Latest Expert Exchange Queries

GST Demo Service software link:
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Popular Search: due date for vat payment :: ACCOUNTING STANDARD :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: articles on VAT and GST in India :: ACCOUNTING STANDARDS :: VAT RATES :: Central Excise rule to resale the machines to a new company :: TAX RATES - GOODS TAXABLE @ 4% :: TDS :: cpt :: empanelment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: list of goods taxed at 4% :: form 3cd :: VAT Audit
General »
 The most thrilling idea before every Budget: No income tax
 Finance Ministry likely to tweak Minimum Alternate Tax norms to boost industry
 Income tax department warns people to keep away from benami transactions
 New helpline for income tax e-filing
 The Central Government notifies the Companies (Amendment) Act, 2017
 GST Returns: Government Relaxes Rectification Norms
 Will govt bring change in income tax slab? here's the present structure
 No income tax exemption to cooperative banks
 Bitcoin investors may have to pay capital gains tax
 What industry expected when Modi government implemented GST
  The Finance Resolution And Deposit Insurance Bill, 2017

GST: Govt issues clarification to address service tax issues, misses key concerns
September, 29th 2017

Much focus under GST has been given the goods, but the government has realised that the transition provisions are inadequate, especially for the service tax cases.

One such problem is how to report the service tax and take credit of the same that was payable during the pre-GST period, but paid during the GST regime. For the services under reverse charge made during June, the payment of service tax was technically due on July 6 and strictly speaking it could not be reported in the last service tax return period comprising April to June. This issue plagued all taxpayers.

Now the Government has come out with a circular, which is raising more questions than it is trying to answer.

As per the circular, the due date of filing the revised service tax return (which already expired for most people) has been extended to October 15 to facilitate reporting of such payment and taking credit in TRAN 1 (deadline is October 30).

“Interestingly, the circular says this is to help those who choose to wait till July 6, instead of paying by June 30. While as per the law there was no requirement to pay service tax by June 30. Further, it is not known whether the revision window would be open to all kind of reporting (besides service tax paid in July) or only reverse charge paid in July. Whether assesses who have already filed their revised return can re-revise their revised return is also not clear,” says KPMG, Partner, Partner, Priyajit Ghosh.

According to GST law, generally, the supplier of goods or services is liable to pay GST. However, in specified cases like imports and other notified supplies, the liability may be cast on the recipient under the reverse charge mechanism. Similarly CBEC has issued a list of services which fall under the reverse charge mechanism.

Reverse charge means the liability to pay tax is on the recipient of supply of goods or services instead of the supplier of such goods or services in respect of notified categories of goods and services.

“The circular did not address a very common problem faced by the assessees, around reporting and taking credit of those service tax domestic invoices which were received beyond July. Further, there is no clarity around reporting of service tax payment which were made beyond July, mainly due to late availability of requisite information or omission. If GST would not have replaced service tax, such payment would have been reported during respective month of the service tax return. As window of service tax reporting has been only provided for April to June, taxpayers are facing difficulties,” says Ghosh.

Ghosh adds that many taxpayers would realise the need to revise their service tax reporting while finalizing their TRAN 1. “Hence, to ensure smooth transition and logical reporting, it must be clarified that all types of service tax payment can be reported by October 31 by way of final revision of service tax return and credit can be taken in the TRAN 1,” says Ghosh.

The circular also provides window of payment of service tax in cases where no registration was obtained.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - About Us

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions