If a partnership firm wants to transfer the software (i.e Intangible Assets) to its partners at Nil consideration, whether we have to do GST reversal?
Dinesh Prajapati (CA in Practice) (35 Points)
24 March 2021If a partnership firm wants to transfer the software (i.e Intangible Assets) to its partners at Nil consideration, whether we have to do GST reversal?
CA. Sourav Sarkar
(Chartered Accountant )
(24578 Points)
Replied 24 March 2021
CA Puja Sharma
(Chartered Accountant)
(4874 Points)
Replied 24 March 2021
Yes, GST reversal have to be made.
Dinesh Prajapati
(CA in Practice)
(35 Points)
Replied 24 March 2021
Can you please let me know under which section or Rule this reversal will be done?
CA Puja Sharma
(Chartered Accountant)
(4874 Points)
Replied 24 March 2021
Reversal have to be made under section 18(6) of the CGST Act, 2017
Dinesh Prajapati
(CA in Practice)
(35 Points)
Replied 24 March 2021
Section 18(6) "In case of supply of capital goods or plant and machinery,........."
Sec 2(19) "Capital goods means goods,......"
Sec 2(52) "goods means every kind of movable property......."
As per my understanding, software is not a capital goods, so section 18(6) will not be applicable.
Pankaj Rawat
(GST Practitioner)
(55030 Points)
Replied 24 March 2021
GST Live Certification Course (39th Batch) - April 2024 (Weekend Batch) (With Certificate)
"Live class on Python for Financial Analysis: Unlocking Efficiency in Accounting and Finance"
CAclubindia
