Free banking services

Free banking services offered to customers, not under GST 

Mystery arose after sending notices to lenders for non-payment of service tax under the GST system. In the relief sector for the banking sector, the government cleared the uncertainty surrounding the GST on “free services” provided to customers. The center said these would not attract the GST.

Free banking services

Mystery arose after sending notices to lenders for non-payment of service tax under the GST system. This issue has not yet been sorted, although the government has given sufficient indication that these notices may be withdrawn.
In a 32-page Financial Services FAQ published on Sunday, the Central Council for Taxes and Customs (CBIC) stated that there would be no tax on services provided without consideration (free) to unrelated/privileged persons. The government replied to 91 in the FAQ

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Registration of Sales Tax

In other important clarifications, the Chinese central bank noted that ATMs do not take responsibility for registration of sales tax – they are not a place to work. In addition, derivatives, futures, and futures contracts are not subject to GST. Only service or brokerage fees will be.

The transfer of free services by banks contradicts the notices issued by the General Administration of Tax Intelligence Offices for goods and services to at least 20 private, multinational and public sector banks to clarify why the service tax, penalty, and interest are not paid to ‘free services provided to customers Between July 2012 and June 2017, a period before the introduction of GST.

Banks maintain minimum deposit balances and offer free services such as cash withdrawals from ATMs, checkbooks, account statements, online banking, debit cards, and PIN changes. Bank of England officials has already justified claims that banks were not providing “free services” but actually charging customers by demanding that they keep the account’s minimum balance and punish them if otherwise.

Notifications

Notifications may now go to a joint jurisdiction, as all banks are affected in the same way. The Financial Services Division opposed the transition to tax banks to provide these “free services” to customers. At the time of GST implementation last year, the United Bank, Karur Vyas Bank, Sumitomo Mitsui Banking Corporation sought to obtain clarification from the Central Council of Customs and then on the tax that may apply to services provided free of charge to customers.

Basic explanations

1. Machines do not need to register GST
2. Services provided by banks to RBI shall be subject to GST
3. Derivatives, futures, and futures contracts are not subject to GST
4. The additional interest charged for default in the payment of the installment in respect of any supply subject to GST shall be subject to GST

5. Life insurance policies issued to non-resident Indians where the premium is received from a non-taxable external bank account

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No Service Tax ?

No Service Tax on Value of Materials Supplied Free 

In a ruling in favor of the construction industry, a court of two judges of the Supreme Court, on the last day held that the service tax can not be imposed on the value of goods/materials supplied without cost by a recipient of the service during the building.

GST and real estate

The advisors in the present case are covered by Section 65 (25b) of the Finance Law as they are providing ‘construction or industrial construction services‘, which is a service subject to tax under the provisions of Section 65 (105 ) (zzq) of the Finance Law.

The only question before the Court was whether the value of the goods/materials supplied or provided without cost by a recipient of the service and used to provide the service subject to taxes of the construction or industrial complex, should be included in the calculation of the gross amount ( charged by the service provider), for the valuation of the service subject to taxes, under article 67 of the Law and to make use of the benefits under Notification No. 15/2004-ST dated September 10, 2004

Previous Notice exempted

The previous Notice exempted the value of the goods and materials sold by a service provider to a recipient of the applicable tax service therein, subject to documentary evidence that specifically indicates the value of said goods and materials.

Different banks of the Court of Appeals for Taxes on Customs, Excise, and Services (to abbreviate ‘CESTAT’) had expressed contradictory views on the aforementioned issue. The income maintained that the payment received in “any form” and “any amount credited or debited, as the case may be …” must be included for the purpose of arriving at the charges for the gross amount and is applicable to pay the tax of service.

A court formed by Justices AK Sikri and Ashok Bhushan noted that a simple reading of Explanation (c) that makes “gross charges” include certain other payments would make it clear that the purpose is to include other modes of payments, in whatever form received; either through check, credit card, deduction of the account, etc.

“It is in that tone, the provisions mention that you must also include any form of payment for issue of credit or debit notes and book adjustment, therefore, the words” in any form of payment “are by issuing notes Credit or debit notes and book adjustment With the provision of free goods/materials by the recipient of the service, it is not mentioned that credit or debit notes were issued or that adjustments were made to the book.

The words “any amount paid or owed, as the case may be” to any account, whether called a “temporary account or by any other name, in the accounting books of a person subject to the service tax” would not include the value of In fact, this last portion is related to the debit or credit of the account of an associated company and, therefore, deals with the amounts received by the associated company for the services provided by the service provider “.

Will be collected with respect to the ‘taxable services’ and with the purpose of reaching 33% of the gross amount collected, unless the value of some goods/materials is specifically included by the Legislature, which cannot be added, “he added. Bank.

E-way bill from February 1

E-way bill from February one

Coming February onwards transporters won’t need separate passes for moving product from one state to a different as a result of the e-way bill issued to them are valid throughout India.

Under the goods and Services Tax unrolled from July last year, inter-state movement of products beyond ten kilometers, with a worth of Rs 50,000 and higher than, can obligatorily need an e-way bill from February one.

E-way Bill can be generated electronically

Taxpayers and transporters needn’t visit any tax office or check post because the e-way Bill may be generated electronically in a very self-service model.

The e-way bill system has already been enrolled in 10 states and joined e-way bill platform — Karnataka, Rajasthan, Uttarakhand, Kerala, Haryana, Bihar, Maharashtra, Gujarat, Sikkim, and Jharkhand.

The new feature by Gov of India permits generation of the e-Way bill on the portal, through mobile App, through SMS, and for large users.

E-Way Bill

ALL you would like to understand regarding E-WAY BILL

What is an e-way bill?

E-way bill is an electronic document generated on the GST portal evidencing movement of products.

Each registered one who causes movement of products (which might not essentially be on account of supply) of consignment price over Rs 50000 is needed to furnish the small print of GSTIN of receiver,  delivery place, invoice or challan number and date, price of products, HSN code, transport document number (Goods Receipt number or Railway Receipt number or Airway Bill number or Bill of loading Number) and reasons for transportation and transporter details (Vehicle number).

What is an E-Way Bill
Who should generate it and why?

 

E-way bill is generated by the product seller or receiver himself if the transportation is being done in own/hired conveyance or by railways by air or by road.

If the products are handed over to a transporter for transportation by road, the bill is generated by the transporter. where neither the consignor nor receiver generates the e-way bill and the price of products is more than Rs.50,000 it shall be the responsibility of the transporter to come up with it.

Purpose of e-way bill

E-way bill may be a new feature to make sure that product being transported comply with the GST Law and is an efficient tool to trace the movement of products and check evasion.

Validity of e-way bill
The validity of e-way bill depends on the distance to be traveled by the products. For a distance of less than 100 km, the e-way bill is valid for a day from the relevant date. for each 100 km thenceforth, the validity is extra one day from the relevant date.

The “relevant date” shall mean the date on that the e-way bill has been generated and therefore the period of validity shall be counted from the time at that the e-way bill has been generated and every day shall be counted as a day.

What if the product can’t be transported within the period?

In general, the validity of the e-way bill can’t be extended even a day without official intimation. However, Commissioner could extend the validity period only by way of issue of notification for sure categories of products.

Cases where e-way bill isn’t required

According to CBEC, there are some exceptions to e-way bill demand. It said: “No e-way bill is needed to be generated within the cases where product being transported by a non-motorised conveyance; product being transported from the port, airport, air cargo complex and land customs station to an inland container depot or a container freight station for clearance by Customs; and once Consignment price is a smaller amount than Rs fifty,000 among others.”

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