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    Objective: 

    The objective of this standard is to prescribe 

    • the minimum content of an interim financial report and 
    • the principles for recognition and measurement in complete or condensed financial statements for an interim period

    Timely and reliable interim financial reporting improves the ability of investors, creditors, and others to understand an entity’s capacity to generate earnings and cash flows and its financial condition and liquidity. 

    The Ministry of Corporate Affairs (MCA), on 28 March 2018, notified Ind AS 115, Revenue from Contracts with Customers (which is based on IFRS 15, Revenue from Contracts with Customers) as part of the Companies (Indian Accounting Standards) Amendment Rules, 2018. 

    The new standard is effective for accounting periods beginning on or after 1 April 2018, thus aligning the Ind AS 115 applicability date with the IFRS applicability date i.e. 1 January 2018.

    Ind AS 115 replaces existing revenue recognition standards Ind AS 11, Construction Contracts and Ind AS 18, Revenue and revised guidance note of the Institute of Chartered Accountants of India (ICAI) on Accounting for Real Estate Transactions for Ind AS entities issued in 2016.

    Sl. No

    GST-ARA-12/2017/B-15

    Name of

    Acrymold

    Ruling

     

    TMI Citation

    2018 (5) TMI 597 - AUTHORITY FOR ADVANCE RULINGS MAHARASHTRA

    AAR State

    MAHARASHTRA

    Macro Issue

    The issue is regarding classification of trophies and awards made of different material viz.

     

    Metal, Plastic, Glass, MDF/Wood, Resin etc and the questions raised before advance

     

    authority are as follows:

     

    1. If the word TROPHY is specifically mentioned under 83062920 (Article of Base Metal), So

     

    can all trophies made of any material be classified under this HSN?

     

    2. If different HSN codesare to allocated to trophies assembled of different material and if

     

    there is a combination of different materials and about 75% (value terms) is getting used of

     

    any one raw material, under which HSN code, they should be classified?

    Facts

    Applicant is engaged as an Importer, Manufacturer and Trader of Trophies and Gifts made

     

    of different material (including their combinations) viz. Metal, Plastic, Glass, MDF/Wood,

     

    Resin etc.

    Applicant

    As per the CBEC site and other official documents the above product is classified under the

    Stand

    HSN 83062920. The chapter no. 83 deals specifically with articles of BASE METAL. As

     

    Trophies and Awards are made of a variety of material namely METAL, PLASTIC, GLASS,

     

    MDF/WOOD, RESIN etc. There is no clear classification of the same under other chapters.

     

    As per Customs Classification, there is discrepancy of HSN allotted to these goods which

     

    are imported under different HSN code for this same product viz-a viz Mumbai, Kolkata &

     

    Delhi ports leading to variation in IGST rate for the same product.

    Department

    Question 1: If the word TROPHY is specifically mentioned under 83062920, So can we sell

    Stand

    all trophies made of any material under this HSN?

     

    Chapter 83 specifically deals with “Miscellaneous articles of base metal”. A base metal is a

     

    common and inexpensive metal, as opposed to a precious metal such as gold or silver.

     

    It includes trophies of base metals and not of any other material. The Tariff item 83062120

     

    covers “Trophies”. The mere mention of the word “trophies” would not mean that

     

    trophies of any material would be covered by the heading.

     

    Base metal articles containing two or more base metals are classified as articles of that

     

    metal which predominates by weight over each of the other metals, except where the

     

    headings otherwise require (e.g., copper- headed iron or steel nails are classified in

     

    heading 74.15 even if the copper is not the major constituent).

    The fate of indirect taxation in India, especially the taxation of services, is always like a rolling stone, which never gathers any moss. The positive list-based taxation was in vogue for certain period, and when the dust seems to be settled, the negative list-based taxation was introduced. When all the stake holders took a deep breath to unlearn the positive list-based taxation and learn the new law, then there was a repeal of negative list-based taxation and the introduction of goods and services tax law, more colloquially referred as GST. 

    Amidst the rapid changes of taxation of services, one sector which always felt the burnt of the changes is the real estate and construction sector. The development of law pertaining to this sector, if written goes into volumes. In this article, we are restricting ourselves only to analyse the recent decision of Vasantha Green Projects vs CCT, Rangareddy GST1 which was delivered by Hyderabad CESTAT. The said decision deals with the limited issue of applicability of service tax on the construction services provided by the builder to the land owner in the context of joint development agreement. 

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