Buy 1 get 1 free’ deals to come under GST

Free samples and gifts offered with purchases as well as popular ‘buy-one-get-one-free’ deals may attract the proposed Goods and Services Tax (GST) levy which government plans to roll out from April 2017.
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Input tax credit cannot be denied because seller has not deposited the tax collected

Fact of the Case:- the petitioner is a partnership firm under the name and style of M/s Gheru Lal Bal Chand, engaged in the business of sale and purchase of cotton. The petitioner procures material from different persons and sells the same in terms of the provisions of the relevant Act and the Rules and the tax which is paid by the dealer after deduction of Input Tax Credit is paid in the treasury. The firm is registered under the provisions of Act as well as the Central Sales Tax Act, 1956 (in short, the 'Sales Tax Act'). As per the petitioner, the scheme under the Act is that on the sale of goods, tax calculated would be treated as "output tax". But if the purchases are made from within the State of Haryana, the tax paid on such purchases is to be set off from the out-put liability and resultant tax liability is paid by the selling dealer. The assessing authority observed that the petitioner was not entitled for deducting input tax credit as per provisions of Section 8 of the Act, because the Value Added Tax (VAT) dealers from whom the petitioner had purchased certain goods had not deposited the full tax in the State Treasury. The stand of the dealer, however, is that it made bona fide purchases from the selling dealers who were duly registered by the Assessing Authority under the Act and irrespective of the fact, whether they paid full tax or not, he should be allowed the necessary input Tax Credit. The said selling dealers discharged their tax liability and deposited the tax payable by them by deducting the input tax credit available to them.

Can two or more Premises be registered as one registrant under Excise?

Yes, two or more premises can be registered under excise as one registrant if :-
(i)   two or more premises of the same factory are located in a close area
(ii)  these premises are within the jurisdiction of a Central Excise Range and
(iii) the process undertaken there are interlinked and
(iv) the units are not operating under any of the area based exemption notifications,
 If above conditions are met, the Commissioner of Central Excise, may, subject to proper accountal of the movement of goods from one premise to other and such other conditions and limitations, as may be prescribed, allow single registration.

For more details refer the circular below:-
Circular No. 1016/4/2016-CX

Anti-Dumping Duty on import of Polytetrafluoroethylene

An Anti dumping duty has been imposed on import of Polytetrafluoroethylene or PTFE for Five Years as per Notification No. 23/2016-Customs (ADD) dated 06th June 2016. Notification is self explanatory and can be downloaded from the Link below:-

Notification No.23/2016-Customs (ADD)

GST Bill likely in monsoon session

India will attempt to keep the proposed Goods & Services Tax ( GST ) rate as moderate as possible and the government will push for passage of the bill introducing the levy in the upcoming monsoon session of Parliament, finance minister Arun Jaitley said. 

The GST will replace various indirect taxes with one simple tax , creating a boundary-less national market that some estimate will lift India's GDP by as much as 2%. According to the Constitution (122nd Amendment) Bill, the GST Council consisting of finance minister, minister of state for revenue and state finance ministers will recommend the tax rate. 

"At what rate the GST Council will start it, I don't know...there have been recommendations which have been made by expert committees, including the one that the ministry of finance had set up. I'm sure we will try to keep rates as moderate as possible," Jaitley told Japanese investors at a Make in India seminar organised by the Department of Industrial Policy & Promotion and the Confederation of Indian Industry.

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Due date of filing Quarterly Return under DVAT for 4th Quarter 2016 extended

Due date for filing Return under Delhi VAT has been extended up to 27-05-2016 from 23-05-2016.

Kindly note that there is no extension of due date of payment of tax therefore pay Interest if tax not paid within due date.Otherwise Notice will served for non payment of tax.

Circular No- 7 of 2016-17

Display of Registration Certificate at principal place of business made compulsory by Delhi VAT Department

Delhi Government has directed ACs/ward incharges to ensure that all the registered dealers have prominently displayed the registration certificate at their principal place of business and a certified copy at all other places of business in Delhi. Further, the dealer shall also prominently display his TIN and ward number outside the main entrance of all places ofbusiness in Delhi. 

Circular No. 4 of 2016-17 F.3(667)/Policy/VAT/2016/200-205 dated 10^th May, 2016

[Download- Circular ]

Leviability of service tax in respect of services provided by arbitral tribunal and its members

Services provided or to be provided by an arbitral tribunal is taxable if such service provided to a business entity which is located in the taxable territory and having turnover exceeding Rs 10 lakh.

Such service is taxable and liability to pay tax has been cast on the recipient i.e business entity who will pay tax under reverse mechanism.

However services provided by an arbitral tribunal were exempted from service tax if provided to  

Exempted Services by Government

Central Board or Excise & Custom vide Notification No 26/2016-ST dated 20 May 2016   has clarified the Services on which no Service Tax is leviable if provided  by Government or a local authority to a business entity having  a turnover up to rupees ten lakh in the preceding financial year. Following services would not be taxable as per the said notification:-

Karnataka Budget Proposals 2016

VALUE ADDED TAX

• Scheme to recognize and honour five diligent tax payers in each of Bengaluru based divisions and three each from VAT divisions other than Bengaluru.

• Module for transportation of goods that will allow transporters to upload the details of goods being transported online for hassle-free movement of goods.

• Development of mobile application for the benefit of small dealers.

• Issue of online refunds to the eligible dealers.

• Online service of statutory proceedings using digital signature certificates.