility and conditions for ITC, Section 17 on apportionment of credit and blocked credits, and restrictions on ITC for works contracts and construction of immovable property. The document provides an overview of the major ITC concepts and sections under the GST law.
OBJECTIVE
Goods and Services Tax (GST) is the Indirect Tax levied in India introduced in July 2017 which was one of the most important reforms in the Indian Economy. There are various periodic compliance requirements and filings under GST. In this webinar, we shall analyse and understand the annual returns under GST.
The document discusses input tax credit (ITC) under the GST Act of 2017. It provides definitions of key terms related to ITC such as input tax, input goods and services, capital goods, and output tax. It outlines the eligibility conditions and limitations for claiming ITC, including possessing valid documents, receiving goods/services, paying suppliers, and filing returns. It discusses apportionment of credit for business and non-business use as well as taxable and exempt supplies. Blocked credits are listed for certain goods/services like motor vehicles. The utilization and ledgers for ITC under GST are also summarized.
This document provides an overview of input tax credit under the GST Act. It defines input tax and input tax credit, outlines the eligibility and conditions for claiming ITC, and discusses the time limit. It also covers apportionment of credit and blocked credits, availability of credit in special circumstances like new registration or exempt supplies becoming taxable. The document discusses ITC on capital goods, distribution of credit by an Input Service Distributor, and recovery of excess credit distributed. Overall it serves as a comprehensive guide to the key aspects of input tax credit under Indian GST law.
GST is nothing but a value added tax on goods & services combined. It is the provisions of Input Tax Credit that make GST a value added tax i.e collection of tax at all points after allowing credit for the inputs
The following Presentation enumerates the various provisions w.r.t. ITC, how it can be used,eligibilty and conditions for claiming ITC along with various case studies and illustrations. further, it elaborates the concept of input service distributor.
The document provides an overview of External Commercial Borrowings (ECB) regulations in India. It defines ECB as bank loans, trade credits beyond 3 years, bonds/debentures without convertibility, financial leases, and borrowings from multilateral institutions, among others. The regulator is the Government of India with support from the Reserve Bank of India. Indian companies can access foreign funds through ECB, FCCBs, preference shares/FCEB, and rupee denominated bonds overseas. Eligible borrowers include entities eligible for FDI, port trusts, SEZ units, SIDBI, oil marketing companies, and microfinance organizations. Recognized lenders must be residents of FAFT or IOSCO
This document discusses GST registration requirements in India. It provides three key points:
1. Every supplier that makes taxable supplies above an annual turnover threshold of 20 lakh rupees must register for GST. Registration allows suppliers to legally conduct business, claim input tax credits, and pass credits to customers.
2. The place of registration is the state where taxable supplies are ordinarily made. Suppliers must display their registration certificate and GST identification number at all business locations.
3. Certain categories of suppliers like those making inter-state supplies must compulsorily register regardless of turnover, including casual taxable persons, suppliers under reverse charge, and non-resident taxable persons.
Tax Alerts cover significant tax news, developments and changes in legislation that affect Indian businesses. They act as technical summaries to keep you on top of the latest tax issues. For more information, please contact your EY advisor. For more information : http://www.ey.com/in/en/services/ey-goods-and-services-tax-gst
This document discusses GST implications for works contracts and real estate transactions in India. Some key points:
- Works contracts are treated as supply of services under GST. Rates are 18% generally, but some specified contracts are 12%. Labour contracts are 18% except for certain exemptions.
- For builders selling flats/villas, the activity is treated as supply of service if any amount is received before completion. Rate is 18% with 1/3 deduction for land.
- For landlord share of construction, it is a works contract with the non-monetary consideration of land. Valuation methods are discussed and rate would be 18%.
- Plot sales are not taxable generally but development
Place of supply in GST- export import ca amit kumarAmit Kumar
The document summarizes key provisions related to place of supply under the IGST Act, 2017. It discusses scenarios for determining place of supply for goods imported/exported from India as well as for domestic and international supply of services. For goods imported into India, place of supply is location of importer. For exported goods, place of supply is location outside India. For domestic service transactions, place of supply rules are based on location of supplier and recipient. For international transactions, general rule is location of recipient, with certain exceptions specified based on nature of service.
OBJECTIVES:
Definition
Position under Service Tax and VAT
Position under GST
Composite supply
Taxability of Works contract
Provisions relating to Input tax credit
Honourable Finance Minister Nirmala Sitharaman has presented her second Union Budget in the Parliament on 01 February 2020.This Budget focused on bringing a series of measures aimed at promoting investments in the country, creating a world class infrastructure and stimulating economic growth.
Analysis of Finance Act, 2020 vis-à-vis GST
The Finance Act, 2020 has made several amendments to the CGST Act, 2017 and corresponding amendments to the IGST Act, 2017 and UTGST Act, 2017. We have attempted to analyse the provision wise amendment made by the Finance Act, 2020 to the CGST Act, 2017.
IGST is levied on inter-state supply of goods and services to monitor inter-state trade and ensure SGST accrues to the consuming state. IGST rate is equal to CGST plus SGST rate and is collected by the central government on inter-state transactions. Export of goods or services are considered zero-rated supplies under IGST and the exporter can claim refund of IGST paid or supply under bond without paying tax and claim refund of unutilized ITC. Import of goods is subject to IGST in addition to customs duty, while import of services where supplier is outside India, recipient within India and place of supply is India are liable to IGST on reverse charge.
Meaning of supply under gst model law indiaDeepak Vachher
The document provides an overview and analysis of Section 3 of the Indian Goods and Services Tax (GST) Act, which defines the meaning and scope of supply. Key points include:
1) Section 3(1) defines "supply" to include all forms of supply of goods/services for consideration, import of services, and supplies specified in Schedule I without consideration.
2) Section 3(2) states that Schedule II applies to determine what constitutes supply of goods or services. It includes matters like transfer of business assets.
3) Section 3(2A) deems transactions between a principal and agent to be a supply.
4) Section 3(3) allows the central/state government
This document discusses the meaning of "supply" under the Integrated Goods and Services Tax (IGST) Act of 2016 in India. It defines supply as the levying of tax on the supply of any goods and/or services in the course of inter-state trade or commerce. A supply includes various forms of supply of goods and services for consideration during the course of business. It also discusses what types of transactions are considered a supply, including those in Schedules II and I of the IGST Act, and those that are specifically excluded from being a supply under Schedules III and IV. Composite and mixed supplies are also summarized.
The Indian Taxation structure has witnessed many reforms since inception. The current taxation system streamlines two broad categorizations viz: Direct Taxation and Indirect Taxation. Among the two, Indirect Taxation has always been a matter of deportment because of the series of taxes involved therein such as Excise Duty, Service Tax, Value Added Tax, etc. Also these taxes have been divided into two subdivisions on the basis of the authority of levy viz: State Levy and Central Levy. This further creates a confusion and situation of ambiguity among the people. Further, implication of such taxes has somewhere lead to distortionary and cascading effect i.e. leviability of tax on tax, which eventually has been hard hitting on the pockets of the final consumers.
Considering all these facts and circumstances, the Government of India has finally made a move in the direction of substituting 17 indirect taxes into one Indirect Tax known as The Goods and Services Tax commonly known as GST. The GST structure has been designed and modeled as a value added tax, which will be levied on each stage of a transaction as the supply moves from one level to another. The tax paid at one level will subsequently be allowed as credit on another level.
The document discusses input tax credit (ITC) under the Goods and Services Tax (GST) regime in India. Some key points:
1. ITC aims to ensure tax is levied only on value addition at each stage of supply chain to eliminate cascading of taxes. Only registered taxpayers can claim ITC subject to certain conditions.
