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    E-Commerce & Works Contracts, Right To Use, Restaurant-27.2.2017 (CA. Pritam Mahure)

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    PARESH KUVADIYA
    This document discusses various issues related to the taxation of works contracts, restaurants, and right to use goods under the GST regime. For works contracts, it discusses how they are currently taxed with VAT or service tax depending on the goods or services component. In GST, all works contracts will be treated as supply of services. This will require revisiting existing contracts and could impact tax rates. For restaurants, it discusses the current state-wise VAT/service tax treatment and issues around definitions. In GST, all restaurant services will be taxed as a supply of services. This may increase or decrease effective tax rates for some restaurants. For right to use goods, it discusses the current VAT

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    © All Rights Reserved
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    E-Commerce & Works Contracts, Right To Use, Restaurant-27.2.2017 (CA. Pritam Mahure)

    Uploaded by

    PARESH KUVADIYA
    13 views34 pages
    This document discusses various issues related to the taxation of works contracts, restaurants, and right to use goods under the GST regime. For works contracts, it discusses how they are currently taxed with VAT or service tax depending on the goods or services component. In GST, all works contracts will be treated as supply of services. This will require revisiting existing contracts and could impact tax rates. For restaurants, it discusses the current state-wise VAT/service tax treatment and issues around definitions. In GST, all restaurant services will be taxed as a supply of services. This may increase or decrease effective tax rates for some restaurants. For right to use goods, it discusses the current VAT

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    E-Commerce & Works Contracts, Right to Use, Restaurant-27.2.2017(CA. Pritam Mahure)

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    This document discusses various issues related to the taxation of works contracts, restaurants, and right to use goods under the GST regime. For works contracts, it discusses how they are currently taxed with VAT or service tax depending on the goods or services component. In GST, all works contracts will be treated as supply of services. This will require revisiting existing contracts and could impact tax rates. For restaurants, it discusses the current state-wise VAT/service tax treatment and issues around definitions. In GST, all restaurant services will be taxed as a supply of services. This may increase or decrease effective tax rates for some restaurants. For right to use goods, it discusses the current VAT

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    13 views34 pages

    E-Commerce & Works Contracts, Right To Use, Restaurant-27.2.2017 (CA. Pritam Mahure)

    Uploaded by

    PARESH KUVADIYA
    This document discusses various issues related to the taxation of works contracts, restaurants, and right to use goods under the GST regime. For works contracts, it discusses how they are currently taxed with VAT or service tax depending on the goods or services component. In GST, all works contracts will be treated as supply of services. This will require revisiting existing contracts and could impact tax rates. For restaurants, it discusses the current state-wise VAT/service tax treatment and issues around definitions. In GST, all restaurant services will be taxed as a supply of services. This may increase or decrease effective tax rates for some restaurants. For right to use goods, it discusses the current VAT

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 34

    GST- WORKS CONTRACT AND

    OVERLAPPING TRANSACTIONS
    OVERVIEW

    Works Contract

    Restaurant

    Right to Use

    Overlapping transactions including ISD


    WORKS CONTRACT
    WORKS CONTRACT
    Good
    s

    Works contract

    Servi
    ces
    TIMELINE

    Prio After
    46th
    r to
    Ame
    198 ndm
    2 ent
    WHY TAXED IN SUCH WAY?

    A tax on the
    transfer of
    property in

    366 goods (whether


    as goods or in
    some other
    (29A) form) involved
    in the execution
    of a works
    contract;
    HOW ITS TAXED IN CURRENT
    REGIME?

    Works contract
    Goods value Service value
    VAT Service Tax

    State VAT Act Finance Act, 1994


    SCHEMES Actual
    basis

    ST VAT

    Compositi
    on
    ISSUES

    Goods incidental
    or services
    Dominant
    incidental? intention?

