In your case it is advisable to go for composition scheme. Otherwise it may lead to heavy litigations in the future to prove the same.
Itc reverse
Iam having sweetshop... i used to claim itc of raw material used in making sweets.. my question is that daily i used to throw sweets which gets expire due to perishable nature.. so do i have to reverse itc on that thrown sweets raw material used in making ? Bcz according to gst act one have to reverse itc on disposed of things... so do i have to.. and isn’t is very cumbersome.. how can i avoid it?
Asked 4 years ago in GST
Dear Sir,
Hope you are doing well !!
It is advisable to go for a composition scheme to avoid future litigations.
Hello,
To avoid such a cumbersome process, you can switch to the composition scheme.
I hope that this answer satisfies your requirements.
Regards,
CA Hunny Badlani
You must keep the stand that the material thrown was of no use and it could not be sold and thus being natural loss no need to reverse the ITC.
Also there is no way an officer can suggest to reverse such ITC.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you.
Hi
In my opinion, you need not reverse such ITC. What you dispose off is finished goods. The raw materials have been used in course or furtherance of business. Such disposal is in normal course of your business.
Iam having a business and its under audit.. iam having agriculture land also.. 1- iam not doing any agriculture on that land bcz busy in business so do i have to pay deemed rent on that agriculture land as per Incometax? 2- secondly if i give that agriculture land on contract to someone and the yield is shared 50 percent between the two.. so do i have to deduct tds on the 50 percent yield share value given to the plougher under contract? Just bcz iam having side business running
Asked 4 years ago
Dear Sir,
Agricultural income earned by a taxpayer in India is exempt under Section 10(1).Agricultural income generally means:
Agricultural income generally means:
(a) Any rent or revenue derived from land which is situated in India and is used for agricultural purposes.
(b) Any income derived from such land by agriculture operations including processing of agricultural produce to render it fit for the market or sale of such produce.
(c) Any income attributable to a farm house subject to satisfaction of certain conditions specified in this regard in section 2(1A).
(d) Any income derived from saplings or seedlings grown in a nursery shall be deemed to be agricultural income.
No deemed rent on land.
Thats an expense related to agricultural income and it is not covered under business or profession and hence no TDS is required to be deducted. Also it will not be covered under definition of work under section 194C
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