Circulars

THE PAPER TRADERS’ ASSOCAITION, Mumbai 

Aug 2017

 

Activities-Achievements-Updates during this Period by the Association

 

No. Date Name of the Activity Description
1 03/08& 10/08/17 BDS Mtg. During the meeting the cases which are in progress, were reviewed.
2 09/08/17 Special Mtg. Special meeting of office bearers to discuss about the 56th AGM & Conference of FPTA held at Chennai on 12th, 13th & 14th August 2017.
3 12/08/17 Monthly Circulars The monthly Circular was circulated on 12/8/2017 wherein important information about “Due Dates for GST Return for the month of 07/17 & 08/17

were given along with GST dates for the month of

09/17,10/17,11/17 & 12/17and Annual Return dates, Important information about GST was also given. The Notice & Minutes of 76th AGM were also circulated along with the Circular.

4 14/08& 21/08/17 Friday Meet During the two Meetings official issues were discussed &reviewed

 

HELP AND SUPPORT EXPECTED FROM FPTA:

No. Date Title Description
1) Non Supplies to Defaulter FPTA should honour and instruct all the Associations and to its members that if any Association declares defaulter then no other Association or its member should supply to defaulter
2) Non Supplies to Defaulter by the Mills FPTA should instruct and take the help of IAPMA that if any Association declares the defaulter then the defaulter should not be supplied by any Paper Mill directly or indirectly
3) Promotion of Paper as Green and Environment Friendly FPTA should with the help of IAPMA jointly should promote the Paper as Green Product.
4) MRP & Weight Measurement Issue Paper Being Raw Material for Ptg. & publishing Industry should be exempted from MRP Labels and Act
5) GST Earliest implementation of GST required
6) Indirect Taxes Simplification of Various Indirect taxes
7) LBT Taxes Required Support for Abolition of LBT and Octroi from Maharashtra

________________________________________________________________

 

 

 

The Karnataka Paper Merchants’ & Stationers’ Association, Bangalore – Aug 2017

 

Aug 2017

 

Activities-Achievements-Updates during this Period by the Association

No. Date Name of the Activity Description
1 12 to 14.08.2017 FPTA AGM cum Conclave Around 40 members attended the FPTA AGM at Chennai; it was indeed a great experience to have around 600 + traders there. Traders discussed various issues related to trade and market. FPTA awarded second Managing Committee meeting to KPMSA.
2 15.08.2017 Independence Day Function Around 200 KPMSA members and their staff attended 71st Independence Day function at KPMSA office. Flag hoisting ceremony followed by members meeting and breakfast.
3 15.08.2017 Legal & Metrology (Weight & Measurement) Dept meeting Official from Weight & Measurement department addressed the gathering at Members meet on Independence Day meet. The educated our members about rules and regulation about packaged Commodity.
4. 28.08.2017 Managing Committee meeting 11th Managing committee meeting held at KPMSA office. Members discussed the upcoming 70th KPMSA AGM which is going to be held on 17.09.2017 to elect new office bearers and Managing Committee. Last date for nomination is fixed on 09.09.2017. Next MC meeting is also 09.09.2017.
5.   GST Updates Regular GST Updates as received from FPTA, FKCCI and Other reliable sources were forwarded to the Members by Way of Email & WhatsApp Messages. Our Karnataka JCCT Sri Murali Krishna is very helpful in sharing inputs related to GST. The same has been forwarded to our members by our Chairman, Taxation Committee Sri Vasant H Shah.

 

________________________________________________________________

 

 

 

 

 

 

 

 

 

The Paper Merchants’ Welfare Association, Vijayawada

 

Aug 2017

 

Activities-Achievements-Updates during this Period by the Association

 

No. Date Name of the Activity Description
1.

 

12-8-2017 FPTA 56th AGM

Held on 12-8-2017 to 14-8-2017 at Chennai hosted by

The Madras Paper

Merchants  Association

1) Mr. Madhusudan Bang, M/s. Ramchandar Shivnarayan Sons, Vijayawada -2 was nominated as FPTA Zonal Vice-President for the year 2017-2018 from our Association as per provision of every alternate year.

2) The following PMWA members were nominated as FPTA MC members for the year 2017-2018.

a) Mr. Lalit Kumar Tarachand,

M/s. Sha Amichand Tarachand & Sons, Vijayawada-1.

b) Mr. V.V.D. Ramesh,

M/s. Sri Ravi & Co., Vijayawada -1.

c) Mr. Nilesh Solanki,

M/s. Vardhaman Paper Products, Vijayawada-3.

d) Mr. A.T. Arasu,

M/s. Arasu Papers, Vijayawada-1.

e) Mr. A. Chandrasekhar Reddy,

M/s. Divya Publications, Vijayawada-10.

 

Co-Opted :

a) Mr. Pahar Singh Rajpurohit,

M/s. Suresh Paper Agencies, Vijayawada -3.

 

The FPTA 56th AGM was well organised and conducted tremendously. Every member who attended to the AGM felt satisfaction and happiness for their accommodation and hospitality.

 

 

________________________________________________________________

 

 

 

 

 

 

 

 

TELANGANA PAPER MERCHANTS’ ASSOCIATION

 

Aug 2017

 

Activities-Achievements-Updates during this Period by the Association

 

No. Date Name of the Activity Description
1.

 

15.08.2017 Independence Day Celebrations Our President Shri. Sandeep Karda Hoisted the national Flag at Kagaz Bhavan. After the flag hoisting members went to Home for the Disabled, Secunderabad and provided Lunch to its Inmates.
2.

 

 

20.08.2017

 

 

JANAHITA

(Member organization of Ekal Vidyalaya Movement in Telangana)

 

Members of TPMA attended function organized by Janahita to support free education to tribal children.

 

 

3.

 

 

28.08.2017

 

 

2nd  Meeting of Kagaz Bhavan Committee of 2017-18

 

We had our second meeting of Kagaz Bhavan Committee. Matters of Kagaz Bhavan were discussed.

 

4.

 

 

30.08.2017

 

 

Distribution of Note books to Schools

 

Free distribution of Note Books to children of Govt High School Park lane, Kalasiguda, Secunderabad was held. Smt. Aruna Goud (Corporator Secunderabad Division) was also invited.

 

 5.

 

 

31.08.2017

 

 

Distribution of Note books to Schools

 

Free distribution of Note Books to children of Govt High School Esamia Bazar Hyderabad was held. Smt. Mamta Gupta (Corporator Hyderabad Division) was also invited.

 

 6.

 

 

 

 

31.08.2017

 

 

 

 

1st  Joint meeting of Kagaz Bhavan Committee & Managing Committee

 

 

 

 

Our Association 1st joint meeting of managing committee & Kagaz Bhavan committee was held no 31.08.2017 to discuss and implement various matters of our Association.

 

Matters related to various activities of our Association were elaborately discussed.

 

Elaborate discussions were held related to KBC Committee.

  7. All the Circulars sent by you have been Circulated to all the Members.

 

 

 

 

 

 

 

 

 

Sep 2017

 

Activities-Achievements-Updates during this Period by the Association

 

No. Date Name of the Activity Description
1.

 

 

 

11.09.2017

 

 

 

GST INTERACTIVE SESSION

 

 

TPMA conducted a Seminar cum Question Answer Session in Kagaz Bhavan at 5.30 pm followed by dinner.

We had invited a senior Chartered Accountant Shri Murli Manohar Pollod to educate our members who came with their respective accountants about various queries such as filing of returns, RCM & ITC etc.

2.

 

15.09.2017

 

 

2nd  Meeting of Arbitration Board

 

 

Chairman Shri R.G. Prasad gave details of various cases of the members and reviewed the pending cases and briefed the members.

He concluded the meeting by giving his report of Arbitration Board.

3. All the Circulars sent by you have been Circulated to all the Members.

_______________________________________________________________

Paper and Allied Merchants Association, Coimbatore. – Aug 2017

 

10-08-2017      GST outreach programme jointly by central excise and commercial taxes department at suguna kalayanamandapam on filing of GSTR1, GSTR3 – 3B return.

11-08-2017      FPTA Advisory Board Meeting at Hotel Grand Chola – Chennai at 3.30 p.m. Attended by Mr. C. Balasubramanian

12.08.2017      FPTA MC Meeting at Hotel Grand Chola – Chennai Attended by PAMA MC Members.

FPTA Inaugural Ceremony of 56th AGM, Attended by PAMA MC Members and Delegates.

13-08-2017      FPTA 56th AGM – Business sessions Attended by PAMA MC Members and Delegates.

14-08-2017      FPTA 1st MC Meeting Attended by PAMA MC Members Mr. C. Balasubramanian nominated convener of FPTA constitution committee chamber of commerce Governing Council Meeting Attended by Mr. C. Balasubramanian.

15-08-2017      Chamber of Commerce Independence Day Flag Hoisting by President of Chamber Attended by Mr. R. Ravi and Mr. C.Balasubramanian.

18-08-2017      GST Awareness programme on filling of GSTR-3-B, GSTR-1 AND GSTR – 2. 11AM chamber of commerce.

PAMA EC Meeting at 7.30 pm

Subject Discussed:

  1. Passing of Accounts for year ended 31-03-2017
  2. Fixing date of PAMA AGM
  3. -FPTA AGM at Chennai.

 

23.08.2017      FTAC –EC Meeting attended by Mr. C. Balasubramanian

Contents

 

                                                                      

  • Income Tax

 

  • Goods & Service Tax (GST)
  1. 3. International Law

 

 

  1. Company Law

 

        

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax

 

I-T Department to focus more on e-assessment to reduce human interface:

The Income Tax Department will focus on widening of tax base and maximize e-assessment to cut down on human interface, according to an official statement. Also, efforts will be made by the Central Board of Direct Taxes (CBDT) to exceed the income tax collection target set for current fiscal by use of big-data analytics, said the statement after the end of the two-day annual retreat of central and state government tax officers.

(Source : http://www.financialexpress.com/economy/i-t- department-to- focus-more- on-e- assessmentto-reduce- human-interface/838378/)

 

I-T plans to pursue property-holders who have never filed income tax returns

Income tax authorities plan to pursue those who have properties in their name but haven’t ever filed income tax returns on the suspicion that these may be benami holdings on behalf of people looking to conceal their wealth. The exercise is part of the government’s crackdown on black money. The findings have emerged from the analysis of vast amounts of data that the government has collected. “We have alot of data from various sources including on investments in property by people who have never filed returns,” said an income tax official. This information will be verified to ascertain the source of income used for the purchase of the properties and to see if these are being held by benami owners.

