The Indian Taxation System has been largely transformed by the implementation of Goods and Services Tax. There is still a lot of financial implications that need to be understood for banks and financial services.
The govt. must also consider complete addressing of the issues faced by banks and financial service providers in order to make GST a grand success for a new India. In cases of stock-broking, the brokerage component attracts a GST which is a tiny part of the overall transaction.
Similar rules exist for shareholders.

The Cases
If a person is transferring a business to another then both the transferor and transferee will jointly be liable to pay the GST wholly or partially according to the law of the land. They must pay all the taxes, penalty, and interest as applicable. Apart from this, the transferee has to pay the GST starting from the date of transfer compulsorily.

In case of an agent receiving/sending goods and services from his principal then both the persons are liable to pay GST. If a private company does not pay the dues, then the directors of that company are jointly responsible to pay the GST wherein only the directors assuming office during the period of contributions will be liable. A director may not be held liable if he can prove that the dues were not paid due to any negligence or duty breach from him. In case of a company which is converted from private to public limited the liability may not apply.

In case of a partnership firm, all the partners have unlimited liability. The GST dues are to be paid regardless of any clause of Partnership Deed. In case the partner is retiring then the Commissioner must be informed. He/she may be held accountable until the date of retirement.

When is the payment of GST Made?
The time frame is dictated in Section 12 at the time of supply of goods and Section 13 at the time of supply of services. It is usually at the earliest of the time of receiving payment, issuance of invoice or completion of supply.

Tax is a major source of revenue for the government to run the country and all the tax dues must be cleared on time, and there are varied liabilities for different types of organizations as highlighted above. Comply wisely! Visit www.rajlaxmiworld.com