GstTak

  INTRODUCTION: - Major of the assets of the companies covered by current assets and in that Receivables are performs a major part in the organization and also there is risk of bad debts and hence it is necessary to have proper control over receivables and therefore in India transfer of receivables arising out of sale or loan transactions takes place quite frequently. In such a case, a firm may avail the services of specialized institutions engaged in receivables management, called factoring firms.   Factoring is very popular and necessary to enhance working capital by quick conversion of book debt in to liquid form.     FACTORING: - Basically, factoring is a kind of Financial Service in which a business organization sells its Account Receivables to another person, called a Factor, at a discount in order to raise money. However, factoring is completely different from concept of bill discounting. In bill discounting, invoices are discounted at certain ra...

  DEFINITION: - Agent: - As per Section 2(5) of CGST Act, “Agent” means a person, including a factor, broker, commission agent, arhatia , del credere agent, an auctioneer or any other mercantile agent, by whatever name called, who carries on the business of supply or receipt of goods or services or both on behalf of another.   However, the term “Recovery Agent” has not been defined in the GST Law and hence the term “Recovery Agent” can be derived from the general parlance used in the industry ie Agent, covers a person who is carrying   the business of recovery of debt on behalf of another person.   SAC CODE:- 998592:- Collection agency services.   GST RATE:- 18%     REVERSED CHARGED:- As per Section 9(3) of CGST Act, following service has been specified under RCM i.e. recipient of service needs to pay GST under RCM.   Type of Service:- Services supplied by a recovery agent to a banking company or a financial institution or...

MEANING OF FREIGHT: - F reight charges is the cost of transportation services. According to the  Busi ness Dictionar y , freight costs include packaging, palletizing, loading or unloading charges, carrier fees, and insurance costs.   TYPES OF FREIGHT: - ·        Ocean Freight in respect of Import & Export of Goods. (Transport of Goods or Cargo by ships) ·        Air Freight in respect of Import & Export of Goods. (Transport of Goods or Cargo by Air)   OCEAN FREIGHT IN RESPECT OF IMPORT OF GOODS : - SAC Code & Rate of GST: - As per the Entry No. 9 of Notification No. 8/2017-Integrated Tax (Rate)_28.06.2017 GST Rate & SAC code are as under. Service: - Transport of goods in a vessel including services provided or agreed to be provided by a person located in non- taxable territory to a person located in non-taxable territory by way of transportation of goods by a vessel from a p...

  A) Background:-       1) The GST Council, at its 37th meeting held at Goa on 20th September, 2019 approved the introduction of E Invoicing System. Accordingly the government has issued Notification No 68/2019 – CT to 72/2019 – CT to make applicable all the provisions relating to E Invoicing w.e.f. 1st April, 2020. (Now it extended till 1st Oct, 2020 in 39th Meeting held on 14th March, 2020)       2) E-invoicing in India will be a big move, due to the volume of business transactions undertaken every day, as well as non-standardized formats used in invoice generation. The main objective is to enable an E-invoice generated by one software should be capable of being read by any other software. Basically, through machine readability, an invoice can be uniformly-interpreted.        3) In addition to the above, this new system of e-invoicing aims to make invoice reporting an integral part of a business proc...