[ Please click here for detail ]

1. CBDT issues Mutual Agreement Procedure (MAP) Guidance following OECD recommendations  (Click for detail)

2. IBBI amends the Insolvency and Bankruptcy  Board of India (Liquidation Process) Regulations, 2016  (Click for detail)
   

3. SEBI amends International Financial Services Centres Guidelines, 2015 for clearing corporation  (Click for detail)
   

4. RBI proposes to allow a pilot scheme to provide offline payment using cards, wallets mobile, etc.  (Click for detail)

III. GST Update:

1.   Sai Motors-Karnataka, Advance Ruling No. KAR/ADRG/32/2020, Dated: 20.05.2020

Facts of the case:

The applicant purchases two wheelers under HSN 87112019 (28%) and does retro fitment fitting under HSN 87131090 (5%). The applicant has sought to know whether he can bill the entire value of the vehicle after retro-fitment, purchased by differently abled customers at 5% GST under HSN 87131090.
2. If he is allowed to sell the vehicles at 5% , whether he can claim ITC on the entire 28% tax paid for purchase of vehicles ?

Advance Ruling:
1. The retrofitted vehicle cannot be classified under HSN 87131090 as it was neither specifically designed or constructed nor altered to change its basic structure. Hence it merits classification under the heading 87112019 and attracts GST @28%.

2. The applicant is entitled for full input tax credit as he is dealing in further supply of such motor vehicles

(Please click here for Order)

2.   M/s Anil Kumar Agrawal-Karnataka, Advance Ruling No. KAR/ADRG/30/2020, Date: 04.05.2020

Facts of the case:

The applicant is unregistered and receives income from  partners salary, interest on capital and profit from firm, directors salary, rental income from letting out residential property and maturity proceeds on completion of life insurance policies. He sought clarification on what among those sources have to be added to arrive at the aggregate turnover ?

Advance Ruling:
1. If the applicant is receiving salary as a working partner from his partnership firm, or receiving amount towards his share of profit from the partnership firm, then the said income is not under the purview of GST. Hence the said salary is not required to be included in the aggregate turnover.

2.    Salary received by the applicant as a Director of Private Ltd Company is taxable in case if he is a nominated director ( non Executive Director ).

3.    Services by way of renting of residential dwelling for use as residence are exempted from tax vide Sl.No.12 of CR NN 12/2017. So, this income becomes part of the aggregate turnover.

4.    The insurance premium of policies is taxable under GST. There would not be any service involved between the policy holder and the company on maturity. Therefore the amounts received on maturity of the insurance policies are not relevant to the aggregate turnover.

(Please click here for Order)

[ Contribution by CA. Vijay Gupta Ji ] 

Golden Rules:

  "One of the basic differences between God and human is,
God gives, gives and forgives.
But human gets, gets, gets and forgets.
Be thankful in life"
                                        

Thanks & Regards

CA. Sanjay Kumar Agarwal

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