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Ashutosh Thaker
Ashutosh.thaker@verita.co.in
Speaker Profile – CA Ashutosh Thaker
Professional Experience
A Fellow Chartered Accountant, with 20 years of professional experience in understanding client needs and providing service in the field of Indirect
Taxes. Today he leads the all India Tax practice, an Institutional service provider founded by him and other partners from large institutions.
He has worked on a multitude of Indirect Tax assignments across various industries and sectors. His roles and responsibilities include identifying
growth opportunities for the group and designing service delivery models.
With a varied experience of more 18 year in his professional capacity in the field of Indirect Taxation, Corporate Finance as well as Attestation
Services, Ashutosh has identified and spearheaded innovative processes bring value for clients. Focus is to bring benefits to clients by assessing their
transactions, systems, processes, documentation & people. Also he has worked on a variety of projects such as audits, valuation assignments as well
ASHUTOSH THAKER as due diligence for foreign investment companies and venture capital firms, he brings an unusual mix of bean counting and consulting to the table.
Partner He was instrumental in setting up & running the All India Indirect Tax practice at Haribhakti & Co, Chartered Accountants (Member Firm of BDO
International, 5th Largest Consulting & Accounting Network).
T : +91-22-26851030
M : +91 9833846976 Sector Experience
Email: ashutosh.thaker@verita.co.in Banking & Financial Services, Asset Management, Creative & Advertisement, Securities Broking, Leasing business, Hospitality & Leisure, Real Estate &
Insurance .
Areas of Expertise
• Indirect Tax
• Client Relationship Management Major Projects
• Conceptualized the need of a niche indirect tax services in a large Indian advisory firm and instrumental in setting up the practice
Industry Expertise • Set up of All India Practices in indirect tax
• Banking & Financial Services
• Comprehensive Reviews & Retainer Advisory large corporate companies
• Asset Management & Insurance
• Real Estate & Hospitality • Indirect Tax implications on Tower business in India & Indirect tax planning & Advise on major contracts
• Creative & Advertisement
Professional Affiliations & Memberships
Qualifications & Certifications
Fellow Chartered Accountant (FCA) The Institute of Chartered Accountants of India
B.Com
40 Team Combined
Partner Driven members:- Leadership Team
Dedicated Experience of
Started in 2012 7 Partners
Indirect Tax more than 100
16 Qualified
Practice years
Trainees
CSR
Retainers for Laptops –NGO
Working across advisory and
more than 15 compliance for Adoption of
sectors more than 100 Anganwadi at
companies Vasai with 72
Children
Our Major Clients
Contents
02 Business Process
challenges
Various Compliances
03
Goods & Services Tax (GST) Update
Central Govt. & State Govt. Taxes
Power to Tax –
Centre & State
Tax
Reforms
2017
in India All India VAT
1990-91
Reforms in Excise
1986
Input Credit
Verifications
Sale Vs
Services
Cascading
Effect
GST Constitutional Bill & Objective
The proposed Central and State goods and services tax will be levied on all
transactions involving supply of goods and services, except those which are kept
out of the purview of the goods and services tax.
GST Update
Constitutional
Amendment Bill was
enacted after GST Bill passed by Date of
Presidential Assent Central Government implementation
8th September 2016 12th April 2017 1st July 2017
• GST applicable to persons having PAN India Annual GST Rate 18%
Turnover > INR 20 Lakhs
• Option to pay GST at composite rate of 1%/2% for PAN 5 Common Use Items
India Annual Turnover < INR 75 Lakhs - Not 12 Standard Rate
Applicable to Service Provider other than
Restaurant and Caterer 18 Standard Rate
28 Luxury Goods
28 + Cess SIN + Luxury Goods
Integration of Indirect Taxes
• Central Excise Duty
• Additional Excise Duties • State Value Added Tax/
• Excise Duty under Sales Tax
Medicinal and Toilet • Entertainment Tax
preparations (Excise (other than those levied
Duties) Act, 1955, by local bodies)
• Service Tax • Octroi and Entry Tax • Central Sales Tax
• Additional Customs Duty • Purchase Tax
(CVD) • Luxury Tax, taxes on
• Special Additional Duty lottery, betting and
of Customs (SAD); and gambling; and
• Central Surcharges, and • State Cesses and
• Cesses Surcharges
Location of Supplier
Branch v. HO Model ? 1
Valuation
4 Consideration Vs Non
Location of Receiver Consideration
Contracting Person Vs Beneficiary 2
of supply
Adjudic
ation Valuation
Time of Supply
Complia
nce
Supply
Place of Supply
Input Tax Credit
Supply u/s 7(1) of CGST Act
Sale, transfer,
barter, exchange, Importation of services Activities specified in Activities to be
license, rental, Schedule - I treated as supply
lease, disposal of Goods or
made or agreed services as
to be made referred in
Schedule - II
Maharashtra Maharashtra
Person 1 – Person 2 –
Goods
Supplier Receiver
SUPPLY
Composite Supply
Maharashtra Maharashtra
Person 1 – Person 2 –
Services
Supplier Receiver
SUPPLY
Place of Supply – Intrastate Supply
GST is a Destination based tax on Consumption
Maharashtra Maharashtra
Person 1 – Person 2 –
Location of Supplier Place of Supply
Goods and Services
Taxing Authority
Jurisdiction
GST Scenario
Intrastate
Maharashtra Gujarat
Person 1 – Person 2 –
Location of Supplier Place of Supply
Zero Rated
Value 10,000
Where it is not possible to determine the time of supply under above clauses then the time of supply
shall be -
Date of entry in the books of accounts of the recipient.
