Latest Blogs from SBS and Company LLP

    By this time, I am sure that all of your mailboxes would have been flooded with colourful presentations detailing the budget proposals. Let me also add burden to your mailbox with our presentation. In this budget edition, we discuss clause by clause each significant proposal pertaining to income tax and goods and services tax laws. Hope this effort of ours is useful for understanding the proposals. Let me also allow to summarise the various proposal before going to deal clause by clause.

    The significant of direct tax proposals is the relaxation of tax audits for business who are having less than turnover of INR 5 Crores subject to a condition that there cash transactions are less than 5%. This would be a great relief to the MSME sector, since, it reduces compliance cost.

    Another significant of the proposal was to provide relief for companies from payment of DDT for the dividends declared. Currently, the dividends declared by the company are taxable at 15% + surcharges and cesses and exempted in hands of shareholders, except where the dividends exceed INR 10 lakhs. Now that with removal of DDT, the dividends will become taxable in the hands of shareholders and also encourage the companies to declare dividends and may lead to chance in increase in spending.

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    In this edition, we bring you to quite a few interesting articles.

    The article on “cancellation of registration under Section 12AA of Young Indian” critically analyses the  important decision delivered by Honourable ITAT Mumbai which re-emphasised the power of cancellation of registration with retrospective effect.

    The article on “GST implications on development of plots” deals with liability of developer in the case of development of plots in development agreement entered with land owner, definitely would be an interesting read.

    I hope that you will have good time reading this edition and please do share your feedback. I will also urge clients to mail us topics or issues on which you want us to deliberate in our future editions, so that we can contribute to the same.

    Key Topics:

    DIRECT TAXATION

    • STORY OF YOUNG INDIAN - CANCELLATION OF SECTION 12AA REGISTRATION

    GST

    • GST IMPLICATIONS ON DEVELOPMENT OF PLOTS
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    Key Topics:

    IDT

    • CANCELLATION OF REGISTRATION UNDER GST

    DT & ASSURANCE (TAX)

    • OVERVIEW ON TAXATION ORDINANCE

    DT & ASSURANCE (AUDIT)

    • AS 1- DISCLOSURE OF ACCOUNTING POLICIES

    In this edition, we bring you to quite a few interesting articles.

    The introduction of GST laws in the country has been a success and the substantial credit in successful implementation and transition goes to GST Council. However, there are certain issues which the GST Council has to address at a great speed. One such issue is pertaining to the anti-profiteering. It is high time that an industry wise modus operandi has to be released by GST Council to determine whether profiteering exists or not in each case. In this edition, we have come up with anti-profiteering issues with respect to the real estate industry. We have only touched the tip of iceberg and lot more to be covered in that area which we wish to detail in our next editions.

    The other article is on the interpretation of phrases/expression which appear in double taxation avoidance arrangements and whether such interpretation should be ambulatory or static. We took up the recent ITAT Mumbai judgment, where the Honourable Bench dealt the said issues in a candid manner. I hope that you will have good time reading this edition and please do share your feedback. I will also urge clients to mail us topics or issues on which you want us to deliberate in our future editions, so that we can contribute to the same.

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    GST Applicability on Health Care Services

    INTRODUCTION:

    1. Health is a state of complete physical, mental and social well-being. Public health care systems are organized by government for free or for subsidy to serve better healthcare, nutrition and standard of living of people. However, due to quality concerns and inadequate facilities, most of the Indian population are with no option but to use the private healthcare facilities which encompasses[1] 58% of hospitals and 81% of doctors. This article trials to spot on the GST implications on the services provided by private healthcare sector by considering the Central Tax rate Notification vide 12/2017 dated 28.06.2017. 

    GST IMPACT ON HEALTH CARE SERVICES:

    1. Health care services are exempted from GST as per Central Tax Rate [CT(R)] Notification No. [NN] 12/2017 dated 28.06.2017 under the entry of SL No. 72 Heading 9993 and relevant extract is reproduced as under;

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