Understanding the Applicability of Reverse Charge Mechanism (RCM) on Law Firms Introduction The Reverse Charge Mechanism (RCM) is a concept in tax legislation where the responsibility for paying tax shifts from the supplier to the recipient of goods or services. This mechanism is commonly applied in various sectors, but its applicability can vary depending on… Read More »
How are the private educational institutions taxed Private educational institution in India are subject to specific tax regulations based on their legal status and income nature, as outlined in the Income Tax Act, 1961. Here’s a general overview of the tax treatment for private educational institutions: Trusts and Societies: Many private educational institutions establish… Read More »
GST Compliance in India GST Compliance, In India, when we talk about GST compliance, it means abiding by the guidelines and regulations established by the Goods and Services Tax (GST) system, which has been implemented by the Government of India: Good and service Tax Registration: Businesses that meet the prescribed turnover threshold are required… Read More »
Is the Requirement of an Original Invoice Under GST Mandatory? The Goods and Services Tax (GST) regime has introduced a comprehensive system of taxation in India, aiming to simplify and streamline tax compliance for businesses. One of the crucial aspects of GST compliance is the requirement for invoices. A common query among businesses is whether… Read More »
Is GST mandatory for Amazon seller Yes, GST registration is mandatory for an Amazon seller if they meet certain criteria. According to GST laws, any person or business engaged in the supply of goods or services with an annual turnover exceeding Rs. 20 lakhs (Rs. 10 lakhs for northeastern and hilly states) is required to… Read More »
Can one HSN code have multiple GST rates The Harmonized System of Nomenclature (HSN) code is a globally recognized system of classifying goods, primarily for the purpose of taxation. Introduce by the World Customs Organization (WCO) in 1988, the HSN system is use by over 200 countries, including India, to classify goods in a standardize… Read More »
Process for charging GST Process for charging GST, If a local supplier in India purchases goods or services from an international supplier, the local supplier would be require to pay the Integrated Goods and Services Tax (IGST) on the import of goods or services, and the local supplier can claim the credit of such IGST… Read More »
Definition of GST invoice Definition of GST invoice, A GST invoice is a crucial document issued by a supplier to the buyer, containing all the necessary details of the transaction in accordance with the Goods and Services Tax (GST) Act in India. It serves as proof of the supply of goods or services and… Read More »
Do startups pay income tax Yes, startups are required to pay income tax in accordance with the Income Tax Act. The amount of income tax paid by a startup depends on their taxable income, which is calculated by subtracting allowable deductions from their total income. However, the government has introduced various tax exemptions and incentives… Read More »
Introduction The Finance Act 2021 introduced Section 194Q of the Income Tax Act to regulate tax deduction at source (TDS) on the purchase of goods. The provision came into effect on July 1, 2021, and aims to enhance tax compliance, prevent tax evasion, and widen the tax base. This article delves into the meaning, applicability,… Read More »