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    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


    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. 


    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;

    Finance Bill (No.2) 2019 has inserted a new Section 194M (effective from 01.09.19) which provides deduction of tax at source @ 5% in relation to payment for carrying any work (including supply of labour for carrying out any work) in pursuance of contract or by way of fees for professional services by any Individual or Hindu Undivided Family [HUF] (collectively or individually referred as ‘Payer’) to a resident in case the payment or payments in aggregate exceeds Rs. 50 Lakhs during the financial year.

    Memorandum to Finance Bill (No.2) 2019 provides that the provisions of Section 194M is proposed to introduce to plough the loophole for possible tax evasion where in individual or HUF is carrying on business or profession which is not subjected to audit, since there is no obligation to deduct tax at source on such payment to a resident, even if the payment is for the purpose of business or profession[1]

    Sec 194M would apply in case of individual or HUF who are not required to deduct tax under Section 194C or 194J as the case may be. In other words, the provisions of Section 194M would apply only in situations where the payer is not obliged to deduct tax in terms of Section 194C or Section 194J. Hence, it assumes importance to understand under what circumstances payer is obliged to deduct tax under Section 194C or Section 194J to determine the applicability of Section 194M.

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    Internal audit function has potential to improve operating efficiency and improving the health of the organisation for achieving long-term sustainability for MSMEs

    What is MSME?

    Micro, Small and Medium Enterprises (MSME) constitute the backbone of an economy in maintaining an appreciable growth rate and in generating employment opportunities. This sector has been regarded as engine of economic growth and social development in many developed and developing countries. Contribution of MSMEs to the Indian economy in terms of employment generation, containing regional disparities, fostering equitable economic growth and enhancing export potential of the country has been quite phenomenal. Despite some infrastructural deficiencies and challenges like flow of institutional credit and inadequate market linkages, this sector has registered remarkable success about increase in number, quantum of investment, scale of production and overall contribution to national GDP.

    A lot of articles have been written in recent times depicting the trends in terms of role of Internal Auditors and increasing expectations of various stakeholders from the Internal Auditors. However, much of this information essentially provides perspectives on roles played by internal auditors in large organizations, which already have established systems and processes. The audit departments in these companies are fairly evolved with independent Charters and reporting to the Board Audit Committees.

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