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Main objects of Information Technology (IT) Services Company

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To carry on the business of Software designing, development, customisation, implementation, maintenance, testing and benchmarking, designing, developing and dealing in computer software and solutions, and to import, export, sell, purchase, distribute, host (in data centers or over the web) or otherwise deal in own and third party computer software packages, programs and solutions, and to provide internet / web based applications, services and solutions, provide or take up Information technology related assignments on sub-contracting basis, offering services on-site/ offsite or through development centers using owned /hired or third party infrastructure and equipment, providing recruitment and HR related services, providing and taking personnel / consultants/ human resources to / from other organizations, providing solutions/ Packages/ services through applications services provider mode via internet or otherwise, to undertake IT enabled services like call Centre Management, Medical and legal transcription, data processing, Back office processing, Accounting, HR and payroll processing, Insurance claims processing, credit card processing, loans and letters of credit processing, cheque processing, data warehousing and database management, to carry on the business of manufacturing, dealing and maintenance of computer hardware, computer systems and assemble data processors, program designs and to buy, sell or otherwise deal in such hardware and software packages and all types of tabulating machine, accounting machines, calculators, computerized telecommunication systems and network, their components, spare parts, equipments and devices and to carry on the business of establishing, running and managing institutions, school, and academics for imparting education in computer technology, offering equipment, solutions and services for Networking and network management, data centre management and in providing consultancy services in all above mentioned areas.

To develop, provide, undertake, design, import, export, distribute and deal in Systems and application software for microprocessor based information systems, off shore software development projects, internet service provider, and solutions in all areas of application including those in Emerging niche segments like Internet and Intranet website applications solutions software enterprise, resource planning, e-commerce, value added products and other business applications either for its own use for sale in India or for export outside India and to design and develop such systems and application software for and on behalf of manufacturers owners and users of computer, telecom, digital, electronic equipments in India or elsewhere in the world.

To manufacture, sell, export, import all kinds of electric & electronic components capable of being used in Electrical & mechanical and electronic Industries including Computers telecommunications to carry our software research and development, to design and develop system software, application software and any other software in India and abroad to start Integrated services Digital Local Network ( ISDLAN ) dial for data Centers technology parks, wide area network Internet, user net, cyber café services in India and abroad.

 

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Main objects of Logistics Company

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  1. To establish, organize, manage, run, charter, conduct, contract, develop, handle, own, operate and to do business as fleet carriers, transporters, in all its branches on land, air, water, & space, for transporting goods, articles, or things on all routes and lines on National and International level subject to law in force through all sorts of carries like trucks, lorries, trawlers, dumpers, coaches, tankers, tractors, haulers, jeeps, trailers, motor buses, omnibuses, motor taxies, railways, tramways, aircrafts, hovercrafts, rockers, space shuttles, ships, vessels, boats, barges and so on whether propelled by petrol, diesel, electricity, steam oil, atomic power or any other form of power.
  2. To carry on the business as agents, distributors, merchants, importers, exporters, traders, contractors, warehousemen and to establish, maintain, operate and/or run agency lines in goods, stores, consumable items, durable merchandise, chattels and effects of every kind and description in any place in the worldand without limiting the generality of the above, to carry on business as Selling Agents, Buying Agents, Factors, Mukadams, Carriers, Jath Merchants, Landing Clearing and Forwarding Agents, Commission Agents, Insurance Agents, Distributors and Stockiest, Brokers and/ or in any other capacity.
  3. To carry on the business of clearing and forwarding agents, courier and cargo handlers, handling and haulage contractors, warehousemen, common carriers by land, rail, water and air, container agents, to handle goods and passengers within the country and outside and to carry on the business of tour and travel operators and to act as customs agents, wharfingers, landing agents, stevedores and longshoremen.
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Main objects of Hotel Business Company