2. Eligible inputs/services include those used in business. Capital goods are eligible for ITC over multiple years. ITC must be claimed within prescribed time limits and supported by valid documents.
3. ITC is allowed for taxable and zero-rated supplies but not for exempt, non-taxable or personal consumption. Credit must be apportioned
This document discusses the taxation of composite contracts under the proposed GST bill of 2017 in India. It addresses some key points:
1) Works contracts related to immovable property, including sale of under-construction apartments, will be taxed as services under GST. This aims to avoid double taxation that can currently occur under VAT and service tax.
2) The treatment of composite contracts related to movable property under GST concepts of composite and mixed supplies is unclear and will need further clarification.
3) Once works contracts are defined as services under GST, the distinction between goods and services is only relevant for determining the place of supply and taxation point.
Article is about when to apply GST Refund when goods or services are exported out of India. Legal provisions for process of GST refund scheme. GST is a destination based consumption tax where in the levy of tax moves along with goods and /or services.where a goods exporter is not in position to utilize the GST paid in inputs such as raw material , inputs etc. which are used for export of goods shall apply for refund of GST paid by goods exporter. By taking GST Refund Exporter of Goods can increase its business working capital.
The document discusses the key provisions related to Input Tax Credit (ITC) under the GST law in India. It begins by defining ITC and input tax. It then outlines some of the major ITC provisions under the Central GST Act and rules, including those relating to eligibility for ITC, documentation requirements, blocked credits, and time limits. Specific provisions covered in more detail include Section 16 on eligibility and conditions for ITC, Section 17 on apportionment of credit and blocked credits, and restrictions on ITC for works contracts and construction of immovable property. The document provides an overview of the major ITC concepts and sections under the GST law.
OBJECTIVE
Goods and Services Tax (GST) is the Indirect Tax levied in India introduced in July 2017 which was one of the most important reforms in the Indian Economy. There are various periodic compliance requirements and filings under GST. In this webinar, we shall analyse and understand the annual returns under GST.
The document discusses input tax credit (ITC) under the GST Act of 2017. It provides definitions of key terms related to ITC such as input tax, input goods and services, capital goods, and output tax. It outlines the eligibility conditions and limitations for claiming ITC, including possessing valid documents, receiving goods/services, paying suppliers, and filing returns. It discusses apportionment of credit for business and non-business use as well as taxable and exempt supplies. Blocked credits are listed for certain goods/services like motor vehicles. The utilization and ledgers for ITC under GST are also summarized.
This document provides an overview of input tax credit under the GST Act. It defines input tax and input tax credit, outlines the eligibility and conditions for claiming ITC, and discusses the time limit. It also covers apportionment of credit and blocked credits, availability of credit in special circumstances like new registration or exempt supplies becoming taxable. The document discusses ITC on capital goods, distribution of credit by an Input Service Distributor, and recovery of excess credit distributed. Overall it serves as a comprehensive guide to the key aspects of input tax credit under Indian GST law.
GST is nothing but a value added tax on goods & services combined. It is the provisions of Input Tax Credit that make GST a value added tax i.e collection of tax at all points after allowing credit for the inputs
The following Presentation enumerates the various provisions w.r.t. ITC, how it can be used,eligibilty and conditions for claiming ITC along with various case studies and illustrations. further, it elaborates the concept of input service distributor.
The document provides an overview of External Commercial Borrowings (ECB) regulations in India. It defines ECB as bank loans, trade credits beyond 3 years, bonds/debentures without convertibility, financial leases, and borrowings from multilateral institutions, among others. The regulator is the Government of India with support from the Reserve Bank of India. Indian companies can access foreign funds through ECB, FCCBs, preference shares/FCEB, and rupee denominated bonds overseas. Eligible borrowers include entities eligible for FDI, port trusts, SEZ units, SIDBI, oil marketing companies, and microfinance organizations. Recognized lenders must be residents of FAFT or IOSCO
This document discusses GST registration requirements in India. It provides three key points:
1. Every supplier that makes taxable supplies above an annual turnover threshold of 20 lakh rupees must register for GST. Registration allows suppliers to legally conduct business, claim input tax credits, and pass credits to customers.
2. The place of registration is the state where taxable supplies are ordinarily made. Suppliers must display their registration certificate and GST identification number at all business locations.
3. Certain categories of suppliers like those making inter-state supplies must compulsorily register regardless of turnover, including casual taxable persons, suppliers under reverse charge, and non-resident taxable persons.
Tax Alerts cover significant tax news, developments and changes in legislation that affect Indian businesses. They act as technical summaries to keep you on top of the latest tax issues. For more information, please contact your EY advisor. For more information : http://www.ey.com/in/en/services/ey-goods-and-services-tax-gst
This document discusses GST implications for works contracts and real estate transactions in India. Some key points:
- Works contracts are treated as supply of services under GST. Rates are 18% generally, but some specified contracts are 12%. Labour contracts are 18% except for certain exemptions.
- For builders selling flats/villas, the activity is treated as supply of service if any amount is received before completion. Rate is 18% with 1/3 deduction for land.
- For landlord share of construction, it is a works contract with the non-monetary consideration of land. Valuation methods are discussed and rate would be 18%.
- Plot sales are not taxable generally but development
Place of supply in GST- export import ca amit kumarAmit Kumar
The document summarizes key provisions related to place of supply under the IGST Act, 2017. It discusses scenarios for determining place of supply for goods imported/exported from India as well as for domestic and international supply of services. For goods imported into India, place of supply is location of importer. For exported goods, place of supply is location outside India. For domestic service transactions, place of supply rules are based on location of supplier and recipient. For international transactions, general rule is location of recipient, with certain exceptions specified based on nature of service.
OBJECTIVES:
Definition
Position under Service Tax and VAT
Position under GST
Composite supply
Taxability of Works contract
Provisions relating to Input tax credit
Honourable Finance Minister Nirmala Sitharaman has presented her second Union Budget in the Parliament on 01 February 2020.This Budget focused on bringing a series of measures aimed at promoting investments in the country, creating a world class infrastructure and stimulating economic growth.
Analysis of Finance Act, 2020 vis-à-vis GST
The Finance Act, 2020 has made several amendments to the CGST Act, 2017 and corresponding amendments to the IGST Act, 2017 and UTGST Act, 2017. We have attempted to analyse the provision wise amendment made by the Finance Act, 2020 to the CGST Act, 2017.
The document provides an executive summary of direct tax amendments proposed in the India Budget 2022. Key points include:
- Virtual digital assets will be taxed at 30% and TDS of 1% will apply to transfers over ₹10,000.
- Taxpayers can file an updated return within 24 months to disclose additional income but cannot claim losses or refunds.
- Covid related medical expenses paid by employers and amounts up to ₹10 lakhs received for Covid deaths will be tax exempt.
- Faceless proceedings for transfer pricing, DRP and ITAT have been deferred till 2023-24. Startups can claim tax exemptions till March 2023 and
Taxmann's GST Tariff with GST Rate Reckoner (Set of 2 Volumes)Taxmann
Taxmann’s GST Tariff contains GST Tariff for Goods and Services. It provides HSN-wise and SAC-wise Tariff of all the Goods and Services.
The Present Publication is the 14th Edition, authored by Taxmann’s Editorial Board, is amended up to 1st February 2021, with the following noteworthy features:
Taxmann's series of Bestseller Books on GST Tariff
Follows the six-sigma approach, to achieve the benchmark of 'zero error'
The Present Publication is published in two volumes & divided into 6 divisions, which are listed as follows:
•GST Tariff for Goods with HSN Code
Rates Specified in other Acts
•GST Rate Reckoner for Goods/Commodity Index
•GST Tariff for Services
Services Index
•GST Tariff Notifications (Rate of Tax and Exemptions)
The details coverage of the book is as follows:
•GST Tariff for Goods with HSN Code
•Arrangement of Chapters
•GST Tariff for Goods with HSN Code
•General Rules for the Interpretation of this schedule
•Rates Specified in other Acts
•Rates specified in Central Excise Act
•National Calamity Contingent Duty
•Additional Duty on Tobacco
•Additional Duty on Motor Spirit (Petrol)
•Additional Duty on High Speed Diesel Oil
•Special Additional Excise Duty on Motor Spirit and High Speed Diesel Oil
•Road & Infrastructure Cess
•Agriculture Infrastructure and Development Cess
•GST Rate Reckoner for Goods/Commodity Index
•GST Tariff for Services
•Arrangement of Services
•Central Goods & Services Tax/State Goods & Service Tax Tariff for Services
•Integrated Goods & Services Tax Tariff for Services
•Compensation Cess
•Rate of Tax and Exemption Notifications for Services
•Reverse Charge in case of intra-State supplies of services
•Reverse Charge in case of inter-State supplies of services
•Notified categories of services the tax on intra-State/inter-State supplies of which shall be paid by electronic commerce operator
•No refund of unutilised Input Tax Credit
•Notified registered persons who shall pay tax on reverse charge basis on certain specified supplies of goods or services or both received from an unregistered supplier
•Notified rate of tax to be levied on specified first intra-State supplies of goods or services
•Latest Clarifications
•Latest Case Laws
•Explanatory Notes
•Services Index
•GST Tariff Notifications (Rate of Tax and Exemptions)
Taxmann’s Ultimate Best-Seller for Indirect Taxes – ‘GST Ready Reckoner', is a ready referencer for all provisions of the GST Law. It covers all important topics of GST along with relevant Case Laws, Notifications, Circulars, etc.
The Present Publication is the 15th Edition, authored by Mr. V.S. Datey & Updated till 1st February 2021. This book follows the Six-Sigma approach to achieve the benchmark of ‘zero-error’.
The book has been divided into 55 chapters in respect of all-important-provisions of GST, including the following:
•GST – An Overview
•IGST, CGST, SGST and UTGST
•Taxable Event in GST
•Supply of Goods or Services or both
•Classification of Goods and Services
•Value of Taxable Supply of Goods or Services or both
•Valuation Rules if value for GST not ascertainable
•VAT concept and its application in GST
•Input Tax Credit
•Input Tax Credit – Other Issues
•Input Tax Credit when exempted as well as taxable supplies made
•Input Service Distributor
•Persons liable to tax
•Place of supply of goods or services or both other than exports or impacts
•Place of supply in case of export or import of goods or services or both
•Exports and Imports
•Special Economic Zones and EOU
•Time of Supply of Goods and Services
•Reverse Charge
•Exemption from GST by issue of Notification
•Concession to small enterprises in GST
•Construction and Works Contract Services
•Real Estate Services relating to residential and commercial apartments
•TDR/FSI/Upfront amount in long term lease in real estate transactions
•Distributive Trade Services
•Passenger Transport Services
•Financial and related services
•Leasing or rental services and licensing services
•Software and IPR Services
•Business and production services
•Job Work
•Telecommunication, broadcasting and information supply
Community social, personal and other services
Government related activities
•Basic procedures in GST
•Registration under GST
•Tax Invoice, Credit and Debit Notes
•E-way Bill for transport of goods
•Payment of taxes by cash and through input tax credit
Returns under GST
•Assessment and Audit
•Demands and recovery
•Refund in GST
•Powers of GST Officers
•Offences and penalties
•First Appeal and revision in GST
•Appeal before Appellate Tribunal
•Appeals before High Court and Supreme Court
•Prosecution and compounding
•Provisions relating to evidence
•Electronic Commerce
•Miscellaneous issues in GST
•GST Compensation Cess
•Transitory Provisions
•Constitutional Background of GST
Also Available
[15th Edition] of Taxmann’s GST Manual with GST Law Guide & Digest of Landmark Rulings
[14th Edition] of Taxmann’s GST Tariff with GST Rate Reckoner
[10th Edition] of Taxmann’s GST How to Meet Your Obligations
[2nd Edition] of Taxmann’s GST Case Laws Digest (A Section-wise Case Book of 1,900+ Judgements)
The document summarizes key proposals in the Indian Budget 2013 relating to direct and indirect taxes. For direct taxes, it outlines changes such as increased surcharge rates for foreign companies, a new tax on commodities derivatives trading, increased royalty and technical fee rates, and incentives for manufacturing investments over $20 million. It also covers proposals relating to power sector incentives, dividend distributions, and taxation of alternative investment funds. For indirect taxes, it notes customs, excise, and service tax changes.
The document discusses the key provisions and recent changes made to the Income Tax audit process in India.
Some of the key points include:
- Tax audit is required if business turnover exceeds Rs. 1 crore or professional receipts exceed Rs. 50 lakhs
- Form 3CD must be submitted by the auditor by 30th September of the assessment year
- Recent changes to Form 3CD include additional reporting for GST, capital gains, gifts received, transfer pricing adjustments, and cash transactions over Rs. 2 lakhs
- New clauses have been added for secondary adjustments, interest deduction limitations, GAAR impacted transactions, and reporting of specified financial transactions
our comprehensive presentation covering the key tax as well as financial proposals discussed during the Union Budget 2021-22 speech, which was delivered by Finance Minister Nirmala Sitharaman.
With plenty of hype surrounding the Budget owed to its arrival at a time when the country is reeling from a pandemic and an economic slowdown, the Budget covered various proposals which were centered around reducing the period of reopening of tax assessments, giving tax relief on certain fronts, streamlining tax litigation, corporate law, GST & other indirect taxes, and increasing the ease of doing business.
The document discusses changes made by the Central Board of Direct Taxes to Form 3CD, which is used for tax audit reports. Key changes include the addition of GST registration numbers under indirect tax laws (Clause 4) and the addition of new reporting requirements for deductions claimed under Section 32AD and deemed profits/gains from Section 32AD (Clauses 19 and 24). New Clauses 29A and 29B were also added related to reporting income from forfeiture of advances for capital asset transfers and deemed gifts under Section 56(2)(x). Guidance is provided on implementation of the new and modified clauses.
Budget synopsis by Blue Consulting (March 19th 2012)Chandan Goyal
The document provides a synopsis of direct and indirect tax proposals from the Indian budget presented on March 16, 2012. Key direct tax proposals include no change in corporate tax rates, removal of cascading dividend distribution tax, and increased thresholds for tax audits and presumptive taxation. International tax proposals focus on advance pricing agreements, transfer pricing regulations, and clarifications overriding previous court judgments. Personal tax proposals include an increased basic exemption limit and widening of the 20% tax slab.
The document provides an overview of taxation reforms in Bangladesh. It discusses reforms made to direct taxes like income tax, withholding tax, and self-assessment procedures. Reforms to indirect taxes like VAT and customs duties are also outlined, such as widening the VAT net and simplifying customs procedures. Other reforms included expanding the tax base, reforming capital market tax rules, and preventing tax evasion. Recommendations are made around progressive tax rates, a narrow tax base, unequal treatment of rural/urban and private/public sectors, and reducing tax exemptions.
The document discusses objectives of tax planning such as reduction of tax liability and making informed financial decisions. It also discusses factors to consider in tax planning such as residential status, heads of income, applicable tax laws, and substance over form. Capital gains from the sale of a plot of land are then computed. Dividend policy and factors affecting decisions are also summarized, including retaining earnings to finance growth versus paying dividends to maximize shareholder wealth.
Taxmann's GST Manual with GST Law Guide & Digest of Landmark Rulings (Set of ...Taxmann
The document is an excerpt from the Finance Minister's Budget Speech 2021 relating to proposed changes to the GST and excise duty framework in India.
Some key points:
- GST collections have reached record levels due to measures to simplify GST and crack down on tax evaders. Further measures are proposed to smoothen GST.
- Changes are proposed to various sections of the Central GST Act to facilitate taxpayers, improve compliance and enforcement, and make some technical amendments.
- Changes are also proposed to the excise duty rates specified in the Fourth Schedule of the Central Excise Act from April 2021 and January 2022.
The budget document summarizes key changes for salaried individuals, taxation of long term capital gains (LTCG), business income, international taxation, and miscellaneous items. For salaried taxpayers, deduction limits for medical expenses and interest income were increased. LTCG will now be taxed at 10% for gains over Rs. 1 lakh. Business income rules were expanded and tax rates increased for large companies. International tax provisions now include a broader definition of permanent establishment and taxing digital businesses based on economic presence in India. Various deductions and exemptions were also introduced or modified.
The document summarizes key changes made to taxation in Bangladesh through the Finance Act of 2022. Some key points include:
- Corporate tax was increased from 20% to 25% and minimum tax for companies was kept the same.
- Tax rebates for certain investments were lowered for those earning less than 15 lacs but increased for those earning more.
- No changes were made to personal income tax rates or net wealth surcharge rates.
- TDS rates on imports, supplies, services and interest payments were lowered in some cases.
- VAT submission requirements and exemptions were expanded and penalties for non-compliance were lowered.
- Supplementary duties were increased on various goods including food items, tobacco and vehicles.
This document discusses amendments to tax audit rules and sections of the Income Tax Act of 1961 for the assessment year 2013-2014. It provides details on mandatory e-filing of tax audit reports and various forms. It also summarizes amendments made to sections like 9, 32, 35, 40A, 44AB, 80IA, 90, 193, 194E, 194J, and 115O. The document then discusses issues around determining whether share trading constitutes a business or capital gains. It analyzes several court cases and their rationale. Finally, it provides guidance from ICAI on the meaning of turnover and examples for inclusion/exclusion.
Every year in finance act few changes are brought.There are also few changes in 2017-18 finance act in terms of corporate taxation.Taxation changes are highlighted here.
The Finance Bill 2014 introduces the concepts of "filers" and "non-filers" to distinguish between active and non-active taxpayers. A filer is defined as a taxpayer whose name appears on the active taxpayers list issued by the Federal Board of Revenue, or who has a taxpayer card. Significant differences are created between filers and non-filers under withholding tax provisions, with higher rates and amounts for non-filers in an effort to encourage more taxpayers to become filers and broaden the tax base.
The document summarizes key aspects of India's proposed Goods and Services Tax (GST) model law. It outlines 18 essential features of the law, including that it will levy tax on the supply of goods and services, define taxable persons and businesses, determine the time and value of taxable supplies, provide for input tax credits, registration requirements, tax returns, payments, and transitional provisions for existing taxes. The model law aims to simplify India's tax regime by introducing uniform GST across states to replace existing indirect taxes.
Similar to Presentation on changes in vat20 21 (20)
RFP for Reno's Community Assistance CenterThis Is Reno
Property appraisals completed in May for downtown Reno’s Community Assistance and Triage Centers (CAC) reveal that repairing the buildings to bring them back into service would cost an estimated $10.1 million—nearly four times the amount previously reported by city staff.
karnataka housing board schemes . all schemesnarinav14
The Karnataka government, along with the central government’s Pradhan Mantri Awas Yojana (PMAY), offers various housing schemes to cater to the diverse needs of citizens across the state. This article provides a comprehensive overview of the major housing schemes available in the Karnataka housing board for both urban and rural areas in 2024.
Contributi dei parlamentari del PD - Contributi L. 3/2019Partito democratico
DI SEGUITO SONO PUBBLICATI, AI SENSI DELL'ART. 11 DELLA LEGGE N. 3/2019, GLI IMPORTI RICEVUTI DALL'ENTRATA IN VIGORE DELLA SUDDETTA NORMA (31/01/2019) E FINO AL MESE SOLARE ANTECEDENTE QUELLO DELLA PUBBLICAZIONE SUL PRESENTE SITO
Food safety, prepare for the unexpected - So what can be done in order to be ready to address food safety, food Consumers, food producers and manufacturers, food transporters, food businesses, food retailers can ...
The Antyodaya Saral Haryana Portal is a pioneering initiative by the Government of Haryana aimed at providing citizens with seamless access to a wide range of government services
UN WOD 2024 will take us on a journey of discovery through the ocean's vastness, tapping into the wisdom and expertise of global policy-makers, scientists, managers, thought leaders, and artists to awaken new depths of understanding, compassion, collaboration and commitment for the ocean and all it sustains. The program will expand our perspectives and appreciation for our blue planet, build new foundations for our relationship to the ocean, and ignite a wave of action toward necessary change.
Bharat Mata - History of Indian culture.pdfBharat Mata
Bharat Mata Channel is an initiative towards keeping the culture of this country alive. Our effort is to spread the knowledge of Indian history, culture, religion and Vedas to the masses.
Jennifer Schaus and Associates hosts a complimentary webinar series on The FAR in 2024. Join the webinars on Wednesdays and Fridays at noon, eastern.
Recordings are on YouTube and the company website.
https://www.youtube.com/@jenniferschaus/videos
A Guide to AI for Smarter Nonprofits - Dr. Cori Faklaris, UNC CharlotteCori Faklaris
Working with data is a challenge for many organizations. Nonprofits in particular may need to collect and analyze sensitive, incomplete, and/or biased historical data about people. In this talk, Dr. Cori Faklaris of UNC Charlotte provides an overview of current AI capabilities and weaknesses to consider when integrating current AI technologies into the data workflow. The talk is organized around three takeaways: (1) For better or sometimes worse, AI provides you with “infinite interns.” (2) Give people permission & guardrails to learn what works with these “interns” and what doesn’t. (3) Create a roadmap for adding in more AI to assist nonprofit work, along with strategies for bias mitigation.
Jennifer Schaus and Associates hosts a complimentary webinar series on The FAR in 2024. Join the webinars on Wednesdays and Fridays at noon, eastern.
Recordings are on YouTube and the company website.
https://www.youtube.com/@jenniferschaus/videos
Indira awas yojana housing scheme renamed as PMAYnarinav14
Indira Awas Yojana (IAY) played a significant role in addressing rural housing needs in India. It emerged as a comprehensive program for affordable housing solutions in rural areas, predating the government’s broader focus on mass housing initiatives.
2. This presentation covers implications of the :
• Important changes brought about by the Finance Act, 2020 in the Value Added Tax &
Supplementary Duty, 2012 (hereinafter mentioned as VAT & SD Act, 2012);
• Contemporary Statutory Regulatory Orders related with VAT;
• Contemporary General Orders related with VAT.
Scope of this presentation
3. Changes Implications
New Previous Any service supplied from
outside Bangladesh would
come under the ambit of the
definition of imported service.
Previously, services rendered
from outside Bangladesh to
persons registered or eligible
for registration came under the
definition.
Any services
rendered from
outside
Bangladesh
to
Persons
registered or
eligible for
registration
Section 2(17)
Imported service
Changes in statutory definitions
4. Changes Implications
A definition of ‘Input’ has been introduced. There
was no such definition previously. There was an
explanation from NBR about ‘input’.