    Different Different
    definitions in ST treatments
    GST REGIME - ISSUES
     Section 8
     GST to apply on supply of goods and/or services
    GST REGIME - ISSUES
    Schedule II –
     5. The following shall be treated as “supply of service”
    (f) Works contract including transfer of property in goods (whether as
    goods or in some other form) involved in the execution of a works
    contract
     ‘Works contract’ is defined
     (110) “works contract” means a contract wherein transfer of property in goods is
    involved in the execution of such contract and includes contract for building,
    construction, fabrication, completion, erection, installation, fitting out, improvement,
    modification, repair, maintenance, renovation, alteration or commissioning of any
    immovable property
    TRANSACTION

    Goods
    Goods
    Deemed/ declared
    GST REGIME - ISSUES
     Repair of car

     Job work
     Job work” means undertaking any treatment or process by a person on goods
    belonging to another registered taxable person

     Composite supply
     TV with transportation
     Whether dominant intention can resurface as rates could be different?
    IMPACT
    • Which tax to pay and how?
    Revisit contracts • Restructuring could be required
    • Composition scheme

    • Effective tax rates may go up/ down


    Rates • Rule 6 of CCR

    Transitional • Transitional provisions to be revisited


    RESTAURANTS
    RESTAURANT
    Good
    s

    Restaurant

    Servi
    ces
    HOW ITS TAXED IN CURRENT
    REGIME?
    Restauran
    t

    A/c Non-a/c

    Service
    VAT VAT
    Tax
    ISSUES

    State-wise Home delivery


    different rates of food

    Credits
    WHY TAXED IN SUCH WAY?

    A tax on the supply, by way of or as part of


    any service or in any other manner

    366 (29A)
    whatsoever, of goods, being food or any other
    article for human consumption or any drink,
    where such supply or service, is for cash,
    deferred payment or other valuable
    consideration
    GST REGIME
     It’s a ‘service’
     Supply, by way of or as part of any service or in any other manner
    whatsoever, of goods, being food or any other article for human
    consumption or any drink (other than alcoholic liquor for human
    consumption), where such supply or service is for cash, deferred
    payment or other valuable consideration

     ‘Restaurant’ is not defined


     A/c
     Non-a/c
    IMPACT

    • Effective tax rates may go up/ down


    Rates • Rule 6 of CCR

    • Transitional provisions to be
    Transitional
    revisited
    RIGHT TO USE
    Wha
    t is
    it?
    How its
    Impac taxed
    t currently
    ?

    Right
    to use
    Why its
    Issue taxed
    s this
    way?
    In GST,
    how
    taxation
    will be?
    RIGHT TO USE

    Possession

    Right
    to use
    Control
    HOW ITS TAXED IN CURRENT
    REGIME?
    Right to use

    Both,
    possession and In all other
    control cases
    transferred

    VAT Service Tax


    ISSUES
    Whether
    possession and Dominant
    control intention?
    transferred?

    ST or VAT?
    WHY TAXED IN SUCH WAY?

    A tax on transfer of right to


    use any goods for any
    purpose (whether or not for
    366 (29A)
    a specified period) for cash,
    deferred payment or other
    valuable consideration
    GST REGIME
     It’s a ‘service’
     A transfer of the right to use any goods for any purpose (whether or not for a specified
    period) for cash, deferred payment or other valuable consideration

     ‘Right to use’ is not defined


     What is right to use?
     What if right to use is not transferred?
    IMPACT

    Revisit • Restructuring could be required


    contracts
    Rates • Effective tax rates may go up/ down

    • Transitional provisions to be
    Transitional
    revisited
    OVERLAPPING ISSUES
    OVERLAPPING ISSUES
     Software
     Intangibles (Including franchisee rights)
     Real Estate
     Input Service Distributor
    TH A N K YO U …
    FO R AN Y CL A R I F I CAT I ON , P L EA SE CO N TAC T
    I N D I REC T TAX ES CO MM I T TE E OF I C AI
    EM AI L : I DTC@ I CAI . I N ; WEB S I T E: W WW. I DTC . I C A I .O RG
    O R H T T PS : // WWW.YO U T UB E .COM / I ND I R EC T TAXCO M M I T TE E

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