The products and services tax (GST) just isn't merely a tax change however a continuing business change which will impact all functions of a organisation such as for instance finance, product pricing, supply string, I . t, contracts and commercials. Its companywide implementation isn't limited to the finance and IT departments, but requires the business ecosystem that is entire. Any training and sensitising programme needs to involve employees, vendors and key customers. Sudipto Dey looks at what it requires:
The impact that is regime’s workout has to involve a few departments, including finance, IT, supply chain, item pricing and human resource, among other people
Claiming input income tax credit could be the many benefit that is important. Currently, service providers can’t claim credit for VAT paid on goods, while traders can’t claim credit for excise/countervailing duty and solution income tax. Businesses need to spot benefits on account of the transition at an organisation-level
Identify cost that is possible key suppliers/vendors may be entitled to under the GST; engage with vendors for pass-through of these benefits in conformity with anti-profiteering provisions
Input taxation credit is denied on goods and/or services employed for personal consumption; tax credit not available on goods lost, stolen, destroyed, written-off or given away as gift or free samples
Employer can’t claim tax credit on providing cab service, canteen facilities, life insurance to workers
One can’t claim input tax credit while having a client out for the business lunch
To claim the input tax credit, the customer has to guarantee the supplier is paid within 180 days from date of invoice; otherwise, proportionate input tax credit would be reversed
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