RCM is applicable on law firm In the case of a law firm providing services to an unregistered person, the liability to pay Goods and Services Tax (GST) under Reverse Charge Mechanism (RCM) would fall on the recipient of the service, which is the unregistered person. The law firm will need to issue an invoice… 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 themselves… 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 Under GST, an original invoice is required for claiming input tax credit (ITC). However, a digital invoice, such as an electronic invoice (e-invoice) or an electronic bill of supply (EBS), is considered as an original invoice if it satisfies the prescribed requirements. To visit: https://www.gst.gov.in/… Read More »
Can one HSN code have multiple GST rates No, one cannot have multiple GST rates. Each HSN code is associated with a specific GST rates based on the type of goods or services being supplied. The GST rates are fixed by the GST Council, and each is assigned a specific rate based on the category… 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 »
Section 194Q of Income Tax Act Section 194Q of the Income Tax Act, introduced in the Union Budget 2021 and effective from 1st July 2021, is a provision that specifically applies to buyers making payments to resident sellers for the purchase of goods. To visit:https://www.incometax.gov.in According to this provision, if a buyer makes payments exceeding… Read More »
Difference between TDS vs TCS Difference between TDS vs TCS, TDS and TCS are both types of tax collection mechanisms in India, but they differ in their nature, purpose, and applicability. TDS TDS (Tax Deducted at Source) is a tax collection mechanism that requires a person to deduct tax at a prescribed rate from the… Read More »
Types of GST GST (Goods and Services Tax) is a value-added tax that is levied on the consumption of goods and services in India. It was introduced on July 1, 2017, and replaces a number of other indirect taxes such as the central excise duty, service tax, and value-added tax (VAT). In India, the GST… Read More »
What is referral income and how is it taxed Referral income refers to the commission or incentive received by an individual for referring someone or a business to another individual or company. Referral income form of income is commonly earned by professionals in the sales or marketing field and it is taxed. To visit https://www.gst.gov.in/… Read More »