Term Immovable property is not defined in this act. Reference can be taken from section 3(26) of General Clauses Act which states “Immovable Property” shall include land, benefits to arise out of land, and things attached to the earth, or permanently fastened to anything attached to the earth”. Refer transfer pricing… Continue reading
Where a supplier issues a voucher to recipient on his making a purchase from supplier, it is not to be treated as outward supply but a mode of consideration which shall be used as consideration for making future purchase.
Partner is not treated as employee of the firm since he shares in profit/losses. Firm and Partners in strict sense of law is ‘single person’. The salary given to partner is the profit of firm only and they are one and the same person. Supply requires 2 persons which is… Continue reading
Other territory means territory not claimed by state or UT (territory claimed by state/UT is 12 nautical miles). As we know India extends upto 200 nautical miles. Therefore, other territory can be (200 less 12 nautical miles i.e. form part of state/UT) i.e. 188 nautical miles beyond 12 nautical miles… Continue reading
Simple Chit Funds: In this case, though there is a foreman but no commission is paid and therefore no GST liability is there, and Business Chit Funds: In this case, there is a foreman who is paid commission and there is GST liability as ‘cash management service’ or ‘Financial &… Continue reading
Market Value is relevant in confiscation provisions contained in section 130. This provision provides that owner of goods or conveyance has option to pay amount equal to its market value so as to avoid confiscation resulting from breach of the provisions of law (for example:supplying goods without e-way bill).
It is relevant in case of: Section 10 i.e. composition scheme, to determine tax rate. Deemed Exports. Maintenance of accounts in relation to manufacturing.
Job-work must not be confused with repair or maintenance. Job-work creates the functionality of an article but repair or maintenance restores or improves the functionality already created and possessed by that article or thing.
Even, intellectual property can be goods since these are also ‘property’. For ex: Copyrights, Patents, Brand Name, etc. ‘Goods’ does not always mean tangible property.
Electricity energy is exempt supply (Refer notification no. 2 – CT (Rate) dated 28.06.2017). State governments have power to levy tax on sale or consumption of electricity (Entry 53 in list 2nd, 7th schedule of constitution). There is no credit available.