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Atul Jain
We opened a small partnership firm in India whose main job is to connect teachers in India with clients outside India. The company provides online classes for various courses where teachers in India are the vendors for the company and the clients are all outside India and the payments are all received in the current account in foreign currency (converted to iNR by paypal) transacted via paypal. Since the client is located outside India, the company cannot charge GST and hence not sure whether company will come under export of services or intermediary services. Also, can the firm apply for GST composition tax
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We need to understand this transaction more whether you have crossed 20 lakh threshold or not and whether you are earning commission as you said you provide teachers to foreign company.
You can book a GST consultation with expert and discuss it in detail at: https://www.taxontips.com/category-goods-services-tax-gst-registration/
Well, technically it is not a commission since I get the money in my account from foreign clients via paypal and then I give money to the teachers at a fixed rate. Teachers in this case are hired by me as a freelancer or a contractor or a vendor.
Atul Jain 8 Nov 2020I have not crossed 20 lacs till now but i am not sure if I have to take GST registration from day 1 without any threshold since I am not sure if this actually falls under intermediary services
CA Deepak Kucheria 8 Nov 2020It appears the firm is working on P2P model where it will earn revenue from its clients outside India and discharge payment to the teachers for their services which will be treated as its expense. Prima facie it would not be covered under intermediary service. However, agreements need to be analyzed before making final opinion. Further, w.r.t. composition registration, condition of inter-state supply need to be evaluated. For legal opinion you may contact at +91-9911744028 or deepakkucheria@gmail.com
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Rishi
I am looking to buy products in USA to be sold to people there. If the products don't come to India, do I haveI to pay tax on them?
Yes you have to because you are the owner who is controlling business from India.
CA Deepak Kucheria 8 Nov 2020Income Tax would trigger, however GST would not trigger.
CA Namita Agarwal 9 Nov 2020Yes, as business is controlled from India and you are likely to be resident of India ,you are required to pay taxes in India. For detailed discussion, you may connect at +91 93545 62098/ info@fincheff.com
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J V Nair
I am working as an affiliate marketer (for Amazon and Flipkart) and earned around Rs. 16 lakhs till November 2020 and hope will cross Rs. 20 lakhs this financial year. I think I have to take my GST registration once my earning crosses Rs.20 lakhs in this financial year. I have the following doubts? 1) If I take GST registration now, am I responsible to pay the whole GST for this financial year (ie. 18% of 20 Lakhs)? 2) If I take GST registration, am I responsible to file GST returns monthly even my earnings will be below Rs.20 lakhs in the next financial years? 3) Since my earning are based on the advertisement of Facebook Ads and Google Ads, is it a wise decision to limit my earnings below Rs.20 lakhs this year and take GST registration in the next Finacial Year?
Hi Mr Nair
Pls find answers below::
1. No
2. GSTR3B - monthly. For GSTR1- you can opt for quarterly filing
3. lets discuss this over call pls
Regards
CA Namita Agarwal
FinCheff Advisors LLP| Partner
MSME Business Forum India| Strategic Advisor
Mobile: +91 93545 62098
Email: namita@fincheff.com
https://www.fincheff.com/
No GST has to be paid on amount received after 20 lakh and if you take before that also you can charge GST only once you get GST registration and on bill raised after such registration.
Yes GST return would be required.
You can book a phone consultation and discuss more on same: https://www.taxontips.com/category-goods-services-tax-gst-registration/
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Naresh Kumar R
One bulider for a newly launched project in chennai is charging 5 percent gst and 7 percent input material tax loss . Is it legal to charge these ?
Charging of ITC loss is unauthorised recovery of ITC under GST. It may amount to recovery twice once as a part of cost of raw materials and secondly In guise of ITC loss. You may complain to appropriate authority.
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Nitin
Can I invest transfer some accounts to my parent account and invest under his name? If yes how much and when & how I can take back
Yes, you can do so. The same can be transferred in any amount. However transfer should irrevocable. The parents can anytime do the same for you. Pls note the transaction should be legal.
For further discussion/ information pls reach out to us ::
Mobile: +91 93545 62098
Email: namita@fincheff.com
You may also visit our website - www.fincheff.com