Most importantly, the new definition of ‘Input’
includes machineries which was not considered as
input under the explanation provided by NBR. Labor
has been excluded from the definition.
Taxpayers would not
be able to claim
credit for tax paid on
any item which does
not fall within the
ambit of the
definition.
Section 2(18A)
Input
Changes in statutory definitions cont……..
5. Changes in statutory definitions cont……..
‘Input’
means
Packaging
materials
All sorts of
raw
materials
Laboratory
reagent
Laboratory
accessories
Laboratory
equipment
Any
materials
used as
fuel
Machinery
and spare
parts
Service
6. Changes in statutory definitions cont……..
But ‘Input’ does not include:
1. Labor, land, building, office equipment and fixtures and balancing, modernization,
replacement, expansion, renovation and repair of any building or structure or establishment;
2. All kinds of furniture, office supplies, stationery, refrigerator and freezer, air-conditioner, fan,
lighting equipment and generator purchase or repair;
3. Interior design, architectural planning and design;
4. Vehicle rental and leasing;
5. Travel, hospitality, employee welfare, development work and any related goods and services; and
6. Rent of business premises, office, showroom or similar area, whatever the name may be.
Exception: In the case of the business conducted by a trader (mentioned in paragraph 3
of the Third schedule of the VAT and SD Act, 2012), goods purchased, acquired or
otherwise collected for sale, exchange or imported for subsequent transfer shall be
considered as input.
7. Changes Implications
Tax paid on acquisition of
immovable property has been
excluded from the definition.
No input tax credit will be available on
acquisition of immovable property.
Tax determination has been
defined as determination of tax
by “Appropriate officer” under
Chapter 11 of the VAT law.
It is actually an alignment of the definition
with the changes in Section 73 and 86 of the
VAT law. Previously, only the Commissioner
was vested with the responsibility of tax
determination.
Section 2(19)
Input tax
Changes in statutory definitions cont……..
Section 2(28)
Tax
determination
8. Changes Implications
Companies incorporated outside
Bangladesh has been included in the
definition.
Liaison and branch offices of companies
incorporated outside Bangladesh would
be considered as company and VAT
withholding entities since a company is
considered as a VAT withholding entity.
The word ‘Challan’ has been
replaced with “Challan Patro”.
This change has aligned the definition
with rest of the law.
Section 2(40)
Challan Patro
Changes in statutory definitions cont……..
Section 2(38)
Company
9. Changes Implications
Provision has been brought about to remove
the implication of registration threshold for
mandatory VAT registration irrespective of
turnover under Section 4(2) (d) of the VAT &
SD Act, 2012 for specified suppliers of goods
and services and persons involved in
economic activities in any specified
geographic areas.
Registration threshold will not
debar the effectiveness of the
provision of mandatory VAT
registration irrespective of
turnover as set out in Section
4(2)(d) of the VAT & SD Act,
2012.
Section 2(57)
Registration
threshold
Changes in statutory definitions cont……..
10. Changes Implications
New Previous Supply of any goods or service
intended for consumption
outside Bangladesh in
exchange of foreign currency
will be deemed as export.
International organizations, Joint or any similar
initiative for property development and Other
business organizations” have been inserted in
the list of entities considered as ‘Person’.
Newly inserted parties would
be considered as ‘Person’ and
come under VAT net.
Supply of any goods
or service
Supply of only input
of goods or services
Intended for consumption outside
Bangladesh in exchange of foreign
currency
Section 2(62)
Deemed Export
Section 2(74)
Person
Changes in statutory definitions cont……..
11. Changes Implications
New Previous Any supply (i.e. goods or
service) to outside Bangladesh
would be considered as
export.
The words of “Combined tax invoice” has
been deleted from the definition of
“Certificate of VAT deduction at source”.
The definition of “Certificate
of VAT deduction at source”
has been aligned with the
provisions Section 53 of the
Act.
Section 2(82)
Export
Any supply outside
Bangladesh
Any supply of goods
outside Bangladesh
‘Goods’ have been deleted from the
definition.
Changes in statutory definitions cont……..
Section 2(92)
VAT deduction at
source certificate
12. Inclusions:
1. Adjustment of input tax on export; and
2. Issuance of credit notes
Section 2(103)
Decreasing
adjustment
Modifications:
1. Adjustment for annual recalculation and audit
Deletion:
1. Adjustment to telecommunication service providers;
2. Purchase of secondhand products for resale; and
3. Indemnity payment under an insurance policy.
Changes in statutory definitions cont……..
13. Section 5(1)
Registration
NBR has been empowered to prepare Rules for-
1. Obtaining central registration; and
2. Payment of tax centrally.
Section 12
Suo moto registration
Concerned officers instead of the Commissioner would
be allowed to give suo moto VAT registration or
turnover tax enlistment.
Section 31(2)
Advance tax
Rate of advance tax has been re-
fixed as 4% for import of input for
production of goods and 5% in any
other cases.
New Previous
Rate of advance tax was 5% of
the VAT imposable base value of
the taxable import of inputs or
goods.
Implications of important changes introduced in
the VAT & SD Act, 2012
14. Section 31(3)
Advance tax
Change
The time period for decreasing adjustment of advance tax paid at import
stage has been extended by two months.
Implication
Now, taxpayers would be allowed to make decreasing adjustment in the
period of tax payment and 04 (four) subsequent tax periods.
Implications of important changes introduced in
the VAT & SD Act, 2012
15. Section 32(2)
Value of
imported
service
Implication
The consideration for imposition of VAT on imported service would be the value
of the service and if the service renderer and service receiver are associated
parties, the fair market price. Previously, there was a provision to consider the
value as inclusive of VAT for unassociated parties.
Section 33(2)
Payment of
tax liability
Implication
The time of payment of VAT liability for supply of progressive or periodic supply
of water, gas and electricity has been extended from 60 days to 90 days of
issuance of tax invoice.
Implications of important changes introduced in
the VAT & SD Act, 2012
16. Section 46(1)(c)
Input tax credit
Change
The timeline for claiming input tax credit has been extended by two months.
Implication
Taxpayers would be allowed to claim input tax credit in the period of purchase or
collection of input and 04 (four) subsequent tax periods.
Implications of important changes introduced in
the VAT & SD Act, 2012
Purchase and sales register have been inserted after Purchase register in Section 46(1)(e).
Implication
Traders have to mention information of purchases in the “Purchase and sales register” to
avail the benefit of input tax credit.
Change
Section 46(1)(e)
Input tax credit
18. Section 46(3)(d)
Input tax credit
Implication
Implication
Provision has been brought about to consider Treasury challan as a legitimate instrument
for claiming input tax credit against imported service.
Invoices raised by the respective agencies have been considered as ‘Challan Patro’ for
claiming input tax credit against supply of gas, water, electricity and telephone.
Section 46(2)(d)
Input tax credit
Implication
Input tax credit will be allowed up to 80% on expenditure incurred for transportation of
goods.
Implications of important changes introduced in
the VAT & SD Act, 2012
Section 46(3)(e)
Input tax credit
19. Section
48
Changes
Section 48 has been bifurcated between 02 (two)
subsections giving rise to increasing and
decreasing adjustments.
Implications
All the circumstances resulting increasing adjustments
and decreasing adjustments as defined in Section
2(71) and Section 2(103) have been replicated without
any editing. Allowing decreasing adjustment for VAT
credit note and input tax paid by exporters are the
most important items to be mentioned.
Implications of important changes introduced in
the VAT & SD Act, 2012
Adjustments
20. VAT deduction
at source
VAT
deduction
at source
Section
49(1)
Section 49(1) has been given supremacy over the
provisions of Section 33. As a result, procedure, time
and rate of tax payment regarding deduction of VAT
at source would prevail over general provisions of
tax payment.