(Source : http://economictimes.indiatimes.com/news/economy/policy/i-t- plans-to- pursue-propertyholders-who- have-never-filed-income- tax-returns/articleshow/60110324.cms)

 

Income tax scrutiny to remain limited despite ITR filings surge

The income tax department will maintain the number of income tax returns (ITRs) chosen for scrutiny at the current level of less than 1% of all returns, in spite of a surge in individual tax filings to keep the process nonintrusive and taxpayer-friendly. Gentle persuasion through text messages, emails and advertisements will remain the department’s main ways of interacting with taxpayers, while enforcement action will be reserved for cases where specifictip-offs regarding large-scale evasions have been received.

 

Out of the 52.8 million income-tax returns filed for the 2015-16 fiscal year, only about 300,000 cases, or around 0.6%, were scrutinized, a person privy to the deliberations within the tax department said on condition of anonymity. “Even when the numbers of assessee grow, scrutiny will be limited to this level—250,000-400,000 cases. It will always be less than 1% of returns received. We are absolutely non- intrusive to almost everyone.

Even in most of the cases scrutinized, we do not hold searches or surveys,” the person cited above said, adding that the income-tax department vests its faith in taxpayers.

(Source: http://www.livemint.com/Home-Page/qanXdX16W7Bqx87d7EkMDI/Income- tax-scrutiny- to-remainlimited-despite-ITR- filings-su.html)

 

Introduction of New Facility for verification

New Facility introduced to select the verification option before submitting the Income Tax Return. Please use Digital Signature Certificate (DSC) or Electronic Verification Code (EVC) options available in e- Filing portal to verify your Income Tax Return for faster processing.

(Source: https://incometaxindiaefiling.gov.in/)

CBDT extends the time for Linking PAN with Aadhaar from 31st August 2017 to 31st December 2017

Under the provisions of recently introduced section 139AA of the Income-tax Act, with effect from 01.07.2017, all taxpayers having Aadhaar Number or Enrolment Number are required to link it with PAN Number for filing the tax return. The said provision was relaxed by the Central Board of Direct Taxes (’CBDT’) vide its order dated 31.07.2017, in file of even number, wherein further time till 31.08.2017 was allowed to the taxpayers to link Aadhaar with PAN.

 

On consideration of the matter, CBDT, in exercise of powers conferred under section 119 of the Act, modifies para 3 of its earlier order dated 31.07.2017 and further extends the time for linking Aadhaar with PAN till 31.12.2017.

(Source:https://incometaxindiaefiling.gov.in/eFiling/Portal/StaticPDFNews/NewsdueDatePANAadhaar.pdf)

 

CBDT has extended the due date for filing Income Tax Returns and audit reports from 30th September 2017to 31st October 2017

The Goods and Services Tax (‘GST’) has come into effect on 01.07.2017. In recent days, dates for filing various returns and forms under GST have been extended by the Government. In this backdrop, representations have been filed by various stakeholders requesting for extending the ‘due date’ for filing various reports of audit as well as tax-returns under the Income-tax Act from 30th September, 2017 so as to allow sufficient time to the assessees’ and tax professionals, and thus, facilitate their ease of compliance with statutory responsibilities

under various fiscal laws.

 

On consideration of the matter, the Central Board of Direct Taxes, in exercise of powers conferred under section 119 of the Act, in respect of all assessees’ covered under clause (a) of Explanation 2 to sub-section (1) of section 139 of the Act, hereby extends the ‘due-date’ prescribed therein for filing the return of income as well as various reports of audit prescribed under the income-tax Act which are required to be filed by the said ‘due date’ from 30th September, 2017 to 31st October, 2017.

(Source: https://incometaxindiaefiling.gov.in/eFiling/Portal/StaticPDFNews/NewsTaxReturns.pdf)

Income-tax department, MCA team up against shell firms

The Income Tax department (IT) and the Ministry of Corporate Affairs (MCA) have signed a pact to regularly share data, including PAN and audit reports of firms, to crack down on shell companies, the government said. The pact aims at curbing the menace of money laundering, black money, and misuse of corporate structure by shell companies, a finance ministry statement said. It added a memorandum of understanding for Automatic and Regular Exchange of Information was signed between the MCA and the Central Board of Direct Taxes (CBDT) on September 6 and took effect the same day.

(Source:http://www.business-standard.com/article/economy-policy/tax-dept-mca-team-up-against-shellfirms)1170914017741. html)

 

 

 

 

 

 

 

 

 

 

GST (Goods & Service Tax)

 

Waiver of the late fee payable on delay in filing of GSTR-3Bfor July 2017

The Central Government, on the recommendations of the GST Council, has waived the late fee payable under section 47 of the CGST Act, for all registered persons who failed to furnish the return in FORM GSTR-3B for the month of July, 2017 by the due date.

(Notification No.28 /2017 dated 1st September, 2017)

 

GST Council extends the timelines for compliance and amends the rate of tax for some goods

In 21st meeting of the GST Council held on 9th September 2017, it was decided to extend the due dates for submission of regular GST Returns. Also the Council extended the requirement to file the summary Return in Form 3B up to the month of December, 2017. In addition, the Government also decided to amend the rates of specified goods. The major decisions of the Council are mentioned below:

 

Extension in due dates for submission of returns:

Sr.

No.

Type of Return Type of Reporting Tax period Revised due date
1. Form GSTR 1 Monthly return for outward supplies –

for registered persons having

turnover of more than Rs. 100 Cr

July, 2017 3rd October, 2017
Monthly return for outward supplies – for others 10th October, 2017
2. Form GSTR 2 Monthly return for inward supplies July, 2017 31st October, 2017
3. Form GSTR 3 Monthly return July, 2017 10th November, 2017
4. Form GSTR 4 Quarterly return for composition

dealers

July to September,

2017

18th October, 2017

(No change)

5. Form GSTR 6 Monthly return for Input Service

Distributor (ISD)

 

July 2017 13th October, 2017
6. Form TRAN 1 Return for claiming transition related

credits

 

NA 31st October, 2017

 

  • The summary return in Form 3B will be required to be filed for the months of August to December, 2017
  • Form TRAN 1 can be revised once, after submission.
  • The timelines for submission of returns for other months will be notified separately.

 

 

 

 

Other Compliance related changes:

TDS: The registrations for the persons liable to deduct tax at source and collect tax at source will commence from 18 September, 2017. However, date from which tax has to be deducted/ collected will be notified by the Council later.

 

Composition scheme: A registered person, who could not opt for composition scheme can opt for composition scheme till 30th September, 2017. Such person will be permitted to avail composition scheme with effect from 1st October, 2017.

 

Registration for inter-state supply: Any person, making inter-State supply of handicraft goods upto aggregate turnover of INR 2 million (INR 1 million in special category States except J&K) will not be liable for registration, if he has a Permanent Account Number and the goods move under the cover of an e-way bill, irrespective of value of the consignment.

 

Inter-state Job-work: A job worker making inter-State supply of job work service to a registered person can claim threshold exemption, as long as the goods move under the cover of an e-way bill, irrespective of the value of the consignment. This option will not be available for job work in relation to jewellery, goldsmiths’ and silversmiths’ wares covered under Chapter 71 (which do not require e-way bill).

 

Amendment in rate:

The Compensation cess on automobiles has been increased as under:

  • Cess on mid segment cars has been increased by 2%
  • Cess on large cars has been increased by 5%
  • Cess on SUVs has been increased by 7%.

 

The increase in cess is not applicable to hybrid cars, for whom, the rate of cess remains same as before. Further, there is no change in cess for small cars and 13 seater vehicles.

 

  • The tax rates have been proposed to be reduced on several goods, including about 30 daily use items, dried tamarind, walnut, batter for idli/ dosa, raincoat, rubber bands etc. The rate of duty credit scrips is proposed to be reduced to 5%. Khadi fabric sold through KVIC stores has been exempted.

 

  • The definition of ‘works contract’ is proposed to be amended to cover all works contracts carried out for the Government.

 

  • For food sector, the definition of branded food items is proposed to be inserted, according to which (i) goods which were sold under a registered brand name as on 15th May, 2017 under the IPR laws in India or any other country; or (ii) goods sold under a mark or a name, on which the seller is entitled to maintain an actionable claim or has exclusivity would attract GST @ 5%.

 

 

 

 

 

 

 

 

International Tax

 

Liaison and project offices do not constitute a PE in India

Based on the facts and in the circumstances of the case, recently, the Delhi High Court in the case of Mitsui & Co. Ltd. held that offices of the taxpayer and its activities cannot be regarded as its Permanent Establishment (PE) in India and the income directly or indirectly attributable to the said offices was not taxable in India. In order to constitute PE within the meaning of Article 5(2) of India-Japan tax treaty (tax treaty), it was not enough to have office, factory or a workshop etc., but it is required that such place was a fixed place of business through which the business of an enterprise is wholly or partly carried out under Article 5(1) of the tax treaty. The Liaison Office (LO) of the taxpayer was not in fact used for the purpose of business. The LO is solely for the purpose of search or display or solely for the purchases of goods or collecting information or for any other activity. Therefore, it does not constitute a PE in India.

(DIT v. Mitsui & Co. Ltd. (2017) 84 taxmann.com 3 (Del))

 

Profits from offshore and onshore services are taxable in India and it is attributable to the supervisory

PE in India

Based on the facts and in the circumstances of the case, recently, the Delhi Bench of the Income-tax Appellate Tribunal (the Tribunal) in the case of Shanghai Electric Group Co. Ltd. (the taxpayer) held that the taxpayer is having a supervisory Permanent Establishment (PE) in India. The Tribunal observed that Indian clients contracted the taxpayer to carry out the work of supply, supervision, erection, installation and successful commissioning of plants. The taxpayer was directly involved in the entire supervisory work carried out in India and was responsible for the successful functioning of the projects in India under each and every contract.