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(1)      To carry on all the business of hotels, restaurants, cafes, holiday camps, resorts, taverns, beer-houses, refreshment rooms, night clubs, cabarets and swimming pools and Turkish baths and lodging or apartment house keepers, licensed victuallers, wine, beer and spirit merchants, brewers, distillers, bakers and confectioners, importers and manufactures of aerated mineral and artificial water and other drinks.
(2)       To carry on all the business of purveyors, caterers for public generally, taxi, motor car and motor lorry proprietors, livery, stable and garage proprietors, farmers, dairymen, ice merchants, importers and brokers of food, live and dead stock and foreign produce of all descriptions, hair dressers, perfumers, chemists, Proprietors of clubs, baths, bars, dressing rooms, laundries, reading, writing and newspaper rooms, libraries, grounds and places of amusement, recreation, sport, entertainment of all kinds, health club, beauty saloons, indoor and outdoor playgrounds and stadiums, swimming pools, video and other fun game rooms, race courses, meditation centers, boating clubs, flying clubs, freezing hot preservation and baking chambers, and other apartments, tobacco and cigar merchants including the manufacture of cigars and other allied products, agents for railways, shipping and airline companies and carriers and theatrical and open box office proprietors entrepreneurs in connection with sub-clause 1 above.
(3)       To act as hotel management consultants, mangers, operators, advisors, planners, values and to impart technical know-how and training in the field of planning, construction, operation of hotels, motels, restaurants, recreation and entertainment centers in the field of tourism industry whether in India or abroad and to purchase erect or otherwise acquire, establish and equip and act as collaborators, technicians, financiers to any other hotel or restaurant in India or abroad.
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Main objects of Automobile trading company

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  1. To carry on the business of manufacture, fabricate and assemble, buy, sell, import, export, distribute, and deal in automobile parts of all kinds and descriptions, automotive and other gears, transmission and other axles, universal joints, springs, leaves, head lamps, sealed beams, induction hardened pins, axles, alloy springs, accessories and fittings of al kinds and to act as brokers and marketing agents for aforesaid items.
  2. To carry on the business of buying, selling, dealing in, automobiles, motorcars, lorries, buses, vans, motorcycles, cycle-cars, motor, scooters, carriages, amphibious vehicles, and vehicles suitable for propulsion on land, sea, or in the air or in any combination thereof and vehicles of all descriptions, whether propelled or assisted by means of petrol, diesel, spirit, steam, gas, electrical, animal, or other power, and of internal combustion and other engines, chassis-bodies and other components, parts and accessories and all machinery, implements, utensils, appliances, apparatus, lubricants, solutions enamels and all things capable of being used for, in, or in connection with maintenance, and working of motors.
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Main objects of BPO Company

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To carry on the business of providing outsourcing services for all processes, sub Processes, transactions, activities and all other work performed by business in various industries within India and across the world. This includes those process or sub processes that are enabled by information technology. It also includes date, voice or video collection and processing, call centre services including in bound and out bound calling services of all kinds, technical support, managed data centre, managed technical centre, training centre, web support back office, business or financial analysis, scientific analysis, research work and analysis, storage, disaster recovery, accounting, pay roll, inventory management, customer relationship management, enterprises resources planning and to develop software, provide consultancy, software solution and services that are normally offered by the outsourcing business and information technology services providers, the software development houses and application services providers.
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Main Object of NBFC Company