Implications of important changes introduced in
the VAT & SD Act, 2012
Changes and
Implications
21. VAT deduction
at sourceVAT
deduction
at source Section
49(5)
A provision of non-deduction of VAT at source from
subcontractors, agents and any other service
rendering person appointed to deliver a part of a
project has been included in the VAT law. This VAT
benefit is subject to availability of evidence of VAT
collection/deduction by the main service receiver.
There was a similar provision in the VAT Act, 1991
but not in the VAT & SD Act, 2012.
However, the new provision states that the benefit
will not be applicable for procurement goods in a
project.
Implications of important changes introduced in
the VAT & SD Act, 2012
Changes and
Implications
22. VAT deduction
at sourceSection
50(3)
Collection of certificates from withholding entities
has been made a mandatory requirement for
claiming decreasing adjustment for VAT deducted at
source.
Implications of important changes introduced in
the VAT & SD Act, 2012
Changes and
Implications
VAT
deduction
at source
Section
53
VAT withholding entities have to issue certificate of
VAT deduction at source to the supplier in
accordance with the procedure fixed by the National
Board of Revenue.
23. Filing of VAT
return
The last date for submission of VAT
return has been mentioned as the
working day next to the 15th day of
the month in case the 15th day of the
month is a Government holiday.
Late filing of
VAT return
NBR has been empowered to extend time for
submission of VAT return without fine and
penalty in public interest upon receipt of
approval from the Government due to
natural disaster, pandemic and war. NBR will
be able to provide order with retrospective
application.
Section
64(1)
Section
64(1A) &
(1B)
Implications of important changes introduced in
the VAT & SD Act, 2012
24. Section
68
Carry forward and
refund of negative
balance
The provisions of Section 68 allowing carry forward of net negative balance
and refund of the same have been simplified. The negative balance has to be
carried for six tax periods for adjustment with net VAT liability. Negative
balance remaining after six tax periods will be refundable within 03 (three)
months of receiving application in prescribed methods and conditions.
Refund will not be allowed if the balance is not more than BDT 50,000. In
such a case, it has to be carried forward till reduction to zero.
The opportunity of refund has been opened for all. Previously, refund was
not allowed to construction contractors, real estate, land or property
development organizations.
Changes
Implication
s
Implications of important changes introduced in
the VAT & SD Act, 2012
25. Tax Refund
Section 71
Director General or the
Commissioner will be
entitled to give refund of
VAT paid by the
diplomatic and
international
organizations.
Tax determination
Section 73
Implications of important changes introduced in
the VAT & SD Act, 2012
‘The Appropriate officer’ authorized to
make adjudication has been
empowered to determine tax in
addition to the Commissioner. A VAT
officer not below the rank of Assistant
Commissioner has been empowered
to determine the tax liability in the
case of detection of irregularity in
claiming input tax credit and
decreasing adjustment.
26. Negation of tax
benefit
Section 76
Provisions related
to Commissioner’s
power to negate a
tax benefit in a
scheme has been
rephrased for
removal of
ambiguities.
Power to enter and
search
Section 83(4)
‘Revenue Officer’ has
been authorized to
inspect production and
supply/business premise
of a VAT payer within his
jurisdiction and audit the
stocks, services, inputs
and VAT accounts.
Implications of important changes introduced in
the VAT & SD Act, 2012
Section 78
VAT authority
Director General (DG) of
Duty Exemption and
Drawback Office (DEDO) has
been included with the
ambit of VAT authority and
its officers. DG, DEDO would
be able to perform the
functions of refund to
diplomatic and international
organizations.
27. Implications of important changes introduced in
the VAT & SD Act, 2012
Provision for adjudication without notice and hearing has
been enacted for self-acknowledgement of offence by the
taxpayer.
An Assistant Commissioner may be appointed as ‘Debt
Recovery Officer’. Previously, officers below the rank of
Deputy Commissioner could not be so appointed.
Section 86(3)
Adjudication
Section 95(1A)
Debt recovery
28. Appeal to Commissioner
of (Appeals)
The statutory deposit
requirement for filing appeal
to the Commissioner of VAT
(Appeals) has been
increased from 10% to 20%.
This provision would be an
extra burden to the
taxpayers.
The statutory deposit
requirement for filing appeal to
the Appellate Tribunal has
been increased from 10% to
20%. However, deposit would
not be required for filing
appeal against the Order of the
Commissioner of VAT
(Appeals).
Appeal to the Tribunal
Section
121(2)
Section
122(2)
Implications of important changes introduced in
the VAT & SD Act, 2012
29. Implications of important changes
introduced in the VAT & SD Act, 2012
The Government has been empowered to extend timeline
for disposal of appeals by the Appellate Tribunal in public
interest due to natural disaster, pandemic and war.
The Government will be able to give the order for extension
of time retrospective effect.
Section
122(2)
30. Implications of important changes
introduced in the VAT & SD Act, 2012
Section
126
The power of Government of Bangladesh and National
Board of Revenue to give exemption from advance tax
in addition to VAT and Supplementary Duty has been
specifically mentioned.
Power to give
exemption
31. First
Schedule
Second
Schedule
Second
Schedule
Amendment
in the
Schedules
VAT exemption under the
1st Schedule of the VAT &
SD Act, 2012 has been
extended to supply of soil,
sale of books, activities
related to buy and sale of
shares and air ambulance
services whereas
exemption on supply of
natural honey has been
withdrawn.
The table depicting Supplementary Duty (SD) rates on
import goods under specific HS Codes have been
substituted. SD rate on import of Sugar confectionery
(including white chocolate), not containing cocoa, put
up for retail sale) under HS Code 1704.10.10 and
1704.90.10 has been increased from 20% to 45%
whereas SD rate on import of Plaster Boards and sheets
(6809.11.00 and 6809.19.00) has been fixed as 10%.
SD rates on services rendered by SIM/RIM card in
mobile phone, services of BRTA and lessor of chartered
airplanes and helicopters have been increased by 5%.
VAT Exemption Supplementary duty
Implications of important changes introduced in
the VAT & SD Act, 2012
32. First
Schedule
Second
Schedule
Supplementary duty at supply stage
Implications of important changes introduced in
the VAT & SD Act, 2012
Heading H.S. Code Description of Goods New SD rate Previous rate
24.02 2402.20.00 Cigarettes containing tobacco 65% 55% to 65%
2402.90.00 Hand-made Bidi (with or without filter) 40% 35%
24.03 2403.99.00 Jorda 50% 50%
2403.99.00 Gul 50% 50%
69.10 Related HS
Codes
Ceramic sinks, basins, pedestal basins,
Commode and its parts, any type of toilet pan
and other sanitary fittings and fixtures.
10% 0%
Related HS
Codes
Ceramics bathtub and Jacuzzi, shower, shower
tray
30% 30%
33. First
Schedule
Third
Schedule
Third
Schedule
Amendment
in the
Schedules
Reduced rate of VAT on supply of potato flacks, maize (corn)
starch, fabrics made from man made fiber (except some areas),
router, loaded PCB, printed circuit board have been fixed as 5%.
Reduced rates of VAT on “Furniture distribution center”
(S024.20) and “Air-conditioned launch service” (S036.20) have
been increased from 5% to 7.5% and 10% respectively.
Specific amount of tax on supply of cotton yarn and yarn made
of artificial and other fiber (having prevalence of artificial fiber)
has been fixed as BDT 3 and BDT 6 per KG respectively.
Reduced rates & Specific amount of tax
Implications of important changes introduced in
the VAT & SD Act, 2012
34. Changes in VAT deduction at source
SRO No. 149-AIN/2020/110-VAT dated
11 June 2020 regarding VAT deduction
at source has replaced the previous
SRO No. 187-AIN/2019/44-VAT dated
13 June 2019.
SRO No. 149 has been further
amended by SRO No. 180 No.-180-
AIN/2020/120-VAT dated 30 June 2020
SRO No. 149-
AIN/2020/11
0/VAT dated
11 June 2020
SRO No. 187-
AIN/2019/44-
VAT dated 13
June 2019
35. Changes in VAT deduction at source
A withholding entity is
required to deduct VAT at
source from payment for
supply of goods adopting
reduced VAT rates or specific
amount of VAT as mentioned
in the Third Schedule of the
Act.
36. Changes in VAT deduction at source
A withholding entity is required to
deduct VAT at source from the
payment for certain services at
specified rates irrespective of
availability of tax invoice and the
VAT rate adopted. The list of
services under mandatory
deduction at source has been
provided in the next slide to this
presentation. Deduction would
not be applicable for services not
mentioned in the list if the service
renderers provide tax invoice.
Taxpayers within
the jurisdiction of
VDS and paying
tax @15% would
face a tremendous
working capital
problem.
Services having
reduced rate of
VAT but not
falling within the
list would not
come under VAT
deduction at
source.
37. S. L. Service Code Description Rate of deduction
1.
S001.10 Air-conditioned hotel 15%
S001.20 Air-conditioned restaurant 15%
S001.10 Non air-conditioned hotel 7.5%
S001.20 Non air-conditioned restaurant 7.5%
2. S002.00 Decorators and caterers 15%
3. S003.10 Motor vehicles garage and workshop 10%
4. S003.20 Dockyard 10%
5. S004.00 Construction company/firm 7.5%
6. S007.00 Advertising agency 15%
7. S008.10 Printing press 10%
8. S009.00 Auctioneer 10%
9. S010.10 Land development organization 2%
10. S010.20 Building construction organization
1-1600 sq. feet 2%
Over 1600 sq. feet 4.5%
Registration for any size 2%
List of services under mandatory deduction at source
38. List of services under mandatory deduction at source
S. L. Service Code Description Rate of deduction
11. S014.00 Indenting organization 5%
12. S015.10 Freight forwards 15%
13. S020.00 Survey firm/agency 15%
14. S021.00 Plant and capital machinery rent provider 15%
15. S024.00
Furniture
sales
centre/seller
of furniture
(a) At manufacturing stage 7.5%
(b) At showroom/At marketing stage (subject to
availability of challan re payment of VAT @ 7.5%
at production stage, otherwise 15%)
7.5%
16. S028.00 Courier and express mail service 15%
17. S031.00
Individuals, organizations or associations engaged in repairing or
servicing of taxable goods in exchange of consideration
10%
18. S032.00 Consultancy and supervisory firm 15%
19. S033.00 Lessor (Izaradar) 15%
20. S034.00 Audit and accounting firm 15%
39. List of services under mandatory deduction at source
S. L. Service Code Description Rate of deduction
21. S037.00 Procurement provider 7.5%
22. S040.00 Security services 10%
23. S043.00 Provider of programs that broadcast through television and online 15%
24. S045.00 Legal advisors 15%
25. S048.00 Transport contractor
(a) For transports of petroleum products 5%
(b) For transport of other products 10%
26. S049.00 Rent-a-Vehicle 15%
27. S050.10 Architect, interior designers or interior decorators 15%
28. S050.20 Graphic designer 15%
29. S051.00 Engineering firms 15%
30. S052.00 Sound and lighting instrument rent provider 15%
31. S053.00 Participants in board meetings 10%
32. S054.00 Advertisement broadcasting agency through satellite channel 15%
33. S058.00 Renter of chartered planes or helicopters 15%
40. List of services under mandatory deduction at source
S. L. Service Code Description Rate of deduction
34. S060.00 Purchaser of auctioned goods 7.5%
35. S065.00 Clearing and maintaining agencies of building, floor and premises 10%
36. S066.00 Lottery ticket seller 10%
37. S067.00 Immigration advisor 15%
38. S071.00 Program organizer 15%
39. S072.00 Human resource supplier or management organization 15%
40. S099.10 Information technology enabled services 5%
41. S099.20 Other miscellaneous services 15%
42. S099.30 Sponsorship services 15%
43. S099.50 Credit rating agency 7.5%
41. VAT deduction at source (VDS) management for
service renderer
Step-1
• An audit & accounting
firm issues Tax Invoice (i.e.
Form VAT 6.3) to its clients
for the professional
services rendered.
Step-2
• Tax (VAT) payment @ 15% by
the audit & accounting firm
at the time of submission of
monthly VAT return.
Step-3
• The audit & accounting firm
receives professional fee
from its clients with the tax
(VAT) amount.
Existing mechanism: Hypothetical example for an audit and accounting firm
42. VAT deduction at source (VDS) management for
service renderer
New mechanism: Hypothetical example for an audit and accounting firm
Step-1
The audit &
accounting firm
issues Tax Invoice
(Form Mushak-
6.3) to its clients
for the
professional
services rendered.
Step-2
Tax (VAT)
payment @ 15%
by the audit &
accounting firm
at the time of
submission of
the VAT return.
Step-3
The audit &
accounting firm
receives
professional fee
from its clients
after deduction of
the tax (VAT)
amount.
Step-4
The audit & accounting
firm collects the VDS
certificate (Form Mushak-
6.6) from its clients and
makes a decreasing
adjustment based on the
same in its monthly VAT
return.
Minimize time gap for Efficient working capital management
43. Changes in VAT deduction at source for service receiver
VAT
deduction
source
Deducted VAT has to be
deposited to the
Government exchequer
within 15 days of
payment to supplier.
Current provision of
depositing VDS by
making increasing
adjustment in VAT return
has been repealed.
Certificate of
deduction in Form
6.6. is to be issued
within (03 three)
working days of
depositing the VAT
deducted at source.
Copy of
certificate is
to preserved
for 05 (five
years).
44. Changes in VAT deduction at source for service receiver
An increasing adjustment is
to be done for the VAT
deducted at source from the
vendors. The amount of VDS
already deposited to
Government treasury is
adjustable against the net
VAT payable of the
concerned tax period.
This approach appears
to be contradictory
with the provision of
Section 45 and Section
49(3)(a) of the VAT &
SD Act, 2012.
45. Changes in VAT deduction at source
In the case of payment
of fees to non-residents
staying outside
Bangladesh by an
unregistered person.
The concerned bank will deduct VAT
@ 15% while making payment and
deposit the same to the government
exchequer mentioning the code of
the Commissionerate where the bank
is registered.
46. Changes in VAT deduction at source
In the case of
payment of fees
to non-residents
staying outside
Bangladesh by
registered person
The concerned
bank will not
deduct VAT at
source if the
registered person
can provide copy of
treasury challan
evidencing the due
VAT payment.
In the absence of proper treasury
challan or under payment, the bank
will deduct the applicable VAT at
source and deposit the same to
Government exchequer mentioning
the concerned Commissionerate
code.
47. Changes in VAT deduction at source for service receiver
Hypothetical calculation of net VAT payable amount in VAT return (Mushak- 9.1)
Particulars SL
Before the
new SRO
After the
new SRO
SUPPLY - OUTPUT TAX 1
Sales BDT 1,500,000 @ 15% VAT 225,000 225,000
PURCHASE - INPPUT TAX 2
Purchase BDT 2,000,000
Input tax credit 220,000 220,000
INCREASING ADJUSTMENTS (VAT) 3
VAT Deducted at Source from the payment of vendors/clients 270,000 270,000
VAT on office rent 30,000 30,000
300,000 300,000
DECREASING ADJUSTMENTS (VAT) 4
VDS certificate (Mushak-6.6) received from vendors/clients 30,000 30,000
NET TAX CALCULATION (5=1-2+3-4) 5 275,000 275,000
ACCOUNTS CODE WISE PAYMENT SCHEDULE (TREASURY DEPOSIT) 6
For 2019-2020 (Net tax amount shall be deposited into the government treasury before submitting VAT
return).
