Simplifying tax, finance, corporate law concepts
What is Reverse Charge Mechanism (RCM) in GST? Generally, the supplier of goods or services is liable to pay GST. However, notified goods and services on which GST is paid by the recipient directly to the government which is called reverse charge mechanism (RCM). Under the principle of indirect tax, the burden of tax has…
What is supply under GST? Under the Goods and Services Tax (GST) supply means a taxable event. Taxable event means any transaction that results in tax consequences. Supply includes any transaction such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agree to be made of goods or services for a consideration…
Understanding Transfer in Capital Gains Section 2(47) As per section 45 of Income Tax Act, 1961, any profit or gains arise on transfer of capital asset is taxable under the head capital gains. This section emphasizes more on two important terms i.e. capital asset and transfer. Capital asset is defined under section 2(14) and transfer…
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What are capital gains? As per the provisions of Section 45 of Income Tax Act 1961 any profits or gains arising from transfer of a capital asset will be chargeable to income tax under ‘Capital Gains’. Such capital gain will be deemed to be the income of the year in which the transfer took place….
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When was GST first introduced in India? In 2000, the then Prime Minister considered the idea of GST and set up a committee to design the GST service model for the country. The government formed a task force in 2003 which in 2004 strongly recommended to implementation of a fully integrated ‘GST’ on a national…