Rate of tax under GST on expenses debited to Trading Profit & Loss A/c…

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Rate of tax under GST on expenses debited to Trading Profit & Loss A/c
Sr. NoNature of ExpenseRate of TaxWhether registered supplier will levy taxReverse Charge(If supply is unregistered)Whether Eligible for Input Credit
1Salaray, wages & bonus paid to employee0%NoNoNo
2Electricity bill0%NoNoNo
3Water Charges/ Plain Water0%NoNoNo
4Bank Interest0%NoNoNo
5Professional Tax0%NoNoNo
6BMC Tax0%NoNoNo
7Building / Property Tax0%NoNoNo
8Rent Deposits0%NoNoNo
9Other Deposits0%NoNoNo
10Petrol / Disel/ CNG/Kerosene Expenses (Motor Spirit)0%NoNoNo
11Liquor Expenses0%NoNoNo
12Registration Fees (ROF / ROC / RTO etc)0%NoNoNo
13Bad Debt0%NoNoNo
14Donation0%NoNoNo
15Labour Welfare Contribution to Goverment0%NoNoNo
16Fine & Penalities0%NoNoNo
17Conveyance Expense – Non AC Taxi, Auto, Bus, Train0%NoNoNo
18Loading & Unloading in relation agricultural produce/ Hamali0%NoNoNo
19Rent Paid for residential use0%NoNoNo
20Godown Rent for agricultural produce0%NoNoNo
21News paper & magazines0%NoNoNo
22Remuneration to Director & partners0%NoNoNo
23Conveyance Expense – Radio Taxi like OLA & UBER or other AC vechile5%YesYesNo
24Payment to Goods Transport Agency5%NoYesYes
25Travelling in Train by AC or First class5%YesYesNo
26Job Work / Labour Charges for textile yarn & textile fabric5%YesYesYes
27Job Work / Labour Charges for diamond , jewellery & precious metal5%YesYesYes
28Job Work / Labour Charges for printing of books, journals & periodicals5%YesYesYes
29Food & Beverages Expense (Non AC restaurant)12%YesYesNo
30Room Rent in a hotel, lodge (Rs.1000 to 2500 per room per day12%YesYesYes
31Fuel (Furnace Oil/LPG)18%YesYesYes
32Sales Promotion/Business Promotion18%YesYesYes
33Food & Beverages Expense (AC restaurant)18%YesYesNo
34Mineral water18%YesYesYes
35Truck/ Tempo Hire Charges18%YesYesYes
36Club & Membership fees18%YesYesNo
37Advertisement Charges / Hoarding / Magazine / News Papers / Media18%YesYesYes
38AMC Charges18%YesYesYes
39Bank Charges – Service charges recovered18%YesNoYes
40Broker Fee & Charges18%YesYesYes
41Cancellation Charges18%YesYesYes
42Extended Warranty18%YesYesYes
43House Keeping Charges18%YesYesYes
44Insurance paid on goods & vechile18%YesYesYes
45Health Insurance18%YesNoNo
46Payment to advocate18%NoYesYes
47Loading & Unloading – others/ Hamali18%YesYesYes
48Training Expense18%YesYesYes
49Payment to Post office for Speed post & parcel post18%NoYesYes
50Postage and Courier Charges18%YesYesYes
51Printing & Stationery (Flex Printing, Broad Printing, Notice Printing)18%YesYesYes
52Recruitment Expenses18%YesYesYes
53Commission Paid18%YesYesYes
54Rent Paid for commercial use of premises18%YesYesYes
55Godown Rent for commercial purpose18%YesYesYes
56Repair and Maintenance – Building / Electrical/ P& M / Others18%YesYesRefer Note 1
57Room Rent in a hotel, lodge (Rs.2500 to 7500 per room per day18%YesYesYes
58Payment for Sponsorship Services18%YesYesNo
59Security Charges18%YesYesYes
60Telephone, Mobile & internet Charges18%YesNoRefer Note 2
61Sundry Expenses18%YesYesYes
62Job Work / Labour Charges for garment processing18%YesYesYes
63Job Work / Labour Charges (Other)18%YesYesYes
64Sitting Fees, Commission or any other payment made to director by company18%YesYesYes
65Audit Fees, Account Writing , Professional Fees (other than Advocate)18%YesYesYes
66Research & Development Expenses18%YesYesYes
67Food & Beverages Expense (AC restaurant)28%YesYesNo
68Wall Paint28%YesYesNo
69Room Rent in a hotel, lodge Above Rs.7500/-28%YesYesYes
70Travelling Expenses International28%YesYesNo
71Amusement Park/ Theatre Ticket28%YesYesYes
72Cold drink40%YesYesNo
73Repairs & maintainance Charges if it has not resulted into immovable property18% / 28%YesYesYes
74Electrical Fittings18% / 28%YesYesNo
75Staff Uniform Expenses5% / 12%YesYesYes
76Packing material & Packing Charges5%/ 12% 18%YesYesYes
77Plant & MachineryActual RateYesYesRefer Note 3
78Furniture & FixtureActual RateYesYesRefer Note 3
79Motor CarActual RateYesYesNo
80BuildingActual RateYesYesNo
81Office Equipment including Computer, Software & HardwareActual RateYesYesRefer Note 3
82Free Gift given to staff (Exempt upto Rs.50000/- per staff p.a)Applicable RateYesYesNo
83Free Gift given to staff (Above Rs.50000/- per staff p.a)Applicable RateYesYesYes
84Divali/ New year Gift purchased & debited to P & LApplicable RateYesYesYes
Notes:
1)    If repair & maintainance expenses resulted into immovable property than input credit is not available
2)    If Telephone, Mobile & Internet bill is in the name of the company and adress and place of business is mentioned then only one should claim the input credit
3) Inpur credit is available fully. However if it is sold/disposed off/ scrapped/ thrown away within 5 years, then input credit @ 5% per quarter is available for the used period and balance is to be reversed for not used fully at the time of date of sale.
4)    Input credit is available only if goods & services are used for business. If good or services are used for personal purpose 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 or services is exempt from payment of tax.
6)    As per Notification No 8/2017 dated 28/06/17, it is provided that if the aggregate value of goods or services or both debited to Trading A/c or expenses debited to Profit & Loss A/c or purchase of any asset obtained from unregistered suppliers is less than Rs.5000/- in a day, then tax is not required to be paid for such inward supplies by the receiptent for that particular day.
7)    Details of all purchase of goods or services debited to Trading A/c or purchase of any fixed asset 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 items are purchased from unregistered supplier & escape the payment of tax in view of Notifcation No.8/2017 dated 28/06/17 then same are not required to be submitted in GST return.

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