Latest Expert Exchange Queries

Make 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) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: list of goods taxed at 4% :: VAT Audit :: form 3cd :: ARTICLES ON INPUT TAX CREDIT IN VAT :: cpt :: empanelment :: TDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: Central Excise rule to resale the machines to a new company :: VAT RATES :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARD :: due date for vat payment :: ACCOUNTING STANDARDS :: articles on VAT and GST in India
 
 
VAT (Value Added Tax) »
 Cenvat Credit Rules, 2017 III Part
 VAT phased out in TS
 Cenvat Credit Rules, 2017 II Part
 Cenvat Credit Rules, 2017 – Part I
 How much do you know about VAT as a taxpayer?
 New tax structure not higher than VAT
 Cos will be reimbursed for exemptions that currently exist in the VAT regime
 GST will get states more than VAT
 Is it a modified Value Added Tax?
 GST regime: VAT Commissioner and CBEC to work with businesses
 Amendments in the Second Schedule appended to the Act (Delhi Value Added Tax Act, 2004)

VAT gone but riddle of derivatives traded on commodity exchanges lives on
May, 11th 2017

On Tuesday, the Gujarat assembly finally bid farewell to value added tax (VAT) after it passed the State Goods and Services Tax (GST) Bill in a special session. This may send VAT into oblivion, but an unresolved question, whether derivatives trading on commodity exchanges is liable for VAT vexes the Gujarat's commercial tax department. This issue was raised by the Public Accounts Committee of the state assembly in 2015.

According to the PAC document, on September 2, 2015, an assistant commissioner of Unit-15 of the commercial tax department raised a mammoth VAT liability of Rs 3,781 crore against a leading brokerage firm involved in derivatives trading on various commodity exchanges. The order claimed that Entry 54 of List 2 of the Constitution empowers the states to levy taxes on the sale of goods other than newspapers.

The assessment order ran into 526 pages and stood its ground that "derivatives" itself meant that it derived its value from the underlying commodity, for instance like crude oil. "The sale of a derivative of crude oil is not the sale of crude oil. The derivative itself is the good which is being continuously bought and sold without buying and selling of the underlying commodities." The document also carries the opinion of the Gujarat's advocate general who opined that, "derivatives are certainly goods for the purposes of the VAT Act. However, Entry 90 of List 1 empowers the Union government to impose tax on transactions in stock exchanges and futures markets and there was a supposed conflict between the two entries." The advocate general further opined that the above conflict can only be solved in a court of law.

The PAC, which was then chaired by Shaktisinh Gohil, informed the assembly that the mammoth assessment order was blatantly set aside by the appellate authority of the commercial tax department without a proper reason and it questioned the legislative competence of the department.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - We Bring IT. Offshore software outsourcing company. We use Global Delivery Model (GDM) and believe in Follow The Sun principle

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