Goods and Services Tax – GST – By: – Alok Agarwal – Dated:- 24-5-2017 Last Replied Date:- 29-5-2017 – Case Studies on Supply under GST Question 1 Mr. Happy (an unregistered person) plans to pursue his higher education in UK. He receives career consultancy services from a UK based consultant for ₹ 1, 20,000. Does it qualify as a supply? Answer: Yes. Importation of services for a consideration whether or not in the course or furtherance of business is covered under supply. Hence, in the above case it will be treated as supply. The UK based consultant would be required to register as Non Resident Taxable Person and shall discharge GST liability. Question 2 Happy Ltd provides management services without charge to Joy Ltd. Happy Ltd has a 30% shareholding in Joy Ltd. Does it qualify as a supply? Answer: Supply of goods or services between related persons is treated as supply even if it is without consideration (Schedule 1). However, as per the definition of related person, 2 persons
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customers premises. During one weekend, the van was used by its CFO for his relatives for a family outing. Is it a supply? Answer: Supply of goods or services by employer to employee when made in the course or furtherance of business shall be treated as Supply even if made without consideration. However, if the value of gifts is not exceeding ₹ 50,000 in a financial year by an employer to an employee shall not be treated as supply of goods or services or both. Question 5 Happy Ltd is a man power supply agency. They have supplied man power for cleaning a lake after the Ganesh immersion without charging any consideration. Is it a supply? Answer: A supply without consideration does not fall within the purview of supply unless made to a related person or is covered in any of the clause of Schedule 1. Question 6 Archean Constructions Ltd (A registered taxable person) receives architectural design supplied by a foreign architect to design a residential house to be built in Hyderabad f
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going concern (TAGC). Question 8 Transfer/Exchange of shares of a company on account of amalgamation/demerger/acquisition/restructuring without change in the legal entity Answer: A transaction in securities is neither supply of goods nor services. Securities are excluded from the definition of both goods as well as services. Question 9 Mudhra Ltd, an NBFC transfers bad loans (unsecured) to Vsupport Capital Advisors Ltd. Answer: Actionable claims are covered in definition of goods. However, Schedule III excludes actionable claims other than lottery, gambling and betting from the scope of supply. Transfer of unsecured loans, therefore, would not amount to supply. Hope this article is of help in your professional work. In case of any query/feedback please write us at alok@alokfoundation.com, Satish.vattam@gmail.com – Reply By sunil jagtiani – The Reply = Q-A No. 4 – A small doubt kindly clarifyWhether facilitate to employee to be consider as gift. Because there is no definition of gift in
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