TMI BlogRate of tax under GST on expenses debited to Trading Profit & Loss A/cX X X X Extracts X X X X X X X X Extracts X X X X ..... Rate of tax under GST on expenses debited to Trading Profit & Loss A/c - By: - KIRTIKUMAR PUROHIT - Goods and Services Tax - GST - Dated:- 14-8-2017 - - Expenses Under GST Regime Rate of tax under GST on expenses debited to Trading Profit Loss A/c Sr. No Nature of Expense Rate of Tax Whether registered supplier will levy tax Reverse Charge(If supply is unregistered) Whether Eligible for Input Credit 1 Salaray, 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No No 15 Labour Welfare Contribution to Goverment 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Ye ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 comme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rcial purpose 18% Yes Yes Yes 56 Repair and Maintenance - Building / Electrical 18% Yes Yes Refer Note 1 / P M / Others 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ₹ 7500/- 28% Yes Yes Yes 70 Travelling ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Fixt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ure Yes Yes Refer Note 3 79 Motor Car Yes Yes No 80 Building Yes Yes No 81 Office Equipment including Computer, Software Hardware Yes Yes Refer Note 3 82 Free Gift given to staff (Exempt upto ₹ 50000/- per staff p.a) Applicable Rate Yes Yes No 83 Free Gift given to staff (Above ₹ 50000/- per staff p.a) Yes Yes Yes 84 Divali/ New year Gift purchased debited to P L Yes Yes Yes Notes: 1) If repair maintainance expenses resulted into immovable property than input credit is not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... available 2) If Telephone, Mobile Internet bill is in the name of the company and adress and place of business is mentioned then only one should claim the input credit 3) Inpur credit is available fully. However if it is sold/disposed off/ 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 date of sale. 4) 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... available partly in proportion to business use. 5) Input credit is not available if outward supply of goods or services is exempt from payment of tax. 6) 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 ₹ 5000/- in a day, then tax is not required to be paid for such inward supplies by the receiptent for that particular day. 7) 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... purchased from registered person or unregistered person or from composition dealer. 8) However, if any expense items are purchased from unregistered supplier escape the payment of tax in view of Notifcation No.8/2017 dated 28/06/17 then same are not required to be submitted in GST return. - Reply By Alok Kumar as = Dear Mr. Purohit , a very good compilation , It will help the consultants and Industry alike in their tax planning Thanks, Alok Kumar Dated: 14-8-2017 Reply By KASTURI SETHI as = Par excellence work indeed. I have saved the same as ready reckoner. Why have you not appeared on TMI earlier ? Very happy to see your hard work and passion for knowledge. Kudos to you, Sir. Dated: 14-8-2017 Rep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly By KASTURI SETHI as = There is no dearth of talent in India. Dated: 14-8-2017 Reply By RITESHMOHANRAJ SAND as = Dear Kirtikumarji : Very Nice Compilation Dated: 20-8-2017 - Scholarly articles for knowledge sharing authors experts professionals Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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