TMI BlogDefinition of turnover for Chit Funds for the purpose of arrive the tax liability under GST Act, 2017X X X X Extracts X X X X X X X X Extracts X X X X ..... Respected Kasturi Sir, This is in continuation your valuable reply with regard to Chit fund aggregate turnover. Amount of commission is to be considered. Chit fund collection belongs to the subscribers and not to Foreman. Foreman does not lend his money dated 24-09-2021 by you. Kindly share if any supportive judgments with regard to definition of aggregate turnover of chit fund companies. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccording to me only foreman commission is aggregate turnover for the purpose of levy of GST. In my clients case the department assertion is subscription receipts are exceeded threshold limit hence liable for registration. The revenue has allotted a temporary registration to the person/company and levied the GST on foreman commission. profound regards. - Reply By KASTURI SETHI - The Reply = Dear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Veeresham Veerabomma Ji, Pl. let me know original Issue ID no. and date so that I may recall what I have already expressed. - Reply By KASTURI SETHI - The Reply = Sh. Veeresham Veerabomma Ji, The department's stand is not correct. The following judgements of Supreme Court can help you :- 1. Shriram Chit Funds Vs. UOI 1993 (7) TMI 338 - SUPREME CO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... URT 2. Banglore Turf Club Vs. Regional Diirector, ESIC (2014) 9 SCC 657 (SC) = 2015 (12) TMI 521 - SUPREME COURT. You will not find explicit definition of aggregate value in this context. The SC has held that the funds of the chit fund belong to the entire lot of subscribers. This is sufficient to prove that taxable value is only commission and not the gross receipt. which belongs to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he subscribers. Also go through the definition of 'Chit Fund' provided in Chit Funds Act, 1982. To ask to pay GST on the amount of subscribers is not correct at all. It is more than stretching the law. Chit Fund is non-banking finance company and this service falls in the category of , 'Banking and Other Financial Services'. Comprehensive definition of this service can be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... seen in Service Tax law. This can also help you. - Reply By Veeresham Veerabomma - The Reply = the original issue ID No is 117511 dated 24-09-2021 which was raised by some one else. Mine also similar issue. Hence requested for case laws. Thank you very much for your swift response sir. - Reply By KASTURI SETHI - The Reply = I traced out my reply from your date in the query. So I could r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eply immediately. - Definition of turnover for Chit Funds for the purpose of arrive the tax liability under GST Act, 2017 - Query Started By: - Veeresham Veerabomma Dated:- 28-10-2021 Goods and Services Tax - GST - Got 4 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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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