Same provision is applicable in case of import of service where the service provider is an associate
enterprise.
Valuation
Business Transaction
Undertaken by-
Wherein the
a pure agent, the supplier and the
consideration,
money changer,
insurer,
whether paid or recipient of the In Any Other Case
payable, is not supply are related
air travel agent and
money, wholly or
Such Other Supplies as may be
partly;
notified
Specific Valuation
Whether the
Methodology relationship
influence
the price ?
No
Yes
The following
steps are to be Open Market Comparable Transaction
Cost + 10%
followed, in order Value Value Value
of priority:
Input Tax Credit Mechanism
Beauty treatment & Life insurance and health Travel benefits extended Goods or services or
cosmetic and plastic insurance to employees on both used for personal
surgery vacation such as leave or consumption
home travel concession
Other Disallowances
Tax Authority
Process
& Law
IT Systems
Vendor External Internal
Client People
Key Processes
• Customer Management
• Customer Contract
Customer
• Invoicing Process Management
• Valuation and Charges
• Debit Note/Credit Note
Transactions
• Vendor Management
• Vendor Agreements KYC to Invoice
• Volume Discount transactions to be analysed
• Procurement Centralized or Decentralized
• Engage with GST compliant vendors
Key Impact Areas
• Changes in IT
• Front end
• Data Fields
• Data Check Points IT
• Reporting formats
• Dealing in Goods
• Procurement to utilization
• Transfer of goods/Assets between branches Goods
• Training
• Awareness and Education at all levels
• Training on implementation plan
Various Compliances
Compliances
• Property can be inspected by through the authorised bank; • Any entry in registers,
tax authorities • NeFT or RTGS from any bank; accounts and documents shall
not be erased, effaced or
• Up to INR 10,000/- per
overwritten, a log of every
challan per tax period, by
entry edited or deleted shall be
cash, cheque or demand draft
maintained
Invoice
Tax Invoice
• Details are required to be mentioned on the tax invoice issued by the supplier like;
1. Name of Receiver/Provider,
2. Address of Receiver/Provider
3. GSTIN of the supplier
4. Additionally UID/GSTIN number of registered recipient,
5. HSN code of goods and/or Accounting Code of Services,
6. Description of goods and quantity with rate etc..
In case of Export
7. Supply meant for export on payment of IGST
8. Supply meant for export under bond without payment of IGST
• Time period within which the tax invoice needs to be raised is as under:
• Bill of supply may not be issued if the value of goods or services supplied is less than
one hundred rupees except in case where recipient requires the bill
• Revised tax invoices may be issued in respect of taxable supplies effected during
the period starting from the effective date of registration till the date of issuance
of certificate of registration.
• Debit note/Credit note can only be issued by taxable person supplying goods/services
• Credit Note/Debit Note can not be issued post last day of September at the end of FY
Bill of Export
ITC Claim shall be auto populated as per vendors outward supply return.
Option to manually claim ITC is also available
Debit Note /Credit Note details to be maintained as:
• Liable to Reverse Charge and
• Not Liable to Reverse Charge
Supplies received from composition taxable person , unregistered person , other exempt, nil, Non – GST
Supplies
ISD Credit Received – Auto populated and can be manually claimed
Tax liability under Reverse Charge arising on account of time of Supply without receipt of Invoice
Returns - Revisions
“Provided that no rectification of error or omission in respect of the details furnished under sub-
section (1) shall be allowed after filing of the return under section 27 for the month of September
following the end of the financial year to which such details pertain, or filing of the relevant annual
return, whichever is earlier.”
Currently, Model GST Law does not provide for a concept of “Revised Return”
However, each return gives an opportunity to amend the details submitted in an earlier period
Penalty
Penalty extending upto Rs. 25,000
In addition to the penalty, the following Not only the taxable person but any
Fraud are details of prosecution person who
• Helps to commit fraud under GST
Tax amount 100-200 200-500 Above 500 • Receives any supply with full
100% penalty, knowledge that it is in violation of
subject to a minimum involved lakhs lakhs lakhs
GST rules
of Rs. 10,000 • Fails to appear before the tax
Jail term Upto 1 Upto 3 Upto 5
year years year authority on receiving a summons
• Fails to issue an invoice as per GST
rules
• Fails to account any invoice
appearing in the books
– Area II – As is Study, Gap Analysis and Action Plan (IT Gap Analysis)
• Identifying changes required in the system
– Area V – Training
• Training to staff
Queries?
Thank You