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  1. To carry on the business or businesses of a holding and investment company, and to buy, underwrite and to invest in and acquire and hold shares, stocks, debentures, debenture stock, bonds, obligation or securities of companies or partnership firms or body corporate or any other entities whether in India or elsewhere either singly or jointly with any other person(s), body corporate or partnership firm or any other entity carrying out or proposing to carry out any activity whether in India or elsewhere in any manner including but not limited to the following:
  2. To acquire any such shares , stocks, debenture, debenture stock, bonds, obligation or securities by original subscription, exchange or otherwise and to subscribe for the same either conditionally or otherwise, to guarantee the subscription thereof issued or guaranteed by any government, state, public body, or authority, firm, body corporate or any other entity or persons in India or elsewhere.
  3. To purchase or acquire, hold, trade and further to dispose of any right, stake or controlling interest in the shares, stocks, debentures, debenture stock, bonds, obligation or securities of companies or partnership firms either singly or jointly with any other person(s), body corporate or partnership firm carrying out or proposing to carry out any activity in India or in any other part of the world.
  4. To invest and deal with the moneys of the Company not immediately required in such manner as may from time to time be determined and to hold or otherwise deal with any investment made.
  5. To facilitate and encourage the creation, issue or conversion of debentures, debenture stock, bonds, obligation, shares, stocks, and securities, and to act as trustees in connection with any such securities, and to take part in the conversion of business concerns and undertakings into companies.
  6. To give any guarantee in relation to the payment of any debentures, debenture stock, bonds, obligation or securities.
  7. To subscribe for, conditionally or unconditionally, to underwrite issue on commission or otherwise take, hold, deal in, and convert stocks, shares and securities, of all kinds, and to enter into partnership, or into any arrangement for sharing profits, union of interest, reciprocal concession or co-operation with any person, partnership, or organize companies, syndicates, or partnerships of all kinds, for the purpose of acquiring and undertaking any property and liabilities of this company, or of any other company or of advancing, directly or indirectly, the object thereof, or for any other purpose which this company may think expedient.
  8. To lend and advance money and assets of all kinds or give credit on any terms or mode and with or without security to any individual, firm, body corporate or any other entity ( including without prejudice to the generality of the foregoing any holding company, subsidiary or fellow subsidiary of , or any other company whether or not associated in any way with, the company ), to enter into guarantees, contracts of indemnity and surety ship of all kinds, to receive money on deposits or loan upon any terms, and to secure or guarantee in any manner and upon any terms the payment of any sum of money or the performance of any obligation by any person, firm or company (including without prejudice to the generality of the foregoing any holding company, subsidiary or fellow subsidiary of , or any other company associated in any way with, the company )
  9. To borrow and raise money in any manner for the purpose of any business of the company or of any company in which the company is interested and to secure the repayment of any money borrowed, raised or owing by mortgage, charge, standard security, lien or other security upon the whole or any part of the Company’s property or assets (whether present or future).
  10. To transact or carry on all kinds of agency business, and in particular in relation to the investment of money, the sale of property and the collection and receipt of money.
  11. To Purchase or otherwise acquire, and to sell, exchange, surrender, lease, mortgage, charge, convert, turn to account, dispose of , and deal with property and rights  of all kinds, and in particular, mortgages, debentures, produce, concessions, options, contracts, patents, licenses, stocks, shares, bonds, policies, book debts, business concerns, and undertakings and claims, privileges, and chooses in action of all kinds.
  12. To carry on activities of leasing and /or hire-purchase.

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How to Register Foreign Subsidiary Company in India

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Setting up a business in India by foreign nationals require registration of Foreign Subsidiary Company in India. India is among the best markets to Invest in the world, during the last two decades India has seen significant improvement of foreign capital in India. Many foreign entities want to start operations in India due to high market demand and ease of doing business, these companies are required to incorporate Foreign Subsidiary Company in India 

Following things are to be considered while setting up Foreign Subsidiary Company in India by foreign entities :

  1. Setting up Foreign Subsidiary Company:  Foreign Subsidiary will be formed as Private Limited/Public Limited Company and the holding foreign holding company will fund the shareholding. It may be noted that holding company can have 100% to have wholly-owned subsidiary including shareholding of nominee shareholders who will be a beneficial shareholder of the company. The investment limit will be in accordance with the FDI Policy of Government of India, where most of the sectors are under the automatic route.
  2. Requirements for  Appointment of Resident Director: As per the requirements of the Companies Act, 2013 every Indian Company should have resident Director.
  3. Documents Requirements:  Apostle and Notarized Signed Documents are required for foreign Shareholders and Directors. For companies it will be :
    • Certificate of Incorporation,
    • Memorandum of Association,
    • Articles of Association,
    • Board Resolution duly passed for entering and forming Company in India and in case of Individuals
    • Passport Copy,
    • Driving Licence and
    • Current Address proof in the form of a Bank Statement is required.
  4.  Obtaining Digital Signature of Directors
  5. Obtaining Director Identification Number of Director
  6. Application for Approval of Name of Company, this must be unique
  7. Preparation of Incorporation Documents
  8. The signing of Incorporation Documents, this too should be notarised and apostle
  9. Application for Incorporation of Company to Registrar of Companies.

Once this application is approved by registrar we get Certificate of Incorporation along with PAN and TAN (Tax Number in India )

Foreign Subsidiary Company
Foreign Subsidiary Company

Opening of Bank Account of Foreign Subsidiary Company: Now bank Account is required to be opened in the name of the Company.

Infusion of Capital into Foreign Subsidiary Company: Now the Capital is required to be remitted to the bank account of the Company.

Intimation to RBI: Intimation to RBI is required to be given as a par FDI policy.

GST Registration: GST Registration is required to be obtained afterward.

Trademark Application: If the Company has its own product or brand trademark registration application is required to be applied for securing Companies Intellectual Property.

Read more :

Frequently Asked Questions on Private Limited Company Registration in India with Foreign Directors & Members

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GST Council meeting – Key Takeaways

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1. New rates to be applicable from 15.11.2017 prospectively after notification.
2. 178 items shifted from 28% slab to lower slabs leaving apart sin goods and cess applicable goods.
3. Restaurants to have no ITC. Rate of tax shall be 5%. Restaurants in star hotels-18% with ITC. Other hotels -5% without ITC.
4. Outdoor catering -18% with ITC.
5. Gstr-3b to continue till 31.03.2018.
6. Nil returns to become very easy.
7. Only filing of GSTR-1 in current year for all taxpayers. Below 1.5 crore- 31st dec for July to sept, Qtr3- 15.02.2018, Qtr4- 30.04.18
8. Other taxpayers file GSTR 1 for July-oct by 31st dec 2017 then from November by 10th of next month – only GSTR 1.
9. Gstr-1 to be matched with GSTR-3B.
10. Penalty on late filing, nil return- Rs. 20 per day. Others- Rs. 50 per day.
11. Composition: July-sept- ITC-05 by 31.12.2017 and GSTR-04 by 24.12.2017
12. *TRAN-01 to be filed by 31.12.2017.*
13. Composition rate of 1% for manufacturers.
14. Composition scheme for services up to Rs. 5 Lakhs in addition to supply of goods.
15. Composition limit to be increased to Rs. 1.5 crores only upon amendment of law.
16. 1% composition only on taxable and not exempt goods. Dealer dealing in exempted goods allowed to opt for composition.

Forwarded
[10/11, 20:59] ‪+91 75970 00090‬: Summary of the #GSTCouncil meeting of November 10, 2017

*Composition scheme expanded*
Threshold for Composition scheme to be increased to Rs. 1.5 Crores. Uniform tax rate of 1% applicable for both traders and manufacturers. Composition suppliers allowed services upto Rs. 5 lakh per annum for eligibility. Exempted supply not to be taxed at 1%.

*Returns*

Filing of Form GSTR 2 and GSTR 3 has been suspended for the current financial year. Only GSTR 1 is to be filed as per the below schedule.

For suppliers having turnvover below 1.5 crores,
For the period of July to Sept – 31st Dec 2017
For the period of Oct to Dec – 15th Feb 2018
For the period of Jan – Mar – 30th Apr 2018

For suppliers having turnvover more than 1.5 crores,
For the period of Jul to Oct – 31st Dec 2017
For the month of Nov – 10th Jan 2018
For the month of Dec – 10th Feb 2018
For the month of Jan – 10th Mar 2018
For the month of Feb – 10th Apr 2018
For the month of Mar – 10th May 2018

Filing of return in Form 3B to be continued till March. For small taxpayers, return to be simplified. It is not clear whether small suppliers will have to file monthly or quarterly (as proposed in the last meeting).

A committee to simplify details of GSTR 2 and GSTR 3 will be setup.

*TRAN-1 date extended *
The due date of TRAN-1 has been extended to December 31, 2017.

*Penalties reduced*
Rate of penalty for delay in filing of returns will be reduced from Rs. 200 per day to Rs. 20 per day for suppliers with nil returns. For others, penalty to be reduced to Rs. 50 per day.

*GSTR-4 extended*

Due date for return of suppliers covered in composition scheme in Form GSTR-4 has been extended to 24th December 2017.