 

The Tribunal observed that the agreements entered into by the taxpayer with its clients in India are in the nature of a composite contract since agreements are inextricably linked with each other. None of the agreements are executed exclusively for sale of equipments. The taxpayer was specialized in manufacturing of equipments required for setting up of power plant and it was also involved in supply of the same. The transfer of title to the equipments has taken place in India. Further, the contracts are negotiated and concluded in India. The expatriates come to India to provide technical support services to PEs in India. All these activities go on to establish that the taxpayer has business connection in India within the meaning of Section 9(1)(I) of the Income tax Act, 1961 (the Act). Splitting of this transaction under supply and services will be wholly artificial and neither will it have a rational basis, nor can it be recognized for the purposes of computation of profits attributable to the PE.

 

The Tribunal held that profits relating to services rendered by the taxpayer, whether rendered in India or outside India, in respect of Indian projects are taxable in India, and are attributable to the supervisory PE of the taxpayer in India since they are effectively connected with each other.

(Shanghai Electric Group Co. Ltd. v. DCIT (2017) 84 taxmann.com 44 (Del))

 

 

 

Company Law

 

Exemptions given to certain unlisted public companies under the Companies Appointment and

Qualification of Directors) Rules, 2014 from the appointment of independent directors

This Ministry, vide notification number G.S.R. 839(E) dated 5th July, 2017 issued the Companies (Appointment and Qualification of Directors) Amendment Rules, 2017 inter-alia amending rule 4 of the Companies (Appointment and Qualification of Directors) Rules, 2014. The said amended Rule 4 inter alia provides that an unlisted public company which is a joint venture, a wholly owned subsidiary or a dormant company will not be required to appoint Independent Directors. Stakeholders have sought clarifications with regard to the meaning of joint venture for the purposes of availing exemption under Rule 4 of the aforesaid Rules as such a term is not defined in the Companies Act 2013.

 

The matter has been examined and it is hereby clarified that a joint venture, would mean a joint arrangement, entered into in writing, whereby the parties that have joint control of the arrangement, have rights to the net assets of the arrangement. The usage of the term is similar to that under the Accounting Standards.

http://www.mca.gov.in/Ministry/pdf/GeneralCircular_05092017.pdf

 

Obligation to comply with the Indian Accounting Standards (Ind AS) and Rule 4 of Companies (Indian

Accounting Standards)Rules, 2015 – Payment Banks, Small Finance Banks which are subsidiaries of

Corporates:

Some stakeholders have sought clarifications with regard to implementation of Ind AS wherein the holding

company has Payment Banks or Small Finance Banks as its subsidiaries (Notification GSR 365 (E)

dated 30.03.2016).

 

The matter has been examined and it is clarified that the holding company if it is covered by the corporate sector roadmap for implementation of Ind AS, shall follow the corporate sector road map and if the company has got payment bank or small finance bank as its subsidiary then subsidiary company shall follow the banking sector roadmap prescribed vide RBI circular DBR.BP.BC.No.76/ 21.07.001/2015-16 dated 11th February, 2016 on “Implementation of Indian Accounting Standards (Ind AS)” read with circular BR.NBD.No.2s/16.13.218/2016-

17 dated 6th October, 2016 on “Operating Guidelines for Payments Banks”. However, the Payment Banks or Small Finance Banks shall provide the Ind AS financial data to its holding company for the purpose of consolidation.

[To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i)]

 

Government of India

Ministry of Finance

Department of Revenue

Central Board of Excise and Customs

 

 

Notification No.27 /2017 – Central Tax

 

New Delhi, the 30thAugust, 2017

 

G.S.R. ( )E.:- In exercise of the powers conferred by section 164 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government hereby makes the following rules further to amend the Central Goods and Services Tax Rules, 2017, namely:-

 

  • These rules may be called the Central Goods and Services Tax (Sixth Amendment) Rules, 2017.

 

  • Save as otherwise provided in these rules, they shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.

 

  1. In the Central Goods and Services Tax Rules, 2017 (hereafter in this notification referred to as the principal rules), –

 

(i) for rule 138, the following shall be substituted, namely:-

 

“138. Information to be furnished prior to commencement of movement of goods and generation of e-way bill.- (1) Every registered person who causes movement of goods of consignment value exceeding fifty thousand rupees—

 

  • in relation to a supply; or

 

  • for reasons other than supply; or

 

  • due to inward supply from an unregistered person,

 

shall, before commencement of such movement, furnish information relating to the said goods in Part A of FORM GST EWB-01, electronically, on the common portal.

 

  • Where the goods are transported by the registered person as a consignor or the recipient of supply as the consignee, whether in his own conveyance or a hired one or by railways or by air or by vessel, the said person or the recipient may generate the e-way bill in FORM GST EWB-01 electronically on the common portal after furnishing information in Part B of FORM GST EWB-01.

 

  • Where the e-way bill is not generated under sub-rule (2) and the goods are handed over to a transporter for transportation by road, the registered person shall furnish the information relating to the transporter in Part B of FORM GST EWB-01 on the common portal and the e-way bill shall be generated by the transporter on the said portal on the basis of the information furnished by the registered person in Part A of FORM GST EWB-01:

 

1

Provided that the registered person or, as the case may be, the transporter may, at his option, generate and carry the e-way bill even if the value of the consignment is less than fifty thousand rupees:

 

Provided further that where the movement is caused by an unregistered person either in his own conveyance or a hired one or through a transporter, he or the transporter may, at their option, generate the e-way bill in FORM GST EWB-01 on the common portal in the manner specified in this rule:

 

Provided also that where the goods are transported for a distance of less than ten kilometres within the State or Union territory from the place of business of the consignor to the place of business of the transporter for further transportation, the supplier or the transporter may not furnish the details of conveyance in Part B of FORM GST EWB-01.

 

Explanation 1.– For the purposes of this sub-rule, where the goods are supplied by an unregistered supplier to a recipient who is registered, the movement shall be said to be caused by such recipient if the recipient is known at the time of commencement of the movement of goods.

 

Explanation 2.-The information in Part A of FORM GST EWB-01 shall be furnished by the consignor or the recipient of the supply as consignee where the goods are transported by railways or by air or by vessel.

 

  • Upon generation of the e-way bill on the common portal, a unique e-way bill number (EBN) shall be made available to the supplier, the recipient and the transporter on the common portal.

 

  • Any transporter transferring goods from one conveyance to another in the course of transit shall, before such transfer and further movement of goods, update the details of conveyance in the e-way bill on the common portal in FORM GST EWB-01:

 

Provided that where the goods are transported for a distance of less than ten kilometres within the State or Union territory from the place of business of the transporter finally to the place of business of the consignee, the details of conveyance may not be updated in the e-way bill.

 

  • After e-way bill has been generated in accordance with the provisions of sub-rule (1), where multiple consignments are intended to be transported in one conveyance, the transporter may indicate the serial number of e-way bills generated in respect of each such consignment electronically on the common portal and a consolidated e-way bill in FORM GST EWB-02 maybe generated by him on the said common portal prior to the movement of goods.

 

  • Where the consignor or the consignee has not generated FORM GST EWB-01 in accordance with the provisions of sub-rule (1) and the value of goods carried in the conveyance is more than fifty thousand rupees, the transporter shall generate FORM GST EWB-01 on the basis of invoice or bill of supply or delivery challan, as the case may be, and may also generate a consolidated e-way bill in FORM GST EWB-02 on the common portal prior to the movement of goods.

 

2

  • The information furnished in Part A of FORM GST EWB-01 shall be made available to the registered supplier on the common portal who may utilize the same for furnishing details in FORM GSTR-1:

 

Provided that when the information has been furnished by an unregistered supplier in FORM GST EWB-01, he shall be informed electronically, if the mobile number or the e-mail is available.

 

  • Where an e-way bill has been generated under this rule, but goods are either not transported or are not transported as per the details furnished in the e-way bill, the e-way bill may be cancelled electronically on the common portal, either directly or through a Facilitation Centre notified by the Commissioner, within 24 hours of generation of the e-way bill:

 

Provided that an e-way bill cannot be cancelled if it has been verified in transit in accordance with the provisions of rule 138B.

 

  • An e-way bill or a consolidated e-way bill generated under this rule shall be valid for the period as mentioned in column (3) of the Table below from the relevant date, for the distance the goods have to be transported, as mentioned in column (2) of the said Table:

 

Table

 

Sr. no. Distance Validity period
(1) (2) (3)
1. Upto 100 km One day
2. For every 100 km or part thereof thereafter One additional day

 

 

Provided that the Commissioner may, by notification, extend the validity period of e-way bill for certain categories of goods as may be specified therein:

 

Provided further that where, under circumstances of an exceptional nature, the goods cannot be transported within the validity period of the e-way bill, the transporter may generate another e-way bill after updating the details in Part B of FORM GST EWB-01.

 

Explanation.—For the purposes of this rule, the “relevant date” shall mean the date on which the e-way bill has been generated and the period of validity shall be counted from the time at which the e-way bill has been generated and each day shall be counted as twenty-four hours.

 

  • The details of e-way bill generated under sub-rule (1) shall be made available to the recipient, if registered, on the common portal, who shall communicate his acceptance or rejection of the consignment covered by the e-way bill.

 

  • Where the recipient referred to in sub-rule (11) does not communicate his acceptance or rejection within seventy two hours of the details being made available to him on the common portal, it shall be deemed that he has accepted the said details.

 

 

 

 

3

  • The e-way bill generated under this rule or under rule 138 of the Goods and Services Tax Rules of any State shall be valid in every State and Union territory.

 

  • Notwithstanding anything contained in this rule, no e-way bill is required to be generated—

 

  • where the goods being transported are specified in Annexure;

 

  • where the goods are being transported by a non-motorised conveyance;

 

  • where the goods are being transported from the port, airport, air cargo complex and land customs station to an inland container depot or a container freight station for clearance by Customs; and

 

  • in respect of movement of goods within such areas as are notified under clause

 

  • of sub-rule (14) of rule 138 of the Goods and Services Tax Rules of the concerned State.

 

Explanation. – The facility of generation and cancellation of e-way bill may also be made available through SMS.

