Page 32 - Chapter 2.cdr

Compensation received in the form ii) Renting of immovable property 2,00,000 18,000 18,000
of petroleum silt, which, as per the
p r o v i d e d b y t h e S t a t e
CH 2 contract with the Government, is
part of cost petroleum Government to Sukhdev (a
Charge of Tax & Concept of Supply
II 6,00,000 NIL NIL registered person)
[ C o s t p e t r o l e u m i s n o t a
consideration for service to the
iii) Assignment, by the State 2,00,000
Government and thus, is not
Government, of the right to collect
taxable.]
royalty from mining lease holders
Sale of petroleum silt to a SEZ
iii) 6,80,000 NIL to the extent the exemption is not
developer
[Supply to SEZ developer is a zero- available
rated supply and no tax is payable Total tax liability on inward supplies 27,000 27,000 2,00,000
on the same if made under a
under reverse charge
bond/LUT.]
C) Input tax credit 18,000 12,000 60,000
iv) Consideration for transfer of tenancy 8,00,000 72,000 72,000 Opening balance
rights
I n t e r - S t a t e Since the goods 6,00,000 30,000
[Transfer of tenancy rights to a new
p u r c h a s e o f and services are
tenant against consideration in the
machinery used for effecting
form of tenancy premium is taxable
even though stamp duty has been Legal services taxable supplies 1,00,000 9,000 9,000
paid on the same.] including zero 2,00,000 18,000 18,000
R e n t i n g o f
rated supplies, full
v) Sale of self-fabricated machinery 9,00,000 22,500 22,500 i m m o v a b l e
ITC thereon will
[Since open market value of the property
be allowed.
machine is not available, the value Assignment of 2,00,000
will be 90% of the price charged for right to collect
the supply of machinery by the agent royalty
to his unrelated customer.] Total ITC
45,000 39,000 2,90,000
[ITC may be availed for making zero
Total tax liability on outward supplies 2,02,500 2,02,500 rated supply even if such a supply is an
exempt supply. Sale of petroleum silt,
B. GST liability on inward supplies under reverse charge being a non-taxable supply, is an exempt
Legal services provided by a firm of supply but since it is also a zero-rated
i) 1,00,000 9,000 9,000
advocates to Sukhdev, i.e. a business supply, ITC can be availed for making
entity such supply.]
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