sks associates-law firm page 1 navitgating the future opportunities for cs after gst presented by:...
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SKS Associates-Law FirmPage 1
NAVITGATING THE FUTURE
OPPORTUNITIES FOR CS AFTER GST
Presented by: Siddharth SrivastavaFounder- B. Com, CS, LLB- SKS Associates- Indirect Tax Litigators & Consultants
Contact: +91-9560111577; +91-124-2218817Mail: [email protected]
SKS Associates-Law FirmPage 2
Agenda
► HISTORY OF VAT
► PRESENT INDIRECT TAX STRUCTURE
► ROADMAP OF GST
► PROMINENT FEATURES OF GST
► TREATMENT OF INTERNATIONAL TRADE
► PLACE OF TAXATION
► SOFTWARE DEVELOPMENT INTERNATIONAL LAWS
► TREATMENT OF SOFTWARE AS PER CANADIAN LAWS
► BENEFITS OF THE CANADIAN TAXATION MODEL
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History of VAT in India…
GST
State VAT
CENVAT
MODVAT
2016
2005
2004
1986
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GST – AROUND THE WORLD
Almost 160 countries have already implemented the GST
Most of the countries have a unified GST system.
Brazil and Canada follow a dual system where GST is levied by both the Union and the state governments.
France was the first country to introduce GST system in 1954.
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GST rates across the globe
Country SR/RR/Zero rate
United Kingdom 20%/5%/0%
Australia 10%
Canada 13%/5%
Thailand 7%/0%
Vietnam 10%/5%
Singapore 7%/0%
Malaysia 7%/0%
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Present Indirect Tax
Excise Duty
Entry No. 84, List I Schedule
VII
Taxable event is
manufacture
Residuary Entry No. 97,
List I Schedule VII
Taxable event is Provision of service
Sales Tax/ VAT/ CST
Entry No. 54 of List II (VAT) ; 92A of List I
(CST)
Taxable event is Sale
Customs Duty
Entry No. 83, List I,
Schedule VII
Taxable event is Import & Export
Entry Tax
Entry No. 52 List II,
Schedule VII
Taxable event is Entry of
goods
Structure
Service Tax
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Present Indirect Tax
State Excise Duty
Entry No. 51, List II Schedule
VII
Taxable event is
manufacture
Entry No. 54 of List II (VAT)
and 92A of List I (CST)
Taxable event is purchase
Octroi
Entry No. 52 List II,
Schedule VII
Taxable event is Entry of goods
Luxury
Entertainment Tax
Entry No. 62 List II,
Schedule VII
Taxable event is
Entertainment of Goods
Electricity Duty
Entry No. 53 List II,
Schedule VII
Taxable event is Sale
Structure
Purchase Tax
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Current Taxes - Shortcomings
Complexity
No Cross Credit
Compliance and Reporting
Tax on Tax
Classification issues
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Road map to GST in India
2006, announcement of the intent to introduced GST by 01.04.2010.
November 2009-First Discussion paper(FDP) released by EC on which comments were provided by Government of India.
June 2010-Three sub working groups were constituted by government of India on:• Business process related issues• Drafting of Central GST and model state GST legislations.• Basic design of IT systems required for GST in general and IGST in
general
March 2011- Constitution (115th amendment) bill introduced in parliament
November 2012-Committee on GST design constituted by EC
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Road map to GST in India
February 2013- Three committees constituted by EC• Dual Control, Thresholds and exemption in GST regime• RNRs for SGST and CGST and place of supply rules• IGST and GST on Importers
March 2013- GSTN incorporated as section 25 company June 2013- Committee constituted by EC to draft model GST law August 2013- Standing committee on Finance submitted report April 2014- Committee constituted by EC to examine business process under
GST December 2014-122nd Constitutional amendment bill introduced in parliament May 2015 - The Constitution (122nd Amendment) Bill, 2014 (Bill) was passed
by the Lok Sabha. July 2015 - The report was adopted by the Select Committee and tabled in
the Rajya Sabha
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Central Excise
Service Tax
Customs and SAD
CVD
VATOctroi
Entertainment Tax, Luxury Tax,
Lottery Tax
Surcharges And CESS
Purchase Tax
All covered under GST but non GST supplies will exist
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PROPOSED RATES - GST
► The GST shall have two components: one levied by the Centre, referred as Central GST, and the other levied by the States referred as State GST.
► Rates for Central GST and State GST would be prescribed appropriately. Initial Proposed rates may varied between 20% to 25% in 1st year, 12% to 18% in 2nd year, 16% in 3rd year.
► CGST and SGST on intra- State supplies of goods or services in India.
► IGST shall be levied by the Centre► Import of goods and services► Inter state stock transfers of goods and services
► CGST for CGST and SGST for SGST. Except for IGST where both way utilisation is possible.
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GST – EXCLUSIONS
• Alcoholic Beverages
• Tobacco Products
• Electricity Duty
• Real Estate
•Taxes on specified Petroleum Products, Crude Oil, Natural Gas, MS, HSD, ATF-To be considered later on
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Particulars Before GST After GSTImport in India 10 10Add: BCD @ 20% 2 2Add: CVD @ 20% 2 -Add: SAD @ 4% 0.4 -Add: GST @ 20% - 2Supply to Manufacturer 14.4 14Value Addition 5 5Manufacturing cost 19.4 19Add: Profit @ 20% 3.88 3.8Value for Excise Duty 23.28 Add: BED @ 20% 4.656 Value for Sales tax/GST 27.936 22.8Add: Sales Tax @ 12.5% 3.492 -Add: GST @ 20% 4.56Purchase Price of Service provider 31.43 27.36Add: Service Charges @ 50% 15.71 13.68Taxable value 47.14 41.04Add: ST @ 12.36% 5.83 -Add: GST @ 20% - 8.21
Cost to Consumer 52.97 49.25
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GST - Key Issues
Whether Land will be covered Power of States to amend SGST at their
end List of Exempted Goods or Services Sector specific provisions like Banking,
Real Estate, E-commerce, essential sectors
Exemption threshold Place of Supply Rules for Goods and
Services 1% Cascading tax Litigation structure
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GST IMPACT AREAS
GST
Information System
Suppliers
Customers
Finance & AdminInternal / Human
Capital
Strategy
Legal
Sales & Marketing Strategies
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Opportunities for Company Secretaries
Mapping and Audits of as is tax process in a company
Transitional Issues
Restructuring present and future agreements / legal documents
Realign pricing policies and supply chain management
Upgrade Information technology systems to record various supplies
Setting up reworked MIS process and strategic decisions
Supply chain and distribution chain management to ensure compliance
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Opportunities for Company Secretaries
Supply chain and distribution chain management to ensure compliance
Ensure compliance records and returns and assessments
Training of people for multiple GST registrations and compliance
Representation with various Government agencies for clarifications and trade issues
Tax health check exercise to review client meeting the above requirements
Tax advisory on Indian GST tax positions and tax process
New Tax assessee base will be created
SKS Associates, Litigators & Consultants
# 98, Basement Floor, Sector 47, Gurgaon; 0124-2218817 ; 9560111577 ;
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