What is liquidated damages (LD)?
Liquidated Damages (LD) is levied or imposed when some specific task or work is not performed as per the agreed terms or condition, means that there is breach of contract terms. LD is generally levied at fixed rated irrespective of actual damages. Generally in large quantum work like infrastructure projects where performance of the contract is very essence of project, then there is specific clause for LD in the contract. Example situation in which LD is levied is like when milestone is not performed within specific time frame then LD is levied at 1% of milestone amount. Continue reading “Applicability of GST on Liquidated Damages”
The Good and Simple Tax 🙂 implemented in India with effect from 1st July – 2017 and this revolutionary regulation also made the significant changes in the business process. There are various pros and cons of the system which is implemented and at an initial level, several problems are being faced resulting into lesser business. Exporters also faced the several problems due to blockage of working capital, Slow refund process, Export with payment of duty etc. Export can be without payment if duty by submitting LUT or Bond in GST.
So in order to incentivize the exporters’ govt. released the circular no. – 5/5/2017 dated 11th August – 2017 which was aimed to relax the GST provisions for exports. Provisions of LUT and Bond were also extended to small exporters. So let’s understand what is LUT and Bond which is required for export of goods or services without payment of duty. Continue reading “How to Export with LUT or Bond in GST”
What is E-way Bill?
E-way bill is an electronic bill which is required to be created in case of movement of goods where the value of supply of goods is more than Rs. 50,000/-. E-way bill can be generated through GSTN portal electronically. During the pre-GST era, dealers have to present waybill physically for movement of goods which now in GST era will be streamlined online process. Recently GST Council in its meeting on 5th July – 2017 finalised E-way bill rules, GST Council said that E-way rules are likely to come in to force from 1st October – 2017.
Continue reading “All about E-way bill rules in GST”
In the proposed GST law it special provision is kept in order to minimize the hassle of small and medium dealers and retailers by providing option of composition scheme to them. Composition scheme is like dealer has to pay only lump sum tax to government and remain out of GST chain. In today’s article lets understand and analyze all about composition levy in GST. Continue reading “All about composition levy in GST”
The fitment of rates of services were discussed on 19 May 2017 during the 14th GST Council meeting held at Srinagar, Jammu & Kashmir. The Council has broadly approved the GST rates for services at Nil, 5%, 12%, 18% and 28%. The list of services that will be under Reverse Charge Mechanism as approved by the GST Council is given below. Continue reading “Reverse Charge Mechanism in GST (RCM)”