Thursday, September 7, 2017

gst input credit and reverse charge calculation



  • If repair & maintenance expenses resulted into the immovable property than input credit is not available.

  • If Telephone, Mobile & Internet bill is in the name of the company and address and place of business is mentioned then only one should claim the input credit.

  • Input credit is available fully. However, if it is sold/disposed of/ scrapped/ thrown away within 5 years, then input credit @ 5% per quarter is available for the used period and balance is to be reversed for not used fully at the time of the date of sale.

  • Input credit is available only if goods & services are used for business. If good or services are used for personal purpose then input credit is not available. If goods & services are used partially for personal use and partially for business use then input credit is available partly in proportion to business use.

  • Input credit is not available if the outward supply of goods or services is exempt from payment of tax.

  • As per Notification No 8/2017 dated 28/06/17, it is provided that if the aggregate value of goods or services or both debited to Trading A/c or  expenses debited to Profit & Loss A/c or purchase of any asset obtained from unregistered suppliers is less than Rs.5000/- in a day, then tax is not  required to be paid for such inward supplies by the recipient for that particular day. required to be paid for such inward supplies by the recipient for that particular day.

  • Details of all purchase of goods or services debited to Trading A/c or purchase of any fixed asset are required to be submitted in GST return whether purchased from the registered person or unregistered person or from composition dealer.

  • However, if any expense items are purchased from an unregistered supplier & escape the payment of tax in view of Notification No.8/2017 dated 28/06/17 then same are not required to be submitted in GST return.

