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TMI BlogApplicability of GSTX X X X Extracts X X X X X X X X Extracts X X X X ..... Applicability of GST X X X X Extracts X X X X X X X X Extracts X X X X ..... clarify if gst is applicable or not. No ITC was claimed as the items were purchased in the pre-gst regime(vat). Reply By Alkesh Jani: The Reply: Sir, Although No ITC was taken, GST is applicable on transaction value. Thanks Reply By Ganeshan Kalyani: The Reply: GST will be charged / collected from you by the Bank and pay to the government. The tax can be inclusive of the price or exclusive ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . It depends upon the policy of you organization. Reply By Vineet Kt: The Reply: Sir, I asked this because isnti it violating the very principle of double taxation which gst was supposed to remove. The tax has alrwaal been paid on the full value in the form of VAT. The Bank is not basically supplying me any new goods. Moreover, since it is a off transaction for the Bank and is not a regular bus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iness transaction. Reply By Ganeshan Kalyani: The Reply: They had two option - one claim input tax credit on the asset purchased and second capitalize it and claim depreciation benefit under income tax. Either way there was benefit. Further, the supply in your case is in course of the business hence GST would be applicable and regarding input tax credit , in my view if you bank had taken credit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in past then the gst payable in only on the differential value. Reply By Vineet Kt: The Reply: Thanks Sir. Understood now. Reply By Ganeshan Kalyani: The Reply: Welcome Sir. Reply By DR.MARIAPPAN GOVINDARAJAN: The Reply: Nice explanation by Shri Ganeshan Reply By Ganeshan Kalyani: The Reply: Thank you Sir. Reply By Ramaswamy S: The Reply: At the time of purchase of asset, the asset was i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the name of the employer and the depreciation was claimed by the employer. The value of the asset was treated as perks in the hands of the employee and IT was charged. At the time of transfer of asset (pre GST), VAT is charged on the value of the asset transferred. Under GST, instead of VAT, CGST+SGST is charged. There is no double taxation in either case. Further, to clarify, whether VAT or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... GST, there is no question of double taxation as the tax is on the value added (by the assesse), though the full tax is borne by the common man.
VAT/GST is a benefit to the business community as their net tax is reduced whereas for the common man, the price is reduced (which before and after GST, the tax is borne by him). This is an indirect tax.
Regards
S.Ramaswamy X X X X Extracts X X X X X X X X Extracts X X X X ..... dge Sharing ..... X X X X Extracts X X X X X X X X Extracts X X X X
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