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As we all know that procurement of vehicles for demo is common practice in the automobile dealers industry, since the said vehicles are used for promotional purpose including test drive etc. in order to attract buyers, However, unlike purchase of other vehicles, the intention or objective behind the purchase of demo vehicles is not to sell the same but instead it is mainly to use it for the various business promotion / marketing purposes. Needless to say, that once the above purpose is...

GST is not just a tax reform but it is a business reform. It shall change the way in which business processes are performed and the way in which the business transactions are undertaken. Although, GST will bring with it, both positive and negative aspects. However, the organizations that will plan its business processes better in a manner to best suit the needs of the GST regime, then such organization will have competitive edge over others. Therefore, it is of due importance that business...

Introduction:

• Real estate is an important sector of the economy and Joint Development Agreements (hereinafter referred to as ‘JDA’) forms one of the fundamental parts of such sector. JDA is an agreement entered between the landowner and the developer wherein the landowner would provide the right to the developer to develop the land, in return for the construction services to be provided by the developer. Let us analyze a situation wherein such JDA was entered in the service tax...

In these times of Global trade wars with President Trump taking aggressive stand and not making a differentiation between developing countries and USA, exporters of goods and services have to be competitive. 

The Ministry of Commerce and the Ministry of Finance sometimes may not be working in a well co–ordinated manner leading to some intended benefits not reaching the exporter. Delays in benefits as well as the denial of just refund or inordinate delay plays havoc with the working...

SEZ schemes are being promoted with an intention to create competitive environment for goods / services exported thereby to increase the foreign exchange inflow into India. The objectives of government for SEZs include allowing tax-free procurement of goods and services with support in basic essential infrastructure facility for production of goods or services. Such facilities have led to increase in foreign entities participation in India. Section 7 of the SEZ Act 2005 provides for an...

The Government of India along with the States have moved very fast in last couple of months to roll out GST law from 01.04.2017. Latest being forming of GST council,  rules, FAQs etcetera could certainly make the GST introduction reality. The business community along with professionals have to analyse the GST impact on pricing policies, various business functions such as sales, procurement, cash flow, its internal control system and IT systems. In this article, we analyse the impact on...

COVID19 has applied sudden break to halt all industries except few. Pharma is one of the exceptional industries wherein some activities are happening being essential in the current crisis. Though pharma industries are allowed to function during the lockdown, many challenges like, transportation of employees, movement of active pharmaceutical ingredients (API), movement of finished goods and sourcing of required bulk drugs have slowed down the production and supply. Substantial amount of APIs...

Many Companies in India have branches outside India. It is a common practice for such Companies to provide services to its branches outside India. However, such companies should be aware of the GST impact on the services provided to the overseas branches.

In this article the author has analyzed the impact of GST on such transactions with overseas branches.

Supply of services to overseas branches for the period 01.07.2017 to 25.07.2018:

Whether supply of services to overseas branches...

Introduction:

Logistics industry has a critical role to play in the manufacturing industry and trading activities. It is considered as backbone of the economy. In simple words logistics can be considered as movement of goods from point of origin to point of consumption. After raw materials cost, transportation cost is major one to play critical role in fixing the price. Logistics activities involves loading, unloading, packing, storage, warehousing and transportation. The new tax reform...

The recent article in the economic times reporting that the remuneration paid by the Company to its director would attract GST under reverse charge mechanism under RCM has created lot of confusion and unrest among the corporates, this article aims at giving an insight on this subject.

The levy of GST is governed by Section 9 of the Central Goods and Service Tax Act, 2017 (for brevity hereinafter referred to as ‘CGST Act’) and the respective Sate and Union Territory GST Acts on...