S.No
Nature of Expenses
Rate of Tax
Whether registered supplier will levy tax
Reverse Charge (If supply is unregistered)
Whether Eligible for Input Tax Credit
1
Salaay, wages & bonus paid to employee
0%
No
No
No
2
Electricity bill
0%
No
No
No
3
Water Charges/ Plain Water
0%
No
No
No
4
Bank Interest
0%
No
No
No
5
Professional Tax
0%
No
No
No
6
BMC Tax
0%
No
No
No
7
Building / Property Tax
0%
No
No
No
8
Rent Deposits
0%
No
No
No
9
Other Deposits
0%
No
No
No
10
Petrol / Disel/ CNG/Kerosene Expenses (Motor Spirit)
0%
No
No
No
11
Liquor Expenses
0%
No
No
No
12
Registration Fees (ROF / ROC / RTO etc)
0%
No
No
No
13
Bad Debt
0%
No
No
No
14
Donation
0%
No
No
No
15
Labour Welfare Contribution to Government
0%
No
No
No
16
Fine & Penalities
0%
No
No
No
17
Conveyance Expense - Non AC Taxi, Auto, Bus, Train
0%
No
No
No
18
Loading & Unloading in relation agricultural produce/ Hamali
0%
No
No
No
19
Rent Paid for residential use
0%
No
No
No
20
Godown Rent for agricultural produce
0%
No
No
No
21
News paper & magazines
0%
No
No
No
22
Remuneration to Director & partners
0%
No
No
No
23
Conveyance Expense - Radio Taxi like OLA & UBER or other AC vechile
5%
Yes
Yes
No
24
Payment to Goods Transport Agency
5%
No
Yes
Yes
25
Travelling in Train by AC or First class
5%
Yes
Yes
No
26
Job Work / Labour Charges for textile yarn & textile fabric
5%
Yes
Yes
Yes
27
Job Work / Labour Charges for diamond , jewellery & precious metal
5%
Yes
Yes
Yes
28
Job Work / Labour Charges for printing of books, journals & periodicals
5%
Yes
Yes
Yes
29
Food & Beverages Expense (Non AC restaurant)
12%
Yes
Yes
No
30
Room Rent in a hotel, lodge (Rs.1000 to 2500 per room per day
12%
Yes
Yes
Yes
31
Fuel (Furnace Oil/LPG)
18%
Yes
Yes
Yes
32
Sales Promotion/Business Promotion
18%
Yes
Yes
Yes
33
Food & Beverages Expense (AC restaurant)
18%
Yes
Yes
No
34
Mineral water
18%
Yes
Yes
Yes
35
Truck/ Tempo Hire Charges
18%
Yes
Yes
Yes
36
Club & Membership fees
18%
Yes
Yes
No
37
Advertisement Charges / Hoarding / Magazine / News Papers / Media
18%
Yes
Yes
Yes
38
AMC Charges
18%
Yes
Yes
Yes
39
Bank Charges - Service charges recovered
18%
Yes
No
Yes
40
Broker Fee & Charges
18%
Yes
Yes
Yes
41
Cancellation Charges
18%
Yes
Yes
Yes
42
Extended Warranty
18%
Yes
Yes
Yes
43
House Keeping Charges
18%
Yes
Yes
Yes
44
Insurance paid on goods & vechile
18%
Yes
Yes
Yes
45
Health Insurance
18%
Yes
No
No
46
Payment to advocate
18%
No
Yes
Yes
47
Loading & Unloading - others/ Hamali
18%
Yes
Yes
Yes
48
Training Expense
18%
Yes
Yes
Yes
49
Payment to Post office for Speed post & parcel post
18%
No
Yes
Yes
50
Postage and Courier Charges
18%
Yes
Yes
Yes
51
Printing & Stationery (Flex Printing, Broad Printing, Notice Printing)
18%
Yes
Yes
Yes
52
Recruitment Expenses
18%
Yes
Yes
Yes
53
Commission Paid
18%
Yes
Yes
Yes
54
Rent Paid for commercial use of premises
18%
Yes
Yes
Yes
55
Godown Rent for commercial purpose
18%
Yes
Yes
Yes
56
Repair and Maintenance - Building / Electrical / P& M / Others
18%
Yes
Yes
Refer Note 1
57
Room Rent in a hotel, lodge (Rs.2500 to 7500 per room per day
18%
Yes
Yes
Yes
58
Payment for Sponsorship Services
18%
Yes
Yes
No
59
Security Charges
18%
Yes
Yes
Yes
60
Telephone, Mobile & internet Charges
18%
Yes
No
Refer Note 2
61
Sundry Expenses
18%
Yes
Yes
Yes
62
Job Work / Labour Charges for garment processing
18%
Yes
Yes
Yes
63
Job Work / Labour Charges (Other)
18%
Yes
Yes
Yes
64
Sitting Fees, Commission or any other payment made to director by company
18%
Yes
Yes
Yes
65
Audit Fees, Account Writing , Professional Fees (other than Advocate)
18%
Yes
Yes
Yes
66
Research & Development Expenses
18%
Yes
Yes
Yes
67
Food & Beverages Expense (AC restaurant)
28%
Yes
Yes
No
68
Wall Paint
28%
Yes
Yes
No
69
Room Rent in a hotel, lodge Above Rs.7500/-
28%
Yes
Yes
Yes
70
Travelling Expenses International
28%
Yes
Yes
No
71
Amusement Park/ Theatre Ticket
28%
Yes
Yes
Yes
72
Cold drink
40%
Yes
Yes
No
73
Repairs & maintainance Charges if it has not resulted into immovable property
18/28 %
Yes
Yes
Yes
74
Electrical Fittings
18/28 %
Yes
Yes
No
75
Staff Uniform Expenses
5/12 %
Yes
Yes
Yes
76
Packing material & Packing Charges
5/12/18 %
Yes
Yes
Yes
77
Plant & Machinery
Actual Rate
Yes
Yes
Refer Note 3
78
Furniture & Fixture
Actual Rate
Yes
Yes
Refer Note 3
79
Motor Car
Actual Rate
Yes
Yes
No
80
Building
Actual Rate
Yes
Yes
No
81
Office Equipment including Computer, Software & Hardware
Actual Rate
Yes
Yes
Refer Note 3
82
Free Gift given to staff (Exempt upto Rs.50000/- per staff p.a)
Applicable Rate
Yes
Yes
No
83
Free Gift given to staff (Above Rs.50000/- per staff p.a)
Applicable Rate
Yes
Yes
Yes
84
Divali/ New year Gift purchased & debited to P & L
Applicable Rate
Yes
Yes
Yes


Thanking to
Mr.Rajesh R Tanvani


1 comments:

  1. Informative Article.
    Thanks for sharing it with us.

    ReplyDelete

Copyright © 2015 Accounting & Taxation All Right Reserved
Subscribe by Email Get Free Updates
Don't Forget To Join US Our Community
×
blogger