You can now buy US stocks such as Facebook, Apple and Google on NSE

You can now buy US stocks such as Facebook, Apple and Google on NSE

The NSE IFSC will be the first in the world to allow Indian retail investors to trade stocks in the United States. “Unsponsored depository receipts will be used to make the offering.”

The NSE International Exchange (NSE IFSC), a wholly-owned subsidiary of the National Stock Exchange (NSE), said on August 9 that it will shortly begin trading in select US companies.

The NSE IFSC platform would be used to enable the trading, according to a press release “Unsponsored depository receipts will be used to make the offering. Under the Regulatory Sandbox, IFSCA has made this possible.”

The entire trading, clearing, settlement, and holding of US stocks will be governed by the IFSC authority’s regulatory system.

“This effort is a first of its type at IFSC, where Indian retail investors will be allowed to transact on the NSE IFSC platform within the Reserve Bank of India’s (RBI) Liberalized Remittance Scheme (LRS) limits,” NSE IFSC stated.

The RBI’s LRS framework, for example, allows residents to remit up to $250,000 per fiscal year for any allowed current or capital account transaction.

“The business model offered by NSE IFSC will not only provide additional investment opportunities to Indian investors but will also make the entire investing procedure simple and inexpensive,” the stock exchange noted.

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When compared to the underlying shares traded in US markets, investors will be able to trade in fractional quantities/values, according to the company.

The new structure will make US stocks more accessible to Indian ordinary investors, according to the NSE IFSC.

The NSE IFSC Clearing Corporation Limited (NICCL) will provide a solid risk management framework, enabling clearing and settlement of all trades in depository receipts, and provide settlement assurance for all trades performed on the NSE IFSC platform, according to the company. Furthermore, all trades will be protected by the NSE IFSC’s investor protection structure.

According to the announcement, investors will be able to keep the depository receipts in “their own Demat accounts formed in GIFT City” and will be eligible for corporate action benefits related to the underlying stock.

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NSE IFSC will release operational information soon and will launch the product as soon as feasible, according to the company, which also stated that depositories, banks, and brokers have already begun working with NSE IFSC to make these investment products available to Indian customers.

The introduction of trading in US stocks through NSE IFSC, according to Vikram Limaye, MD and CEO of NSE, will be one of the stock exchange’s important achievements.

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Discounts under GST Regime!

Sec.15 of the CGST Act, 2017, reproduced below

The value of the supply shall not include any discount which is given –

  • Before or at the time of the supply if such discount has been duly recorded in the invoice issued in respect of such supply
  • After the supply has been affected, if –

    # – Such discount is established in terms of an agreement entered into at or before the time of such supply and specifically linked to relevant invoices, and
    # –  Input tax credit as is attributable to the discount on the basis of the document issued by the supplier has been reversed by the recipient of the supply.”

Summary:

The logical inference which could be drawn from the plain reading of above provision is:

  • Discount, if mentioned on the face of the invoice, can be reduced from the taxable value of the supply of goods.
  • Discount, even if not mentioned on the face of the invoice can be reduced from the taxable value, if following conditions are satisfied:

i) Discount is established in terms of an agreement before supply. In simple words, both supplier and recipient are aware and have agreed about the discount before the supply.

ii) Discount is linked to a specific supply invoice.

iii) ITC attributable to the discount is required to be reversed by the buyer or recipient of the supply.

tax audit, refund, notice, assessmentGST liability of the supplier would be reduced if both supplier and receiver of the goods or services are aware of the discount before supply.

There will be no differentiation in GST between trade and cash discounts.

In fact, GST segregates the discounts allowed into two categories:

  • Those given before or at the time of supply, and
  • Those given after the time of supply.

Discount allowed before or at the time of supply, and it has been mentioned in the invoice separately, it will not be added in the value of supply.

Example: Company offers a 10 % discount on the sale of goods worth Rs. 200. If the company mentions the discount amount (Rs. 20) separately in the invoice, the value of the taxable supply will be Rs.180 (200–20).

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GST AUDIT FLOW

GST AUDIT FLOW AS PER REQUISITES / IMP POINTS

  • TURNOVER
  • WHO CAN PERFORM OR INITIATE
  • TIME PERIOD FOR COMPLETION
  • ACTIONABLE /FORMS

Professionals as part of GST Audit need to electronically file:

  1. An annual return as per Form GSTR 9B  appended with the reconciliation statement by 31st December – following Financial Year
  2. Audited Financial Statements
  3. Reconciliation statement stating the value of supplies as per the GST Return with the Financial statements like Balance Sheet & Profit & Loss Accounts
  4. Any other particulars as sought

CA, AUDIT, GST, INCOME TAX

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