Skip to main content

Land leasing, renting to attract GST from July 1

By
Come July 1, leasing of land, renting of buildings as well as equated monthly instalments (EMIs) paid for purchase of underconstruction houses will start attracting the goods and services tax (GST). Sale of land and buildings will be, however, out of the purview of the GST. Such transactions will continue to attract stamp duty, according to the legislations Finance Minister Arun Jaitley introduced in the Lok Sabha on Monday.
Electricity has also been kept out of the GST´s ambit.
The GST, which the government intends to roll out from July 1, will subsume central excise, service tax and state valueadded tax among other indirect levies on manufactured goods and services.
The Central GST (CGST) Bill —one of the four legislations introduced —states that any lease, tenancy, easement or licence to occupy land will be considered as supply of service.
Also, any lease or letting out of buildings, includingacommercial, industrial or residential complex, for business or commerce, either wholly or partly, isasupply of services according to the CGST Bill. The GST Bills provide that sale of land and sale of building except the sale of underconstruction buildings, will nether be treated asasupply of goods notasupply of services.
Thus GST can´t be levied in those supplies.
Business Standard New Delhi,29th March 2017

Comments

Post a Comment

Popular posts from this blog

Data storage norm splits digital payments industry

By
Data storage norm splits digital payments industry  India’s nascent digital payment industry could be thrown into disarray due to the demand by the Reserve Bank of India (RBI) that all user data be stored within the country, fears an industry grouping, which has termed the decision as “heavy-handed”, even as others, including the country’s largest digital payment provider Paytm, have hailed the move.  In a bid to narrow the growing schism, the industry is planning to send a formal representation to the regulator highlighting its concerns, a top official told ET.  “We are trying to build a consensus on the issue," said the person adding that the representation to the central bank will be ready this week.  RBI on April 6, mandated all payment companies—global and local—to set up data storage facilities within India by October. The stringent six-month deadline has attracted the ire of several sections of the industry that fear it will lead to a disruption of wel...
18 comments
Read more

Sebi to finalise options in commodities today

By
The Commodity Derivatives Advisory Committee of the Securities and Exchange Board of India ( Sebi) will meet on Friday with senior officials of the latter, to give a final shape to the rules on options trading in commodity futures, beside revising the warehousing norms to ensure good delivery on settlement. The decision taken, after discussing with the advisory committee, will be placed before the regulator’s board, to finalise the regulations. According to knowledgeable sources, three commodities in each segment, agricultural and non- agricultural, have been proposed for introducing options. It appears commodities from the soya and guar segments are preferred in the former. From the non- agri segment, it is likely that gold, silver and crude oil will be finalised. All these These have better liquidity and both the National Commodity and Derivatives Exchange and the Multi Commodity Exchange, respectively, will be able to introduce the options. In the equity segments, options ar...
17 comments
Read more

E tailers global warehouses may come under tax net

By
E tailers  global warehouses may come under tax net Warehouses of e-commerce companies based in countries such as Australia, Japan, Italy,  Spain, the Netherlands, and Russia may not be exempted from paying the income tax in India  once the multilateral instrument (MLI) to prevent base erosion and profit shifting (BEPS)  comes into force. BEPS refers to the reporting framework mooted by the Organisation for Economic  Co-operation and Development (OECD) and signed by over 100 countries, including India, to  prevent exploiting gaps and mismatches in tax rules to shift profits by multinational  companies (MNCs) artificially to low-tax regimes. The representatives of 68 countries on June 7 this year signed an agreement (MLI) in Paris  to amend their tax treaties to bring them in alignment with measures to prevent BEPS.  However, there is still time for synchronising tax treaties with the multilateral  instrument. India has submitte...
17 comments
Read more