*Changes in Rates*

1. 5% Tax on all Restaurants other than 5-Star *without ITC*

2. Rates reduced for 178 items from 28% to 18% effective Nov 15, 2017.
– Washing Machines
– Air Conditioners
– Make up
– Sanitary Items
– Marble/flooring
– Toiletries

3. Rates reduced from 28% to 12%
– Wet grinders
– Armoured fighting vehicles

4. Rates reduced from 18% to 12% for 13 items, from 5% to 0% for 6 items, from 12% to 5% – 8 items.

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Frequently Asked Questions- Form GSTR-1

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  1. What is GSTR-1?

GSTR-1 is a monthly Statement of Outward Supplies to be furnished by all normal and casual registered taxpayers making outward supplies of goods and services or both and contains details of outward supplies of goods and services.

  1. Who is required to file the GSTR-1?

Every registered taxable person, other than an input service distributor/compounding taxpayer/TDS Deductor/TCS Collector is required to file GSTR-1, the details of outward supplies of goods and/or services during a tax period, electronically on the GST Portal.

  1. Is GSTR-1 filing mandatory?

GSTR-1 needs to be filed even if there is no business activity (Nil Return) in the tax period.

  1. What are the available modes of preparing GSTR-1?

GSTR-1 can be prepared using the following modes through:

  1. Online entry on the GST Portal
  2. Uploading of invoice and other GSTR-1 data using Returns Offline Tool
  3. Using third party application of Application Software Provider (ASPs) through GST Suvidha Providers (GSPs)
  4. What details have to be furnished in GSTR-1?

The following details of a tax period have to be furnished in GSTR-1:

  1. Invoice level details of supplies to registered persons including those having UIN
  2. Invoice level details of Inter- state supplies of invoice value greater than equal to INR 2,50,000 to unregistered persons (consumers)
  3. Details of Credit/Debit Notes issued by the supplier against invoices
  4. Details of export of goods and services including deemed exports (SEZ)
  5. Summarised state level details of supplies to unregistered persons (consumers)
  6. Summary Details of Advances received in relation to future supply and their adjustment
  7. Details of any amendments effected to the reported information for either of the above categories.
  8. Nil- rated, exempted, and non-GST supplies
  9. HSN/SAC wise summary of outward supplies
  10. Which type of registered taxpayers are not required to file the GSTR-1?

The following taxpayers are not required to file GSTR-1:

  • Taxpayers under the Composition Scheme (Return to be filled by them in GSTR 4)
  • Non-resident foreign tax payers (Return to be filled by them in GSTR 5)
  • Online information database and access retrieval service provider (Return to be filled by them in GSTR 5A)
  • Input Service Distributors (ISD) (Return to be filled by them in GSTR-6)
  • Tax Deducted at Source (TDS) deductors (Return to be filled by them in GSTR 7)
  • E-commerce operators deducting TCS (Return to be filled by them in GSTR 8)
  1. What are the pre-requisites for filing GSTR-1?

Pre-requisites for filing GSTR-1 are:

  1. The taxpayer should be a registered taxpayer and should have an active GSTIN during the tax period for which GSTR-1 has to be furnished.
  2. The taxpayer should have valid login credentials (i.e., User ID and password) to login into GST Portal.
  3. The taxpayer should have an active and non-expired/ revoked digital signature (DSC), in case the digital signature is mandatory
  4. In case a taxpayer wants to use E-Sign, they must have a valid Aadhar number with access to the mobile number and e-mail id registered with Aadhar authority (UIDAI) as OTP will only be sent on the registered mobile number and e-mail id. In case the taxpayer has changed the mobile number and e-mail id, they must first update the same with UIDAI. For cancelled GSTINs, the taxpayers will have an option to file GSTR-1 for the period up to the date of cancellation.
  5. In case taxpayer wants to use EVC, they must have access to the registered mobile number of the Primary Authorized Signatory
  6. For which class of Taxpayers is DSC mandatory for filing returns?

DSC is mandatory in case of all Public & Private Limited Companies, Limited Liability Partnerships (LLPs), and Foreign Limited Liability Partnerships (FLLPs).

