Category: SHRUTHI M

Read More

With a view to ensure uniformity in implementation of provisions vis-a-vis taxability of personal/corporate guarantee across field formations, CBIC issues clarification as follows ; i) that providing personal guarantee by director to banks/financial institutions for securing credit facilities for their companies, is a taxable service even if provided without consideration; However considering that as per RBI guidelines no payment can be made to director for the same, taxable value shall be the open market value of such supply, which shall be Zero; As regards Corporate Guarantee provided by a company to 'related' person, including a subsidiary company, the same shall be considered a supply of service, the taxable value of which shall be determined as per Rule 28, Sub-rule 2 of CGST Rules ( inserted vide Notification dated 52/2023 dated…

Issue: Co-location is a data center facility in which a business/company can rent space for its own servers and other computing hardware along with various other bundled services related to Hosting and information technology (IT) infrastructure. A business/company who avails the co-location services primarily seek security and upkeep of its server/s, storage and network hardware; operating systems, system software and may require to interact with the system through a web-based interface for the hosting of its websites or other applications and operation of the servers. In this respect, various doubts have been raised as to i. whether supply of co-location services are renting of immovable property service (as it involves renting of space for keeping/storing company’s hardware/servers) and hence the place of supply of such services is to be determined…

Various representations have been received requesting for clarification regarding admissibility of export remittances received in Special INR Vostro account, as permitted by RBI, for the purpose of consideration of supply of services to qualify as export of services as per the provisions of clause (6) of section 2 of the Integrated Goods & Services Tax Act, 2017 (herein after referred to as the ‘IGST Act”). The issue has been examined and to ensure uniformity in the implementation of the provisions of law across the field formations, the Board, in exercise of its powers conferred by section 168 (1) of the Central Goods & Services Tax Act, 2017 (herein after referred to as the ‘CGST Act”), hereby clarifies the issue as under: Relevant legal provisions: 3.1 Export of services has been…

Issue: Sub-section (9) of section 13 of Integrated Goods and Services Tax Act, 2017 (hereinafter referred to as “IGST Act”) has been omitted vide section 162 of Finance Act, 2023 which will come into effect from 01.10.2023. After the said amendment, doubts have been raised as to whether the place of supply in case of service of transportation of goods, including through mail and courier, in cases where location of supplier of services or location of recipient of services is outside India, will be determined as per sub-section (2) of section 13 of IGST Act or will be determined as per sub-section (3) of section 13 of IGST Act. Clarification: Place of supply of services where location of supplier or location of recipient is outside India is determined as per…

Advertising companies are often involved in procuring space on hoardings/ billboards erected and mounted on buildings/land, in different States, from various suppliers (“vendors”) for providing advertisement services to its corporate clients. There may be variety of arrangements between the advertising company and its vendors as below: Issue: There may be a case wherein there is supply (sale) of space or supply (sale) of rights to use the space on the hoarding/ structure (immovable property) belonging to vendor to the client/advertising company for display of their advertisement on the said hoarding/ structure. What will be the place of supply of services provided by the vendor to the advertising company in such case? Clarification: The hoarding/structure erected on the land should be considered as immovable structure or fixture as it has been…

(Prepared as per media reports) The scheme intends to help traders with settling their pending tax dues. The pending commercial dues in Tamilnadu is a whooping ₹ 25,000 Crores. With a twin motive of easing the pressure on officials cum judicial machinery and collection of pending dues, Govt has introduced the Samadhan scheme which is effective from 16th October 2023 to 15th February 2024. Range of Pending tax duesLiability to be paid.<Rs.50,000 (Including taxes, interest, and penalty) Complete waiverRs.50,000 – Rs.10,00,000 (Including taxes, interest, and penalty)(i) Flat 20% of dues to be paid in 1 installment(ii) For those who have accepted the tax assessment:66% of dues + 10% interest + 10% Penalty(iii) For those who have filed an appeal33% of dues + 10% interest + 10% Penalty(iv) For those with no…

Vide the notification, CBDT has extended the time limits for submission of TDS and TCS return for the 1st Quarter of FY 2023-24. Generally, the due date for filing of TDS Returns (Form 24Q, 26Q, 27Q) and TCS return (Form 27EQ) is 31/07/2023 and 15/07/2023 respectively for the 1st Quarter. However, vide the notification, time limit for filing of the above returns has been extended to 30th September 2023. Government breather on new TCS regime, to come into effect October 1 Let us make an attempt to understand the changes in TCS Regime & allied amendments. For this, lets divide our discussion into three parts: New TCS Rates E gazette notification on 16th May Conclusion Understanding the new TCS Rates: It all started with the Union Budget 2023. An increase…