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Consideration and supply: participant donations for charity marathons are not quid pro quo and should not attract GST.
Whether donations from marathon participants are consideration for a taxable supply under GST: the Authority held donations taxable because most funds were spent on event management rather than charitable activities, but the author argues the correct test is the receipt side-whether a supply and quid pro quo existed-emphasising that participant donations are symbolic and not payment for services, and noting unconsidered input tax credits paid on event services. (AI Summary)
Date 26 Mar 2019
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Cash receipt restrictions require non-cash payment methods and impose equal-amount penalties, possibly deterring voluntary disclosure.
Sections 269SS, 269ST and 269T mandate non-cash modes for acceptance, receipt and repayment of specified sums (including advances relating to immovable property) and permit limited exemptions; section 271D imposes a penalty equal to the amount accepted in contravention of section 269SS. The article argues that the strict penalty and mode restrictions may discourage truthful disclosure and unintentionally sustain black-money circulation, suggesting legislative modification to incentivise disclosure while enabling the tax administration to trace and tax counterparties. (AI Summary)
Date 04 Jan 2019
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KUMAR JAGADEESAN
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November 2018