 

ANNEXURE
[(See rule 138 (14)]
S. Chapter or Description of Goods
No. Heading or
Sub-heading
or Tariff
item
(1) (2) (3)
1. 0101 Live asses, mules and hinnies
2. 0102 Live bovine animals
3. 0103 Live swine
4. 0104 Live sheep and goats
5. 0105 Live poultry, that is to say, fowls of the species Gallus domesticus,
ducks, geese, turkeys and guinea fowls.
6. 0106 Other live animal such as Mammals, Birds, Insects
7. 0201 Meat of bovine animals, fresh and chilled.
8. 0202 Meat of bovine animals frozen [other than frozen and put up in unit
container]
9. 0203 Meat of swine, fresh, chilled or frozen [other than frozen and put up in
unit container]
10. 0204 Meat of sheep or goats, fresh, chilled or frozen [other than frozen and
put up in unit container]
11. 0205 Meat of horses, asses, mules or hinnies, fresh, chilled or frozen [other
than frozen and put up in unit container]
12. 0206 Edible offal of bovine animals, swine, sheep, goats, horses, asses,
mules or hinnies, fresh, chilled or frozen [other than frozen and put up
in unit container]
13. 0207 Meat and edible offal, of the poultry of heading 0105, fresh, chilled or
frozen [other than frozen and put up in unit container]
4
S. Chapter or Description of Goods
No. Heading or
Sub-heading
or Tariff
item
(1) (2) (3)
14. 0208 Other meat and edible meat offal, fresh, chilled or frozen [other than
frozen and put up in unit container]
15. 0209 Pig fat, free of lean meat, and poultry fat, not rendered or otherwise
extracted, fresh, chilled or frozen [other than frozen and put up in unit
container]
16. 0209 Pig fat, free of lean meat, and poultry fat, not rendered or otherwise
extracted, salted, in brine, dried or smoked [other than put up in unit
containers]
17. 0210 Meat and edible meat offal, salted, in brine, dried or smoked; edible
flours and meals of meat or meat offal, other than put up in unit
containers
18. 3 Fish seeds, prawn / shrimp seeds whether or not processed, cured or in
frozen state [other than goods falling under Chapter 3 and attracting
2.5%]
19. 0301 Live fish.
20. 0302 Fish, fresh or chilled, excluding fish fillets and other fish meat of
heading 0304
21. 0304 Fish fillets and other fish meat (whether or not minced), fresh or
chilled.
22. 0306 Crustaceans, whether in shell or not, live, fresh or chilled; crustaceans,
in shell, cooked by steaming or by boiling in water live, fresh or
chilled.
23. 0307 Molluscs,  whether  in  shell  or  not,  live,  fresh,  chilled;  aquatic
invertebrates other than crustaceans and molluscs, live, fresh or chilled.
24. 0308 Aquatic invertebrates other than crustaceans and molluscs, live, fresh
or chilled.
25. 0401 Fresh milk and pasteurised milk, including separated milk, milk and
cream,  not  concentrated  nor  containing  added  sugar  or  other
sweetening matter, excluding Ultra High Temperature (UHT) milk
26. 0403 Curd; Lassi; Butter milk
27. 0406 Chena or paneer, other than put up in unit containers and bearing a
registered brand name;
28. 0407 Birds’ eggs, in shell, fresh, preserved or cooked
29. 0409 Natural honey, other than put up in unit container and bearing a
registered brand name
30. 0501 Human hair, unworked, whether or not washed or scoured; waste of
human hair
31. 0506 All goods i.e. Bones and horn-cores, unworked, defatted, simply
prepared (but not cut to shape), treated with acid or gelatinised; powder
and waste of these products
32. 0507 90 All goods i.e. Hoof meal; horn meal; hooves, claws, nails and beaks;
antlers; etc.
33. 0511 Semen including frozen semen
5
S. Chapter or Description of Goods
No. Heading or
Sub-heading
or Tariff
item
(1) (2) (3)
34. 6 Live trees and other plants; bulbs, roots and the like; cut flowers and
ornamental foliage
35. 0701 Potatoes, fresh or chilled.
36. 0702 Tomatoes, fresh or chilled.
37. 0703 Onions, shallots, garlic, leeks and other alliaceous vegetables, fresh or
chilled.
38. 0704 Cabbages, cauliflowers, kohlrabi, kale and similar edible brassicas,
fresh or chilled.
39. 0705 Lettuce (Lactuca sativa) and chicory (Cichorium spp.), fresh or chilled.
40. 0706 Carrots, turnips, salad beetroot, salsify, celeriac, radishes and similar
edible roots, fresh or chilled.
41. 0707 Cucumbers and gherkins, fresh or chilled.
42. 0708 Leguminous vegetables, shelled or unshelled, fresh or chilled.
43. 0709 Other vegetables, fresh or chilled.
44. 0712 Dried vegetables, whole, cut, sliced, broken or in powder, but not
further prepared.
45. 0713 Dried leguminous vegetables, shelled, whether or not skinned or split.
46. 0714 Manioc, arrowroot, salep, Jerusalem artichokes, sweet potatoes and
similar roots and tubers with high starch or inulin content, fresh or
chilled; sago pith.
47. 0801 Coconuts, fresh or dried, whether or not shelled or peeled
48. 0801 Brazil nuts, fresh, whether or not shelled or peeled
49. 0802 Other nuts, Other nuts, fresh such as Almonds, Hazelnuts or filberts
(Coryius  spp.),  walnuts,  Chestnuts  (Castanea  spp.),  Pistachios,
Macadamia nuts, Kola nuts (Cola spp.), Areca nuts, fresh, whether or
not shelled or peeled
50. 0803 Bananas, including plantains, fresh or dried
51. 0804 Dates, figs, pineapples, avocados, guavas, mangoes and mangosteens,
fresh.
52. 0805 Citrus fruit, such as Oranges, Mandarins (including tangerines and
satsumas); clementines, wilkings and similar citrus hybrids, Grapefruit,
including pomelos, Lemons (Citrus limon, Citrus limonum) and limes
(Citrus aurantifolia, Citrus latifolia), fresh.
53. 0806 Grapes, fresh
54. 0807 Melons (including watermelons) and papaws (papayas), fresh.
55. 0808 Apples, pears and quinces, fresh.
56. 0809 Apricots, cherries, peaches (including nectarines), plums and sloes,
fresh.
57. 0810 Other fruit such as strawberries, raspberries, blackberries, mulberries
and  loganberries,  black,  white  or  red  currants  and  gooseberries,
cranberries, bilberries and other fruits of the genus vaccinium, Kiwi
fruit, Durians, Persimmons, Pomegranates, Tamarind, Sapota (chico),
Custard-apple (ata), Bore, Lichi, fresh.
6
S. Chapter or Description of Goods
No. Heading or
Sub-heading
or Tariff
item
(1) (2) (3)
58. 0814 Peel of citrus fruit or melons (including watermelons), fresh.
59. 9 All goods of seed quality
60. 0901 Coffee beans, not roasted
61. 0902 Unprocessed green leaves of tea
62. 0909 Seeds of anise, badian, fennel, coriander, cumin or caraway; juniper
berries [of seed quality]
63. 0910 11 10 Fresh ginger, other than in processed form
64. 0910 30 10 Fresh turmeric, other than in processed form
65. 1001 Wheat and meslin [other than those put up in unit container and
bearing a registered brand name]
66. 1002 Rye [other than those put up in unit container and bearing a registered
brand name]
67. 1003 Barley [other than those put up in unit container and bearing a
registered brand name]
68. 1004 Oats [other than those put up in unit container and bearing a registered
brand name]
69. 1005 Maize (corn) [other than those put up in unit container and bearing a
registered brand name]
70. 1006 Rice [other than those put up in unit container and bearing a registered
brand name]
71. 1007 Grain sorghum [other than those put up in unit container and bearing a
registered brand name]
72. 1008 Buckwheat, millet and canary seed; other cereals such as Jawar, Bajra,
Ragi] [other than those put up in unit container and bearing a registered
brand name]
73. 1101 Wheat or meslin flour [other than those put up in unit container and
bearing a registered brand name].
74. 1102 Cereal flours other than of wheat or meslin, [maize (corn) flour, Rye
flour, etc.] [other than those put up in unit container and bearing a
registered brand name]
75. 1103 Cereal groats, meal and pellets [other than those put up in unit
container and bearing a registered brand name]
76. 1104 Cereal grains hulled
77. 1105 Flour, of potatoes [other than those put up in unit container and bearing
a registered brand name]
78. 1106 Flour, of the dried leguminous vegetables of heading 0713 (pulses)
[other than guar meal 1106 10 10 and guar gum refined split 1106 10
90], of sago or of roots or tubers of heading 0714 or of the products of
Chapter 8 i.e. of tamarind, of singoda, mango flour, etc. [other than
those put up in unit container and bearing a registered brand name]
79. 12 All goods of seed quality
80. 1201 Soya beans, whether or not broken, of seed quality.
81. 1202 Ground-nuts, not roasted or otherwise cooked, whether or not shelled
7
S. Chapter or Description of Goods
No. Heading or
Sub-heading
or Tariff
item
(1) (2) (3)
or broken, of seed quality.
82. 1204 Linseed, whether or not broken, of seed quality.
83. 1205 Rape or colza seeds, whether or not broken, of seed quality.
84. 1206 Sunflower seeds, whether or not broken, of seed quality.
85. 1207 Other oil seeds and oleaginous fruits (i.e. Palm nuts and kernels, cotton
seeds, Castor oil seeds, Sesamum seeds, Mustard seeds, Saffower
(Carthamustinctorius)  seeds,  Melon  seeds,  Poppy  seeds,  Ajams,
Mango kernel, Niger seed, Kokam) whether or not broken, of seed
quality.
86. 1209 Seeds, fruit and spores, of a kind used for sowing.
87. 1210 Hop cones, fresh.
88. 1211 Plants and parts of plants (including seeds and fruits), of a kind used
primarily in perfumery, in pharmacy or for insecticidal, fungicidal or
similar purpose, fresh or chilled.
89. 1212 Locust beans, seaweeds and other algae, sugar beet and sugar cane,
fresh or chilled.
90. 1213 Cereal straw and husks, unprepared, whether or not chopped, ground,
pressed or in the form of pellets
91. 1214 Swedes,  mangolds,  fodder  roots,  hay,  lucerne  (alfalfa),  clover,
sainfoin, forage kale, lupines, vetches and similar forage products,
whether or not in the form of pellets.
92. 1301 Lac and Shellac
93. 1404 90 40 Betel leaves
94. 1701 or 1702 Jaggery of all types including Cane Jaggery (gur) and Palmyra Jaggery
95. 1904 Puffed rice, commonly known as Muri, flattened or beaten rice,
commonly known as Chira, parched rice, commonly known as khoi,
parched paddy or rice coated with sugar or gur, commonly known as
Murki
96. 1905 Pappad
97. 1905 Bread (branded or otherwise), except pizza bread
98. 2201 Water [other than aerated, mineral, purified, distilled, medicinal, ionic,
battery, de-mineralized and water sold in sealed container]
99. 2201 Non-alcoholic Toddy, Neera including date and palm neera
100. 2202 90 90 Tender coconut water other than put up in unit container and bearing a
registered brand name
101. 2302, 2304, Aquatic feed including shrimp feed and prawn feed, poultry feed and
2305, 2306, cattle feed, including grass, hay and straw, supplement andhusk of
2308, 2309 pulses, concentrates andadditives, wheat bran and de-oiled cake
102. 2501 Salt, all types
103. 2835 Dicalcium phosphate (DCP) of animal feed grade conforming to IS
specification No.5470 : 2002
104. 3002 Human Blood and its components
105. 3006 All types of contraceptives
8
S. Chapter or Description of Goods
No. Heading or
Sub-heading
or Tariff
item
(1) (2) (3)
106. 3101 All goods and organic manure [other than put up in unit containers and
bearing a registered brand name]
107. 3304 Kajal [other than kajal pencil sticks], Kumkum, Bindi, Sindur, Alta
108. 3825 Municipal waste, sewage sludge, clinical waste
109. 3926 Plastic bangles
110. 4014 Condoms and contraceptives
111. 4401 Firewood or fuel wood
112. 4402 Wood charcoal (including shell or nut charcoal), whether or not
agglomerated
113. 4802 / 4907 Judicial, Non-judicial stamp papers, Court fee stamps when sold by the
Government Treasuries or Vendors authorised by the Government
114. 4817 / 4907 Postal items, like envelope, Post card etc., sold by Government
115. 48 / 4907 Rupee notes when sold to the Reserve Bank of India
116. 4907 Cheques, lose or in book form
117. 4901 Printed books, including Braille books
118. 4902 Newspapers, journals and periodicals, whether or not illustrated or
containing advertising material
119. 4903 Children’s picture, drawing or colouring books
120. 4905 Maps and hydrographic or similar charts of all kinds, including atlases,
wall maps, topographical plans and globes, printed
121. 5001 Silkworm laying, cocoon
122. 5002 Raw silk
123. 5003 Silk waste
124. 5101 Wool, not carded or combed
125. 5102 Fine or coarse animal hair, not carded or combed
126. 5103 Waste of wool or of fine or coarse animal hair
127. 52 Gandhi Topi
128. 52 Khadi yarn
129. 5303 Jute fibres, raw or processed but not spun
130. 5305 Coconut, coir fibre
131. 63 Indian National Flag
132. 6703 Human hair, dressed, thinned, bleached or otherwise worked
133. 6912 00 40 Earthen pot and clay lamps
134. 7018 Glass bangles (except those made from precious metals)
135. 8201 Agricultural implements manually operated or animal driven i.e. Hand
tools, such as spades, shovels, mattocks, picks, hoes, forks and rakes;
axes, bill hooks and similar hewing tools; secateurs and pruners of any
kind; scythes, sickles, hay knives, hedge shears, timber wedges and
other tools of a kind used in agriculture, horticulture or forestry.
136. 8445 Amber charkha
137. 8446 Handloom [weaving machinery]
138. 8802 60 00 Spacecraft (including satellites) and suborbital and spacecraft launch
vehicles
9
S. Chapter or Description of Goods
No. Heading or
Sub-heading
or Tariff
item
(1) (2) (3)
139. 8803 Parts of goods of heading 8801
140. 9021 Hearing aids
141. 92 Indigenous handmade musical instruments
142. 9603 Muddhas made of sarkanda and phool bahari jhadoo
143. 9609 Slate pencils and chalk sticks
144. 9610 00 00 Slates
145. 9803 Passenger baggage
146. Any chapter Puja samagri namely,-
(i)   Rudraksha,  rudraksha  mala,  tulsikanthi  mala,  panchgavya
(mixture of cowdung, desi ghee, milk and curd);
(ii) Sacred thread (commonly known as yagnopavit);
(iii) Wooden khadau;
(iv) Panchamrit,
(v) Vibhuti sold by religious institutions,
(vi) Unbranded honey
(vii) Wick for diya.
(viii) Roli
(ix) Kalava (Raksha sutra)
(x) Chandantika
147. Liquefied petroleum gas for supply to household and non
domestic exempted category (NDEC) customers
148. Kerosene oil sold under PDS
149. Postal baggage transported by Department of Posts
150. Natural or cultured pearls and precious or semi-precious stones;
precious metals and metals clad with precious metal (Chapter
71)
151. Jewellery,  goldsmiths’  and  silversmiths’  wares  and  other
articles (Chapter 71)
152. Currency
153. Used personal and household effects
154. Coral, unworked (0508) and worked coral (9601);

