Karishma Pandit | Legistify

Karishma Pandit
Answered on 07 Aug 2019

Indians can play and win international lotteries online. Indians cannot visit the foreign country, buy a lottery ticket with their foreign currency. This method is illegal under the FEMA law. If you participate in an international lottery online and win in India, you need to pay 30% income tax on the winnings plus cess. For more information, you can consult a good FEMA lawyer in India.Read More

Posted on 05 Aug 2019 | 1 Answer

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Team Legistify
Answered on 28 Sep 2018

If you take a look at both of these taxes at first, both are taxes levied by the government of India but the most significant difference between the two is that customs duty is a tax levied upon goods imported into the country from foreign countries while excise duty is levied by the government on the goods manufactured in the country. It is important to note that many provisions are common to both customs and excise duty. Also, both taxes have similar procedures of administration, tribunal and settlement. At the same time the refund search, principles of valuation, confiscation and appeal are similar for both taxes. Read More

Posted on 10 Mar 2017 | 1 Answer

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Team Legistify
Answered on 28 Sep 2018

There will be no GST Applicable on the used cars sold by company to its employees The three basic rules:   > GST is applicable on the Margins of Dealer (which is when he buy used cars and sell it further). > GST is payable only by the Dealer who is involved in the sale or purchase of used cars.  > No GST Payable when no two direct entities are involved without any dealer in between. Therefore, there is no GST applicable on the used car sold by your company to the employees and if your company still does this, you can send them a legal notice regarding this with the help of a lawyer.  Read More

Posted on 19 Jan 2018 | 1 Answer

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Team Legistify
Answered on 28 Sep 2018

As per Section 115BB of the Income Tax Act the current rate of Income Tax (as on financial year 2013-14) on poker winnings or winnings from any such card games etc. is 30%. However there is education and higher education cess payable on the taxable amount and hence the total effective amount of tax payable is 30.90%. Section 2(24)(ix) of the IT Act defines card games and lotteries as follows: “Any winnings from lotteries, crossword puzzles, races including horse races, card games and other games of any sort or from gambling or betting of any form or nature whatsoever. — (i) “lottery” includes winnings from prizes awarded to any person by draw of lots or by chance or in any other manner whatsoever, under any scheme or arrangement by whatever name called; (ii) “card game and other game of any sort” includes any game show, an entertainment programme on television or electronic mode, in which people compete to win prizes or any other similar game.” Section 115BB reads as follows: Tax on winnings from lotteries, crossword puzzles, races including horse races, card games and other games of any sort or gambling or betting of any form or nature whatsoever. “Where the total income of an assessee includes any income by way of winnings from any lottery or crossword puzzle or race including horse race (not being income from the activity of owning and maintaining race horses) or card game and other game of any sort or from gambling or betting of any form or nature whatsoever, the income-tax payable shall be the aggregate of— (i) the amount of income-tax calculated on income by way of winnings from such lottery or crossword puzzle or race including horse race or card game and other game of any sort or from gambling or betting of any form or nature whatsoever, at the rate of 21[thirty] per cent; and (ii) the amount of income-tax with which the assessee would have been chargeable had his total income been reduced by the amount of income referred to in clause (i).” Read More

Posted on 04 Jun 2016 | 1 Answer

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Team Legistify
Answered on 28 Sep 2018

There is a necessity of taxes in any country but it is important to know what the Government does with that money. Taxes are levied to ensure the smooth running of the public services in India. Excise duty is a part of it. It makes sure that the manufacturing sector is involving themselves in the taxation to cover all aspects. Taxes can also be a tool to control the sale of a good, especially narcotic substances and alcohol. The increase in tax amount of such products may have eventually lead to reduction of purchase due to ill affordability. Taxes in general, help Governments in infrastructure projects such as building roads, railway networks that are used by the public. It also helps to ensure that the defense forces i.e. navy, airforce and army are being maintained and the required arms are being funded, so that taxpayer or not, a citizen of India feels safe and secure at home. Other maintenances such as public parks, water treatment and cleanliness in public places are funded by such taxes. A lot of free public healthcare is funded through these taxes. Any Government or public building, organization, area or service is indeed funded by such taxes. Also, under the Indian law system excise tax, unless exempted under the corresponding acts. If an individual or an organization is caught evading excise tax, the penance could be a fine of 20-50% of duty evaded. It also spoils the organization and the involved individual?s image. Hence, the importance of excise duty. Read More

Posted on 10 Mar 2017 | 1 Answer

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Team Legistify
Answered on 28 Sep 2018

Manufacture or production of excisable goods in India is taxable event. Central excise duty is charge on manufactured goods & not on sale of goods that means even if goods are not sold, excise duty should be payable on it. Captive consumption, free sample, intermediary goods etc. are also liable to central excise duty even from these goods no revenue is generate. An ownership criterion is irrelevant in paying excise duty. Case Duty is payable at the time of Goods are manufactured and sold, free sample Goods are removed from factory/warehouse Goods are manufactured and used as captive consumption, intermediary goods Goods are removed for their intended use. Read More

Posted on 10 Mar 2017 | 1 Answer

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Team Legistify
Answered on 14 Nov 2018

Notification No. 9/2017- Integrated Tax (Rate) dated 28.06.2017 has exempted health care services under Entry 77 stating: Health care Services by a Clinical Establishment or Authorized Medical Practitioner or Paramedics are exempt from Goods and services tax.  Section 2(e) of the Clinical Establishments (Registration and Regulation) Rules, 2010 defines clinical establishment as: A hospital, maternity home, nursing home, dispensary, clinic, sanatorium or an institution by whatever name called that offers services, facilities requiring diagnosis, treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognized system of medicine established and administered or maintained by any person or body of persons, whether incorporated or not; or A place established as an independent entity or part of an establishment referred to in subclause (i), in connection with the diagnosis or treatment of diseases where pathological, bacteriological, genetic, radiological, chemical, biological investigations or other diagnostic or Investigative services with the aid of laboratory or other medical equipment, are usually carried on, established and administered or maintained by any person or body of persons, whether Incorporated or not, and shall include a clinical establishment owned, controlled or managed by the : The Government or a department of the Government; A trust, whether public or private; A corporation (including a society) registered under a Central, Provincial or State Act, whether or not owned by the Government; A local authority; and A single doctor, Under this definition, it can be understood that the services you provide are exempted from GST. However, it is recommended to consult a tax law advocate in India to know about the applicability of GST over clinical trial services.Read More

Posted on 10 Nov 2018 | 1 Answer

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Team Legistify
Answered on 28 Sep 2018

No, As your child is the income earner it won’t be considered as your Income and is not taxable under Income Tax Read More

Posted on 18 Feb 2017 | 2 Answers

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Team Legistify
Answered on 28 Sep 2018

The Central Board of Excise and Customs on Thursday warned builders to refrain from hoodwinking customers by claiming that the GST rate of 12% that applies to them will be levied on the original cost of the building.The CBEC said that it has received reports that builders are forcing customers to pay the entire cost of the flat before July 1 and pay the current tax rate of 5.5% or pay 12% on any payments made after July 1, which is when GST is expected to be rolled out. This, the tax authority said, is against the GST legislation. “The CBEC and states have received several complaints that in view of the works contract service tax rate under GST at 12% in respect of under construction flats, complex, etc, the people who have booked flats and made part payment are being asked to make entire payment before July 1, 2017 or to face higher tax incidence for payment made after July 1, 2017. This is against the GST law, Construction of flats, complex, buildings will have a lower incidence of GST as compared to a plethora of central and state indirect taxes suffered by them under the existing regime,”  “Suppose you buy a flat for ₹1 crore. The builder charges 4.5% service tax, and 1% composition. So, that’s ₹5.5 lakh in tax,” Abhishek Jain, Partner at EY India explained. “However, the builder was buying inputs on which there was excise duty and VAT, and there was no credit on this. When he factors this in, then, say that his cost of building the flat was ₹95 lakh and ₹5 lakh were the input costs.” “Using the same example, in GST, the cost of the builder will be ₹95 lakh, but the ₹5 lakh that is excise and VAT on inputs will no longer be a cost,” “So, ideally, he should say the cost of the building is ₹95 lakh and then the customer has to pay the 12% GST on that ₹95 lakh. But what the builders are trying to do is tell the customers that since they have already agreed to pay ₹1 crore for the flat, the 12% tax will apply on that ₹1 crore and not on the new cost of the flat, which is ₹95 lakh.” Reduced prices “The builders are expected to pass on the benefits of lower tax burden under the GST regime to the buyers of property by way of reduced prices/instalments,” the statement added. “It is, therefore, advised to all builders/construction companies that in the flats under construction, They should not ask customers to pay higher tax rate on instalments to be received after imposition of GST.”“Despite this clarity on law position, if any builder resorts to such practice, the same can be deemed to be profiteering under section 171 of GST law.” Read More

Posted on 23 Oct 2017 | 1 Answer

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Team Legistify
Answered on 28 Sep 2018

VAT will have only four rates instead of large number of rats of Sales Tax, with off setting of tax on inputs against that on output; VAT does away with tax on tax. Claiming input tax credit under VAT ensures proper invoicing. Overall, these features of VAT encourage disclosure of complete information on business turnover. Read More

Posted on 08 Dec 2016 | 1 Answer