Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: due date for vat payment :: TDS :: cpt :: VAT Audit :: empanelment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TAX RATES - GOODS TAXABLE @ 4% :: VAT RATES :: ACCOUNTING STANDARD :: form 3cd :: list of goods taxed at 4% :: ACCOUNTING STANDARDS :: articles on VAT and GST in India :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: Central Excise rule to resale the machines to a new company
 
 
General »
 Why abolishing personal income tax may not be a good idea
 Questions about the GST cess
 How to prepare for the looming tax-extension deadline
 Income tax: Gratuity for employees raised to Rs 20 lakh; here is how you will benefit
 Haryana to set up scrutiny panel on GST benefits
 Waive certain taxes for companies in insolvency proceeding
 I-T department to appoint 7600 more tax return preparer scheme to cover entire country
 All eyes are on GST as Centre plans higher social pension
 Exporters demand total exemption from GST
 Here's what you must know to stay clear of taxman
 Filing income tax returns is not enough, you need to link Aadhaar with PAN before deadline ends

Grant Thornton: VAT policy change on debt collection services will increase business costs
February, 09th 2011

Businesses using debt collection agencies will see a rise in costs under new policy guidelines issued by HM Revenue & Customs following the recent European Court of Justice ruling in the 'AXA Denplan' case, a VAT expert at Grant Thornton has warned.

The change in policy, which will extend the circumstances when VAT will have to be charged, will be particularly unwelcome for businesses that are unable to reclaim all of the VAT that they incur, such as those in the financial services sector.

"HMRC's interpretation of the ECJ ruling means that all services that are principally concerned with collecting payments from the person owing them, on behalf of the person to whom they are owed, will fall within the definition of 'debt collection' and will be subject to VAT at the standard rate. This will be irrespective of whether the payments are collected before, on, or after their due date," says Karen Robb, VAT Partner at Grant Thornton.

"Before the ECJ ruling, the definition of what constituted debt collection services was much narrower. The term was usually limited to situations where a debt was due and a third party was appointed to collect the debt on behalf of the creditor. By extending the definition to situations such as those where an agent collects payments under a direct debit mandate prior to their remittance to the creditor, many more services will be caught and the VAT cost to businesses will inevitably increase," continues Robb.

Robb concludes: "This new policy has been forced on HMRC by the surprising ECJ judgment in the AXA Denplan case. All businesses involved in the collection of payments on behalf of third party creditors should be reviewing, and where appropriate changing, the VAT treatment of their supplies if they are to avoid an unexpected VAT liability."

Source: http://www.grant-thornton.co.uk/thinking_blogs/press_room/vat_policy_change_on_debt_coll.aspx

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Experience

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions