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IS GST APPLY WHEN GOODS SENT TO JOB WORKER???

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What is Job Work????    Section 2(68) of GST Act, Any Treatment or process Undertaken by a Person on Goods Belonging to another registered person Important Points From Defination: Ownership of goods doesnot belong to Job worker Job worker will carry out only that process/treatment as specified by the Principal. TAKING OF CREDIT: Section 19 of CGST Act, Principal entitled to take credit of input(Raw Material) if such input is sent to job worker and also even when such raw material directly sent to job worker without bringing raw material to the premises of principal. SENDING GOODS TO JOB WORKER: Section 143 of CGST Act, Taxable goods sends to job worker without payment of tax only if certain terms and conditions to be satisfied. Intimation letter shall be sent by principal manufacturer to the E-mail ID of the Jurisdictional officer which is available on the common portal.  Such letter shall be sent before removal of goods.  The physical c...
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IS E-WAY BILL REQUIRED FOR TRANSPORTERS WHO DONT HAVE GST NUMBER??

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1. All INTER-STATE movement of goods having value Rs. 50,000 and more will be covered under      E- Way Bills provision and such provisions will be effective with effect from 1st Feb 2018. 2. All INTRA-STATE movement of goods, the E-way bills system will be effective from 1st June        2018. 3. As it is already discussed under Rule 138 of CGST Rules, E-way bill is to be generated by the person who causes movement of goods which is having value exceeding Rs. 50,000 4. E-way Bill is to generated on website =>    www.ewaybill.nic.in 5. E-way bill is generated by either Supplier/receiver/transporter. BUT HERE AN IMPORTANT ISSUE IS THAT we normally see many supplier/transporter/received is NOT REGISTERED on common portal or NOT HAVING GST NUMBER as they are not liable to get a GST Number BUT here an extra facility for such non registered person to generate E-Way bill by enrolling on above mention site. Such detail is mentioned in...
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IS GST APPLY WHEN SUBSIDY IS LINKED TO SUPPLY/PRICE???

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Section 15 of CGST Act, specifically provides that TRANSACTION VALUE   SHALL INCLUDE items which are specified in Clauses (a) to (e) Clause (e) : describes subsidy provided in any form or manner                     linked to the supply (Excluding Government Subsidy)                     will also be included in Transaction Value. Here in this clause: nothing is mentioned about who is providing the subsidy. Hence,subsidy provided  by any Person in any FORM             it shall also be included in transaction value. IMPORTANT POINT IS: Subsidy shud be directly linked to the price. EXAMPLE 1 : What about Gas Subsidy as such subsidy is also related to supply of GAS                                       CYLINDERS?? The company is making...
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TECHNICAL UNDERSTANDING OF E-WAY BILLS.

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1. If Supply is interstate(in another state) E-way Bill required?      Yes, In Interstate transfer of Goods,.,E-way Bill is ALWAYS REQUIRED, even if value of                  goods is Less Than Rs. 50,000 2. What about intra-state transfer of goods?     E-way bill is required only if VALUE OF GOODS>Rs. 50,000  if value < 50,000 NO E-WAY              BILL. 3 . When E-Way Bill is NOT REQUIRED???-But One Can generate E way At Option.      If  goods are falling in Specific exemption Cases Under Rule 138 (Separate blog related to         such goods will be made)       If  Registered Supplier is not making movement of goods i.e recipient of goods is                 transferring goods in his own behalf and Recipient is UNKNOWN i.e    ...
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DOES GST/REVERSE CHARGE APPLY ON SALE OF USED CARS?? SPECIALLY REVERSE CHARGE???

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SCOPE OF GST :    All form of supply of goods or services or both as sale,transfer,exchange,rental, etc made or agreed to be made(i.e. agreement had done by taking advance from the party) for a CONSIDERATION by a PERSON in course of FURTHERANCE OF BUSINESS CASE 1- BOTH BUYER AND SELLER ARE UNREGISTERED  No GST will be applied: As per scope, there is no furtherance of the business             Exp: if Seller is a common man(not having GST Number)             Buyer is Dealer of Second hand goods             If he buys the Car- THEN it is for the furtherance of the business             in that case the TURNOVER of the dealer comes to play.           I) IF DEALER IS NOT REGISTERED -TURNOVER BELOW 20 LACS                 Here Common man sells his car to unregi...
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INTEREST ON "Housing Loan VS Loan Against Property" + Tax Planning/Benefits.

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Loan Against Property(LAP)  1. LAP is a loan which is given against the property. 2. Its is a secured loan where your property whether residential or commercial property is                        MORTGAGED and you get loan against it. 3. Here person already owns a property and he is taking loan against it. 4. Usage of loan can be for any other purpose as the borrower wishes. 5. Lending limit is usually 50% to 60% of the market value of the property.           Hence there is no upper limit of LAP, usually personal loans wont go beyond 10 to 15 Lacs. 6.  Interest on LAP : As the loan is already secured, hence the interest rates on LAP is usually on          the  lower side as compared to the personal loan. 7. TAX BENEFITS : As the borrower has mortgage his property hence NO TAX  BENEFITS           under section 80C and Se...
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SPECIAL HOUSING LOAN INTEREST DEDUCTION OTHER THAN SECTION 24 OF INCOME TAX ACT,1961

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Here in this Blog, we will discuss about Housing Loan Interest Deduction Over and above the Rs. 2 Lacs deduction Under Section 24 of Income Tax act,1961 AND Rs. 1.50 Lacs Under Section 80C (For Principle Amount of Loan) I.E. SECTION 80EE-DEDUCTION OF INTEREST ON HOME LOAN Conditions for Claiming Deduction: 1.  Value of Property<(Less Than) Rs. 50 Lacs 2. Value of Loan < Rs. 35 Lacs 3.  Available to first time buyer: Means one who takes the loan for the house, that house shud                be his first house or doesn't own any other house. 4. Deduction: From FY 2016-17 onwards- Maximum deduction is Rs. 50,000 per Year till the            repayment of whole loan. (As amended by Finance Act, 2017) 5. This Deduction is available only for ACQUISITION OF RESIDENTIAL HOUSE                            PR...
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