What is blocked ITC?
Section 17(5) of the Central Goods and Services Tax (CGST) Act, 2017 outlines the scenarios under which Input Tax Credit (ITC) is blocked and not available to a taxpayer. This provision restricts the claim of ITC on certain inputs, goods, and services. The exhaustive list of cases where ITC is blocked under Section 17(5) includes:…...
Zero rated ITC rules under GST?
The ITC rules for zero-rated supplies are as follows: Claiming ITC: Registered taxpayers making zero-rated supplies can claim a refund of the GST paid on inputs, input services, and capital goods used in the course of making such supplies. The ITC can be claimed through the electronic refund application. Export of goods or services: If…...
Provision for section 80JJAA?
Section 80JJAA of the Income Tax Act, 1961 is a provision that allows eligible businesses to claim a deduction for additional employee cost incurred for the purpose of promoting employment. Here are the key details of this provision: Eligible Businesses: Section 80JJAA applies to Indian companies and partnership firms engaged in the manufacturing sector. Deduction…...
What is related party as per various laws? – Companies Act, Ind AS, GST, Income Tax
As per 2(76) of Companies Act: a. a director or his relative; b. a key managerial personnel or his relative; c. a firm, in which a director, manager or his relative is a partner; d. a private company in which a director or manager or his relative is a member or director; e. a public…...
GST law wrt M&A, Demergers, effect of ITC on such case.
Section 18 (3) of the CGST Act as well as rule 41 of the CGST Rules stipulates that in case of change of constitution of a registered taxable person on account of sale, merger, demerger, amalgamation, lease or transfer of business, the registered person would be allowed to transfer the unutilized input tax credit to…...
How would you advise the client on whether to go in for Litigation or settle the matter?
I would advice the client for settlement or litigation based on what the matter is about. Does it really amount to non-compliance? Are there interpretation issues involved? I would refer other case laws with similar matter. I will see the materiality of the amount and case. I will look at the cost of litigation. There…...