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Vol: 3 Issue : 10 January 2016
Happy New Year everyone!! One more year loaded
with lots of happiness, cheerful incidents and
achievements have passed with your love, support
and blessings. We hope to receive this bliss in the
upcoming years also. Again we should also keep in
mind the past to gain pearls of wisdom and start a
new year with the same quest and vigour to achieve new
heights and success.
We are very glad to inform you that the ICAI elections which
were under process for the last 3 to 4 months has now been
successfully completed and the results have been announced.
We take opportunity to convey our heartiest congratulations to
the newly elected regional and central council members. We
hope that these members would take our profession to new
levels and bring glory for our institute.
Recently, CBEC has taken ardent steps to facilitate trade and
resolve litigations which have been on a compounding growth.
The number of appeals being filed by the revenue has
increased exponentially over the years and accordingly with a
view to curve such practices, directions have been issued to
the revenue officers. Some of the steps taken by board include
raising the threshold limits for filling of appeal before the
Tribunal and High Court, withdrawal of appeals which are
pending before the tribunal and High court, imparting training
to the adjudication officers to make them judicially potent to
pass proper adjudication orders, the Chief Commissioner/
Principal Commissioner to hold periodical meetings with the
Adjudicating/Appellate Commissioners to advise them on passing proper adjudicating/appellate orders,
consultation at the level of Principal Commissioner
has been made mandatory before issuance of Show
Cause Notice involving an amount exceeding Rs.50
Lakhs.
The Joint committee on Business processes for GST
after having an elaborate discussion with the trade,
industry and other stakeholders had come up with its
report on GST registration. The report has been
discussed in detail at page 2 & 3 of this issue.
The CBEC has issued a circular clarifying various
issues to settle the dilemma regarding the leviability of
service tax on the services provided by the job worker
to the apparel exporters in relation to fabrication of
garments. The said circular is discussed in detail at
page 4 of this issue.
We hope this newsletter will add some value and
prove to be beneficial to the readers. We highly solicit
suggestions/opinions of the readers. Please feel free
to convey your views at servicetaxgoyal@gmail.com.
We are regularly receiving request for earlier issues of
Tax Talk. Understanding the needs of our valued
readers we have posted the soft copy of the newsletter
at our website. You may refer all earlier issues of Tax
Talk at www.gstpeople.com.
Editorial Board
DUE DATES
PAYMENT FORM DUE DATE
Payment for the Month/
Quarter ending December
2015 (all assessees) E-payment 6th January, 2016
RETURN FORM DUE DATE
Return for the Quarter October
2015 - December 2015 (For a
SEZ Unit or a Developer) A-3
(Physical) 30th January,
2016
Vol: 3 Issue : 10
January 2016
1
46
Rs. 5/-
Editorial
Editorial Board
GST Updates
Issue No. 46 January 2016Issue No. 46
January 2016
2
A Joint Committee on business processes for GST was
constituted in consultation with Government of India, to primarily
make important recommendations to the Empowered Committee
on GST business processes such as Registration and Returns.
The joint committee in due consultation with the trade and
industry, came up with its report on Registration process.
Report of the Joint Committee on Registration Processes in
GST Regime
Registration of a business with the tax authorities implies
obtaining a unique identification code from the concerned tax
authorities so that all the operations of and data relating to the
business can be agglomerated and correlated. In any tax system
this is the most fundamental requirement for identification of the
business for tax purposes or for having any compliance
verification program. The business process proposed in the
report of the Joint Committee is based upon the following
assumptions:
A legal person without GST registration can neither collect GST from his customers nor claim any input tax credit of
GST paid by him.
There will be a threshold of Gross Annual Turnover including
exports and exempted supplies (to be calculated on all-India
basis) below which any person engaged in supply of Goods
or Services or both will not be required to take registration.
However, such person with all-India gross annual turnover
below the threshold turnover would be allowed to take
registration, if he wants to.
There will be another relatively higher threshold of Gross
Annual Turnover (to be calculated on all-India basis) to be
called Compounding turnover up to which the registered
person can opt to pay tax at a specified percentage of the
turnover, without entering the credit chain.
All other taxable persons will be required to take GST registration. Such persons will be able to take the credit of
taxes paid on inputs / input services / capital goods and pass
on the credit of GST to his customers / recipients of goods or
services or both.