 

 

(ii) in the principal rules, after rule 138, the following shall be inserted, namely:-

 

“138A. Documents and devices to be carried by a person-in-charge of a conveyance.-(1) The person in charge of a conveyance shall carry—

 

  • the invoice or bill of supply or delivery challan, as the case may be; and

 

  • a copy of the e-way bill or the e-way bill number, either physically or mapped to a Radio Frequency Identification Device embedded on to the conveyance in such manner as may be notified by the Commissioner.

 

 

 

10

  • A registered person may obtain an Invoice Reference Number from the common portal by uploading, on the said portal, a tax invoice issued by him in FORM GST INV-1 and produce the same for verification by the proper officer in lieu of the tax invoice and such number shall be valid for a period of thirty days from the date of uploading.

 

  • Where the registered person uploads the invoice under sub-rule (2), the information in Part A of FORM GST EWB-01 shall be auto-populated by the common portal on the basis of the information furnished in FORM GST INV-1.

 

  • The Commissioner may, by notification, require a class of transporters to obtain a unique Radio Frequency Identification Device and get the said device embedded on to the conveyance and map the e-way bill to the Radio Frequency Identification Device prior to the movement of goods.

 

  • Notwithstanding anything contained clause (b) of sub-rule (1), where circumstances so warrant, the Commissioner may, by notification, require the person-in-charge of the conveyance to carry the following documents instead of the e-way bill-

 

  • tax invoice or bill of supply or bill of entry; or

 

  • a delivery challan, where the goods are transported for reasons other than by way of supply.

 

 

138B. Verification of documents and conveyances.- (1) The Commissioner or an officer empowered by him in this behalf may authorise the proper officer to intercept any conveyance to verify the e-way bill or the e-way bill number in physical form for all inter-State and intra-State movement of goods.

 

  • The Commissioner shall get Radio Frequency Identification Device readers installed at places where the verification of movement of goods is required to be carried out and verification of movement of vehicles shall be done through such device readers where the e-way bill has been mapped with the said device.

 

  • The physical verification of conveyances shall be carried out by the proper officer as authorised by the Commissioner or an officer empowered by him in this behalf:

 

Provided that on receipt of specific information on evasion of tax, physical verification of a specific conveyance can also be carried out by any officer after obtaining necessary approval of the Commissioner or an officer authorised by him in this behalf.

 

138C. Inspection and verification of goods.- (1) A summary report of every inspection of goods in transit shall be recorded online by the proper officer in Part A of FORM GST EWB-03 within twenty four hours of inspection and the final report in Part B of FORM GST EWB-03 shall be recorded within three days of such inspection.

 

  • Where the physical verification of goods being transported on any conveyance has been done during transit at one place within the State or in any other State, no further physical verification of the said conveyance shall be carried out again in theState, unless a specific information relating to evasion of tax is made available subsequently.

 

 

11

 

 

138D. Facility for uploading information regarding detention of vehicle.-Where a vehicle has been intercepted and detained for a period exceeding thirty minutes, the transporter may upload the said information in FORM GST EWB-04 on the common portal.

 

FORM GST EWB-01

 

(See rule 138)

E-Way Bill

 

PART-A

 

A.1   GSTIN of Recipient

 

A.2    Place of Delivery

 

A.3   Invoice or Challan Number

 

A.4   Invoice or Challan Date

 

A.5   Value of Goods

 

A.6   HSN Code

 

A.7   Reason for Transportation

 

A.8    Transport Document Number

 

PART-B

 

  1. Vehicle Number

 

Notes:

 

  1. HSN Code in column A.6 shall be indicated at minimum two digit level for taxpayers having annual turnover upto five crore rupees in the preceding financial year and at four digit level for taxpayers having annual turnover above five crore rupees in the preceding financial year.

 

  1. Transport Document number indicates Goods Receipt Number or Railway Receipt Number or Airway Bill Number or Bill of Lading Number.

 

  1. Place of Delivery shall indicate the PIN Code of place of delivery.

 

  1. Reason for Transportation shall be chosen from one of the following:

 

Code          Description

 

  • Supply

 

  • Export or Import

 

  • Job Work

 

  • SKD or CKD

 

  • Recipient not known

 

  • Line Sales

 

  • Sales Return

 

  • Exhibition or fairs

 

  • For own use

 

0              Others

 

 

12

FORM GST EWB-02

 

(See rule 138)

 

Consolidated E-Way Bill

 

Number of E-Way Bills

 

E-Way Bill Number

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

13

FORM GST EWB-03

 

(See rule138C)

 

Verification Report

 

Part A

 

Name of the Officer

 

Place of inspection

 

Time of inspection

 

Vehicle Number

 

E-Way Bill Number

 

Invoice or Challan or Bill Date

 

Invoice or Challan or Bill Number

 

Name of person in-charge of vehicle

 

Description of goods

 

Declared quantity of goods

 

Declared value of goods

 

Brief description of the discrepancy

 

 

 

 

 

 

Whether goods were detained?

