GST Council finalizes e-way bill
At its 20th meeting held on August 5, the Goods and Services Tax (GST) Council approved the electronic way (e-way) bill, which mandates pre-registration of goods before transportation.
The e-way bill, which is likely to come into force by October 1, 2017, would be applicable for consignments worth more than US$780 (Rs 50,000) only. The Council has decided that the e-way bill will not apply to the inter-city movement of goods within 10 kilometers distance, as well as on items exempted from the GST.
The introduction of the e-way bill is expected to significantly reduce wait times at checkpoints, and will streamline the transportation process. The bill would be valid for a period between one day and 20 days, depending on the distance to be traveled.
Revised GST rates on services
The GST Council, in its August 5 meeting, revised rates for 19 services and certain goods. Some of the revised rates are given below:
- Job work for the entire value chain of textiles sector, including embroidery and weaving, will be subject to tax at 5 percent instead of 18 percent, to allow a seamless flow of credit;
- Tractor parts will be taxed at a reduced rate of 18 percent instead of 28 percent; and
- The rate for government works contract will be 12 percent with benefits of input tax credit.
Besides, rates on other services, including rent-a-car and job works in newspaper printing, were also reduced.
The next GST Council meeting is expected to be scheduled on September 9, 2017, where the rate of tax on several other items will be discussed and decided.
CBDT issues clarification regarding non-resident tax filing
The Central Board of Direct Taxes (CBDT) has issued a clarification regarding the new provision in the Income Tax Return 2 form (ITR-2) that requires non-residents to disclose their foreign bank account details.
In its statement, the CBDT has clarified that it is not mandatory for non-residents to furnish their foreign bank account details in the ITR-2 form. The provision is only meant for non-residents who do not have a bank account in India and wish to claim income tax refund. Until last year, there was no such provision available for non-residents not having bank accounts in India, to receive refunds in foreign banks accounts.
Non-residents who do not wish to claim tax refunds or those who wish to claim tax refunds but have a bank account in India are not required to disclose their overseas bank account in the ITR-2 form.
India Briefing is published by Asia Briefing, a subsidiary of Dezan Shira & Associates. We produce material for foreign investors throughout Eurasia, including ASEAN, China, Indonesia, Russia, the Silk Road, & Vietnam. For editorial matters please contact us here and for a complimentary subscription to our products, please click here.
Dezan Shira & Associates provide business intelligence, due diligence, legal, tax and advisory services throughout India and the Asian region. We maintain offices in Delhi and Mumbai and throughout China, South-East Asia, India, and Russia. For assistance with India investment issues or into Asia overall, please contact us at email@example.com or visit us at www.dezshira.com.
Dezan Shira & Associates is a pan-Asia, multi-disciplinary professional services firm, providing legal, tax and operational advisory to international corporate investors. Operational throughout China, ASEAN and India, our mission is to guide foreign companies through Asia’s complex regulatory environment and assist them with all aspects of establishing, maintaining and growing their business operations in the region. This brochure provides an overview of the services and expertise Dezan Shira & Associates can provide.
The third edition of Tax, Accounting and Audit in India is updated for 2017, and provides an overview of the fundamentals of India’s tax, accounting, and audit regime. The guide also includes a detailed introduction of the Goods and Services Tax (GST) that was launched on July 1, 2017, representing the complete transformation of India’s indirect taxation structure.
In this issue of India Briefing Magazine, we discuss payroll processing and reporting in India, and the various regulations and tax norms that impact salary and wage computation. Further, we explain India’s complex social security system and gratuity law, and how it applies to companies. Finally, we describe the importance of IT infrastructure, compliance, and confidentiality when processing payroll in India.