GST Classification & HSN Code Disputes: Appeal Strategy Quick Answer GST classification disputes arise when the department and the taxpayer disagree on the HSN code (for goods) or SAC code (for services) applicable to a supply, resulting in a differential tax demand. Classification is governed by Section 9 of the CGST Act read with rate […]
Category Archives: GST
GST for Real Estate: Builder Compliance, ITC & Anti-Profiteering 📌 Quick Answer GST on real estate underwent a fundamental overhaul on 1 April 2019 through Notification 3/2019-Central Tax (Rate). Under-construction residential apartments attract 1% GST (affordable housing) or 5% GST (non-affordable), both without ITC. Builders must maintain project-level accounts, comply with the 80% registered procurement […]
GST for E-Commerce: TCS Under Section 52 & Seller Compliance 📌 Quick Answer Every e-commerce operator (ECO) in India must collect TCS at 1% (0.5% CGST + 0.5% SGST, or 1% IGST) on the net value of taxable supplies made through its platform, under Section 52 of the CGST Act read with Rule 67. Sellers […]
Faceless Assessment & Appeal: How the New System Works Quick Answer The Faceless Assessment Scheme under Section 144B of the Income Tax Act eliminates physical interface between the taxpayer and the Assessing Officer. All scrutiny proceedings — notices, questionnaires, document submissions, hearings, and orders — are conducted electronically through the e-filing portal. The assessment is […]
18 Valuation Methods Compared: Which to Use When (India) 📌 Quick Answer: How to Choose the Right Valuation Method in India India’s regulatory landscape prescribes different valuation methods for different purposes — Rule 11UA for Income Tax, FEMA NDI Rules for foreign investment, IBBI Regulation 35 for insolvency, and SEBI ICDR Regulations for listed companies. […]
ESOP Pool Creation: Board Resolution, Scheme Design & Tax Planning for Indian Startups Quick Answer: How Do Indian Startups Create an ESOP Pool? Creating an ESOP pool for an Indian private limited company requires: (1) Board resolution approving the ESOP scheme under Section 62(1)(b) of the Companies Act, 2013, (2) Special resolution of shareholders approving […]
Purchase Price Allocation in India: Ind AS 103 Guide 📌 Quick Answer: What Is Purchase Price Allocation Under Ind AS 103? Purchase Price Allocation (PPA) is the mandatory process under Ind AS 103 — Business Combinations of allocating the total consideration transferred in an acquisition to the identifiable assets acquired (including separately identifiable intangible assets […]
Drag-Along & Tag-Along Rights: SHA Clauses for Indian Startups 📌 Quick Answer: Drag-along rights allow majority shareholders to compel minority shareholders to join a sale of the company on the same terms, while tag-along rights protect minority shareholders by allowing them to participate in a sale initiated by majority shareholders. Both clauses are critical components […]
Investor Due Diligence Checklist: Legal, Financial & Tax (India) 📌 Quick Answer: Investor due diligence for Indian startups typically spans five workstreams — legal, financial, tax, regulatory and operational. A thorough diligence process examines corporate records, financial statements, tax filings, FEMA compliance, intellectual property ownership, employment matters, litigation risks and commercial contracts. Founders who proactively […]
GST on Works Contract: Classification, Rate & ITC 📌 Quick Answer Works contract under GST is defined in Section 2(119) of the CGST Act as a contract for building, construction, or related activities involving immovable property with transfer of property in goods. Schedule II, Paragraph 6(a) deems it a supply of services. GST rates range […]