Detailed Consulting assignment completed for Investment by Indian Company in Singapore, Malaysia, Sri Lanka for its business projects

Investment by Indian Company in Singapore, Malaysia, Sri Lanka

Study included the study on relevant DTAA

Study included study on websites of relevant Country’s own Income tax department sites ( IRS  / commercial tax dept etc)

Study on websites of other consultants in the line

study of RBI master circulars in this regard

and Study of Pro’s and Con’s of the Specific situation

DTAA Thailand and Singapore

Source : Singapore Govt Income tax dept website

https://www.iras.gov.sg/media/docs/default-source/dtas/singapore-thailand-dta-(ratified)(mli)(1-july-2022).pdf?sfvrsn=9cadbc65_6

Means = Zero tax in home country – Singapore
And pay tax as applicable in Thailand only

Point 3 Means = this includes the “letting” income = Rental income

( same treatment as in India)
Agreement for avoidance of double taxation of income with USA

ARTICLE 6 in India – USA DTAA
INCOME FROM IMMOVABLE PROPERTY (REAL PROPERTY)
1. Income derived by a resident of a Contracting State from immovable property (real property), including income from agriculture or forestry, situated in the other Contracting State may be taxed in that other State.
2. The term “immovable property” shall have the meaning which it has under the law of the Contracting State in which the property in question is situated.
3. The provisions of paragraph 1 shall also apply to income derived from the direct use, letting, or use in any other form of immovable property.
4. The provisions of paragraphs 1 and 3 shall also apply to the income from immovable property of an enterprise and to income from immovable property used for the performance of independent personal services.

Means = Zero tax in home country – Singapore
And pay tax as applicable in Thailand only.

Means
Will have to file ITR in Thailand regularly

Article 22 Means =
Singapore shall allow the credit of TDS in Thailand
Good
( same treatment as in India)

Second source : a private site

Taxed in state, where the property is situated

Case Study on Place of Supply for Cross State Tenancy

What is the GST on Rent of Commercial Property at Delhi ? in this case

where

1.  Landlord of Faridabad / Gurgaon / Sonepat , registered in GST in  Haryana
2. Tenant also of Faridabad, registered in GST in Faridabad ( Haryana )
3. Tenant is not registered in Delhi in GST
4. so, as per law, the place of supply is Delhi only.
5. Landlord must mention the place of supply as Delhi in the invoice. And the Tax will be IGST only
6. And, Tenant cannot take the ITC input of this tax invoice, as per law.
7. This is valid and correct interpretation of the law

Any method, to save the GST for tenant ?

He can get ITC only if he takes GST registration in Delhi

There is no other legal method

How to Make the Invoice and how to File the GST Return (by landlord )

in the invoice, the landlord can put the tenant at Delhi address and without the GST number, since Tenant has no GSTIN in Delhi anyway.

IGST is levied = OK

This becomes like a B2C invoice = OK

Tenant does not get the GST2A entry for this and does not take inputs of this = Ok

Till the Tenant gets a GST registration in Delhi, this is a good method,

Any compulsive need of Landlord taking GSTIN in Delhi ?

No, not required in this situation.

Tax ALERT

This is normal yearly Quarterly SOP. Nothing new. But sending this reminder only for ready reference.

We all know that we must pay advance tax before the financial year ends in 4 instalments: 15th June, 15th September, 15th December and 15th March.

This is not applicable if your Tax due is nil, of Tax due is less than the TDS already deducted by your customers etc.

Points to remember

1. Is this on estimate basis ? Yes, make your best estimate .
2. This is 15% of the Annual Tax payable by 15th June for FY 22-23
3. This is not applicable if your Tax due is nil, of Tax due is less than the TDS already deducted by your customers etc.
4. What will happen if you dont pay in time ? Govt will charge a bit of interest… this is approx 1% p.a. ( for a block of 3 months, in 1 go )
5. How ? Online only
6. Site name = either your Bank account will have a link, or
7. Official sites are : https://incometaxindia.gov.in/ and
8. https://incometaxindia.gov.in/Pages/tax-services/pay-tax-online.aspx

Benefits of Paying Advance Tax
1. Avoidance of interest and penalty charges
2. Better cash flow management
3. Avoidance of last-minute rush and stress
4. Avoidance of default notice by the tax department

SO
PLS AVOID LAST DATE. and pay in time, as per normal annual SOP.

CA Articles Training Dated 17-4-2023

Things we discussed in our Weekly Training today ( Every Monday 9 am )

===

Google Calendar, Must use

both on Phone and on Laptop/desktop

Good to maintain appointments, and maximum utilisation of your future time.

===

GST 3B, last returns of 22-23 ( March 23 ) Learn as much as you can, and repeat, every month…. when the time is gone, and next week you  have some somewhere, then ask your seniors, and make GST return as if you are doing it. check with the output of the seniors.

===

CA Certificates, Learning

Certificates for Pollution Department

Certificates for Subsidy ( International Exhibition)

Certificates for Bank Loan disbursement ( for Term Loan funds utilisation)

RBI investment abroad related topics ( Indonesia topic seen)

RBI inwared FDI related Certificates

======

Better Balance Sheet, Better Audit, Better Checklist

======

CHECKLIST FOR ACCOUNTS, and Balance Sheet Finalisation

======

Ms Mansi Tyagi passes her ACCA ( UK) Professional Level Exams today. 10 out of 13 exams are over / Exempt.  Congratulations.

======

Preparation of Next Stock Audit at Faridabad Customers

Preparation of Next Stock Audit at Bahadurgarh Customers

Preparation of Next Stock Audit at Rajasthan Customers

======

Meeting closed with thanks to all