Manufacturing Services

  • Impact on Output Pricing

  • FOC impacts to be factored in supply
  • Exemption forseen for schools, UN, SEZ only

  • Impact on Supply Chain Management

  • Branch transfers taxable
  • Salary of supervisors / seniors handling supply across different states may pose a problem

  • Impact On Place of Supply

  • Place of Supply shall usually be the location of recipient.

  • Impact on Registrations

  • Separate registrations in each state
  • ISD registration in case of common input services
  • TDS deduction by customer may impact decision of registration

  • Impact on Cash Flow

  • Advances made taxable
  • Vendor / Customer discounts to be examined for tax impacts
  • Impact on tax in case of provisioning by customers

  • Input Tax Credit

  • Input of Credit on consumables may reduce operational costs
  • Credit of State GST restricted in certain cases

 

By | 2017-04-06T10:48:50+00:00 November 5th, 2016|GST Wise Implications|

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