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Enabling GVAT Practice
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ENABLINGGVATPRACTICE
CA.ABHAYDESAIYagnesh Desai & Co.YagneshDesai&Co.
BACKGROUNDBACKGROUND
WHITE PAPERWHITEPAPER GVATACT,2003G S 2006 GVATRULES,2006
NOTIFICATIONS CIRCULARS
CA.ABHAYDESAI
AGENDAAGENDA
WHO ?WHO? WHEN?
? WHAT? HOWMUCH?
CA.ABHAYDESAI
WHO ?WHO?
DEALER (Sec 2(10))DEALER(Sec.2(10)) Person(Sec.2(15))
i i h i id l (S Business inthecourseorincidental(Sec.2(4))
Sellsgoodsforaconsideration(Sec.2(23))
CA.ABHAYDESAI
AUCTIONEERAUCTIONEER
Federal Bank Ltd. and others Vs. State ofFederalBankLtd.andothersVs.StateofKerala[2007]006VST0736(SC)
Sec.2(10)(c)Dealerincludesanauctioneer,who sells or auctions goods belonging to anywhosellsorauctionsgoodsbelongingtoanyprincipalwhetherdisclosedornotandwhethertheofferoftheintendingpurchaserisacceptedbyhimorbytheprincipaloranomineeofprincipal
CA.ABHAYDESAI
BUSINESSTRANSFERREDAFTERCLOSURE
State of Gujarat Vs Sayaji Mills [2008] 011 VSTStateofGujaratVs.SayajiMills[2008]011VST0650(Guj.)
dealer means any person who for the dealer meansanypersonwho,forthepurposeoforconsequentialtohisengagement in or in connection with orengagementinor,inconnectionwithorincidentaltoorinthecourseofhisbusinessbuysbuys.
CA.ABHAYDESAI
GOVERNMENTGOVERNMENT CollectorofCentralExcise&CustomsVs.StateofKerala [2008] 011 VST 0932 (Ker)Kerala[2008]011VST0932(Ker)
Sec.2(10)(a)DealerincludestheCentralGovernment or a State Government or any localGovernmentoraStateGovernmentoranylocalauthoritysuchasmunicipalityormunicipalcorporationorpanchayat,astatutoryauthority,acompany,apartnershipfirm,aHinduUndividedFamilyoranysociety,club,associationorbody,incorporated or not of persons which carries onincorporatedornot,ofpersonswhichcarriesonbusiness;
Union of India Vs State of MP [2006] 146 STCUnionofIndiaVs.StateofMP[2006]146STC213(MP)
CA.ABHAYDESAI
CHARITABLE ORGANIZATIONCHARITABLEORGANIZATION NehruFoundationForDevelopment(2007GSTB171)NotaDealer
Followingshallnotbedeemedtobedealer:acharitable, religious or educational institution, carryingcharitable,religiousoreducationalinstitution,carryingontheactivityofmanufacturing,buying,sellingorsupplyinggoods,inperformanceofitsfunctions,forachieving its avowed objects, which are not in theachievingitsavowedobjects,whicharenotinthenatureofbusiness
Salebychemistsinhospital Dealer2011GSTB37T d l i i i f b i 2011 Trustadealerasactivityinnatureofbusiness2011GSTB327
Schoolprovidingfood Notadealer(42VST530)p g ( )
CA.ABHAYDESAI
WORKS CONTRACTORWORKSCONTRACTOR
Dealer includes any person who transfersDealerincludesanypersonwhotransferspropertyingoods(whetherasgoodsorinsome other form) involved in the execution ofsomeotherform)involvedintheexecutionofworkscontract
CA.ABHAYDESAI
RIGHT TO USERIGHTTOUSE
Dealer includes any person who transfers theDealerincludesanypersonwhotransferstherighttouseanygoodsforanypurpose(whether or not for a specified period) for(whetherornotforaspecifiedperiod)forcash,deferredpaymentorothervaluableconsiderationconsideration
ONGCLtd.(31VST337)(Gau.)[2010]C l i h f f i h Controlwithowner nottransferofrighttouse RuperaTransport 2009GSTB504
CA.ABHAYDESAI
CLUBSCLUBS
A society (including a cooperative society) clubAsociety(includingaco operativesociety),cluborfirmoranassociation,which,whetherornotinthecourseofbusiness,buys,sells,suppliesorf , y , , ppdistributesgoods,directlyorotherwise,fromortoitsmembersorotherpersonsforcash,deferredpayment,commission,remunerationorothervaluableconsideration,shallbedeemedtobedealerforthepurposeofthisAct.
GangesClubLtd.(33VST537)(All.)[2010]
CA.ABHAYDESAI
AGENTSAGENTS
Dealer includes a factor broker commissionDealerincludesafactor,broker,commissionagent,delcredereagentoranauctioneerorany mercantile agent by whatever nameanymercantileagent,bywhatevernamecalled,whocarriesonbusinessonbehalfofany principal whether disclosed or not;anyprincipalwhetherdisclosedornot;
CA.ABHAYDESAI
WHEN ?WHEN?
GOODSGOODS SALE LIMIT TURNOVERWITHINTHESTATE
CA.ABHAYDESAI
GOODS (Sec. 2(13))GOODS(Sec.2(13))
All kinds of movable propertyAllkindsofmovableproperty Propertyinvolvedinexecutionofworkscontractcontract
Intangiblecommodities(copyright,patent,T d k B d I LiTrademarks,Brandname,ImportLicence,Goodwill,Technicalknowhow,exportpermit
DEPB C b C di )orquota,DEPB,CarbonCredit.)
CA.ABHAYDESAI
GOODS (Contd.)GOODS(Contd.)
Things permanently fastened to anythingThingspermanentlyfastenedtoanythingattachedtoearthnotgoods(87STC544)(WBTT)/2011GSTB282
SaleofMachineryattachedtoearthnotgoods Shilpi International(2006GSTB213)
ImportLicenseisgoods(109STC286)(KeralaHC)
SIMCards notgoods BSNL(49VST98)(APHC)[2012]/2012GSTB365
CA.ABHAYDESAI
SALE (Sec. 2(23))SALE(Sec.2(23))1)Usualsale SaleofGoodsAct,1930) ,2)Transfer,otherwisethaninpursuanceofcontract compulsorytransfers)3)Transferofpropertyingoodsinvolvedinexecutionofaworkscontract
4)Delivery of goods on hire purchase4)Deliveryofgoodsonhirepurchase5)Transferoftherighttouseanygoods6) Supply of goods to members6)Supplyofgoodstomembers7)Supplyofgoodsaspartofservice8)Disposalofconfiscatedorunserviceablegoods) p g
CA.ABHAYDESAI
SALE (Contd.)SALE(Contd.)
Development of software Not sale SaskenDevelopmentofsoftware Notsale SaskenCommunicationTechnologiesLtd.(55VST89)(KarnatakaHC)[2012]
Licensetousenotsale BSNL(3STT245)(SC)[2006]
Merephysicaltransferofgoodstoagentsnotsale Havells India(31VST20)(Del.)[2010]
Insuranceclaim Notsale Vaniya SilkMillsAIR1991SC2104/2012GSTB1147
CA.ABHAYDESAI
LIMIT (Sec. 3)LIMIT(Sec.3)
Total turnover exceeds Rs 5 00 000 andTotalturnoverexceedsRs.5,00,000andtaxableturnoverexceedRs.10,000incurrentyearyear
Incaseofcasualdealerorauctioneer,liableincase taxable turnover exceed Rs 10 000casetaxableturnoverexceedRs.10,000.
Remainliabletillexpiryofoneyearwherei b l h h ld li iturnoverisbelowthresholdlimits
CA.ABHAYDESAI
TURNOVER WITHIN THE STATE (Sec. 4)TURNOVERWITHINTHESTATE(Sec.4)
Excluded:Excluded:1)Interstatesale2) O id h S2)OutsidetheState3)Export
CA.ABHAYDESAI
WHAT ?WHAT?
SALE PRICESALEPRICE
CA.ABHAYDESAI
SALE PRICE (Sec. 2(24))SALEPRICE(Sec.2(24))
Amount of valuable consideration paid orAmountofvaluableconsiderationpaidorpayable
Including the amount of duties lived orIncludingtheamountofdutieslivedorleviable undertheCentralExciseTariffAct,1985ortheCustomsAct,1962
Anysumchargedforanythingdonebythedealerinrespectofthegoodsatthetimeoforbeforedeliverythereof
Workscontract Deductlabour charges
CA.ABHAYDESAI
SALE PRICE (Contd.)SALEPRICE(Contd.)
Handling charges for registration of vehicles Handlingchargesforregistrationofvehiclesnotpartofsaleprice Sehgal Autoriders Pvt.Ltd.(43VST398)(BombayHC)[2011]/2012GSTB155
Saleexfactory Chargescollectedfortransportseparately NotpartofpriceBengalElectricWorks 2007GSTB258
Servicesprovidedpostsale notincludedAdani ExportsLtd.2007GSTB280
CA.ABHAYDESAI
HOWMUCH ?HOWMUCH?
EXEMPTIONSEXEMPTIONS ZERORATEDSALES
S SC & ASPERSCHEDULEII&III ADJUSTMENTINTAX NETAMOUNTTOBEPAID
CA.ABHAYDESAI
EXEMPTIONSEXEMPTIONS
SCHEDULE I Sec 5(1)SCHEDULE ISec.5(1) NOTIFICATIONSu/sSec.5(1A)
CA.ABHAYDESAI
ZERORATED SALES (Sec. 5A)ZERO RATEDSALES(Sec.5A)
CoversCovers1)SaleofgoodstotheDeveloperorCodeveloper of Special Economic ZonedeveloperofSpecialEconomicZone
2)Saleofgoodstoaunitcarryingonitsbusinessi h iintheprocessingarea
GoodscontainedinScheduleIIInotzerorated
CA.ABHAYDESAI
SCHEDULE II & IIISCHEDULEII&III
Rates set against each goodsRatessetagainsteachgoods Includesadditionaltax(Sec.7(1A))
f ki i l (S 0) Rateoftaxonpackingmaterial(Sec.10)
CA.ABHAYDESAI
ADJUSTMENTSADJUSTMENTS
Sec 8 read with Rule 43Sec.8readwithRule431)Salecancelled Notimelimit2) l i i l i O2)Alterationinsaleprice Oneyear3)Salesreturn SixMonths
CA.ABHAYDESAI
REJECTION Vs. RETURNREJECTIONVs.RETURN
Metal Alloy Company Pvt Ltd (39 STCMetalAlloyCompanyPvt.Ltd.(39STC404)[1977](CalcuttaHC)
Bil Metal Industries 2010 GSTB 307 BilMetalIndustries2010GSTB307
CA.ABHAYDESAI
NET AMOUNT TO BE PAID (Sec. 13)NETAMOUNTTOBEPAID(Sec.13)
Net Amount payable = Gross Tax on Sales NetAmountpayable=GrossTaxonSalesAdjustmentsinsale EligibleInputTaxCredit
CA.ABHAYDESAI
PURCHASE TAX (Sec. 9)PURCHASETAX(Sec.9)
Purchases from unregistered dealersPurchasesfromunregistereddealers Asperratessetinschedule
h i S PurchasesinSEZ Actualpaymentnotrequired
CA.ABHAYDESAI
PURCHASES IN SEZPURCHASESINSEZ PurchaseTaxpayableif:1)GoodsBToutsideState2)RM&PMforgoodsBToutsideState3) Fuel in manufacture3)Fuelinmanufacture4)Manufactureofexemptedgoods5)Capitalgoodsingenerationofelectricalenergy6)Notconnectedwithbusiness7)Fuelinmotorvehicles8) Capital goods in works contract8)Capitalgoodsinworkscontract9)Transferringrighttouse10)Anyother
CA.ABHAYDESAI
ACTUAL PAYMENT NOT REQUIREDACTUALPAYMENTNOTREQUIRED
Explanation to Rule 15(5) For the purpose ofExplanationtoRule15(5) Forthepurposeofcalculatingthetaxcredit,theamountoftaxunder subsection (1) (5) or (6) of section 9 ofundersub section(1),(5)or(6)ofsection9oftheActortheamountoftaxundertheGujaratTax on Entry of Specified Goods into LocalTaxonEntryofSpecifiedGoodsintoLocalAreasAct,2001isshownpayablebythedealer in his return for a tax period then suchdealerinhisreturnforataxperiod,thensuchamountoftaxshallbeconsideredtohavebeen paid In such tax periodbeenpaidInsuchtaxperiod.
CA.ABHAYDESAI
SUMMARYSUMMARY
Who ?Who? When?
h ? What? Howmuch?
CA.ABHAYDESAI
THANKS !!
CA ABHAY DESAI
THANKS!!
CA.ABHAYDESAIM:7874668953EMAIL: ABHAYDESAI86@GMAIL COMEMAIL:[email protected]
CA.ABHAYDESAI