Sale of souvenirs is to be considered as a supply of goods : AAR

Sale of souvenirs is to be considered as a supply of goods: AAR | This ruling has been made by Authority of Advance Ruling West Bengal in the matter of The Association of Inner Wheel Clubs in India.

Sale of souvenirs is to be considered as a supply of goods: AAR 

The Extract of Ruling is given below for reference :

RULING

The Applicant’s activities involve the supply of services classifiable under SAC Heading 99959 against consideration received in the form of subscription and membership fees. Services classifiable under SAC Heading 99836 are also supplied.
Sale of souvenirs is to be considered as a supply of goods.
The nature of supply for miscellaneous income as recorded in the Financial Accounts is to be determined by the nature of the supply.
This Advance Ruling is valid subject to the provisions under Section 103(2) until and unless declared void under Section 104(1) of the GST Act.

Source: https://studycafe.in/2018/11/sale-of-souvenirs-is-to-be-considered-as-a-supply-of-goods-aar.html

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Chartered Accountants Who Followed Their Real Dreams after completing CA

Chartered Accountants Who Followed Their Real Dreams after completing CA : Our fraternity has gained national and international recognition not only in the field of Chartered Accountancy but also in other fields as well. These are some of the legends who make we people believe that in the wide course of CA, One should not forget their passion. Instead, we can fulfil it even after becoming CA as well. CA is not an end of our career. It can be starting of our new passion; new desires or it might be simply the means of exploring us even better more than before.

Chartered Accountants Who Followed Their Real Dreams after completing CA

Shekhar Kapur (Actor, Director & Producer)

He completed CA at the age of 22 just because his parents wanted to see their child holding the degree of CA. After CA, he started his career with a multinational oil company. Thereafter he spent several years as an Accountant and Management Consultant but at last, he heard his heart’s voice and did the things for which he had rage since his childhood. Though discouraged by his father for movies, he started acting and thereafter came in direction and directed epic movies like Mr India, Bandit Queen, Masoom and produced movies like Guru, Dil se etc. He also directed award-winning Hollywood movies Elizabeth, The Golden Age, The four feathers, British Tabloids etc. Also, He was a member of the jury at the 2010 Cannes Film Festival. If you have watched India’s Got Talent-1, which aired on Colors then you must have recognized him by now. He served as the Judge of that show.

K.P Salve (Former Union Minister and Ex-President of BCCI)

He was an avid cricketer at college but chose his career as CA due to the same obvious reasons. But his interest in Cricket didn’t stop him from again choosing his career as Cricket. He remained Umpire for several years. Thereafter he was elected as the President of BCCI from 1982 to 1985. It was during his tenure that India won the 1983 Cricket World cup. Also, BCCI started the NKP Salve Challenger Trophy in 1995 named after him.

Swaminathan Gurumurthy (Journalist & Chartered Accountant)

Remember the role of R. Madhavan in the movie Guru? He is the same man. The role played by the actor is strongly based upon him. He completed CA in 1972; thereafter he joined an auditing firm and was allotted the job of maintaining the books of companies of “Press baron” -The publisher of The Indian Express. After that, he became a journalist also. His articles in The Indian Express created stirs in the corporate world, which exposed the Big Corporate Giants like Reliance. His articles espoused the cause of Swadeshi Jagran Manch and the RSS and the concept of United India.

Arun Purie (Editor-in-chief and Chairman, India today Group; Chairman, Fipp)

Do you know the face behind 24 hour Hindi News Channel Aaj Tak and English News Channel Headlines Today? He is Arun Purie. He is also the founder-publisher and Editor-in-chief of India Today, chief executive of the India Today group, Managing Director of Thomson Press (India) Limited, Editor-in-chief of Reader’s Digest India. He became CA in 1965. After this course, he entered in Journalism. He received various notable awards like Padma Bhushan in 2001, NT Lifetime achievement award 2008 in recognition of his outstanding contribution to Indian News television, G.K. Reddy Award for his outstanding contribution to Journalism and many more.

Sanjay Subrahmanyam (Carnatic Vocalist)

He is a Chartered Accountant and a Rank holding Cost Accountant. He is one of the most renowned musicians with in-depth knowledge. His hard work in Carnatic music has led him to today’s position. He went under vigorous training for about 27 years in the field of Carnatic Music. He was also the subject matter of documentary film “Aaraar aasaippadaar”. He is also an “A Top” Grade artist of All India Radio He has performed in Chennai, Bangalore, Delhi, Malaysia, Singapore, Indonesia, Australia, US, Canada, Switzerland and Oman.

Shyam Pathak (Comedian, Actor)

He comes from a simple middle-class Gujarati Family. His mother wanted him to become CA, so he did CA but there was something else he wanted to pursue.CA field didn’t interest him so after that, he joined the National School of Drama (NSD). Till now he has worked in various movies and TV Serials. These days you can find him playing the role of “Patrakar Popatlal Pandey” in the most famous comedy show “Taarak Mehta Ka Ooltah Chashmah” which airs on the SAB TV

Vishakha Hari(Storyteller)

She is known for her excellence in Harikatha, an ancient form of storytelling. She completed her CA in 2001. She did CA because her friends were also doing the same. She says”There weren’t many options back then.’’ She is a prominent Carnatic music Vocalist. She is an A Grade artist of All India Radio. She gives her discourses and concerts abroad as well. Also, she has received many prizes and awards for her notable contribution to Harikatha and Carnatic music field.