  1. By when do I need to file the GSTR-1 for a given tax period? OR What is the due date for filing the GSTR-1?

For normal taxpayers due date to file GSTR-1 for a given tax period is 10th day of the succeeding month and small taxpayers with turnover up to 1.5 crore are required to file GSTR-1 quarterly.

  1. How should the value of turnover to be in entered in the mandatory field on the landing page of GSTR-1?

The turnover value in Table 3 of GSTR-1 has to be entered manually for the first year as the information is not available with the GST system. From the second year of implementation of GST, the system will auto-calculate the turnover based on all the annual returns filed for all the GSTINs associated with a given PAN (PAN-based turnover). However, the turnover value will be editable and you will have the option to amend it.

  1. What does the ‘Total Invoice Value’ column indicate in GSTR-1?

The ‘Total Invoice Value’ column in GSTR-1 is for the invoice value inclusive of taxes.

  1. Will there be any validation on relationship between Invoice value and Taxable Value?

Taxable value is the value as per the provisions of GST law. There will be no validation that the invoice value is equivalent to taxable value plus the tax amount.

  1. Can I enter details of Goods and Services in the same invoice?

Yes, you can enter details of Goods and Services in the same invoices.

  1. What are B2B Supplies?

B2B Supply refers to supply transactions between registered taxable entities/persons (Business-to-Business supplies).

  1. What is meant by B2C Supplies?

B2C Supply refers to supply transactions between a Registered Supplier and an Unregistered Buyer (Business-to-Consumer).

  1. What are Debit Notes?

A Debit Note is a document issued against an invoice in cases where the original invoice was issued at a value lower than the actual value of goods and/or services provided. It can also be issued in case of post supply price negotiations. The difference amount is accounted for in the form of a Debit note

  1. What are Credit Notes?

Credit Note is a document issued against an invoice in cases where invoice was issued at a value higher than the actual value of goods and/or services provided or the invoice value is reduced due to post supply negotiations. This may also happen when the goods supplied are returned by the recipient, or where goods or services or both supplied are found to be deficient.

  1. When are Debit Notes to be reported in the return?

Debit Notes are to be reported in the return of the month in which they are issued by the supplier.

  1. When are Credit Notes to be reported in the return?

Credit Notes are to be reported in the return of the month in which they are issued but not later than the return of the September month following the end of the financial year in which such supply was made, or the date of furnishing of the relevant annual return, whichever is earlier.

  1. Does a tax payer need to report the credit notes and debit notes of supplies to consumer separately?

No. In case of supplies to consumers are to be reported in a consolidated manner (intra-state supplies to consumer and inter-state supplies of invoice value less than INR 2.5 lakhs), the credit/debit notes are not required to be reported separately. Such supplies have to be reported in a consolidated manner net off the values of credit and debit notes.

  1. In case of Receipt of advance by the Supplier from a Receiver, is the supplier liable to pay tax on such an advance amount?

Yes, Supplier is liable to pay tax on advances received from Receivers for the supply of goods and services and report the consolidated advance received details in month in which payment is received. The amount of advances to be reported in GSTR-1 is net off the amount for which invoices have already been issued and the value reported in the same return in other sections.

  1. How is the tax paid on advance payments adjusted against the invoice(s) issued in the subsequent tax period(s)?

The taxpayer has to declare the advance that has to be adjusted in the tax period in which advance is received. Subsequently when invoice is issued,then taxpayer can

adjust the tax liability of the invoice issued of that tax period, in the GSTR-1 of that period. This can be shown in the advance adjustment table of GSTR-1.

  1. Whether purchases from unregistered person, which are subject to reverse charge, for which the recipient issues a tax invoice, is required to be reported ?

All the purchases from unregistered person, which are subject to reverse charge, for which the recipients issues a tax invoice are to be reported in GSTR-2 (and not in GSTR-1).

  1. Do I need to upload the invoice(s) details at the time of filing GSTR-1?  

Taxpayers can upload invoice details any time during the tax period and not just at the time of filing of GSTR-1. For example, let’s take September 2017 as the tax period – the tax payer can upload invoices from 1st September to 10th October and after 15th October in case of late filing of GSTR-1.

