Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 6-1-2017 Last Replied Date:- 6-1-2017 – Meaning and Scope of Supply 'Supply' means: all forms of supply of goods and/or services made or agreed to be made for a consideration by a person in the course or furtherance of business, Importation of service for a consideration, and Services has been specified in schedule I, which shall be considered as a supply even if made without consideration. The present taxable event under service tax is rendition of services which will no longer be relevant and only one event i.e., supply needs to be tracked. Supply defined in an inclusive manner. Tax is on supply of service therefore even the supply, as prescribed in Schedule-I, is made without consideration is taxable. In the present scenario the service provided without consideration i.e., free service is not taxable. Specific cases of Supply of Services In following cases, transaction shall be considered as supply of service
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or human consumption or any drink (other than alcoholic liquor for human consumption), where such supply or service is for cash, deferred payment or other valuable consideration. Job-work Any treatment or process which is being applied to another person s goods. Common for all Services renting of immovable property. i.e., telecommunication tower is immovable property for Telecom Sector etc. temporary transfer or permitting the use or enjoyment of any intellectual property right, agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act,[ Similar to section 66E(e) of the Finance Act, 1994] transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration. Others Where goods held or used for the purposes of the business are put to any private use or are used, or made available to any person for use, for any purpose other than a purpose of the business, wh
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pplicability on such services. The default rule for place of supply for export of service shall be the location of the service recipient, where the address on record of the recipient exists with the exporter. Hence, it will be critical for exporters to ensure that the address of service recipient on record can be established before the authorities on request. Time of Supply of Services IGST shall be payable at the earliest of the following dates, namely: the date of issue of invoice by the supplier or the last date on which he is required to issue the invoice with respect to the supply, or the date on which the supplier receives the payment with respect to the supply. Transactions between head office and branch offices located outside/inside India Services provided to overseas branch would not be eligible as export of services due to specific exclusion for such transactions in the definition of export of service . This is similar to the existing provisions for export of service to over
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customers located across India, the issue would arises as to where to pay GST, and whether this would require splitting of invoices based on various locations of the service provider or the service recipient. For this purpose, the draft law has prescribed the requirement of determination of the location from where the services are provided and the place of supply of such services, so that GST may be paid to the appropriate government. In the context of determination of the location from where services are provided, the draft law provides clarity by defining the term location of supplier of service and the place of supply of services is determined based on the location of recipient of service . With the assistance of these terms, the appropriate location for billing and the type of GST to be paid can be determined. Place of Supply of Services Provisions related to place of supply of goods and/or services are contained in following categories, namely- Place of supply of services where t
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