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S.K.KANODIA & ASSOCIATES
Chartered Accountants
NOTIFICATIONS & CIRCULARS (http://www.cbec.gov.in/) & (http://wbcomtax.nic.in/)
NOVEMBER, 2016 (L) &
DECEMBER, 2016
(LI)
Inside this issue: GST Anti Profiteering- What it
is?
INDIRECT TAX RECKONER
SERVICE TAX
Notification No. 46/2016,
Dated: 09th November, 2016
Seeks to amend Place of Provision of Services Rules, 2012 so as to amend the place of provision of ‘online information and database access or retrieval services’ with effect from 01.12.1016.
Notification No. 47/2016,
Dated: 09th November, 2016
Seeks to amend notification No. 25/2012-ST dated 20th June , 2016 so as to withdraw exemption from service tax for services provided by a person in non-taxable territory to Government, a local authority, a governmental authority or an individual in relation to any purpose other than commerce, industry or any other business or profession, located in taxable territory.
Notification No. 48/2016, Dated: 09th November, 2016
Seeks to amend Service Tax Rules, 1994 so as to prescribe that the person located in non-taxable territory providing online information and database access or retrieval services to ‘non-assesse online recipient’, as defined therein, is liable to pay service tax and the procedure for payment of service tax.
Notification No. 49/2016,
Dated: 09th November, 2016
Seeks to amend notification No. 30/2012- ST, dated the 20th June, 2016 so as to put compliance liability of service tax payment and procedure on to the service provider located in the non-taxable territory with respect to online information and database access or retrieval services provided in the taxable territory to ‘non-assesse online recipient’.
Notification No. 50/2016,
Dated: 22nd November, 2016
Seeks to amend notification No. 20/2014-ST dated 16th September, 2014 so as to provide exclusive jurisdiction to LTU-Bangalore with respect to online information and database access or retrieval services provided or agreed to be provided by a person located in non-taxable territory and received by a ‘non-assesse online recipient’.
Notification No. 51/2016,
Dated: 30th November, 2016
Seeks to amend Place of Provision of Services Rules, 2012 so as to exclude 'online information and database access or retrieval services' from the definition of 'telecommunication services'.
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Notification No. 36/2016-CE,
Dated: 1st December, 2016
Seeks to further amend notification No. 12/2012-Central Excise dated 17th March, 2012, in respect to the excise duty exemption on branded gold coins of purity 99.5% and above.
Circular No. 1050/38/2016-
CX, Dated: 08th November, 2016
Combined Annual Return Form for Central Excise and Service TaxCombined Annual Return Form for Central Excise and Service Tax
Circular No. 1051/38/2016-
CX, Dated: 15th November, 2016
Export warehousing-Extension of facility in Ahmedabad District of Gujarat
WEST BENGAL VALUE ADDED TAX
Notification No. 1075-L, Dated:
14th December, 2016
Bill for amendments in the West Bengal Sales Tax Act 1994, the West Bengal State Tax (Settlement of Dispute) Act, 1999, and the West Bengal Value Added Tax Act, 2003.
Circular No. 918CT/PRO,
Dated: 09th November, 2016
Extension of the last date of filing WBST Return for Q.E. 30/09/2016.
Circular No. 919CT/PRO,
Dated: 09th November, 2016
Extension of the last date of filing VAT Return for Q.E. 30/09/2016
Notification No. 52/2016,
Dated: 08th December, 2016
Seeks to amend exemption notification No. 25/2012-ST dated 20.06.2012 so as to exempt services by an acquiring bank, to any person in relation to settlement of an amount upto two thousand rupees in a single transaction transacted through credit card, debit card, charge card or other payment card service Notification No. 53/2016,
Dated: 19th December, 2016
Seeks to amend Service Tax Rules, 1994 so as to allow a person located in non taxable territory providing online information and database access or retrieval services to a non-assesse online recipient to issue online invoices not authenticated by means of a digital signature for a period upto 31st January, 2017.
Circular No. 202/12/2016-
ST, Dated: 09th November,
2016
Withdrawal of exemption from service tax on cross border B2C OIDAR services provided online/electronically from a non-taxable territory to consumers in taxable territory in India
CENTRAL EXCISE
Notification No. 35/2016-CE,
Dated: 28th November, 2016
Seeks to exempt Point of Sale (POS) devices and goods required for its manufacature from central excise duty till 31st March, 2017
Circular No. 950CT/PRO,
Dated: 16th November, 2016
Extension of the last date of filing WBST Return for Q.E. 30/09/2016.
Circular No. 951CT/PRO,
Dated: 16th November, 2016
Extension of the last date of filing VAT Return for Q.E. 30/09/2016 Circular No. 951CT/PRO,
Dated: 16th November, 2016
Extension of the last date of filing VAT Return for Q.E. 30/09/2016
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ANTI PROFITEERING CLAUSE IN GST
- AN OVERVIEW
1) What is anti-Profiteering Measure and
Why?
In every country where Goods and
Services Tax ‘GST’ is proposed to be
introduced for the first time there is
always a feeling of tax uncertainty,
especially among the general public and
small and even medium size business
enterprises, regarding the possible cost
and price structures that would arise or
take place in during and after the
implementation of GST. It has been
observed globally that such
organisations tend to impulsively spike
their product prices in response to a
sudden tax change, either due to their
own lack of awareness or to profit from
the lack of awareness of others and
consumers at large. As a result, such
transitions often lead to temporary
inflation in product/service prices in
the short run which takes around 1-2
years to normalise. Now, the Indian
Government, with an objective to
control both inflation and excess
profiteering and to ensure that trade
and industry pass on the benefits of
reduction in tax rates to the end
consumers, has introduced the concept
of anti-profiteering measure in Revised
Model GST Law published on 25th
November, 2016. Although the time
period for implementing these measures has
not been made public as yet, it is understood
that these measures remain applicable only
for a short period of one to two years and
no further.
2) What does Model GST Law say about
Anti-Profiteering Measure?
The revised Model GST Law for Central GST
Bill and State GST Bill issued on 25th
November, 2016 contains 2 Sections
through which the anti-profiteering
measures are established. The 2 Sections
are -
1. Section – 163 - Anti-profiteering
Measure – As per Section 163, the
Central Government is empowered to
constitute an Authority, or entrust any
existing Authority constituted under any
other law, to examine whether –
a. input tax credits availed by any
registered taxable person or
b. the reduction in the price on
account of any reduction in the
tax rate
have actually resulted in a commensurate
reduction in the price of the said goods
and/or services supplied by him. The
Authority will exercise such functions
and have such powers, including those
for imposition of penalty, as may be
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out of such measures –
It is impossible today, to be a profiteer as
anyone who does so would not survive - It
is argued that currently if any enterprise
tries to earn excess profit on any publicly
consumed goods and/or services, then the
consumers through their word of mouth,
warn other consumers like their friends,
relatives and acquaintances to avoid such
enterprise. And in any severe cases, the
national media will create awareness about
such enterprises and their practices and
hold media trials where they will always
treat them as guilty until one can prove his
or her innocence. It will instantly result in
its name and its alleged actions becoming
publicised, doing significant damage to its
brand, even if it is eventually found
innocent. Thus, any excess profiteering
practice in today’s world is very difficult to
adopt due to the attached risk on its
survival and brand name. Therefore, any
additional anti-profiteering measure may
not have much additional impact.
The onus to comply and proof of such
compliance lies on business – As the onus
to prove compliance with anti-profiteering
clause lies with the business, they will have
to produce adequate evidence to prove
such compliance, which can be difficult
prescribed in cases where it finds that the
price being charged has not been reduced
as aforesaid. The ‘Authority’ will regulate
prices during the temporary inflation
phase for a prescribed period. However, as
a respite, Revenue Secretary Shri. Hasmukh
Adhia, clarified that these measures won’t
be invoked unless in the event of a
significant violation.
2. Section – 169 – Anti – Profiteering
Aspect in Transitional Provisions - As
per Section 169, of The CGST Act and The
SGST Act, certain types of registered
taxable persons will be entitled to take, in
their electronic credit ledger, credit of
eligible duties and taxes in respect of
inputs held in stock and inputs contained
in semi-finished or finished goods held in
stock on the appointed day subject to the
certain conditions. One Such Condition is
– the said taxable person passes on the
benefit of such credit by way of reduced
prices to the recipient.
3) Problems with Anti-Profiteering
Measures?
Though the idea of introducing anti-
profiteering measures has been welcomed,
there are certain objections regarding its
relevance and the difficulties that can arise
ANTI PROFITEERING CLAUSE IN GST
- AN OVERVIEW …contd
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as several small and medium businesses
may not be able to adequate records to
show that any reduction in tax rates or
allowability of additional input tax credit
has been reflected in a price reduction.
Thus, one has to wait and watch how does the
Indian GST regime work on the anti-profiteering
clause and how does business houses take care of
the same especially the transitional provisions for
anti- profiteering law.
GST COUNCIL 8TH MEETING ON 3RD AND 4TH JAN 2017
The meeting of the GST Council for debate and discussion on the IGST law and the issue of dual control is to take place in New Delhi on 3/01/2017 and 04/01/2017. If the hurdle of dual control is eased out, then there is a possibility of GST coming into force from July 2017 if not
earlier.
S.K.KANODIA & ASSOCIATES
Chartered Accountants
Kolkata Office 1:
13/C, Balak Dutta Lane, Kolkata- 700007.
Tel: +91-33-4067-8098
Kolkata Office 2:
39 A, Jorapukar Square Lane, Room #- 202, Kolkata- 700006.
Tel : +91-33-4065-8215 Tel : +91-98315 -43580
Editor: Team SKKA/CA Ankit Kanodia Email: info@skkassociates.com ankit@skkassociates.com Website: http://www.skkassociates.com/
ANTI PROFITEERING CLAUSE IN GST
- AN OVERVIEW …contd
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