Ans. Under Goods and Services Tax, a Company Secretary has the following opportunities:
Pursuant to Section 48 of CGST Act, 2017 read with Rule 83 of Central Goods and Services Tax Rules, 2017 (CGST Rules,2017), any person who has passed the final examination of the Institute of Company Secretaries of India (ICSI) is eligible for enrolment as a Goods and Service Tax Practitioner.
Under Section 116 of Central GST Act, 2017, 2017, read with Rule 84 of CGST Rules, 2017, a Company Secretary is entitled to appear before an officer appointed under this Act, or the Appellate Authority or the Appellate Tribunal in connection with any proceedings under this Act.
In addition to the above, the Company Secretary may also perform the following types of services under GST:-
Ans. A Company Secretary provides various services to his clients. Determination of time of supply is of immense importance as it helps in determining value of tax and date of payment of tax.
In the above case, the time of supply will be determined as provided in Section 13(2) of the CGST Act, 2017 which states that the time of supply will be earliest of the following:
(a) the date of issue of invoice by the supplier, if the invoice is issued within the period prescribed under sub-section (2) of section 31 or the date of receipt of payment, whichever is earlier; or
(b) the date of provision of service, if the invoice is not issued within the period prescribed under sub-section (2) of section 31 or the date of receipt of payment, whichever is earlier; or
(c) the date on which the recipient shows the receipt of services in his books of account, in a case where the provisions of clause (a) or clause (b) do not apply:
Where the supplier of taxable service receives an amount up to one thousand rupees in excess of the amount indicated in the tax invoice, the time of supply to the extent of such excess amount shall, at the option of the said supplier, be the date of issue of invoice relating to such excess amount.
Explanation.––For the purposes of clauses (a) and (b)––
(i) the supply shall be deemed to have been made to the extent it is covered by the invoice or, as the case may be, the payment;
(ii) “the date of receipt of payment” shall be the date on which the payment is entered in the books of account of the supplier or the date on which the payment is credited to his bank account, whichever is earlier.
Ans As per the information available in the service rate list under GST, professional services seek to fall under the rate of 18%.
Ans Section 22 of the CGST Act, 2017 specifies the person liable for registration. Pursuant to this, liability to pay tax arises when the taxable person crosses the turnover threshold of Rs. 20 lakhs (Rs. 10 lakhs for NE & Special Category States). Further, section 24 of the CGST Act, 2017, list categories of persons who are specifically required to take registration even if they are not covered under section 22 of the said Act. Section 24(i) specifically states that a person who makes interstate taxable supply is required to take registration under GST.
Thus even if aggregate turnover is less than the threshold limit, a Practicing Company Secretary needs to take registration, since he is providing interstate supply of taxable services.
Ans. A Professional who is desirous of becoming a GST Practitioner has to submit an application in the form GST PCT-1. The application shall be scrutinised and GST Practitioner certificate shall be granted in the form GST PCT-2. In case, the application is rejected, proper reasons shall have to be mentioned in the form GST PCT-4. The enrolment once done, remains valid till it is cancelled. But no person enrolled as a Goods and Services Tax Practitioner shall be eligible to remain enrolled unless he passes such examination conducted at such periods and by such authority as may be notified by the Commissioner on the recommendations of the Council. Any person who has been enrolled as Goods and Services Tax Practitioner by virtue of him being enrolled as a sales tax practitioner or tax return preparer under the existing law shall remain enrolled only for a period of one year from the appointed date unless he passes the said examination within the said period of one year.
Ans. A Goods and Services Tax Practitioner can undertake any or all of the following activities on behalf of a registered person:
i. furnish details of outward and inward supplies
ii. furnish monthly, quarterly, annual or final return
iii. make deposit for credit into the electronic cash ledger
iv. file a claim for refund and
v. file an application for amendment or cancellation of registration.
But it has been provided that a confirmation from a registered person shall be sought where an application relating to a claim for refund or an application for amendment or cancellation of registration has been submitted by the Goods and Services Tax Practitioner.
Ans The place of supply of services where location of supplier and recipient is in India is governed under section 12 of the IGST Act, 2017. The section specifically provides that if services are supplied to an unregistered person, the place of supply will be location of recipient where address on records exist or location of the supplier of services in any other case.
Ans. If a registered taxable Practicing Company Secretary is providing continuous supply of service to his clients, where successive statements of accounts or successive payments are involved, invoice can be raised before or at the time each such statements is issued or, as the case may be, each such payment is received.
Ans A registered taxable person needs to file following return under GST regime:
|GSTR-1||Outward Supply services of taxable|
|GSTR-2||Inward Supply services of taxable|
With the objective of ensuring smooth rollout of GST and taking into account the concerns expressed by the trade and industry regarding filing of the returns in GST regime, it has been decided that, for the first two months of GST implementation, the tax would be payable based on a simple return (Form GSTR-3B) containing summary of outward and inward supplies which will be submitted before 20th of the succeeding month.
Ans. Under the GST regime, there is no code for service provider but codes are in accordance to the services provided. The following is a list of few services provided by Practicing Company Secretaries and their SAC Codes may be used, as follows:
|Heading no. 9982||Legal and accounting services|
|Group 99821||Legal services|
|998211||Legal advisory and representation services concerning criminal law.|
|998212||Legal advisory and representation services concerning other fields of law.|
|998213||Legal documentation and certification services concerning patents, copyrights and other intellectual property rights.|
|998214||Legal documentation and certification services concerning other documents.|
|998215||Arbitration and conciliation services|
|998216||Other legal services n.e.c.|
|Group 99822||Accounting, auditing and bookkeeping services|
|998221||Financial auditing services|
|998222||Accounting and bookkeeping services|
|998224||Other similar services n.e.c|
|Group 99823||Tax consultancy and preparation services|
|998231||Corporate tax consulting and preparation services|
|998232||Individual tax preparation and planning services|
|Group 99824||Insolvency and receivership services|
|998240||Insolvency and receivership services|
|998399||Other professional, technical and business services n.e.c.|
|Group 99715||Services auxiliary to financial services (other than to insurance and pensions)|
|997151||Services related to investment banking such as mergers and acquisition services corporate finance and venture capital services|
|997156||Financial consultancy services|
|997159||Other services auxiliary to financial services|
|Group 99951||Services furnished by business, employers and professional organisations Services|
|999511||Services furnished by business and employers organisations|
|999512||Services furnished by professional organisations|
|Heading 9983||Other professional, technical and business services|
|Group 99831||Management consulting and management services; information technology services|
|998311||Management consulting and management services including financial, strategic, human resources, marketing, operations and supply chain management|
|998312||Business consulting services including public relations services|
|998313||Information technology consulting and support services|
Disclaimer: This document is developed based on the information available in public domain. The Institute of Company Secretaries of India shall not be responsible for any loss or damage caused due to any action taken on the basis of information contained in this document. Any person wishing to act on the basis of the information contained in this document should do so only after cross checking with the original source.