  1. Until when can changes be made to the uploaded invoice details?

Taxpayers can modify/delete invoices any number of times till they submit the GSTR-1 of that particular tax period. The uploaded invoice details are in a draft version, and can be changed irrespective of due date until the GSTR-1 is submitted.

  1. What is the due date for the payment of monthly tax liabilities for normal taxpayers?

A normal taxpayer is required to discharge their return related liability at the time of filing of GSTR-3. The current due date for filing GSTR-3 is 20th of the succeeding month.

 

 

 

 

 

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Input Tax Credit Under GST

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What is input tax?

Input tax in relation to a taxable person, means the (IGST and CGST) in respect of CGST Act and (IGST and SGST) in respect of SGST Act, Charged to him on any supply of goods and/or services which are used, or are intended to be used, in the course or furtherance of his business. Under the IGST Act, input tax is defined as IGST, CGST or SGST charged on any supply of goods and / or services.

Can GST paid on reverse charge be considered as input tax?

Yes. The credit can be availed if such goods and/or services are used, or are intended to be used, in the course or furtherance of his business.

Does input tax includes tax (CGST/ IGST/SGST) paid on input goods, input services and/ or capital goods?

Yes. It may be noted that credit of tax paid on capital goods also is permitted to be availed in one installment.

What is the ITC entitlement of a person who has applied for registration under the Act within thirty days from the date on which he becomes liable to registration and has been granted such registration?

He shall be entitled to take credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the day immediately preceding the date from which he becomes liable to pay tax under the provisions of this Act. It may be noted that the credit on pre-registration stock would not be admissible if the registration has not been obtained within a period of 30 days from the date on which he becomes liable to registration.

What is the eligibility of input tax credit on inputs in stock for a person who obtains voluntary registration?

As per section 16(2A) of MGL, the person who obtains voluntary registration is entitled to take the input tax credit of input tax on inputs in stock, inputs in semi finished goods and finished goods in stock, held on the day immediately preceding the date of registration.

Where goods and/or services received by a taxable person are used for effecting both taxable and non-taxable supplies, whether the input tax credit is available to the registered taxable person?

The input tax credit of goods and / or service attributable to only taxable supplies can be taken by registered taxable person. It is important to note that credit on capital goods also would now be permitted on proportionate basis.

What would be input tax eligibility in case where the goods and/or services supplied by a registered taxable person become absolutely exempt?

The registered taxable person who supplies goods and / or services which become absolutely exempt, has to pay an amount equivalent to the input tax credit in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the day immediately preceding the date of such exemption. It has also been provided that after payment of the amount on such goods, the balance, if any available in electronic credit ledger would lapse.

A dealer paying tax on composition basis crosses the composition threshold and becomes a regular taxable person. Can he avail ITC and if so from what date?

He can avail ITC in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the day immediately preceding the date from which he becomes liable to pay tax.

Whether the principal is eligible to avail input tax credit of inputs sent to job worker for job work?

Yes, the principal is eligible to avail the input tax credit on inputs sent to job worker for job work.

What is the time period within which the inputs sent for job work has to be received back by the principal?

180 days.

Whether principal has to reverse the input tax credit on inputs which have not been received back from the job worker within 180 days?

Yes, the principal has to reverse the credit along with interest on inputs which have not been received back from job worker within 180 days but he can reclaim the credit on receipt of inputs.

What is the time period within which the capital goods sent for job work has to be received back by the principal?

Two years.

What is the liability of the principal if the capital goods sent to job worker have not been received within 2 years from the date of being sent?

Principal has to pay an amount equal to credit taken on such capital goods along with interest. But he can reclaim the credit on receipt of inputs.

Where the registered taxable person has claimed depreciation on the tax component of the cost of capital goods under the provisions of the Income Tax Act, 1961, will ITC be allowed in such cases?

The input tax credit shall not be allowed on the said tax component.

What are the conditions necessary for obtaining ITC?

Following four conditions are stipulated:

(a) The registered taxable person should be in possession of taxpaying document issued by a supplier;

(b) The taxable person must have received the goods and / or services;

(c) The tax charged on such supply has been actually paid to the government either in cash or through utilization of input tax credit; and

(d) The taxable person should have furnished the retur