Rajakumari's blog

An immovable property is an immovable object, an item of property that cannot be moved without destroying or altering it. The property is fixed to the earth, for example, a piece of land or a house.
In the current tax regime, taxable services provided in relation to an immovable property are subject to Service Tax.
Service Tax, being a Central levy, is applicable irrespective of whether the service is provided intrastate or to a different state.

In our previous blog post What is Time of Supply for Goods on Forward Charge we discussed time of supply for goods on Forward Charge. In this blog, we will discuss time of supply of goods on reverse charge.

In our previous blog post What is Time of Supply for Goods on Forward Charge we discussed time of supply for goods. In this blog, we will discuss the Time of Supply on Forward Charge for Services.
 

In our previous blog, we discussed Time of Supply for Services under the Forward Charge Mechanism. Under the reverse charge mechanism, the recipient or buyer of services has to pay tax to the credit of the government unlike forward charge, where the supplier has to pay tax to the government.
 

In our previous blogs, we have discussed about the taxes that will be levied on supply under GST.

• On intrastate supplies, the taxes levied are Central GST (CGST) and State GST (SGST).
• On interstate supplies, the tax levied is IGST.

Another component of GST is now being talked about – UTGST. UTGST stands for Union Territory Goods and Services Tax.
Let us understand UTGST, the circumstances in which it is levied, and the manner of its levy.

Taxation laws have laid down the taxes applicable on import and export of goods and services. In the current tax regime, laws of Customs duty, Excise, Service Tax and VAT lay down the tax treatment of imports and exports. In the GST regime, Excise, Service Tax and VAT will be subsumed into GST and customs duty will continue to be levied separately. Let us understand the tax implication on imports and exports under GST in comparison to the current regime.

Current Regime

We have discussed about the general rules for determining the place of supply of services in our earlier blog. Let us now understand how to determine the place of supply in case of certain specific services.

Type of Service

Type of recipient

Place of supply

Example

Restaurant and catering services

Not applicable

Location where the service is rendered

The ultimate dream of every business is growth and expansion. One starts a business, earns profit, re-invests, earns more profit – and the cycle continues. You get your first customer, then 10, then 100. You start off in your immediate locality, and as you grow, you expand your operations to your city, your state, neighbouring states – till the entire country is your playground.

Valuation of goods and services is an important aspect which determines the amount of tax to be levied. If goods and services are undervalued, it leads to short-payment of tax, leading to non-compliance and resultant legal implications. Overvaluation will result in loss of revenue for businesses by way of additional taxes. In order eliminate ambiguities and avoid litigation due to inaccurate or flawed valuation of goods and services, valuation methods have been provided by the law which act as guidelines to businesses while determining the accurate taxable value.

Branch transfer refers to the transfer of materials from one unit/location to another unit/location belonging to the same business entity. It is also known as Stock Transfers. Branch transfers are done for various reasons, such as: