Previously, we have discussed time of supply for goods regards the forward charge mechanism; here we place focus on the reverse charge mechanism to determine the time of supply of goods. Firstly, it is imperative to understand that service tax is collected when goods or services are sold to ensure revenue collection from even the…
Service tax is currently applicable under the current indirect tax regime upon the provision of taxable services. The point of taxation helps in ascertaining when the service tax is actually payable to the central government by the recipient or the supplier. As per the point of taxation mechanism, on forwarding charge, the impacts of liability…
Under the reverse charge mechanism, the time of supply for services is determined by payment of tax credit of the government from the recipient of the services or the buyer of the services – this is different from forward charge where the tax payment is done to the government from the supplier itself. Before we…
Electronic commerce, also known as e-commerce, has transformed business in India altogether. The e-commerce industry in India is impacted by several taxes as each state has its own rules pertaining to taxation on goods and services supplied through e-commerce. However, since there is slight confusion in the treatment of these taxes, in this article we have…
Currently, taxes are imposed on taxable services such as manufacture, provision of services, sale of goods, etc. Under the GST regime, all of this will be replaced by the concept of supply. In other words, the understanding place of supply of a good or service will become a very taxable event under the GST. In…
We have previously discussed situations where the place of supply is determined based on no movement of goods. In this article, we aim to discuss the place of supply with movement of goods taking place. Scenario 1 Tech Cart Electronics is a registered computer parts dealer in Mumbai, Maharashtra. It supplies 20 computers and laptops…
In this article, we aim to identify the place of supply without movement of goods. Place of supply is the location of the goods at the time of delivery to the recipient: To understand a situation where there is no movement of goods but the location of the recipient is considered to be the place…
Two states and entities are involved in the case of a bill to ship transactions model, a very common model observed these days. This means that the billing and the shipping are done separately. Therefore, to eliminate the cascading effect of taxation throughout the different levels of such a complex transaction, only the first sale…