Chartered Accountant with hands on experience in Indirect Tax issues affecting construction & Real Estate sector. Worked as a Research Executive, Indirect Taxes at Sandesh Mundra & Associates from September, 2017 to April, 2019. Served Builders’ Association of India, a National association for contractors, as a Co-chairman of Taxation Committee for FY 2019-2020. Authored “GST on Builders and Real Estate Transactions" published in 2018 by Taxmann. Authored “Simplifying Multi State VAT on Works Contract” published in 2015 by Young Global at the age of 19. Knowledge Support in development of a tool “GST Builder” to monitor the impact of GST on ongoing contracts. Acted as a speaker on various topics like GST impact on Affordable housing, Indirect taxes in present and earlier regime, Audit under GST in Internal Seminars, Study circle meets organised at Ahmedabad and State Government Training Institute at Ahmedabad. Writing Articles for Real estate and Construction sector for various magazines.
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Director liability cannot be imposed without lifting the corporate veil; burden rests on revenue to prove director responsibility.
Directors of a public limited company cannot be held personally liable for service tax or GST dues absent lifting the corporate veil or satisfying statutory prerequisites; where statutes impose joint and several liability for recoveries from private companies, the department must first establish company liability and then prove that non-recovery results from a director's gross neglect, misfeasance or breach of duty, with non executive directors excluded unless responsibility for conduct of business is shown. (AI Summary)
Service Tax
Doctrine of mutuality bars GST on interest-free maintenance security until the deposit is appropriated as consideration for services.
IFMS collected by builders is not taxable on receipt because under the doctrine of mutuality transactions between societies and members are not supplies and, under the CGST definition of consideration, a deposit is excluded from consideration unless the supplier appropriates it as payment for a supply; GST becomes payable only when the deposit is applied as consideration for services. (AI Summary)
Goods and Services Tax - GST
Director liability for tax recovery: private company directors can be held jointly and severally liable under GST provisions.
Recovery of service tax from directors was previously impermissible without statutory authority or clear factual findings to pierce the corporate veil; courts require positive material, personal show cause notices and proof of active involvement, misfeasance or fraud before imposing liability. The GST framework, however, treats amounts confirmed under earlier law as recoverable arrears and provides that where dues of a private company cannot be recovered, its directors during the relevant period may be jointly and severally liable unless they prove non recovery was not due to gross neglect, misfeasance or breach of duty. (AI Summary)
Service Tax
Re-import exemption: IGST not leviable on jewellery returned from exhibition abroad when the outward movement is not a supply.
Re-imports of jewellery sent abroad for exhibition or on consignment do not attract IGST where the outward movement was not a 'supply' under the CGST Act and no integrated tax was paid at export; such cases fall under the residuary exemption entry of the Customs exemption notification rather than the clause requiring IGST payment at re-import, provided re-import occurs within the prescribed timeframe from the delivery challan. (AI Summary)
Customs - Import - Export - SEZ
IGST on re imports may be demanded where initial export availed LUT exemption, challenging re import exemption under customs rules.
Customs has issued demands for IGST, interest and penalties on re-imported precious and semi precious studded jewellery, rejecting exemption under Entry 5 of Notification No.45/2017 on the ground that the goods were initially exported under LUT availing IGST exemption; Customs contends Entry 1(d) applies so IGST equivalent to that leviable on initial export must be paid. Re imports follow SOP dated 29.03.2016, section 20 Customs Act governs liability, and Notification No.45/2017 prescribes conditional re import exemptions with specified table entries. (AI Summary)
Customs - Import - Export - SEZ
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08 Oct 2020 
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