9911796707
TMI BlogReversal under Rule 42/43X X X X Extracts X X X X X X X X Extracts X X X X ..... Reversal under Rule 42/43 X X X X Extracts X X X X X X X X Extracts X X X X ..... 8-19 ? Request you to provide your expert views along with relevant section and rules. Also, if this is to be included in year of advance receipt, then why how to estbalish the nexus between section 7- supply and section 13- time of supply. Reply By KASTURI SETHI: The Reply: The subject transaction will be accounted for in the year 2017-18. You want to correlate Section 7 (Scope of supply) and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 13 (Time of supply). Whether required ? Section 7 is not subject to Section 13 and vice versa. Moreover, time of supply and accounting treatment both are different concepts. Pl. elaborate your query. Reply By Sachin Jain: The Reply: Thank you sir for your prompt response. Basically i wanted to understand why this advance will be included in the turnover of 2017-18. Is this because supp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly definition says supplies made or "agreed to be made" ? If this is the understanding, then whether advances received for taxable goods/ exempted goods will also be included in the turnover in which advance is received ? Reply By KASTURI SETHI: The Reply: Advances received against taxable goods are not subject to GST. Only advances received against taxable services are subject to GST ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . See the difference. Reply By Sachin Jain: The Reply: Yes, i understand that advance on goods is not taxable. That's why i asked that what's the nexus between section 7 and section 13. As per my understanding, anything to be added in turnover definition( for the purpose of rule 42/43 reversals) must first be termed as supply. So first we need to prove that advance received is a supply- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for services as well as goods. Further, section 13 (time of supply) only specifies the time at which we need to pay the liability. Do we mean to say that section 13 determines when a supply can be treated as supply for the inclusion in turnover definition. i hope am able to explain my doubt. Reply By Ganeshan Kalyani: The Reply: Section 13(2)(b) states that the date of receipt of payment is the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... time of supply if the invoice is not raised within the period prescribed. So, the turnover of service shall be included in the year in which the advance is received. However, as per accounting the same will be considered in the year in which the invoice is raised. Hence, these two different treatment will form part of reconciliation. In annual return, such scenarios are required to be disclosed. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Thanks. Reply By CSSANJAY MALHOTRA: The Reply: Reversal has to be made in FY 2018-19 and Turnover is to be considered when the Supply invoice is raised, which in ur case is 2018-19. Refer proviso of Sec 2(31) as follows: 31) "consideration" in relation to the supply of goods or services or both includes-- Provided that a deposit given in respect of the supply of goods or services or both shal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l not be considered as payment made for such supply unless the supplier applies such deposit as consideration for the said supply; Reply By Ganeshan Kalyani: The Reply: Advances are just a deposit unless the same is adjusted against a supply of goods or services. Sanjay Sir your view is clear. Reply By Sachin Jain: The Reply: Note: Advances are adjusted in subsequent months from the supplies ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made. X X X X Extracts X X X X X X X X Extracts X X X X
|
