Due dates for the Month of July 2019

 Due dates for the Month of July 2019  July 2019
Jul 052019
 

Due dates for the Month of July 2019
7th
 Income Tax
– TDS Payment for June
10th
 GST
– Return for authorities deducting tax at source – GSTR 7 for June
– Details of supplies effected through e-commerce operator and the amount of tax collected –
GSTR 8 for June.
11th
 GST
– Details of outward supplies of taxable goods and/or services effected – GSTR 1 for June
13th
 GST
– Return for Input Service Distributor – GSTR 6 for June
15th
 Providend Fund
– PF Payment for June
ESIC
– ESIC Payment for June
15th
 Income Tax
– TCS Quarterly Statements (Other than Government Deductor) for April to June
18th
 GST
– Quarterly Return for Composition Suppliers – GSTR 4 April to June
20th
 GST
– Monthly return on the basis of finalisation of details of outward supplies and inward supplies along with the payment of amount of tax – GSTR 3B for June
– Return for Non-Resident foreign taxable person – GSTR 5 for June
25th
 GST
– Quarterly submission of details of goods sent for job work ITC – 04 April to June
28th
 GST
– Details of Inward Supplies to be furnished by a person having UIN and claiming refund – GSTR 11 for June
31st
 GST
– Quarterly Return in GSTR 1 for turnover upto 1.5 crore for April to June
31st
 Income Tax
– TDS Quarterly Statements (Other than Government Deductor) for April to June
– Return of Income for Non Corporate Assessees
31st
 Profession Tax
– Monthly Return (covering salary paid for the preceding month) (Tax Rs. 50,000 or more)
Sensys Technologies Pvt. Ltd.
HO: 904, 905 & 906, Corporate Annexe, Sonawala Road, Goregaon East, Mumbai- 400 063.
Tel.: 022-6820 6100| Call: 09769468105 / 09867307971
Email: sales@sensysindia.com | Website: http://www.sensysindia.com
Branches: Delhi & NCR | Pune | Bangalore | Hyderabad | Ahmedabad | Chennai | Kolkata
Visit our BLOG for latest news and updates related to XBRL, Income Tax, HR & Payroll, PF / ESIC / TDS / PT etc.. Click here to visit Sensys BLOG

Supply under GST in light of latest amendment

 Supply under GST in light of latest amendment  Supply under GST in light of latest amendment
Jul 032019
 

Supply under GST in light of latest amendment

Introduction:

Goods and service tax as defined under Article 366(12A) of constitution is any tax on supply of goods or services or both except taxes on the supply of the alcoholic liquor for human consumption. The terms “Supply” supply being critical for levy of GST is defined under section of CGST act and made applicable to IGST, SGST and UTGST also. This section 7 is amended by CGST amendment act 2018 retrospectively from 01.07.2017.

Amendment 1:

Prior to amendment After amendment Effect
“Section 7. (1) For the purposes of this Act, the expression “supply” includes––

…….

(d) the activities to be treated as supply of goods or supply of services as referred to in Schedule II. ”

 New sub-section (1A) is inserted under Section 7 of the CGST Act, which provides that,

 

Where certain activities or transactions constitute a supply in accordance with the provisions of sub-section (1), they shall be treated either as supply of goods or supply of services as referred to in Schedule-II.

 Activities/ transactions listed in Schedule II  shall be taxed only when they constitute ‘supply’ in accordance with provisions of Section 7(1)(a), (b) and (c) of the CGST Act

Amendment 2:

Prior to amendment After amendment Effect
Para 4 of Schedule I to the CGST Act covered import of services –

 

By a taxable person from a related person or from any other establishment outside India in the course or furtherance of business,

to be treated as supply for applicability of GST even if no consideration is involved.

 The words ‘taxable person’ in Para 4 of Schedule I is replaced by ‘person’ vide the CGST Amendment Act, 2018, effective from February 1, 2019 Import of services  by entities

ü  which are not registered under GST (say, they are only making exempted supplies)

ü  but are otherwise engaged  in business activities

shall be liable to tax when received from a related person or from any of their establishments outside India

Amendment 3:

Prior to amendment After amendment Effect
NIL Inclusion of following three types of transactions in Schedule III to the CGST Act (i.e. activities or transactions which shall be treated neither as a supply of goods nor a supply of services):

ü  Merchant trading i.e. supply of goods from a place in the non-taxable territory to another place in the non-taxable territory without such goods entering into the taxable territory.

