Reality of GST Savings on buying Smartphones | CA Sahil Jain
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- Опубликовано: 30 сен 2021
- In this video, I've explained how your might not save to the extent of entire GST while purchasing a smartphone even if you're made to think that way by some businesses.
We've done a detailed discussion of Section 18(6) in this regard.
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Food for thought:- Analyse Section 7 of the CGST Act, 2017 properly and then tell me if GST implications will be there if I sell the furniture of my business for a consideration, 7 years after its purchase.
Happy learning ♥
Kidney bechna padega
As it is for consideration and is duly covered in illustrative definition of business u/s 2(17/.
It will be taxed under gst.
Subject to it is purchased for business and used in business previously, if purchased in personal capacity no gst is levievable as business test fails to satisfy section supply Meaning.
@@caakshayparakh4919 true
Yes sir it will be supply of goods
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 considerations by a person in the course / furtherance of business.
Permanent transfer or disposal of business assets (PTOBA) where input tax credit has been availed on such assets.
(a) There should be permanent transfer or disposal of business assets
(b) Transfer in kind of permanent in nature
(c) ITC has been availed on such business assets
Business assets including non -current asset & current asset ( stock) also
Temporary transfer of business assets without considerations not covered
Hence GST implications will be applicable
We generaly sell mobile phone and other electronic in cash after using for some times so theres no way govt gonna know about it , your video is theoriticaly correct but practically we will save every bit of tax on prduct .
But it tells what happens
Exactly 💯
Sir has already explained that scenerio in one of his previous videos.
Nice
Yes right later we sell it on cash
Being an engineering student its really helpful for people like me to get knowledge in this sector as well, Very well explained, Thank you 👌
I am in 12th and have taken Sci still binge watching his videos.
@@rahulkapdi_ me too, but i'm not getting half of the portion, also not able to recall.
0:51 bahot hi badhiya bahot acha laga sun kei, saare consultancy fees aaj hi clear karwa dijiyega😝😝
1:08 CA EXPRESSION- HA BETE AB AAYE NA LINE PEI 😏😏
That thumbnail 😂😂 aunty in iphone 😂😂
I was about to say that only 😂😂😂😂😂
Government be like:Hamko milke pagal bna rahe hai sale *********** ke bacche😂
Yaa really 😂🤣
🤣🤣🤣🤣 yrr sir bohot savage haii pakistani aunty ka thumbnail 🤣
Ye sabhi milke hmko.......bna rhe haiq 😂😂😂😂😂
Thank you Sir for adding subtitles. Now I can fully understand what you says.
It's almost impossible for dept to know whether the phone is sold or still in use. Can only be caught if dept wants to physically verify 2-3 years down the line which is very unlikely to happen. Hoga bhi toh 1% log ke sath
Sir can I sell the product I purchased online from my shop with gst bill?
at the time of physical verification, can't you say, phone was damaged completely?
@@nkalra0123 even if it is damaged/stolen, you have to reverse proportionate itc to the govt as per gst law
Yes we can sell it for cash😁
Yes it's impossible... 20k ke liye govt apna time thodi kharab karegi govt ko nazar crores pe hai🤣
Sir...Sec 7(1)(a) specifies that any activity for consideration in course or furtherance of business is Supply. Further business includes acquisition or supply of goods including capital goods. Hence, to conclude, sale of furniture is a supply and attarcts GST
Thank you sir, I’m a businessman, and I like accounting a lot and video helped me a in understanding gst input. I have searched alot for this topic and got the perfect answer by you. Subscribed.
Thank you, have a nice day!
even a non commerce background student would have loved the vdo....great info sir....Thanks !!
Dear SIR, #RESPECT...
please keep on posting these kind of videos, Aiding in understanding the subject we read, practically...
Thank you so very much...
I already knew it. You've covered this thing very well in the revision marathon.
Sir is always bringing useful information from trending topics ie. iPhone 13 😆 amazing blend of teaching with updated information and creative content
*i cleared my ca intermediate because of your marathon sir, you are a true gem*
Do make a video on this topic, everyone of us want to know, how your communication skills are so brushed up whenever you speak it feels like to go on listening to you, do share the secret with us and along with our articleship,classes and studies how to improve our soft skills?
Yes, i also cleared with exemption in tax .
Marathon videos helped a lot.
Congrats to both of you🎉😊
Thank you. Being a young Dr I didn't have much knowledge about taxation and money.
But your videos are easy to comprehend and practically applicable.
Are doctor ho toh doctor hi raho... CA kyu ban rahe ho... Uspe dimag lagane k liye h na hum... Hum toh nahi dekhte medicines se related videos...😂
@@CAChaitanyaPathak 😅😅
Not for professional use but for personal use. No intention and energy to leave medicine.
As we are never trained even a bit about these issues. And seem complicated from other sources unless one simplifies.
@@rgupta3864 Are don't take it seriously... Majak me bola tha...😅
It's good for doctors to know something about laws because they shiver more than ordinary person because they have a lot of money to loose
@@maithilisharma8301 bhai yeh afwaah h, Dr. starting me bht gareeb hote h🥲
Practically speaking , how will the dept know that I’ve sold the phone if I sell it for cash in local market?
point
dude everyone needs invoice to tb pta lg jayega na unki purchase me.
agar sidha bech dia without invoice to fir unethical evasion ho jayega
@@kritishchopra7920 even If I sell with invoice , how will the dept know I’ve sold my phone ?