The registered person eligible for the Compounding scheme
but opting against the Compounding can pay regular taxes
and file tax returns on monthly basis, and thereby make his
supplies eligible for input tax credit in the hands of the
purchasers/recipients.
Irrespective of turnover, if a taxable person carries out any
inter-state supply and / or is liable to pay GST under reverse
charge, he will be compulsorily required to take registration.
All UN bodies seeking to claim refund of taxes paid by them
would be required to obtain a unique identification number
(ID) from the GST portal. The structure of the said ID would
be uniform across the States in uniformity with GSTIN
structure and the same will be common for the Centre and
the States.
A unique identification number (ID) would be given by the respective state tax authorities through GST portal to
Government authorities / PSUs not making outwards supplies of GST goods (and thus not liable to obtain GST registration)
but are making inter-state purchases.
The concept of Input Service Distributor (ISD) presently being followed in Centre’s Law may continue if the GST Law so provides.
They would be required to obtain GSTIN for distributing the credit of
GST paid on services proposed to be used at multiple locations
which are separately registered.
All existing registered persons, whether with the Centre or State under any of the tax statues being subsumed in GST, would be
allotted a GST registration number called Goods and Services Tax
Identification Number (GSTIN) on voluntary basis.
Tax authorities, in case of enforcement cases, may grant suo-moto
registration. If such person does not have PAN, the registration
would be initially temporary and later converted into a PAN based
registration.
For each State the taxable person will have to take a separate registration, even though the taxable person may be supplying goods
or services or both from more than one State as a single legal entity.
Multiple registrations within one State to business verticals [as defined in Accounting Standard (AS) 17 issued by ICAI] of a taxable
person may also be permitted, subject to all the verticals being on the
same scheme of tax treatment.
A supplier who is not registered on regular basis, whether on
mandatory or voluntary basis, in other State (s) and desires to
conduct business in a particular State for a limited period, will have
to obtain registration in that State for that limited period.
Procedure for obtaining registration
New applicant can apply for registration: (1) at the GST Common Portal directly; or
(2) at the GST Common Portal through the Facilitation Centre
Following scanned documents are required to be filed along with the
application for Registration:
i) Constitution
of Business • Partnership Deed in
case of Partnership Firm.
• Registration Certificate
in case of other
businesses like Society,
Trust etc. which are not
captured in PAN. • In case of Companies,
GSTN would strive for
online verification of
Company Identification
Number (CIN) from
MCA21.
• Constitution of business
/ applicant as per PAN
would be taken except
for businesses such as
Society, Trust etc. which
are not captured in PAN.
• Partnership Deed
would be required to be
submitted in case of
Partnership Firms.Reason for
requirement
Document required to
be uploaded
Relevant Box
No. in the
Registration Form
GST Updates
Issue No. 46 January 2016Issue No. 46
January 2016
3
Amendments in the Registration Form
Capturing registration information is not a one-time activity and
any change in critical information should be entered at the
common portal within a stipulated time period. All amendments
in the details in registration application form will be retained in the
database of the GSTN and will be made visible to the tax
authorities.
Cancellation/Surrender of registration
In the following cases, the registration can be either surrendered
by the registrant or cancelled by the tax authorities:
(1) Closure of business of tax payer;
(2) Gross Annual Turnover including exports and exempted supplies (to be calculated on all-India basis) falling below
threshold for registration;
(3) Transfer of business for any reason including due to death of
the proprietor of a proprietorship firm;
(4) Amalgamation of taxable person with other legal entities or
de-merger;
(5) Non commencement of business by the tax payer within the
stipulated time period prescribed under the GST laws.
This is required as an
evidence to show
possession of business
premises. If the
documentary evidence in
Rent Agreement or
Consent letter shows
that the Lessor is
different from that shown
in the document
produced in support of
the ownership of the
property, then the case
must be flagged as a
“Risk Case”, warranting
a post registration visit
for verification. GST Law
Drafting Committee may
add penalty provision for
providing wrong lease
details.
This is required for all the
bank accounts through
which the taxpayer would
be conducting business.
