Sanjeev Raj & Associates

12/09/2020

31/08/2020

Of course, a clearer picture will emerge after the Kamath panel prescribes the contours of the recast scheme, Rao added. The current repayment moratorium will expire on Monday after six months.

14/08/2020

Income Tax Form 26AS: Hotel bills of over Rs 20,000 will now reflect in your ITR;

So, the next time you pay a hotel bill or medical insurance premium of more than Rs 20,000, incur an expenditure of amount exceeding Rs 50,000 on life insurance or more than Rs 1 lakh for school fee, purchase white goods, jewellery, marble or paintings (see table), be mindful that the entity you have made the payment to will be informing the government of your transaction.

Even payments made to the government such as property tax and electricity bills would be reported if they exceed Rs 20,000 and Rs 1 lakh, respectively. Business-class airline travel, whether domestic or foreign, would be reported, as per communication from the Ministry of Finance. These would be reflected in an individual's tax account statement called Form 26 AS.

10/08/2020

*GST Update*
A good news to begin the day.
Rule 36(4) of CGST Rules, 2014 which restricts the ITC only to 110% of ITC appearing in GSTR 2A, has been challenged in Hon'ble HC of Rajasthan. The High Court has issued notice to the department. The matter is further listed for 16.09.2020. Let's see what comes as the final judgement.

Regards
Keshav Gupta
Sanjeev Raj & Associates
9417115387

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29/07/2020

Name : M/s Penna Cement Industries Ltd
AAR No. : TSAAR Order No.03/2020
Sector : Cement Industry
Order Date : 02.03.2020

Nature of Business : The applicant states to be manufacturers of cement having two cement plants in Telangana. They occasionally make inter-State sale of cement on ex-factory/works basis from their plants in Telangana.

Issue Raised : What tax should be charged on ex-factory inter-State supplies made by them?

● Provisions of the Act:
As per Section 10(1)(a) of IGST Act 2017, place of supply shall be where movement of goods terminates; When they make ex-factory sales from their plant, delivery terminates at their factory gate itself and therefore, CGST and SGST should be charged on such type of supplies.

However, in the said section it is also mentioned that the movement of goods can be by supplier or the recipient or any other person and place of supply shall be location of recipient where delivery terminates to recipient. In respect of ex- factory sale, though for them supply terminates at factory gate, yet further movement is carried by the recipient or transporter (other person) of goods up to the billing address state.

Thus, the delivery in such cases terminates in another that State and therefore they should charge IGST in respect of such supplies.

● AAR Findings & Discussion:
‘Place of supply’ and ‘location of supplier’ determine whether a supply can be treated as an intra-State supply or an inter-State supply.

In case of ex-factory inter-State sales affected by the applicant, the goods are made available by the supplier to the recipient at the factory gate, but this is not the point where movement terminates since the recipient subsequently assumes the charge for transportation of the goods up to the destination in another state. Thus, termination of the movement of goods evidently takes place at the location (in a different state) to which the goods are consigned/destined and such movement is effected by the recipient or by any other person such as transporter authorized by the recipient. Applying the inference made by us in the preceding para to the facts of the case on hand, the place (in the other state) where the goods are destined turns out to be the ‘place of supply’ in terms of Sec. 10(1)(a). Consequently, the ‘location of supplier’ and the ‘place of supply’ fall under different states and the supply qualifies as inter-State supply.

● Advance Ruling:
In view of the observations stated above, the following ruling is issued :
Ques : What tax should be charged on ex-factory inter-State supplies?
Ans : IGST is chargeable on ex-factory inter-State supplies.