Advocate Sanjay Kumar

Questions Answered by Advocate Sanjay Kumar (25+ answers)

Q: Can a builder charge VAT after registration of conveyance deed

A large number of flat owners of housing project developed by pvt builder have been charged VAT by builder in beginning of year 2017,even though conveyance deed of flats and possession of flats to flat owners was completed by end of Dec 2013.Whether collection of VAT in above facts on total cost of flat after more than 3 years of conveyance deed and giving possession is correct .If builder is wrong in collecting VAT ,how can the money paid by all flat owners be recovered back from builder .

Advocate Sanjay Kumar answered
Builder after handing over of flats and registration can not charge VAT. It is totally wrong. VAT ans service tax is applicable in construction phase. I hope it is something which the builder is not entitled to do. What I can understand that they may assessment now and demand must have been created by the department on builder. It requires review of the demand letter of builder and contract i.e. builder buyer agreement and conveyance deed.

Q: Clarifications On GST Margin Scheme.

In Notification No. 10/2017- Central Tax (Rate), New Delhi (dated 28th June 2017) Govt. notified Margin Scheme for relief to the dealers who deal in Second Hand Goods from cascading effect of Tax. I want to get registered under GST and to avail the benefits of this scheme. I have some queries regarding Margin Scheme: 1. Type of Document for sale under Margin Scheme Bill of Supply or Tax Invoice. 2. Can a dealer sell or purchase interstate under Margin Scheme? 3. Can a dealer made Regular Transactions by charging full tax together with transactions under Margin Scheme? 4. Reverse charge on the purchase of goods from unregistered dealer interstate or intrastate under Margin Scheme. 5. Reverse charges on labour, etc. incurred for refurbishing of goods without changing nature of goods under Margin Scheme. 6. How to show input & output supplies made under Margin Scheme and tax on supplies in GSTR3B, GSTR1 & GSTR2. 10. Goods or items on which Margin Scheme can not be avail.

Advocate Sanjay Kumar answered
Margin scheme is only for traders. Let me tell you in case of sale and purchase of second hand goods, margin scheme is to be applied. To answer your query, please send me the nature of your trade you are in. What products are you dealing in. For example, in case of sale of old use Cars, there is now seperate scheme. Hence answer your query, brief details of nature of transaction needs to be understood.

Q: Clarification on payment of penalty for wrongly filing GST return

he is filed his GST Return for the F.Y. 2017-18 and he is just doing job work so no any way to got the credit and GST in his account. but by mistake he is credit claim of GST challan. And his credit register on his portal. so i want to know how to correct it and how much paid GST with interest or any other penalty with the amount.

Advocate Sanjay Kumar answered
Let me first understand the transaction. Please provide complete details. You are job worker, under GST Law , there is two type of transaction. First receipt of the goods from principal manufacturer. Then sending goods after processing of job work. These activities are undertaken should be done GST Challan along with E-Way Bill. You are raising Invoices of job work on which you will be charging GST On it. This precise transaction nature.

Q: Clarification regarding refund of GST amount when service not availed

I had paid 53100 to a coaching class. Subsequently due to changes in T&C I applied for refund. They refunded 45000. They deducted 8100 as gst amount which cannot be refunded. Are they right in keeping this amount as there is no service so why gst?

Advocate Sanjay Kumar answered
Can you please give me some more details. It requires to see the application form/agreement T&C which needs to be examine. Let me go through it. In the name of GST, I am getting so many cases wherein, even withdrawing from arrangement, the company is charging GST.

Q: GST liability for providing business services in India & abroad

Sir, I provide consultancy services to one particular Chinese manufacturing company for their business promotion in India and to foreign countries including getting orders, market conditions, vendor identification, technical services etc. For this, I receive fixed monthly professional fees along with extra % age commission if I achieve over and above sales target and also get reimbursement of any actual expenditure incurred by me during travelling/promoting within India or abroad in convertible foreign exchange. More than 50% business I am generating from foreign countries for my China company. My place of work/ location is in India. Kindly let me know your expert advice if there is any GST liability on me for providing business services within India or abroad or am I eligible for exemption from GST under export of goods or services or can get proportionately such benefit for foreign business on behalf of China company? Regards

Advocate Sanjay Kumar answered
Sir,You question needs more examination of transaction. Under GST Law, there are condition which needs to be fulfilled for qualifying for export services. You are providing business promotion service in India for Chinese company. Apart from this you procuring orders for them. Whether it is for sale in India or anywhere else. it needs detailed examination.