This is required to verify
whether the person
signing as Authorised
Signatory is duly
empowered
• In case of Own
premises–any document
in support of the
ownership of the
premises like Latest Tax
Paid Receipt or Municipal
Khata copy or Electricity
Bill copy
• In case of Rented or
Leased premises – a
copy of the valid Rent /
Lease Agreement with
any document in support
of the ownership of the
premises of the Lessor
like Latest Tax Paid
Receipt or Municipal
Khata copy or Electricity
Bill copy
• In case of premises
obtained from others,
other than by way of
Lease or Rent – a copy
of the Consent Letter
with any document in
support of the ownership
of the premises of the
Consenter like Municipal
Khata copy or Electricity
Bill copy
• Customer ID or account
ID of the owner of the
property in the record of
electricity providing
company, wherever
available should be
sought for address
verification.
Opening page of the
Bank Passbook held in
the name of the
Proprietor / Business
Concern – containing the
Account No., Name of
the Account Holder,
MICR and IFS Codes
and Branch details
For each Authorised
Signatory:
• Letter of Authorisation
or copy of Resolution of
the Managing Committee
or Board of Directors to
that effect
ii) Details of the
Principal Place
of business
iii) Details of
Bank Account
(s)
iv) Details of
Authorised
Signatory• Proprietary Concern –
Proprietor
• Partnership Firm / LLP –
Managing/ Authorized
Partners (personal details
of all partners is to be
submitted but photos of
only ten partners including
that of Managing Partner is
to be submitted)
• HUF – Karta
• Company – Managing
Director or the Authorised
Person
• Trust – Managing Trustee
• Association of Person or
Body of Individual –
Members of Managing
Committee (personal
details of all members is to
be submitted but photos of
only ten members
including that of Chairman
is to be submitted)
• Local Body – CEO or his
equivalent
• Statutory Body – CEO or
his equivalent
• Others – Person in
Charge
v) Photograph
GST UpdatesGST Updates
Issue No. 46 January 2016
Owner: M/s. Goyal Tax Services Pvt. Ltd., Printer & Publisher: Mrs. Reena Goyal Published from Stephen House, Room No. 64, 4 B. B. D. Bag (East), 4th Floor, Kolkata-700 001
And Printed from M/s. CDC Printers Pvt. Ltd., Tangra Industrial Estate-II (Bengal Pottery), 45, Radhanath Chowdhury Road, Kolkata - 700 015. Editor: CA Sushil Kumar Goyal.
Bulletin Editorial Board
CA. Sushil Kumar Goyal (Editor) CA. Abhisek Tibrewal
CA. Pinky Agarwal CA. Ashika Agarwal
CA. Nikita Jhawar CA. Neha Gupta
CS. Nikita Saraf
Published from :
Stephen House
Room No. 64, 4th Floor
4, B.B.D. Bag (East) Kolkata - 700 001 BOOK POST
Registration under RNI No. WBENG/2013/55099
Postal Registration No. KOL RMS/465/2015-17 Date of Publication : 1st January 2016
Our Services
(a unit of Goyal Tax Services Pvt. Ltd.)
Stephen House, Room No. 644, B.B.D. Bag (East) 4th Floor Kolkata - 700 001
Phone : 2262 4632/33
Email : office@goyalstax.com
Issue No. 46
January 2016
4
Clarification for Apparel Exporters
The department is of the view that the services received by
apparel exporters from third party in relation to job work service
are covered under manpower supply service. However, on the
contrary, assessee is of the view that the services received by
them is of job work involving a process amounting to
manufacture or production of goods, and thus would fall under
negative list [section 66D(f)] and hence would not attract service
tax.
After detailed examination/analysis on this matter, the result
shows that the nature of manpower supply service is quite
distinct from the service of job work. The essential characteristic
of manpower supply service is that the manpower supplied by
the service provider is directly under the supervision of service
receiver during the period of contract. Service provider’s
accountability is only to the extent of quality of manpower.
Under manpower supply service, the value of service is equal to
the number of manpower deployed multiplied by the rate. The essential characteristic of job works is that the manpower is not
supplied but is directly under the control of service provider. Service
provider is accountable for the job he undertakes. It is upto him to
decide how he deploys and uses his manpower. In other words,
service receiver is not concerned about the manpower. The value of
service is equal to the number of pieces fabricated multiplied by the
rate.
Therefore, the exact nature of service needs to be determined on the
facts of each case which would vary from case to case. The terms of
agreement and scope of activity undertaken by the service provider
would determine the nature of service being provided.
However, every job work is not covered under the negative list. If the
job work involves a process on which duties of excise are leviable
under section 3 of the Central Excise Act, 1944, it would be covered
under the negative list in terms of Section 66D(f) read with section
65B (40) of the Finance Act, 1994.
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