XYZ (Proprietory Concern) and PQR(Proprietory Concern) are related persons (Brothers). On behalf of PQR, XYZ had paid the amount of Income Tax and other taxes to Govt. and then subsequently recovered from PQR. Will this amount to service provided to related person under Schedule – I of Section – 7 and even if there is no consideration, XYZ will be liable to pay GST on it?
Menu
Services to related person
Replies (2)
Quick Summary
@ Kaustubh Ram Karandikar Garu,
Based on the above facts, I am of the view that the transaction that was happed is a pure transaction in money. XYZ paid the tax(money) and later recovered from PQR. Transactions in money are not taxable in GST. when a transaction is to be taxable in GST it should be "supply" first and it should be provided in the course or furtherance of business i,e it should be provided as a part of his business but for consideration subject to schedule-I.
I hope XYZ is not in the business of providing those types of temporary loans and recover the fee/interest for it. However, interest is exempted but other fees in relation it may be taxable.
Hope I am clear.
Since the service provided would suffice the condition of pure agent as mentioned under igst that would not be supply and no gst would be liable in the said transaction
Recent Topics :
- Capital Gain on Sale of SRA Allotted Flat Received
- Discrepancy in Auto populated figures in GSTR1 of
- What should I do after receiving a GST Show Cause
- Discuss and Download CA Inter Question Paper Septe
- Hi experts needed some help
- Gift of Immovable Property u/s 92 of Income Tax Ac
- NSE BSE Pre-open session changes from 7 September
- Financial statements for non corporate entities
- Hi experts need some help
- Is SAP FICO a good career option for finance and a
Related Topics :
CAclubindia