Yandamuri Veerendranath (Thriller, Playwright, Novelist, Film director)

He is a chartered accountant and had worked with State Finance Corporation for 5 years and with Andhra Bank for 10 years in a senior executive position. He was the youngest officer to hold the highest position in the history of the bank. Though he resigned himself to Novel writing (Telugu)after that and wrote about 50 novels to his credit. Many of his work is translated into Tamil, Kannada and Malayalam, Hindi, Gujarati and Marathi. He also won several awards for his notable works in Literature. He also worked for more than 30 Films. Many of his novels have been made into motion pictures in Telugu.

Subhashni Giridhar (Indian Classical dancer & Chartered Accountant)

She is an Indian classical dancer of Bharathnatyam. She had the vehemence for dance since childhood. She started learning dance at the age of years 8. In 2003, she became a Chartered accountant. After CA she acquired a post qualification degree DISA in the year 2004. She is also a practising Chartered accountant in Mumbai. Her philosophy is that God made her pursue CA along with her passion (Bharatnatyam) both with the same zeal and enthusiasm because God has chosen CA to fulfil her financial needs and Dance for her Inner bliss. She is giving her solo performances since 1990 and has also performed in various sabhas.

Suresh Prabhakar Prabhu (Ministry of Railways)

He is an Indian politician and also serving under Ministry of Railways. He is a Chartered Accountant and a member of the Institute of Chartered accountant of India. He was AIR 11th Rank holder in CA Exam. During the Premiership of Atal Bihari Vajpayee, he was Industry Minister, Minister of Environment and Forests, Minister of Fertilizers and Chemicals, Power, Heavy Industries and Public Enterprises at various times. Also, Asia week rated him as one of the three future leaders of India. He travelled to more than 100 countries. He is currently working on 16 global organization and 9 strategic dialogues. He is the only Railway Minister who introduced Railway budget without launching a single train and more focused on facilities during the fiscal year 2015-2016.

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Source: https://studycafe.in/2018/11/chartered-accountants-who-followed-their-real-dreams-after-completing-ca.html

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All About HUF - A Clear Approach : I believe you must have heard of Hindu Undivided Family (HUF). Most of the people think that this is a person which are created by some kind of Agreements etc. Well, if you are also one of them then it's time to bust your myth about that. Because the fact is something far different from that. So, Let's understand the concept in a bit detail:

All About HUF - A Clear Approach

What is HUF?

A Hindu Undivided Family (HUF), as its name suggests is Joint Family which is taken as a separate entity from that of the Individual Members consisting in HUF. The Head of the Family (i.e. Father/ any elected person in case of the death of Father) is called Karta which operates the business of the HUF.

How HUF is created?

HUF does not arise from a contract. But, it is a Creation of Law. After marriage as soon as a Child is Born, HUF comes into existence. Hindu, Buddhists, Jains, and Sikhs can form HUF. HUF usually has assets which come from a Gift, a will, or ancestral property, or property acquired from the sale of joint family property or property contributed to the common pool by members of HUF.

Which Individuals are part of HUF?

HUF consist of Co-Parceners (who are Family Members) and the distant relatives i.e. called as Members of HUF.

Who are Co-Parceners and Members?

Co-Parceners: Co-Parceners are the Family Members and it is consist of 4 levels of Lineal descendants including the first male ancestor. It is only a Co-Parcener who can demand the Partition of HUF. It will include the following:

• 1. Mr. X (Karta)
• 2. Son/ Daughter of Mr. X
• 3. Grandson/Granddaughter of Mr. X
• 4. Great Grandson/ Great Granddaughter of Mr. X

[Note: HUF can't be expanded over the above 4 lineal descendant lines]
Members of HUF: Any other distant Relatives who are not the Family Member (e.g. Brother-in-law, Sister-in-law etc.) would be deemed as the Member of HUF. Although they are Members of HUF, they are not the Co-Parceners. A member can not demand the Partition of HUF.
[Imp. Note: Wife is not considered as the direct part of HUF i.e. Co-Parcener. She will be a Member in Husband's family HUF. Although, She will be a Co-Parcener in her Father's Property. ALL CO-PARCENERS ARE MEMBERS, BUT ALL MEMBERS ARE NOT CO-PARCENER.]

Partition of HUF?

Under Hindu Law, Partition of HUF can be of 2 types: Total Partition & Partial Partition;
Total Partition: It is a type of Partition in which entire family property is being divided among the Co-Parceners. After the total partition HUF ceases to Exist.
Partial Partition: It is a type of Partition in which some of the willing co-parceners get out of the HUF and rest of them continue the HUF. The Partial Partition may be property specific also when some of the properties are divided among the co-parceners and balance continue to be the property of the HUF.
[Imp. Note: Under the Income tax Act, ONLY TOTAL PARTITION IS RECOGNISED, the partial partition is not considered as a partition.]