 

If not, date and time of release of vehicle

 

Part B

 

Actual quantity of goods

 

Actual value of the Goods

 

Tax payable

 

Integrated tax

 

Central tax

 

State or UT tax

 

Cess

 

Penalty payable

 

Integrated tax

 

Central tax

 

State or UT tax

 

Cess

 

Details of Notice

 

Date

 

Number

 

 

 

 

 

 

 

 

14

Summary of findings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

15

FORM GST EWB-04

 

(See rule138D)

 

 

Report of detention

 

E-Way Bill Number

 

Approximate  Location

 

of detention

 

Period of detention

 

Name   of   Officer   in-     (if known)

 

charge

 

Date

 

Time

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

16

FORM GST INV – 1
(See rule 138A)
Generation of Invoice Reference Number
IRN: Date:
Details of Supplier
GSTIN
Legal Name
Trade name, if any
Address
Serial No. of Invoice
Date of Invoice
Details of Recipient (Billed to) Details of Consignee (Shipped to)
GSTIN or UIN, if
available
Name
Address
State (name and code)
Type of supply –
B to B supply
B to C supply
Attracts Reverse Charge
Attracts TCS GSTIN of operator
Attracts TDS GSTIN of TDS Authority
Export
Supplies made to SEZ
Deemed export
Sr. Description HS Qty. Uni Price Tota Discoun Taxabl Central tax State or UT Integrated Cess
No. of Goods N t (per l t, if any e value tax tax
unit) valu
Rate Amt. Rate   Amt. Rate   Am Ra A
e
t. te mt
.

Freight

 

Insurance

 

Packing and Forwarding Charges etc.

 

Total

 

Total Invoice Value (In figure)

 

Total Invoice Value (In Words)

 

Signature

 

Name of the Signatory

 

Designation or Status”;

 

17

  • in the principal rules to FORMS, –

 

  1. with effect from the 1st July of 2017, for “FORM GST ENR-01”, the following FORM shall be substituted and shall be deemed to be have been substituted, namely:-

 

 

 

“FORM GST ENR-01

 

[See rule 58(1)]

Application for Enrolment under section 35 (2)
[only for un-registered persons]
1. Name of the State
2. (a) Legal name
(b) Trade Name, if any
(c) PAN
(d) Aadhaar (applicable in case of
proprietorship concerns only)
3. Type of enrolment
(i) Warehouse or Depot (ii) Godown
(iii) Transport services (iv) Cold Storage
4. Constitution of Business (Please Select the Appropriate)
(i) Proprietorship or HUF (ii) Partnership
(iii) Company (iv) Others
5. Particulars of Principal Place of Business
(a) Address
Building No. or Flat No. Floor No.
Name of the Road or Street
Premises or Building
City or Town or Locality or Taluka or Block
Village
District
State PIN Code
Latitude Longitude
(b) Contact Information (the email address and mobile number will be used for authentication)
Email Address Telephone STD
18
Mobile Number Fax STD
  • Nature of premises

 

Own Leased Rented Consent Shared Others (specify)
  1. Details of additional place of business – Add for additional place(s) of business, if any(Fill up the same information as in item 5 [(a), (b), and (c)]

 

  1. Consent

 

I on behalf of the holder of Aadhaar number <pre-filled based on Aadhaar number provided in the form> give consent to “Goods and Services Tax Network” to obtain my details from UIDAI for the purpose of authentication. “Goods and Services Tax Network” has informed me that identity information would only be used for validating identity of the Aadhaar holder and will be shared with Central Identities Data Repository only for the purpose of authentication.

 

  1. List of documents uploaded (Identity and address proof)

 

  1. Verification

 

I hereby solemnly affirm and declare that the information given herein above is true and correct to the best of my knowledge and belief and nothing has been concealed therefrom.

 

 

 

Place: Signature
Date: Name of Authorised Signatory
For Office Use:
Enrolment no Date- ”.

 

  1. with effect from the 1st day of July, 2017 for “FORM GST RFD-01”, the following FORM shall be substituted and shall be deemed to be have been substituted, namely:-

 

“FORM-GST-RFD-01

 

[See rule 89(1)]

 

Application for Refund

 

(Applicable for casual or non-resident taxable person, tax deductor, tax collector, un-registered person and other registered taxable person)

 

  1. GSTIN / Temporary ID
  2. Legal Name

 

  1. Trade Name, if any

 

  1. Address

 

 

19

5. Tax period From <Year><Month> To <Year><Month>
(if applicable)
6. Amount of Act Tax Interest Penalty Fees Others Total
Refund Claimed
(Rs.)
Central tax
State  /  UT
tax
Integrated tax
Cess
Total
7. Grounds of (a) Excess balance in Electronic Cash Ledger
refund claim (b) Exports of services- with payment of tax
(select from drop (c) Exports of goods / services- without payment of tax (accumulated
down) ITC)
(d) On account of order
Sr. Type of order Order Order Order Payment
No. no. date Issuing reference
Authority no., if
any
(i) Assessment
(ii) Provisional
assessment
(iii) Appeal
(iv) Any other
order
(specify)
(e) ITC accumulated due to inverted tax structure
[clause (ii) of first proviso to section 54(3)]
(f) On account of supplies made to SEZ unit/ SEZ developer
(with payment of tax)
(g) On account of supplies made to SEZ unit/ SEZ developer
(without payment of tax)
(h) Recipient of deemed export
(i) Tax paid on a supply which is not provided, either wholly or
partially, and for which invoice has not been issued (tax paid on
advance payment)
(j) Tax paid on an intra-State supply which is subsequently held to be
inter-State supply and vice versa(change of POS)
(k) Excess payment of tax, if any
(l) Any other (specify)
8. Details  of  Bank Name of Address of IFSC Type of Account No.
account bank branch account
9. Whether Self-Declaration filed by Applicant u/s 54(4), Yes No
if applicable

 

 

 

 

20

 

DECLARATION [second proviso to section 54(3)]

 

I hereby declare that the goods exported are not subject to any export duty. I also declare that I have not availed any drawback on goods or services or both and that I have not claimed refund of the integrated tax paid on supplies in respect of which refund is claimed.

 

Signature

 

Name –

 

Designation / Status

 

 

DECLARATION [section 54(3)(ii)]

 

I hereby declare that the refund of input tax credit claimed in the application does not include ITC availed on goods or services used for making ‘nil’ rated or fully exempt supplies.

 

Signature

 

Name –

 

Designation / Status

 

 

DECLARATION [rule 89(2)(f)]

 

I hereby declare that the Special Economic Zone unit /the Special Economic Zone

 

developer has not availed of the input tax credit of the tax paid by the applicant, covered

 

under this refund claim.

 

Signature

 

Name –

 

Designation / Status

 

 

 

DECLARATION [rule 89(2)(g)]

 

(For recipients of deemed export)

 

I hereby declare that the refund has been claimed only for those invoices which have been reported in statement of inward supplies filed in Form GSTR-2 for the tax period for which refund is being claimed and the amount does not exceed the amount of input tax credit availed in the valid return filed for the said tax period. Signature

 

Name –

 

Designation / Status

 

 

 

 

21

 

 

——-

I ____________________ SELF- DECLARATION [rule 89(2)(l)] , solemnly affirm
(Applicant) having GSTIN/ temporary Id
and certify that in respect of the refund amounting to Rs.   / with respect— to the tax, interest,
or any other amount for the period from  to   , claimed in the——- refund application, the
incidence of such tax and interest has not been passed on to any other person.
Signature
Name –
Designation / Status

 

 

(This Declaration is not required to be furnished by applicants, who are claiming refund under clause (a) or clause (b) or clause (c) or clause (d) or clause (f) of sub-section (8) of section 54.)

 

 

 

 

  1. Verification

 

I/We <Taxpayer Name> hereby solemnly affirm and declare that the information given herein above is true and correct to the best of my/our knowledge and belief and nothing has been concealed therefrom.

 

I/We declare that no refund on this account has been received by me/us earlier.

 

Place

Signature of Authorised Signatory

 

Date

(Name)

 

Designation/ Status

 

 

 

Annexure-1

 

Statement -1 [rule 89(5)]

 

Refund Type: ITC accumulated due to inverted tax structure [clause (ii) of first proviso to section 54(3)]

 

(Amount in Rs.)
Turnover of Tax payable on Adjusted Net input tax Maximum refund
inverted rated such inverted total turnover credit amount to be claimed
supply of goods rated supply of [(1×4÷3)-2]
goods
1 2 3 4 5

 

 

 

 

22

Statement- 2 [rule 89(2)(c)]

 

Refund Type: Exports of services with payment of tax

 

(Amount in Rs.)

 

Sr. No. Invoice details Integrated tax BRC/ FIRC Integrated tax Integrated Net
No. Date Value Taxable Amt. No. Date involved in tax involved Integrated
value debit note, if in credit tax
any note, if any (6+9 – 10)
1 2 3 4 5 6 7 8 9 10 11

 

Statement- 3 [rule 89(2)(b) and 89(2)(c)]

 

Refund Type:Export without payment of tax (accumulated ITC)

 

(Amount in Rs.)

 

Sr. No. Invoice details Goods/ Shipping bill/ Bill of export EGM Details BRC/ FIRC
No. Date Value Services Port code No. Date Ref No. Date No. Date
(G/S)
1 2 3 4 5 6 7 8 9 10 11 12

 

Statement- 3A [rule 89(4)]

 

Refund Type: Export without payment of tax (accumulated ITC) – calculation of refund amount

 

(Amount in Rs.)
Turnover of zero rated Net input tax Adjusted total Refund amount
supply of goods and credit turnover (1×2÷3)
services
1 2 3 4

 

 

Statement-4 [rule 89(2)(d) and 89(2)(e)]

 

Refund Type:On account of supplies made to SEZ unit or SEZ Developer (on payment of tax)

 

(Amount in Rs.)
GSTIN of Invoice details Shipping bill/ Integrated Tax Integrated Integrated Net
recipient Bill of export/ tax tax Integrated
Endorsed involved involved tax
invoice by SEZ in debit in credit (8+ 9
No. Date Value No. Date Taxable Amt. note, if note, if 10)
Value any any
23

1                   2              3              4            5                6                      7                       8                      9                      10                     11

 

 

 

Statement-5 [rule 89(2)(d) and 89(2)(e)]

 

Refund Type:On account of supplies made to SEZ unit or SEZ Developer (without payment of tax)

 

(Amount in Rs.)
Sr. No. Invoice details Goods/ Services Shipping bill/ Bill of export/
(G/S) Endorsed invoice no.
No. Date Value No. Date
1 2 3 4 5 6 7

 

 

Statement-5A [rule 89(4)]

 

Refund Type:On account of supplies made to SEZ unit / SEZ developer without payment of tax (accumulated ITC) – calculation of refund amount

 

(Amount in Rs.)
Turnover of zero rated Net input tax credit Adjusted total Refund amount
supply of goods and turnover (1×2÷3)
services
1 2 3 4

Statement-6 [rule 89(2)(j)]

 

Refund Type: On account of change in POS of the supplies (inter-State to intra-State and vice versa)

 

Order Details (issued in pursuance of sections 77 (1) and (2), if any: Order No: Order
Date:
(Amount in Rs.)
GSTIN/ Details of invoices covering transaction considered as intra –State Transaction which were held inter State /
UIN / inter-State transaction earlier intra-State supply subsequently
Name
Invoice details Integrated Central State/ Cess Place of Integrated Central State/ Cess Place of
(in case tax tax UT Supply tax tax UT Supply
B2C) No.DateValueTaxable tax tax
Value
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

 

24

 

 

Statement-7 [rule 89(2)(k)]

 

Refund Type: Excess payment of tax, if any in case of last return filed.

