Case Studies on Supply Definition
By: – Alok Agarwal
Goods and Services Tax – GST
Dated:- 24-5-2017<\/p>\n
Case Studies on Supply under GST
\nQuestion 1
\nMr. 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?
\nAnswer: 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.
\nQuestion 2
\nHappy Ltd provides management services without charge to Joy Ltd. Happy Ltd has a 30% shareholding in Joy Ltd. Does it qualify as a supply?
\nAnswer: 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 relate<\/p>\n
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n to transport its workers to customers' premises. During one weekend, the van was used by its CFO for his relatives for a family outing. Is it a supply? = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n case the assets of business are transferred as a going concern (TAGC). = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" Case Studies on Supply DefinitionBy: – Alok AgarwalGoods and Services Tax – GSTDated:- 24-5-2017 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? … Continue reading “Case Studies on Supply Definition”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-3438","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/3438","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3438"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/3438\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3438"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3438"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3438"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\nAnswer:
\nSupply 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.
\nQuestion 5
\nHappy 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?
\nAnswer:
\nA 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.
\nQuestion 6
\nArchean Constructions Ltd (A registered taxable person) receives architectural design supplied by a foreign architect to design a resid<\/p>\n
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\nQuestion 8
\nTransfer\/Exchange of shares of a company on account of amalgamation\/demerger\/acquisition\/restructuring without change in the legal entity
\nAnswer:
\nA transaction in securities is neither supply of goods nor services. Securities are excluded from the definition of both goods as well as services.
\nQuestion 9
\nMudhra Ltd, an NBFC transfers bad loans (unsecured) to Vsupport Capital Advisors Ltd.
\nAnswer:
\nActionable 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.
\nHope 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
\n Reply By sunil jagtiani as =
\nQ-A No. 4 – A small doubt kindly clarify
\nWhether facilitate to employee to be consi<\/p>\n
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