Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 28-4-2017 – This part of the series contains meanings of certain terms covered in Section 2 of the CGST Act, 2017. These are aggregate turnover, agriculturist, assessment, associated enterprise, audit and authorized representative. Aggregate Turnover [Section 2(6)] The aggregate turnover is used for the purpose of calculation of threshold limit of INR 20 lakhs / 10 lakhs for registration and also calculation of eligibility of composition levy under section 10 of the Act. 'Aggregate turnover' shall be total of the following amounts or sums in relation to a person carrying on business, i.e., aggregate of the following – Value of all taxable supplies of goods and services Value of exempt supplies of goods and services Value of all goods and services exported Value of inter-state supplies However, aforementioned value of aggregate turnover would exclude taxes, if any, charged under the CGST Act, IGST Act and SGST Ac
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is not liable for registration under the Act. Following stipulations are relevant for understanding the meaning of agriculturist: Only an individual or Hindu undivided family (HUF) can be considered as an agriculturist. Cultivation of land personally is the pre-condition for being an agriculturist. Agriculturist shall not be considered as a taxable person. Ownership of the land is not a factor to be considered. It is not important whether the land is owned or leased one. It is also not a condition that the agriculturist should be involved in agriculture for full time. Cultivation of land through own labour, by labour of own family or servants employed on wages in cash or kind will be considered as own cultivation. A person will be considered as an 'agriculturist' only when a person cultivates land personally. To cultivate personally would imply carrying on agricultural operations on his own account by employing own labour, family's labour or hired labour under own supervisi
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n procedure which involves observance of principles of natural justice. The person who is assessed is called assessee. (i.e., taxable person). Associated Enterprise [Section 2(12)] Associated enterprise, in relation to another enterprise, means an enterprise- which participates, directly or indirectly, or through one or more intermediaries, in the management or control or capital of the other enterprise; or in respect of which one or more persons who participate, directly or indirectly, or through one or more intermediaries, in its management or control or capital, are the same persons who participate, directly or indirectly, or through one or more intermediaries, in the management or control or capital of the other enterprise. As per section 92A of the Income Tax Act, 1961,sub-section (2), for the purposes of sub-section (1), two or more enterprises shall be deemed to be associated enterprises if, at any time during the previous year, one enterprise holds, directly or indirectly, shar
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ods or articles or business carried out by one enterprise is wholly dependent on the use of know-how, patents, copyrights, trademarks, licences, franchises or any other business or commercial rights of similar nature, or any data, documentation, drawing or specification relating to any patent, invention, model, design, secret formula or process, of which the other enterprise is the owner or in respect of which the other enterprise has exclusive rights; or ninety per cent or more of the raw materials and consumables required for the manufacture or processing of goods or articles carried out by one enterprise, are supplied by the other enterprise, or by persons specified by the other enterprise, and the prices and other conditions relating to the supply are influenced by such other enterprise; or the goods or articles manufactured or processed by one enterprise, are sold to the other enterprise or to persons specified by the other enterprise, and the prices and other conditions relating
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under GST law / any other law or rules Verification of correctness of – turnover declared taxes paid refund claimed, and input tax credit availed Assessment of compliances with provisions of GST law and rules. All the registered taxable persons having a turnover beyond the prescribed limit are required to get their accounts audited from a Chartered Accountant or a Cost Accountant and file the audit report and the reconciliation statement with the proper officer. There are also provisions for a 'Special audit' to be carried out by a Chartered Accountant or a Cost Accountant. Such audit can be allotted after prior approval of Commissioner in the circumstances where a view is made by an officer not below the rank of Deputy Commissioner/Assistant Commissioner that considering the complexity of operations and interest of revenue, the detailed audit is required to be done. Authorized Representative [Section 2(15)] Authorized representative is the representative of the assessee / tax
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