Does loan include VAT?
A: VAT is in terms of section 7(1) of the VAT Act is charge on the supply of goods and services. In our view a loan and the interest thereon constitutes a supply of money and no VAT is chargeable thereon.
Who is an accountable person for VAT?
taxable person
A person who is required to charge VAT in the State is referred to as an accountable person. An accountable person is a taxable person (for example, an individual, partnership, company) who: supplies taxable goods or services in the State and ● who is, or is required to be, registered for VAT.
At what point is VAT due?
If a VAT invoice has been issued 15 days or more after the date of supply, the tax point will be the date of supply. If a payment is received or a VAT invoice is issued in advance of the supply being made, the tax point will be the earlier of either the date payment is received or the invoice date.
What are the exempted goods under VAT Act?
VAT Rates in India Nil: Goods and services that fall under this category are exempt from VAT. These are mainly items that are basic and sold in the unorganized sector. Examples of such items include khadi, salt, etc. 1%: VAT is charged at 1% for the items under this category.
Is VAT charged on loan interest?
The lender will usually charge you a loan arrangement fee in addition to the other costs. This charge is exempt from VAT, so there is no input tax to claim on the fee.
Is VAT charged on interest received?
While all fee-based financial services are subject to VAT, interest charged is exempt. In the case of an exempt supply made by a vendor, the vendor does not charge VAT on the supply and is not entitled to a deduction or credit for the VAT paid on goods and services supplied for the making of the exempt supply.
Who is a taxable person for VAT?
In the context of value added tax (VAT), a supplier who has made supplies over the past 12 months exceeding (or there are reasonable grounds for believing that such value will exceed in the next month) the registration limit.
How do I know if I’m taxable for VAT purposes?
You must register for VAT if your VAT taxable turnover goes over £85,000 (the ‘threshold’), or you know that it will. Your VAT taxable turnover is the total of everything sold that is not VAT exempt.
Should you accrue for VAT?
An accrual is a liability of the business. If your business is registered for VAT, then you always account for accruals net of VAT.
Can I back date a VAT invoice?
There’s a time limit for backdating claims for VAT paid before registration. From your date of registration the time limit is: 4 years for goods you still have, or that were used to make other goods you still have. 6 months for services.
What is exempted turnover in VAT?
Businesses with a turnover of less than Rs 10 lakh may now be exempt from VAT. If implemented, the new threshold limit will remove various small businesses from the VAT net. It will also neutralise the residual political opposition to VAT from states like Uttar Pradesh and Tamil Nadu.
Which section deals with supply of goods?
Supply in further terms has been defined under Section 7 of the Act, as “all forms of supply of goods or services or both such as sale, transfer, barter, exchange, license, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business”.