 

(Amount in Rs.)
Tax period ARN of Date of Tax Payable
return filing
Integrated tax Central State/ Cess
return
tax UT tax
1 2 3 4 5 6 7

 

 

 

Annexure-2

 

Certificate [rule 89(2)(m)]

 

 

 

This is to certify that in respect of the refund amounting to Rs.<<>> ————– (in words)
claimed by M/s—————– (Applicant’s Name) GSTIN/ Temporary ID——- for the tax
period < —->, the incidence of tax and interest, has not been passed on to any other person.

This certificate is based on the examination of the books of account and other relevant records and returns particulars maintained/ furnished by the applicant.

 

Signature of the Chartered Accountant/ Cost Accountant:

 

Name:

 

Membership Number:

 

Place:

 

Date:

 

Note – This Certificate is not required to be furnished by the applicant, claiming refund under clause (a) or clause (b) or clause (c) or clause (d) or clause (f) of sub-section (8) of section 54 of the Act.

 

 

Instructions –

 

  1. Terms used:

 

  • B to C:From registered person to unregistered person

 

(b) EGM:                                Export General Manifest

 

 

25

(c) GSTIN:

Goods and Services Tax Identification Number

 

(d) IGST:

Integrated goods and services tax

 

(e) ITC:

Input tax credit

 

(f) POS:

Place of Supply (Respective State)

 

(g) SEZ:

Special Economic Zone

 

(h) Temporary ID:

Temporary Identification Number

 

(i) UIN:

Unique Identity Number

 

  1. Refund of excess amount available in electronic cash ledger can also be claimed through return or by filing application.

 

  1. Debit entry shall be made in electronic credit or cash ledger at the time of filing the application.

 

  1. Acknowledgement in FORM GST RFD-02 will be issued if the application is found complete in all respects.

 

  1. Claim of refund on export of goods with payment of IGST shall not be processed through this application.

 

  1. Bank account details should be as per registration data. Any change in bank details shall first be amended in registration particulars before quoting in the application.

 

  1. Declaration shall be filed in cases wherever required.

 

  1. ‘Net input tax credit’ means input tax credit availed on inputs during the relevant period for the purpose of Statement-1 and will include ITC on input services also for the purpose of Statement-3A and 5A.

 

  1. ‘Adjusted total turnover’ means the turnover in a State or a Union territory, as defined under clause (112) of section 2 excluding the value of exempt supplies other than zero-rated supplies, during the relevant period.

 

  1. For the purpose of Statement-1, refund claim will be based on supplies reported in GSTR-

 

  • and GSTR-2.

 

  1. BRC or FIRC details will be mandatory where refund is claimed against export of services details of shipping bill and EGM will be mandatory to be provided in case of export of goods.

 

  1. Where the invoice details are amended (including export), refund shall be allowed as per the calculation based on amended value.

 

  1. Details of export made without payment of tax shall be reported in Statement-3.

 

 

 

 

 

26

  1. Availability of refund to be claimed in case of supplies made to SEZ unit or SEZ developer without payment of tax shall be worked out in accordance with the formula prescribed in rule 89(4).

 

  1. ‘Turnover of zero rated supply of goods and services’ shall have the same meaning as defined in rule 89(4).”;

 

  • with effect from the 1st day of July,2017, in “FORM GST TRAN-2”,-

 

  • in Serial No. 4, for the words “appointment date”, the words “appointed date” shall be substituted and shall be deemed to be have been substituted;
  • in Serial No. 5, for the words “credit on”, the words “credit of” shall be substituted and shall be deemed to be have been substituted.

 

 

 

 

[F. No. 349/58/2017-GST]

 

 

 

 

 

(Dr.Sreeparvathy S.L.)

 

Under Secretary to the Government of India

 

 

 

Note:- The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide notification No. 3/2017-Central Tax, dated the 19th June, 2017, published vide G.S.R number 610 (E), dated the 19th June, 2017 and last amended vide notification No. 22/2017-Central Tax, dated the 17thAugust, 2017, published vide G.S.R number 1023(E), dated the 17th August, 2017.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

27

​Respected Members
 
Please find attached herewith the circular on Taxation for your​ information.
  • Income Tax
  • GST
  • International Taxation
  • Company Law

Income Tax

 

CBDT hikes deposit to 20% for getting I-T demand stay:

Taxpayers who wish to file an appeal against income tax demands raised against them will have to shell out more to obtain a stay, pending disposal of their appeal with the Commissioner of I-T (Appeals). Corporate tax payers and HNIs, who face heavier I-T demands, will have to cough out more for obtaining a stay.

 

Approaching CIT (Appeals) is the first stage for obtaining redress, after which the appeal process, if further litigated, moves to the I-T appellate tribunals and courts.

 

In its recent office memorandum, the Central Board of Direct Taxes (CBDT) has prescribed a deposit of 20% of the disputed I-T demand by taxpayers for obtaining a stay pending disposal of the matter by the CIT (Appeals). Earlier, the aggrieved taxpayer had o deposit only 15% of the disputed I-T demand before approaching the CIT (Appeals).

(Source:http://economictimes.indiatimes.com/news/economy/policy/cbdt-hikes-deposit-to-20-for-gettng-it-demand-stay/articleshow/59910541.cms)

 

NRIs need not give account details if seeking no refund: CBDT

The non-resident Indians will not have to give details of their bank accounts held outside the country while filing their income tax returns, if they are not seeking refunds, the CBDT said. “It (providing details of foreign bank accounts) is not mandatory. It is optional. It is for cases where refund is sought,” CBDT Chairman Sushil Chandra told reporters on the sidelines of an event to celebrate the 157th Income Tax day here. The department’s top boss said this when asked to clarify if it was mandatory for Non- Resident Indians (NRIs) to provide the details of their foreign bank accounts in certain return forms like the ITR-2.

(Source:http://www.business-standard.com/article/pti-stories/nris-need-not-give-account-details-ifseeking-no-refund-cbdt-117072401252_1.html)

 

25% growth in number of Income Tax Returns filed in current fiscal

As a result of demonetization and Operation Clean Money, there is a substantial increase in the number of Income Tax Returns (ITRs) filed. The number of Returns filed as on 05.08.2017 stands at 2,82,92,955 as against 2,26,97,843 filed during the corresponding period of F.Y. 2016-2017, registering an increase of 24.7% compared to growth rate of 9.9% in the previous year. The growth in returns filed by Individuals is 25.3% with 2,79,39,083 returns having been received upto 05.08.2017 as against 2,22,92,864 returns in the corresponding period of F.Y. 2016-2017. This clearly shows that substantial number of new tax payers have been brought into the tax net subsequent to demonetization.

 

The effect of demonetization is also clearly visible in the growth in Direct Tax Collections. Advance Tax collections of Personal Income Tax (i.e. other than Corporate Tax) as on 05.08.2017 showed a growth of about 41.79% over the corresponding period in F.Y. 2016-2017. Personal Income Tax under Self- Assessment Tax (SAT) grew at 34.25% over the corresponding period in F.Y. 2016-2017.

 

The above figures amply demonstrate the positive results of the Government’s commitment to fight the menace of black money. CBDT is committed in its resolve to eradicate tax evasion in a non intrusive manner and widening of tax base.

(Source:https://incometaxindiaefiling.gov.in/efiling/portal/staticpdf_news/press-release-advancetaxcollecyions-07- 08-2017.pdf)

 

Income-Tax Department to Write Off irrecoverable tax demands to reduce ‘Bad Debts’

The Directorate of Income-tax (Recovery & TDS) has addressed a directive dated 10th July 2017 in which it has stated that in order to expedite the reduction of bad debts of the Government and the Department, the Directorate of Recovery has compiled a list of a total of 186 cases pending for Write-Off of Rs.25 lakhs and above as on 01.04.2016 in different charges across India.

(Source: http://www.itatonline.org)

 

GST (Goods & Service Tax)

Clarifications on Export Procedure – furnishing of Bond/Letter of Undertaking (LUT)

The Government has issued a number of notifications / circulars, related to procedure for Export under GST Regime. Two options are given for export – with / without payment of tax (IGST) and subject to fulfilment of certain conditions. In case of option for export without payment of IGST, the supplier has to furnish prior to export, a Bond or Letter of Undertaking (LUT) in prescribed form to the tax authorities. Under the 2nd option, the supplier has to first pay IGST on export and then claim refund of such tax paid. Following are the eligibility conditions and procedures in brief:

 

Letter of Undertaking (LUT)

Eligibility:

Registered person shall be eligible for submission of Letter of Undertaking in place of a bond:-

  • If the registered person is a status holder as specified in paragraph 5 of the Foreign Trade Policy 2015-2020; or
  • If the registered person, has received the due foreign inward remittances amounting to a minimum of 10% of the export turnover, which should not be less than one crore rupees, in the preceding financial year.

And such a person should not have been prosecuted for any offence under the CGST Act or any existing law where the amount of tax evaded exceeds Rs. 250 Lakhs. Procedure for LUT: Following documents to be submitted to the jurisdictional commissioner-

  • Form GST RFD-11 to be executed on the letter head of the company
  • LUT to be executed on the letter head of the company by the working partner, the Managing Director, the Company Secretary, the Proprietor or by a person duly authorized as the case may be
  • Bank confirmation for the foreign inward remittances – Self-attested sample Bank Realization Certificate (BRC) copy/FIRC
  • Other documents as may be prescribed by the relevant jurisdictional officer like Copy of PAN, Copy of Provisional GST Registration Certificate, IEC Certificate etc.

 

Bond

Eligibility:

All other registered persons, who are not eligible for LUT.