Assessment after Total Partition:

When a claim of total partition has been made by any Co-Parcener on behalf of HUF, the Assessing Officer shall inquire about it. For this, he shall serve a notice to all the Co-Parceners of the HUF and enquire whether the total partition has taken place and if yes, then on which date it is affected.
If the Partition of the has been affected in the previous year, the total income of the HUF of the previous year up to the date of partition shall be the Total Income of HUF.  EVERY MEMBER SHALL BE JOINTLY AND SEVERALLY LIABLE for the tax on such assessed income of HUF. The Several liability of a Co-Parcener would be proportionate to the share of joint family property allotted to him on such partition.

Some Important Points:

• Is there any minimum no. of co-parceners required for an entity to be taxed as HUF?

A HUF can be formed with just two members one of whom is a co-parcener. But for an entity to be taxed as a HUF, it should have at least two co-parceners. For example; When any HUF consist of only Husband and Wife, then there is only one co-parcener (because the wife is a member but not a co-parcener) and therefore, in such case income can't be taxed in hands of HUF. It will be taxed in the hands of Individual Co-Parceners.

• Can HUF pay remuneration to Karta or Any Member of HUF?

Yes. As per Supreme Court decision in Jugal Kishor Baldeo Sahai Vs. CIT, such remuneration would be deductible if it is paid:
- Under a valid and Bonafide Agreement; and
- In the interest of and expedient for the business of family; and
- Reasonable and not Excessive.

• What is the position of the Married daughter?

Unmarried daughters would always be a Co-Parcener and have the equal right over the property just like a Son. Although, the Status of Married Daughters would be as follows:
- In Her Father's Property:
She will remain a Co-Parcener even after the marriage.
- In her In-Laws House:
She will always be a Member but Not the Co-Parcener. Although, Husband can give his co-parcenary right to her wife.

• Can HUF run a Sole Proprietorship Business?

Since HUF is one person as per Income Tax Act, a Proprietor of a business can be an Individual or a HUF. A Proprietorship concern is not governed by any specific law as such, and therefore there is no bar on HUF becoming a Proprietor of any concern.
In case of any Ideas, Suggestion or Queries, Please do comment below. You can follow my blogs @ taxeffects.blogspot.com and also reach me at niteshkbind@gmail.com.
Thanks. Be Helpful to One Another!

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Source: https://studycafe.in/2018/11/all-about-huf-a-clear-approach.html 

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Sweet Shop shall be treated as extension of restaurant : AAR

Sweet Shop shall be treated as extension of restaurant : AAR | This ruling was made by Authority of Advance Ruling Uttarakhand in matter of Kundan Misthan Bhandar. Below mentioned Questioned were referred by Authority of Advance Ruling Uttarakhand.

Sweet Shop shall be treated as extension of restaurant : AAR

1. whether supply of pure food items such as sweetmeats, namkeens, cold drink and other edible items from a sweetshop which also runs a resturant is a transaction of supply of goods or a supply of service;
2.  what is the nature and rate of tax applicable to the following items supplied from ground floor of a sweetshop in which restaurant is also located on the first floor and whether the applicant is entitled to claim benefit of input tax credit with respect to the same;
3.  sweetmeats, namkeens, dhokla etc commonly known as snacks, cold drinks, ice creams and other edible items;
4.  Ready to eat (partially or fully pre-cooked/packed) items supplied from live counters such as jalebi , chola bhatura and other edible items;
5.  Takeaway order of sweetmeats or namkeens by a person sitting in the restaurant of a sweetshop when such products are not consumed within the premises of the applicant but are takeaway.

The Extract of Order of Authority of Advance Ruling Uttarakhand is given below :

ORDER

(i) The supply shall be treated as supply of service and sweet shop shall be treated as extension of restaurant;
(ii) The rate of GST on aforesaid activity will be 5% as on date , on the condition that credit of input tax charged on goods and services used in supplying the aid service has not been taken;
(iii) All the items including takeaway items from the said premises shall attract GST of 5% as on date subject to the condition of non availment of credit of input tax charged on goods and services used in supplying the said service.

Source: https://studycafe.in/2018/11/sweet-shop-shall-be-treated-as-extension-of-restaurant-aar.html

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GST Annual Return GSTR9 Utility may be released very soon

GST Annual Return GSTR9 Utility may be released very soon : Due date for filing GSTR 9 for F.Y 2017-18 is 31st December 2018 and till date no such utility is issued by GST department. Yesterday department has enabled the option of Annual Return on GST Portal. There are high chances that GST Annual Return Utility may be released very soon by the GST Department. Infact the Tab of GST Annual return has also been created by the GSTN so there is expectation that the utility will be released within this week. We hope that GSTN releases GSTR9 Utility soon as this is high time now when the utility should be released as the due date is coming near and professionals also need time to study it carefully for timely compliance.    

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