275,000
For 2020-2021 (Here registered person shall deposit the amount of VAT deducted at source to
government exchequer by treasury challan. The registered person can adjust the deposited VAT
amount with the net VAT payable.)
300,000
CLOSING BALANCE (7=5-6) 7 - (25,000)
48. No VDS for supply of medicines from warehouse and depo
Medicine manufacturers pay the VAT applicable at
manufacturing and trading stage at the time of supply after
manufacturing stage.
As such, there would not be any VDS if medicine is supplied
from the warehouse or depo of the medicine manufacturer.
General Order No. 12/VAT/2020 dated 11 June 2020
49. Implications of important changes in the
the VAT & SD Rules, 2016
Rule 19 (3)
Refund of Advance tax
Rule 21
Input-output Co-efficient
Application for refund of
advance tax has to be filed
within 120 days of tax
payment instead of previous
60 days.
Declaration will not be
required for
exportable/exported goods.
50. Implications of important changes in the
the VAT & SD Rules, 2016
The Value Added Tax & Supplementary Duty Rules, 2016 has been amended by
the following SROs:
SRO No.-142-AIN/2020/103-VAT dated 11 June 2020;
SRO No.-179-AIN/2020/179-VAT dated 30 June 2020
51. Implications of important changes in the
the VAT & SD Rules, 2016
Rule 24A
Disposal of unused/useless inputs
Application for disposal of
unused/useless inputs is to be filed with
the Divisional Officer in prescribed form
VAT 4.4. Divisional office is to give
decision within 15 working days and
send a report to the Commissioner
within 07 (seven) days. Increasing
adjustment is to be done for the input
tax credit claimed against disposed of
inputs in the next tax period.
Newly
Inserted
52. Implications of important changes in the
the VAT & SD Rules, 2016
Disposal of
unused/
useless Input
Implications
Application for disposal of goods damaged or destroyed in accident
has to be filed with the Divisional officer in Form VAT 4.5 within 02
(two) days of accident. The Divisional officer will determine the
supply value and the tax payable, if any, on the damaged or
destroyed goods and give decision within 30 days of receiving the
application.
Increasing adjustment is to be done for input tax credit taken on
totally destroyed goods. In the case of damaged or destroyed goods
having supply value, increasing adjustment is to be done in
accordance with the proportion of supply value determined by the
Divisional officer and the fair value of the goods damaged.
Rule 24BRule 24B
Disposal of goods
damaged or
destroyed in
accident
Newly Inserted
53. Implications of important changes in the
the VAT & SD Rules, 2016
Application for disposal of waste and byproduct has to be
filed with the Divisional officer by Form VAT 4.3. Valuation of
waste and byproducts has to be done in accordance with
Fair Value Rules, 2019 and other procedural formalities have
to be ensured.
Where the organizations want to get rid of wastage and
byproducts having nugatory value, application of
sophisticated fair value rules and compliance with other
strict procedural formalities do not appear cost effective for
the taxpayers.
Rule 24C
Disposal of waste
and byproducts
54. Implications of important changes in the
the VAT & SD Rules, 2016
Rule 40 (1C)
Tax Invoice
Rule 40 (7)
Tax Invoice
Rule 61 (5)
Search and Seizure
Nature and number of
vehicle is to be mentioned
in the tax invoice. The
Form of tax invoice (i.e.
Form VAT 6.3) has been
revised accordingly. The
original tax invoice is to be
carried with the vehicle at
the time of transportation
of the goods.
NBR has been
empowered to
declare bill or invoice
issued by any
registered person in
their own format as
tax invoice by
notification in
Government Gazette.
The concerned officer
has to give primary
report and final report
to the Commissioner
within 03 (three) and
15 (fifteen) days of
seizure respectively.
55. Implications of important changes in the
the VAT & SD Rules, 2016
Rule 109
Rule 110
Rule 111
Rule 109 has been replaced providing detailed
guidelines for awarding certificate of VAT
consultant. Application fee has been fixed as BDT
5,000. Prequalification criteria have been fixed as
citizenship of Bangladesh, 25 years’ of age at the
date of application and certificate of graduation
or equivalent from any recognized university.
VAT
Consultant
56. The registered or enlisted person has to apply to the
Divisional Officer before 48 hours of refraining from
supply. The Divisional officer or officer authorized in this
behalf will conduct inspection of stock within 24 hours of
being informed. The person has to inform the Divisional
office in the working day before resuming the supply.
Rule 118B
Refraining from
supply
Implications of important changes in the
the VAT & SD Rules, 2016
Newly
Inserted
57. Newly Inserted
Implications
The registered or enlisted person has to apply to
the Divisional Officer before 48 hours of
refraining from supply. The Divisional officer or
officer authorized in this behalf will conduct
inspection of stock within 24 hours of being
informed. The person has to inform the
Divisional office in the working day before
resuming the supply.
Some forms have been replaced
Form No. Particulars
4.4 Application for disposal of unused/useless inputs
4.5 Application for disposal of damaged and destroyed goods
6.2.1 Purchase and sales register for traders
6.3 Tax invoice
6.5 Transfer of goods by centrally registered organizations
6.7 VAT credit note
6.8 VAT debit note
9.2 Turnover tax return
18.1 Application for VAT consultant license
18.1A Awarding VAT consultant license
58. S.L. SRO No. Date Particulars
1 144-AIN/2020/105-VAT 11 June 2020 Exemption at different stages (i.e. Import Stage, Import and
Manufacturing Stage and Trading Stage) ;
2 145-AIN/2020/106-VAT 11 June 2020 Rules for valuation and use of stamp and band rolls for tobacco
enriched cigarettes;
3 146-AIN/2020/107-VAT 11 June 2020 Rules for use of collection of tax and use band rolls for Bidi;
4 147-AIN/2020/108-VAT and
155-AIN/2020/116-VAT
11 June 2020 Exemption from Supplementary duty for cigarettes and bidi;
5 148-AIN/2020/109-VAT 11 June 2020 Amendment in Fair Value Rules;
6 151-AIN/2020/112-VAT 11 June 2020 Exemption from advance tax;
7 152-AIN/2020/113-VAT 11 June 2020 Change in Rules for awarding VAT consultant license;
8 153-AIN/2020/114-VAT 11 June 2020 Delegation of Commissioner’s duties and responsibilities to
subordinate authorities (i.e. Assistant Commissioner and
VAT online system reviewer etc.);
9 154-AIN/2020/115-VAT 11 June 2020 Extension of timeline of exemption from advance tax for mobile
manufacturers up to 30 June 2021.
Some other important SROs
59. 01 GO No. 09/VAT/2020
02
03
Date: 11 June 2020
Cancellation of Go No. 23/VAT/2019
dated 26 October 2019 defining
scope of input.
GO No. 10/VAT/2020
Date: 11 June 2020
Submission of certain documents to
Customs station by importers of
inputs for the purpose of availing
4% advance tax facility as
manufacturer.
GO No. 11/VAT/2020
Date: 11 June 2020
Refund of VAT and SD, if any, paid
by the High Commissions,
Diplomats, UN system organizations
and other organizations of
diplomatic status.
Some Important General Orders (GOs)