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:

The manufacturing sector is the second largest contributor to our GDP. Many new initiatives taken by the Government in the form of Make-in-India, Invest India, Start Up India, and e-biz Mission Mode Project under the national e-governance plan are facilitating investment and ease of doing business in the country. Indian manufacturing companies in several sectors are targeting global markets and are becoming formidable global competitors.

Under GST, specific rules have been laid down for determining the place of supply of telecommunication services and financial services. Knowing how to determine the place of supply is very important to ensure that the correct tax is charged on a supply.  Let us understand how to determine the place of supply of telecommunication services and financial services.

Under Goods and Service Tax, ‘supply’ will be the single taxable event and the major transformation that will occur is ‘Destination based consumption tax’, where tax will accrue to the state in which the supply is consumed. The place of supply will determine the type of tax to be levied on the supply.

Certain businesses operate in a manner that they occasionally undertake transactions in territories where they don’t have a fixed place of business. Under GST, a person who has a fixed place of business in a state and undertakes taxable outward transactions has to register, if his turnover crosses the prescribed threshold limit. What happens if a person undertakes taxable transactions in a place where he/she does not have a fixed place of business?
This can happen in two cases:

Reverse charge is a concept we were familiar with, in the previous tax regime. To put it simply, under reverse charge, the liability to pay tax on a transaction to the Government is on the recipient. Under Service Tax, reverse charge was applicable in the case of specific notified services. Under VAT, in almost every state, on purchases from unregistered dealers, a registered person had to pay tax, on behalf of the unregistered seller. It was also applicable in the case of imports, where the importer had to pay import duties to the Government.

With the advent of GST on 1st July, 2017, an immediate task on your hands is to generate accurate invoices that meet the criteria laid down for GST tax invoices. An important component of a GST tax invoice is the tax collected on the supply.

We have discussed the scenarios in which reverse charge is applicable in our previous blog . In these scenarios, when recipients make advance payment for supplies on which they are liable to pay tax on reverse charge, they will also have to pay tax on such advance payments. Persons who were registered under Service Tax are familiar with the similar requirement in the Service Tax regime.

Festival season is around the corner, sales promotional offers will be a common sight in the market place. More often, promotional schemes are used as effective sales strategy to attract the customer to buy their product.  Among the various promotional offers, Buy One-Get One Free, Free gifts, Flat discounts, and so on, are the popular schemes. In case of newer products, in order to gain market penetration, the concept of free samples are adopted. Under this, products are supplied for free as a sample, and this is very common in the pharmaceutical industry.

What is works contract?