RATE OF TAX UNDER GST ON EXPENSES DEBITED TO TRADING, PROFIT & LOSS ACCOUNT

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RATES OF GST

 

RATE OF TAX UNDER GST ON EXPENSES DEBITED TO TRADING, PROFIT & LOSS ACCOUNT

Nature of Expense Rate of Tax Whether regd supplier will levy tax Reverse Chagre (If supply is unregd supplir) Whether Eligible for Input Credit
Salary, Wages and Bonus paid to employee 0% No No No
Electricity Bill 0% No No No
Water Charges/Plain Water 0% No No No
Bank Interest 0% No No No
Rent Deposits 0% No No No
Other Deposits 0% No No No
Petrol/Diesel/CNG/Kerosene Expenses 0% No No No
Liquor Expenses 0% No No No
Registration Fees (ROF/ROC etc.) 0% No No No
Bad Debts 0% No No No
Donation 0% No No No
Labour  Welfare Contribution to Government 0% No No No
Fine & Penalties 0% No No No
Conveyance Expenses – Non AC Taxi, Auto, Bus, Train 0% No No No
Rent paid for residential use 0% No No No
Newspapers & Magazines 0% No No No
Remuneration to Directors and Others 0% No No No
Conveyance Expenses – Radio Taxi like Ola, Uber or other AC Vehicles 5% Yes Yes Yes
Payment to Goods Transport Agency 5% No Yes Yes
Travelling in Train by AC or First Class 5% Yes Yes No
Job Work/Labour Charges for textile yearn and textile fabrics 5% Yes Yes Yes
Job Work/Labour Charges for diamond, jewellery and precious metal 5% Yes Yes Yes
Job Work/Labour Charges for printing of books, journals and periodicals 5% Yes Yes Yes
Food & Beverage Expenses (Non AC Restaurant) 12% Yes Yes No
Room Rent in a hotel/lodge (Rs. 1,000 to Rs, 2,500) 12% Yes Yes Yes
Fuel (Furnace Oil/LPG) 18% Yes Yes Yes
Sales Promotion/Business Promotion 18% Yes Yes Yes
Food & Beverage Expenses (AC Restaurent) 18% Yes Yes No
Mineral Water 18% Yes Yes Yes

 

Truck/Tempo Hire Charges 18% Yes Yes Yes
Club & Membership Fee 18% Yes Yes No
Advertisement Charges/Hoarding/Magazine/News Papers/Media 18% Yes Yes Yes
AMC Charges 18% Yes Yes Yes
Bank Charges – Service Charges recovered 18% Yes No Yes
Broker Fee & Charges 18% Yes Yes Yes
Cancellation Charges 18% Yes Yes Yes
Extended Warranty 18% Yes Yes Yes
House Keeping Charges 18% Yes Yes Yes
Insurance of goods and vehicles 18% Yes Yes Yes
Health Insurance 18% Yes No No
Payment  to Advocates 18% No Yes Yes
Loading & Unloading 18% Yes Yes Yes
Training Expenses 18% Yes Yes Yes
Payment to Post Office for Speed Post/Parcel 18% No Yes Yes
Postage & Courier Charges 18% Yes Yes Yes
Printing & Stationery (Flex Printing, Board Printing, Notice Printing) 18% Yes Yes Yes
Recruitment Expenses 18% Yes Yes Yes
Commission Paid 18% Yes Yes Yes
Rent paid for commercial use of premises 18% Yes Yes Yes
Rent for godown for commercial purpose 18% Yes Yes Yes
Repairs & Maintenance – Building/Electrical/P&M/ Others 18% Yes Yes Note 1
Room rent in a hotel/lodge (Rs. 2,500 to Rs, 7,500) 18% Yes Yes Yes
Payment for Sponsorship services 18% Yes Yes No
Security Charges 18% Yes Yes Yes
Telephone, Mobile & Internet Charges 18% Yes No Note 2
Sundry Expenses 18% Yes Yes Yes
Job Work/labour charges for garment processing 18% Yes Yes Yes
Job Work/labour charges – Others 18% Yes Yes Yes
Sitting Fee, Commission or any other payment made to directors by the company 18% Yes Yes Yes
Audit Fee, Account Writing, Processional Fee (Other than Advocates) 18% Yes Yes Yes
Research & Development Expenses 18% Yes Yes Yes
Food & Beverage Expenses (AC Restaurant) 28% Yes Yes No

 

Wall Paint 28% Yes Yes No
Room rent in a hotel/lodge above Rs. 7,500 28% Yes Yes Yes
Travelling Expenses – International 28% Yes Yes No
Amusement Park/Theatre Ticket 28% Yes Yes Yes
Cold Drinks 40% Yes Yes No
Repairs & Maintenance Charges if it has not resulted into immovable property 18%/28% Yes Yes Yes
Electric Fittings 18%/28% Yes Yes No
Staff Uniform Expenses 5%/12% Yes Yes Yes
Packing Material and Packing Charges 5%/12%/18 Yes Yes Yes
Plant & Machinery/ Furniture & Fixture Actual Rate Yes Yes Note 3
Building/  Motor Car Actual Rate Yes Yes No
Office Equipment including Computer, Software & Hardware Actual Rate Yes Yes Note 3
Free Gifts to Staff (Exempt upto Rs. 50,000 p.a.) Actual Rate Yes Yes No
Free Gifts to Staff (Above Rs. 50,000 p.a.) Applicable Yes Yes Yes
Diwali/New Year Gifts purchased Applicable Yes Yes Yes

 

Notes :

1.If repair and maintenance expenses resulted into immovable property, then input credit is not allowed.

2.If Telephone, Mobile & Internet Bill is in the name of the assessee and address and place of business is mentioned, then only one should claim the input credit.

 

3.Input credit is available fully. However, if it is sold/disposed off/scrapped/thrown away within 5 years, then input credit @ 5% per quarter is availed for the used period and balance is to be reversed for not used fully at the time of date of sale/disposal.

 

4.Input credit is available only if goods/services are used for business. If goods/services are used for personal use, then input credit is not available. If goods/services are used partially for personal use and partially for business use, then input credit is available partly in proportion to business use.

 

5.Input credit is not available if outward supply of goods/services is exempt from payment of tax.

 

6.As per Notification No. 8/2017 dated 28.06.2017, if the aggregate value of goods or services or both debited to Trading Account or expenses debited to Profit & Loss Account or purchase of any asset obtained from unregistered suppliers is less than Rs. 5,000/- in a day, then tax is not required to be paid for such inward supplies by the recipient for that particular day.

 

7.Details of all purchase of goods or services debited to Trading Account or purchase of any fixed assets are required to be submitted in GST Return whether purchased from registered person or unregistered person or from composition dealer.

 

8.However, if any expense item are purchased from unregistered supplier and escape the payment of tax in view of Notification No: 8/2017 dated 28.06.2017, then the same are not required to be submitted in GST Return.


 

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