The authorities seems to have asked the taxpayers reporting income from sales of securities in their Financials, to reverse part of the common ITC u/s 17(3) considering the same as an exempt supply The definition of exempt supply uGST means supply of any goods/services which attracts nil rate of tax/wholly exempt from tax and includes non-taxable supply (NTS) NTS is further defined as a supply of goods or services or both which is not leviable to tax uGST Hence, an income to fall under the exempt/NT supply should either be a supply of goods or services "goods” uGST means every kind of movable property other than money and securities... “services” uGST means anything other than goods, money and securities 'Securities' as can be seen above, gets excluded both from the definition of 'goods' & 'services' Merely because there is a mention in Rule 45 that the value of an exempt supply in case of 'securities' shall be taken as 1% of its sale value, will there be an obligation to reverse ITC?? Reference may also be drawn from Hon'ble CESTAT ruling agreeing to the assessee's contention that the income from investments in Mutual Funds may not fall under the ambit of 6(3) reversals as its not the business income of the assessee
Monday 16 December 2019
No reversal of common ITC on Income from Securities?
The authorities seems to have asked the taxpayers reporting income from sales of securities in their Financials, to reverse part of the common ITC u/s 17(3) considering the same as an exempt supply The definition of exempt supply uGST means supply of any goods/services which attracts nil rate of tax/wholly exempt from tax and includes non-taxable supply (NTS) NTS is further defined as a supply of goods or services or both which is not leviable to tax uGST Hence, an income to fall under the exempt/NT supply should either be a supply of goods or services "goods” uGST means every kind of movable property other than money and securities... “services” uGST means anything other than goods, money and securities 'Securities' as can be seen above, gets excluded both from the definition of 'goods' & 'services' Merely because there is a mention in Rule 45 that the value of an exempt supply in case of 'securities' shall be taken as 1% of its sale value, will there be an obligation to reverse ITC?? Reference may also be drawn from Hon'ble CESTAT ruling agreeing to the assessee's contention that the income from investments in Mutual Funds may not fall under the ambit of 6(3) reversals as its not the business income of the assessee
Subscribe to:
Post Comments (Atom)
Requirement to dematerialize shares of private limited companies
The Ministry of Corporate Affairs in October 2023 had mandated private companies and their shareholders to dematerialize their shareholding...
-
Particulars in Part 1 and Part 2 of Step-2 of registration form are required to be exactly the same as reported in the TDS statement. Plea...
-
1. Introduction: Every trust/charitable society/ NGO that wishes to claim the tax exemption benefits has to file Form 10A to seek fresh re...
-
LEASE-DEED (A brief Introduction) Lease defined. A lease of immovable property is a transfer of a right to enjoy such property, mad...
-
NECESSITY : Sometimes, in view of the expansion of the business, multiple increase in turnover and need for getting finances from the ...
-
· Mumbai ITAT in the case of Mukesh Harilal Mehta held that Exemption U/S 54 cannot be denied merely due to mistake by the developer.
-
Filing income tax returns (ITR) within the specified timelines under the Income-tax Act is not just a legal obligation but also crucial fo...
-
Earlier this year, the Mauritius Government approved the amendment to the India – Mauritius tax treaty, aligning it with the proposal of th...
-
This Tax Alert summarizes a recent instruction issued by the SEZ Division, Department of Commerce, clarifying various concerns relating t...
-
This Tax Alert summarizes a recent judgement of the Delhi High Court (HC) [1] dealing with the issue of denial of input tax credit (ITC) ...
-
Slump sale is transfer of one or more business undertakings for a lump sum consideration, without assigning individual values to the each...
No comments:
Post a Comment