ü  High seas sales i.e. sale carried out by the actual consignee shown in the Bill of Lading to another buyer while the goods are yet on high seas or after their dispatch from the port of loading and before entering the customs frontier of India.

ü  In-bond sale i.e. sale of imported goods from customs bonded warehouses.

 

 The above-mentioned transactions viz. merchant trading, high seas sales, in-bond sales shall not be regarded as exempt supply for reversal of input tax credit.

GST on real estate sector

 GST on real estate sector  GST on real estate sector
Jul 012019
 

GST on real estate sector

GST Update

GST Council in the 34 meeting held on 19 March, 2019 at New Delhi discussed the operational details for implementation of the recommendations made by the council in its 33 meeting for lower effective GST rate of 1% in case of affordable houses and 5% on construction of houses other than affordable house. The council decided the modalities of the transition as follows.

Transitional provision: Option in respect of ongoing projects:

The promoters shall be given a one -time option as mentioned below on ongoing projects that is on buildings where construction and actual booking have both started before 01.04.2019 and which have not been completed by 31.03.2019:

  • To continue to pay tax at the old rates -> effective rate of 8% or 12% with ITC.

The option shall be exercised once within a prescribed time frame and where the option is not exercised within the prescribed time limit new rates shall apply.

New tax rates:

The new tax rates which shall be applicable to new projects or on-going projects which have exercised the above option to pay tax in the new regime are as follows.

New rate of 1% without input tax credit (ITC) on construction of affordable houses shall be available for:

All houses which meet the definition of affordable houses as decided by GSTC (area 60 sqm in metros / 90 sqm in non- metros and value upto RS. 45 lakhs), and

  • affordable houses being constructed in on-going projects under the existing central and state housing schemes presently eligible for concessional rate of 8% GST (after 1/3 land abatement).

New rate of 5% without input tax credit shall be applicable on construction of–

All houses other than affordable houses in on-going projects whether booked prior to or after 01.04.2019.

In case of houses booked prior to 01.04.2019, new rate shall be available on instalments payable on or after 01.04.2019.

Conditions for the new tax rates:

The new tax rates of 1% (on construction of affordable) and 5% (on other than affordable houses) shall be available subject to following conditions,-

  1. Input tax credit shall not be available,
  2. 80% of inputs and input services (other than capital goods, TDR/ JDA, FSI, long term lease (premiums)) shall be purchased from registered persons.
  3. On shortfall of purchases from 80%, tax shall be paid by the builder @ 18% on RCM However, Tax on cement purchased from unregistered person shall be paid @ 28% under RCM, and on capital goods under RCM at applicable rates.

Treatment of TDR/ FSI and Long term lease for projects commencing after 01.04.2019:

The following treatment shall apply to TDR/ FSI and Long term lease for projects commencing after 01.04.2019.

  • Supply of TDR, FSI, long term lease (premium) of land by a land owner to a developer shall be exempted subject to the condition that the
    • Constructed flats are sold before issuance of completion certificate and tax is paid on them.

Exemption of TDR, FSI, long term lease (premium) shall be withdrawn in case of flats sold after issue of completion certificate, but such withdrawal shall be limited to 1% of value in case of affordable houses and 5% of value in case of other than affordable houses. This will achieve a fair degree of taxation parity between under construction and ready to move property.

  • The liability to pay tax on TDR, FSI, long term lease (premium) shall be shifted from land owner to builder under the reverse charge mechanism (RCM).
  • The date on which builder shall be liable to pay tax on TDR, FSI, long term lease (premium) of land under RCM in respect of flats sold after completion certificate is being shifted to date of issue of completion
  • The liability of builder to pay tax on construction of houses given to land owner in a JDA is also being shifted to the date of

The decisions of the GST Council have been presented in this note in simple language for easy understanding. The same would be given effect to through Gazette notifications/ circulars which alone shall have force of law.

 Newer Entries