Michaela Merz


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INDIA: GST proposal for residential real estate


The Government has recently issued multiple implementing notifications, which have come into effect on 1 April 2019. The notifications provide the conditions and computational mechanics of charging lower rates of GST on under-construction residential real estate. One key aspect of this change is the option given to existing projects to either adopt the new rate structure or continue with the incumbent framework. As the conditions/ computational mechanics are fairly complex and need to be dealt with carefully for effective compliance, they are expected to pose a challenge to the industry. Continue reading


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India – tax at source of electronic services at 1% as of 1 of October


india.pngThe e-commerce space in India has always been subjected to scrutiny and litigation from an indirect tax perspective. With a view to monitor transactions done through e-commerce operators, the GST regulations have vested e-commerce players with additional compliance burden.

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India: GST Council releases draft amendments to GST laws for public comments


In brief
The GST Council has released a set of draft amendments in the CGST Act, IGST Act and GST (Compensation to States) Act for public comments, which are requested to be submitted by 15 July, 2018. The significant amendments proposed and its impact are described in this tax insight. Continue reading


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India – CBIC issues clarification on mechanics of charging IGST on goods supplied from customs bonded warehouse


Central Board of Indirect Taxes and Customs (CBIC) has issued circular no. 3/1/2018-IGST dated 25 May, 2018 clarifying certain aspects regarding levy of IGST on goods supplied from the customs bonded warehouse (CBW). The clarification is summarised below: Continue reading


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India: Government issues clarifications to further ease the procedure for filing and sanction of export refunds


Based on representations and to ensure uniformity in the implementation of the refund provisions relating to export of goods and services, the Central Board of Excise and Customs (Board) has issued Circular No. 37/11/2018 – GST dated March 15, 2018 to clarify various aspects relating to processing and sanction of refund claims. Continue reading


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India – SC holds that no service tax is payable on reimbursable expenditure or cost incurred by the service provider before 14 May, 2015


Background
Section 67 of the Finance Act, 1994 (the FA, 1994) deals with the valuation of taxable services for the purpose of levy of service tax. Further, the Service Tax (Determination of Value) Rules, 2006 (the Rules) were also issued, to specify inclusion or exclusion of various amounts in the value of taxable services. Continue reading


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India – 200 days of GST – The Road Ahead


India successfully implemented its most ambitious tax reform on 1st July 2017. The transition to the new regime has been relatively smooth except for the technology related challenges for GST compliances. The Government of India (‘GOI’) has also been quick in taking remedial action such as simplifying the GST compliances, reduction in GST rates and enforcing the anti-profiteering provisions. Continue reading