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TMI BlogGST on Gold JewelX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Sir / Madam, GST Registered Gold Merchant used his wife personal Jewelry in his business, will there be any legal compliance? If no issue then he has to pay 3% on sale value of Jewel. Please clarify - Reply By KASTURI SETHI - The Reply = RCM is not applicable under Section 9(4) of the Act . It is not a supply. However, when the registered person sells that jewellery further whether aft ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er conversion or otherwise GST @ 3% has to be paid. No job work issue involved. - Reply By KUMAR Narasimhan - The Reply = Dear Sir, Thank you so much for the clarification sir - Reply By ARVIND JAIN - The Reply = Kasturi Sir is correct As per GST angel, I agree. However, Income Tax angel should not be missed if the value is high. As a gold merchant, he will have to record it as URD purchas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e and it would be treated as Sale at wife part and Capital gain is to be paid @20%. Some other options are available that all will depend upon the real facts of the case. - Reply By KASTURI SETHI - The Reply = Sh.Arvind Jain Ji, Sir, Thanks for your concurrence. I am also thankful to you for enrichment of my knowledge on Income Tax aspect. - Reply By KASTURI SETHI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - The Reply = Sh.Arvind Jain Ji, Some other options are available that all will depend upon the real facts of the case . Sir, Pl. clarify whether the words, 'some other options' refer to Income Tax angle or GST angle. - Reply By KUMAR Narasimhan - The Reply = Dear Arvind Jain ji, Gold Merchant receives a Gold gift from his father in law on the o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccasion of his Marriage. Now he is trying to convert the capital Asset to trading (bringing the gold to his business). In this situation will he pay capital gain Tax? or Income Tax to be paid from profit of his business. Please clarify it sir - Reply By ARVIND JAIN - The Reply = Sir Both Income Tax GST angel just in treatment and passing of entry, which will have Impact on books of Account mo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re in respect to Income tax Angel (just no urd purchase will be shown) and in GST there is no other option but to pay GST at the time of Sale. Some gold merchants book Gold input qty Via Stock JV as Gold received for labour job work in books and ultimately settle it before the end of the year via actual purchase but it would not be a wise practice and again if the amount is high which is normal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly possible in Gold transaction than GST paid first and later having Input credit to be settled till your GP reach to the extent of that amount. Gold loan is another way and again pint of discussion and many if and buts..so leaving that. With regard to changed facts by KUMAR Narasimhan, of gift on marriage please note that Section 45(2) of the Income Tax Act deals with the cases where a cap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ital asset is converted into stock in trade. Whenever a capital asset is converted into stock in trade by an assessee it is deemed as a transfer of capital asset and attracts capital gain provisions, in spite of the fact that the ownership of such capital asset doesn t change by such conversion. Later on sale, you have to again pay Income tax on business profit (if there is ) as per the normal pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vision of Income-tax. - GST on Gold Jewel - Query Started By: - KUMAR Narasimhan Dated:- 17-11-2021 Goods and Services Tax - GST - Got 7 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.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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