Procedure for Bond: Following documents to be submitted to the jurisdictional commissioner-

  • Form GST RFD-11 to be executed on the letter head of the company
  • Bond to be furnished on non-judicial stamp paper of Rs.500/- and duly notarized along with Bank Guarantee
  • Bond amount shall be equal to the IGST amount calculated on estimated export turnover to be made in the financial year
  • Bank Guarantee shall not exceed 15%of the Bond Amount
  • Other documents as may be prescribed by the relevant jurisdictional officer like Copy of PAN, Copy of Provisional GST Registration Certificate, IEC Certificate etc.

 

Time for acceptance of LUT/Bond:

As per the clarification provided, as LUT/bond is a priori requirement for export, including supplies to a SEZ developer or a SEZ unit, the LUT/bond should be processed by the authorities on top most priority and should be accepted within a period of three working days from the date of submission of LUT/bond along with complete documents by the exporter.

(Circular 26/2017-Customs – Dated July 1, 2017

Circular No. 2/2/2017-GST – Dated July 4, 2017

Notification No. 16/2017-Central Tax, Circular No. 4/4/2017-GST – Dated July 7, 2017

Circular No. 5/5/2017 – GST – Dated August 11, 2017)

 

Important upcoming GST Reporting:

Sr. No Month Type of Reporting Due Date
1 July 2017 Summary Return – FORM GSTR-3B Aug 20th , 2017
2 Aug 2017 Summary Return – FORM GSTR-3B Sept 20th , 2017
3 July 2017 Filing of details of outward supplies in FORM GSTR-1 S Sept 5th , 2017
4 Aug 2017 Filing of details of outward supplies in FORM GSTR-1 Sept 20th, 2017
5 July 2017 Matching Input Tax Credit in FORM GSTR-2 Sept 10th 2017
6 Aug 2017 Matching Input Tax Credit in FORM GSTR-2 Sept 25th 2017
7 July 2017 Filing of details in FORM GSTR-3 Sept 15th 2017
8 Aug 2017 Filing of details in FORM GSTR-3 Sept 30th 2017

International Tax

 

A foreign company constitutes a service PE in India under the India-UAE tax treaty. Services provided in the form of sharing or permitting to use the special knowledge or expertise falls within the term ‘royalty’ under the tax treaty

Based on the facts and in the circumstances of the case, recently, the Bengaluru Bench of the Income- tax Appellate Tribunal (the Tribunal) in the case of ABB FZ-LLC (the taxpayer) held that the taxpayer had a Service Permanent Establishment in India since the taxpayer has been furnishing services to the Indian company even without any physical presence of its employees in India. In the present age of technology where services, information, consultancy, management, etc. can be provided with various virtual modes such as email, internet, video conference, remote monitoring, remote access to the desktop, etc., through various software. It is not the stay of the employees for more than nine months, but it is rendering of services or activities which are required to be rendered for a period of nine months. Service PE is not dependent upon the fixed place of business as it is only dependent upon the continuation of the activity.

 

The Tribunal also held that the services provided by the taxpayer were in the form of sharing or permitting to use the special knowledge, expertise and experience of the taxpayer and it falls under the term ‘royalty’, under Article 12(3) India-UAE tax treaty (the tax treaty). The visits of the officials of the taxpayer were only for the purposes of providing access for using the information pertaining to industrial/commercial/scientific experience and to help commercially exploit it. The dominant character of agreement between the taxpayer and Indian company was for sharing the secret, confidential and Intellectual Property Rights information made available. The Tribunal observed that tax treaty clearly uses the word for the ‘use of’ or ‘right to use of’, commercial, scientific equipment and has not used the word either ‘imparting’ or ‘alienation’ of knowhow. The language used in the tax treaty is plain and unambiguous, and therefore the reading of words ‘alienation’ or ‘imparting’ of know-how in the tax treaty would not be permissible.

(ABB FZ-LLC v. DCIT (ITA(TP) No. 1103/Bang/2013) – Taxsutra.com)

 

Remuneration received in India by nonresident taxpayer for services rendered outside India not taxable in India

As per the provisions of Income-tax Act, 1961, taxation of income of an individual depends on his residential status in India during the particular year and when such income is due or received. Based on the facts and in the circumstances of the case, recently the Calcutta High Court in the case of Sumana Bandyopadhyay & Anr. (the taxpayer) held that salary received by a Non-resident taxpayer in his Non-Resident (External) bank account in India for the services rendered outside India shall not be includible in his taxable income.

(Sumana Bandyopadhyay & Anr. V. DDIT (GA 3745 of 2016 with ITAT 374 of 2016)

 

 

 

 

 

 

 

 

 

 

Company Law

 

Clarification on notification No. G.S.R. 583(E) dated 13th June, 2012

Stakeholders have drawn attention of this Ministry to the serial no. 5 of notification No. G.S.R. 583(E) dated 13th June, 2012 which states that requirements of reporting under section 143(3)(I) of the Companies Act 2013 shall not apply to certain private companies as mentioned therein and have sought clarification w.r.t. the financial year(s) in respect of which the said exemption shall be applicable. The issue has been -examined in the Ministry and it is hereby clarified that the exemption shall be applicable for those audit reports in respect of financial statements pertaining to financial years commencing on or after 1st Aprll,2016, which are made on or after the date of the said notification.

http://www.mca.gov.in/ministry/pdf/generalcircular8_25072017.pdf

 

​Dear Members,
Last Date for Payment of GST and Filing of Return For July 2017 Extended By 5 Days

 

The GST Implementation Committee, consisting of State and Central Government officers, has taken a decision to extend the last date for payment of the GST for the month of July 2017 to 25th August, 2017.  
 
Earlier the last date for payment of taxes and filing of GST Return in Form 3B for the month of July was kept as 20th of August 2017.  Since it is the first Return to be filed under GST, the tax payers and the tax practitioners have requested for few more days to file their Return.  Also there have been requests from States which are hit with floods to extend the last date for filing of GST Returns.  The State of Jammu & Kashmir has also requested for extension of time because of late passing of their GST Ordinance. Some technical glitches are also experienced by last minute return filers.  
 
It has been specified that for those tax payers, who do not want to avail of transitional credit in TRANS1 this month, the date for return filing will be 25th August 2017.  And for those who want to fill up TRANS1 this month, the last date for filing of returns will be 28th August 2017, as announced earlier. In order not to face any last moment technological difficulty in submission of return, all tax payers are requested to kindly file their return well before 25th / 28th of August 2017 and not wait for the last date. Suitable notification is being issued shortly.

 

Dear Members,
GSTR-3B date extended for those opting to avail transitional credit
The GST Council had earlier decided to defer the filing of return in Form GSTR-3 and had recommended the filing of return in Form GSTR-3B for the month of July and August, 2017. Accordingly, the Central Government vide Notification No. 21/2017-Central Tax dated August 8, 2017 had notified the last date for filing of return in Form GSTR-3B for the month of July, 2017 as August 20, 2017.
Recently, concerns have been raised by the trade about availability of transitional credit for discharging the tax liability for the month of July, 2017 as there was no separate column for the same in Form GSTR-3B. In this regard, the Commissioner on recommendations of the GST Council vide Notification No. 23/2017-Central Tax dated August 17, 2017 read with Press Releases dated August 17, 2017, has specified the date and conditions for filing the return in Form GSTR-3B in the following manner:
Sl. No.
Class of registered persons
Last date for furnishing of return in Form GSTR-3B
Conditions
A.
Registered persons entitled to avail input tax credit (“ITC”) in terms of section 140 of the CGST Act, 2017 readwith Rule 117 of the CGST Rules, 2017 but opting not to file Form GST TRAN-1 on or before the August 28, 2017
August 20, 2017
——
B.
Registered persons entitled to avail ITC in terms of section 140 of the CGST Act, 2017 readwith Rule 117 of the CGST Rules, 2017 and opting to file Form GST TRAN-1 on or before the August 28,2017
August 28, 2017
  1. Compute the “tax payable” for the month of July, 2017 and deposit the same in cash on or before the August 20, 2017, which will get credited to electronic cash ledger;
  2. File Form GST TRAN-1 (which will be available on the common portal from August 21, 2017) before the filing of Form GSTR-3B;
  3. Where the amount of tax payable for the month of July, 2017, as detailed in the return furnished in Form GSTR-3B, exceeds the amount of tax deposited in cash as per item (i), the registered person shall pay such excess amount in cash on or before August 28, 2017 along with the applicable interest @18% calculated from the 21st day of August, 2017 till the date of such deposit. This amount will also get credited to electronic cash ledger.
  4. File the return in Form GSTR-3B on or before August 28, 2017 after discharging the tax liability by debiting the electronic credit or cash ledger.
C.
Any other registered person
August 20, 2017
——
Steps to be followed in aforementioned Case A& C: Assessee not opting to avail transitional credit
Where registered persons planning not to avail transitional credit for discharging the tax liability for the month of July, 2017 or new registrants who do not have any transitional credit to avail, need to follow the steps as detailed below:
  1. Calculate the tax payable as per the following formula:
Tax payable = (Output tax liability + Tax payable under reverse charge) – input tax credit availed for the month of July, 2017;
  1. Tax payable as per (i) above to be deposited in cash on or before August 20, 2017 which will get credited to electronic cash ledger;
  2. File the return in FORM GSTR-3B on or before August 20, 2017 after discharging the tax liability by debiting the electronic credit or cash ledger.
Steps to be followed in aforementioned Case B: Assessee opting to avail transitional credit
Registered persons planning to avail transitional credit for discharging the tax liability for the month of July, 2017 need to follow the steps as detailed below:
  1. Calculate the tax payable as per the following formula:
Tax payable = (Output tax liability + Tax payable under reverse charge) – (transitional credit + input tax credit availed for the month of July, 2017);
  1. Tax payable as per (i) above to be deposited in cash on or before August 20, 2017 which will get credited to electronic cash ledger;
  2. File FORM GST TRAN-1 (which will be available on the common portal from August 21, 2017) before filing the return in FORM GSTR-3B;
  3. In case the tax payable as per the return in FORM GSTR-3B is greater than the cash amount deposited as per (ii) above, deposit the balance in cash along with interest @18% calculated from August 21, 2017 till the date of such deposit. This amount will also get credited to electronic cash ledger;
  4. File the return in FORM GSTR-3B on or before August 28, 2017 after discharging the tax liability by debiting the electronic credit or cash ledger
Please click below for details: