Whether assignment or sale of secured or unsecured debts is liable to GST? Section 2(52) of the CGST Act, 2017 defines ‘goods’ to mean every kind of movable property other than money and securities but includes actionable claim. Schedule III of the CGST Act, 2017 lists activities or transactions which shall be treated neither as a… Read More »
Would income from Commercial Paper (CP) or Certificates of Deposit (CD) be taxable under GST? Commercial Paper (‘CP’) and Certificate of Deposit (‘CD’) are unsecured money market instruments which are issued in the form of a promissory note or in a dematerialized form through any of the depositories approved by and registered with SEBI. CPs… Read More »
What is the nature of income earned / expended in instruments like repos and reverse repos and is such income taxable under GST? Section 45U(c) of the RBI Act, 1934 defines ‘repos’ as an instrument for borrowing funds by selling securities with an agreement to repurchase the securities on a mutually agreed future date at… Read More »
Would forward contracts in commodities or currencies be within the ambit of definition of ‘supply’? A forward contract is an agreement, executed, to purchase or sell a pre- determined amount of a commodity or currency at a pre-determined future date at a pre-determined price. The settlement could be by way of actual delivery of underlying commodity/currency or… Read More »
Would ‘future contracts’ be chargeable to GST? Future contracts are in the nature of financial derivatives, the price of which is dependent on the value of underlying stocks or index of stocks or certain approved currencies and the settlement happens normally by way of net settlement with no actual delivery. Since future contracts are in the… Read More »
What is the nature of income / expenditure on Collateralized Borrowing and Lending Obligations (CBLO) transactions? In CBLO transaction, the borrowing bank pays an amount as consideration to the lending bank for funds provided by it for a short term. Such amount would qualify as ‘consideration represented by way of interest or discount’ and hence, would… Read More »
Whether a ‘derivative’ is included within the meaning of ‘securities’ in Section 2(101) of CGST Act, 2017 and whether derivatives are liable to GST? Section 2(101) of the CGST Act, 2017 provides that ‘securities’ shall have the same meaning as assigned to it in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956… Read More »
Can value of services be enhanced by invoking the CGST Rules in case of services provided by banks at a concessional / differential rate to a recipient other than ‘related party’ / ‘distinct person’? Banks provide various services to customers for a charge. However, at times, account holders / customers are provided services free or at a… Read More »
Are services supplied without consideration to a recipient other than ‘related party’ / ‘distinct person’ taxable? Section 7 of the CGST Act, 2017 read with Schedule I thereto provides that services supplied without consideration to related persons or distinct persons only would qualify as ‘supply’. Also import of services by bank from a related person or… Read More »
Income Tax on Cash Credit : Free Study Material Here is the Free Study Material for Income Tax on Cash Credit : Income tax Treatment of cash credit Judgments No Show Cause Notice is required to be issued for making addition under section 68 of Income Tax Act : HC No Sec 68 Addition of Partners… Read More »