Many times a customer located outside India places an order on an Indian manufacturer to supply certain components. For manufacture of these components Indian supplier is required to incur certain costs for designing the tools. Said cost is recovered from the customer as tool development charges.
It normally happens in the automobile sector that the automobile supplier provides certain tools & dies to various component suppliers free of cost. Such tools and dies are not in the scope of the component supplier as per the terms of the contract. Component supplier shall use such tools & dies so provided for the manufacture of various components which are sold to the automobile supplier.
Large number of entities located outside India appoint intermediaries in India to enable supply of their products. Such intermediaries are remunerated by way of commission on the sales generated by them. Sec. 2(13) of the IGST Act, 2017 defines intermediaries as under:
1. Many would have started getting notices in the FORM GST ASMT-10 seeking explanation for the discrepancies observed by the concerned officer on making scrutiny of returns. Normally department is seeking explanation with respect to discrepancies between the amounts shown in GSTR – 3B and the amounts shown in GSTR – 1. What should be […]
iOne monthly Return: All taxpayers excluding a few exceptions like composition dealer shall file one monthly return. Return filing dates shall be staggered based on the turnover of the registered person to manage load on the IT system. Composition dealers and dealers having nil transaction shall have facility to file quarterly return.
Appointment letter usually provides that an employee must serve a notice period upon giving a notice to resign from the employment. This is to provide adequate time to the employer to ensure proper handover of the tasks of the resigning employee. However such appointment letter also provides that resigning employee can pay a certain amount
Once we conclude that only input tax credit on motor vehicle is debarred we have no hesitation in concluding that input tax credit on expenses relating to motor vehicle will be allowed.
Recently it has been reported in the media that post the decision of Hon. Delhi High Court in the case of Cellular Operators Association of India and Others vs UOI and Others 2018-TIOL-310-HC-DEL-ST, such carry forward will not be permitted. We beg to differ with the said view. In order to appreciate our view it is first worthwhile to consider the ruling of Delhi High Court.
In the present article we are mainly concerned with the restrictions with respect to rent-a-cab. Relevant provision is reproduced below: Sec. 17(5) Notwithstanding anything contained in sub-section (1) of section 16 and subsection (1) of section 18, input tax credit shall not be available in respect of the following, namely:—
Consider a scenario where a registered person having a factory has engaged a canteen contractor at the factory and provides a space within its premises to the said canteen contractor to supply the food to its employees or workers
