Money Bill
Wednesday, December 23, 2020
No Result
View All Result
  • Home
  • Business News
    • Money Management
    • Money Risk Management
    • Bank Savings
    • Advertisement
  • Insurance
  • Tax
  • Trading
    • Stock market
  • Pages
    • Disclaimer
    • Cookie Policy
    • Terms and Conditions
    • Privacy Policy
    • Anti Spam Policy
    • Digital Millennium Copyright Act Notice
    • About Us
  • Contact
Money Bill
No Result
View All Result
No GST on tax accumulated at source levied on items: Finance ministry

No GST on tax accumulated at source levied on items: Finance ministry

Antoinette Pierce by Antoinette Pierce
March 11, 2019
in Tax
0 0
0
0
SHARES
3
VIEWS
Share on FacebookShare on Twitter

New Delhi: The finance ministry on Friday supplied comfort to buyers with the aid of withdrawing a rule that required them to charge goods and services tax (GST) at the obligatory income tax to be gathered at source (TCS) from purchasers who make high price purchases consisting of top rate cars. A round issued in December had stated that the value of the product on which GST is to be levied is such as TCS, main to confusion among investors because it amounted to a tax on tax. The Income Tax Act mandates a marginal tax to be gathered at source on positive excessive-cost transactions to ensure that folks that make large purchases do not beneath-document their earnings. This tax is available as a credit score on the time of making the earnings tax fee. However, the Central Board of Indirect Taxes and Customs (CBIC) issued a round on Friday clarifying that such income tax collected at supply by means of sellers—over and above the value of the goods sold—and paid to the authorities on behalf of the purchaser isn’t difficulty to GST. CBIC said that the income tax department has clarified that the TCS turned into just an period in-between levy on the “feasible profits” of the buyer. There is a TCS of one% on vehicles with an ex-showroom price of above ₹10 lakh. “For the cause of willpower of value of supply below GST, tax amassed at source underneath the provisions of the Income Tax Act, 1961, would not be includible as it is an intervening time levy not having the character of tax,” Friday’s circular said. The explanation comes as a comfort for organizations, particularly the car zone, in line with specialists.

 

“While maximum enterprise gamers already believed that GST need to no longer be levied at the income tax’s TCS factor, the earlier explanation to the contrary made them quite worried of litigation in this issue,” said Abhishek Jain, tax associate, EY. The government on Thursday issued a explanation on every other vexed tax trouble faced by means of buyers. It stated that buyers will now not be denied credits for taxes paid while sourcing items which might be in the end given away free underneath cut price schemes inclusive of ‘buy one, get one free’.

Related Posts

Dairy cooperatives are seeking tax parity with companies
Tax

Dairy cooperatives are seeking tax parity with companies

October 12, 2019
Govts may also get greater power to tax MNCs like Google
Tax

Govts may also get greater power to tax MNCs like Google

October 12, 2019
How is the hobby paid on borrowings taxed?
Tax

How is the hobby paid on borrowings taxed?

October 12, 2019
Sitharaman seeks tax professionals’ inputs to correct GST flaws
Tax

Sitharaman seeks tax professionals’ inputs to correct GST flaws

October 12, 2019
It’s Tax Time Again for the Millions Who Got an Extension
Tax

It’s Tax Time Again for the Millions Who Got an Extension

October 12, 2019
How to get your ITR related queries answered
Tax

How to get your ITR related queries answered

October 12, 2019
Next Post
Women, don’t limit yourself to corporates; jump into the sector of buying and selling

Women, don’t limit yourself to corporates; jump into the sector of buying and selling

  • Home
  • Disclaimer
  • Cookie Policy
  • Privacy Policy
  • DMCA
  • Anti Spam Policy
  • Contact
  • About Us
  • Terms and Conditions

© 2020 moneybill - All Rights Reservedmoneybill.

No Result
View All Result
  • Home
  • Business News
    • Money Management
    • Money Risk Management
    • Bank Savings
    • Advertisement
  • Insurance
  • Tax
  • Trading
    • Stock market
  • Pages
    • Disclaimer
    • Cookie Policy
    • Terms and Conditions
    • Privacy Policy
    • Anti Spam Policy
    • Digital Millennium Copyright Act Notice
    • About Us
  • Contact

© 2020 moneybill - All Rights Reservedmoneybill.

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In