@@kritishchopra7920 what is we lost invoice ? Then
PRACTICAL LIFE IS DIFFERENT, IF A BUYER WANTS AN INVOICE THEN THERE IS A LOT OF WAYS TO ARRANGE AN INVOICE.
Wow! Great video! You are a true inspiration to students like me!
I wanted to ask you this... Sir, are you ambidextrous? I have seen you writing in both right and left hands!
You a real Content Creator out there in this youtube community!!!!Keep making such practical videos,Sir❤️
Respect💯
Thank you so much Sir. You explain very well.
Sir you are the best,given us the practical exposure😊
Nicely explained sir, it was very simple to understand... I recently purchased Graphics cards and a phone so this was helpful to understand the process. I haven't sold any of my previous phone(kept as a collection) so that wont be an issue :)
You can sell the phone and graphics card, just use cash only. So the department can't know
@@Knoah321 yehi baat iss baklol CA ne nahin bataya. online jhamala choro, bill gst invoice nahin dene se sarkar ko toh malum nahin hoga naa.
Sir but what if businessman Sells the Goods in Cash before the CGST timeline of 5 Years..
Yeah same ques
Toh koi frk nhi pdega govt ko pta nhi chl paayega
If other person doesn't ask for the bill inorder to claim tax return and the deal is made in cash and the owner of the phone keeps it on the bs for the remaining years, govt wouldn't know this
@@harshul9408 2nd hand goods pr konsa tax return milta h?
@@Sahil-kh4sm 2nd hand ,3rd hand doesn't matter....
If u use it in ur Business, then u get Itc of it
& when u sell ur Business asset then as per law u have to charge Gst on Sale price & Reverse proportionate ITC
This is what Law says
(Practically cask mai bech sakte ho )
Thank you for your most valuable knowledge professor
Brilliant Explanation Sir ,
Hats off to you 👏👏
never seen someone having so much knowledge
in his field as you are 💯💯😅😅😅😅
your editor deserves some raise
Explained it so simply and creatively ❤❤
Even I was thinking to buy an iPhone like this. Really appreciate for clarifying the topic. 👌🏻👌🏻
But the example of phone is really difficult to prove as the department is not gonna keep tab when I am gonna sell my phone. Even Nowdays most people instead of selling it exchange the phone so quite difficult for the department to find about it.
But as always quite informative video.
Did you find out the answer?
Brilliant explanation! I went through 100s of videos trying to understand this but nobody explained it as comprehensively as you did. Thank you Sir!
WOW ! The way you explained it. you just remind me of my accounts teacher back, when i was in school.
Hi Sir very informative video, i just have a small query can i use any credit cards of my cousin while ordering capital goods to avail itc. Or transaction should be from my account only
Some people buy things without invoice at a cheaper rate where they don't pay gst. Can you please explain the implications for both the buyer and seller on what happens afterwards?
I have a few doubts could you please clarify...
Let's assume I have 2 friends and one of them has business account.. now the other friend bought an iPhone for personal use from the business account of the friend.. he got itc and the friend got discount.. in this following scenario I have the following questions
1) who will be liable for tax if the person sold the iphone in 2 years, the business account owner or the person who sold it..
2) if the person is caught and the IT gets to know that it was not for business use but for personal use of his friend and says that the friend was his former employee and the phone was given to him then, will gst still be levied...
3) if the person shows 20k itc however has less otc , what will happen...
I am not from CA background (I'm an Engineer ) so sorry if any of the above questions are basic.. I like how you explain stuff about gst and taxing..
Thank you so much for English subtitles... Thank God 🙏 My God finally solved my problems. God bless you 😇 sir.
Thanks for making this video I really need it . I was soo confused about it .🙏
The GST is kind of useless, as it doesnt let you take the credit for many such cases.
For example, you buy a luxury car and pay 28% tax and you are not allowed to take the credit.
Kind of stupid.
Anyways, makes sense why so many Indians are leaving this country.
BTW, new video idea for you - GST ITC SAVINGS WHY NOT POSSIBLE ON SUPERBIKE OR SUPERCAR
Luxury car is not for any need of business purpose and if have some useful thoughts then share with gov fm and about brain drain we are seeing what happens those people
Jitna yaha bol lete hain utna waha goonge ban jate hain
Yahi hai azadi jyada hi view rkhne ki
@@dubeyg80 Why is a luxury car not for any need of business? If that's the case, then neither is a fleet of S-Class Maybach required by govt. officials.
@@its.inframe no govt officials uses luxury cars okay
President and prime ministers have their own fleet and they are not exempted by gst
First learn then speak about any subjects
@@dubeyg80 Not talking about their exemption of GST, just stating the fact that they do use luxury cars. I don't know about your state but in Delhi majority of the govt officials I have seen do have some sort of vehicle (if you count it as a luxury vehicle based on its price) which definitely isn't required either for their "business"
Why should Government be allowing ITC on Luxury cars or for the sake of any such goods used for personal purposes, however, purchased in the name of the business? If it does so, every person having GSTIN would avail ITC not allowable on B2C purchases and there will be loss of revenue to the Government.
ITC on cars is allowed to a person engaged in activities related to his business. Say, for example, a dealer of Cars in terms of section 17(5).
Sir, How can a specific sale of asset be traced back to the origin? The law has covered the loophole impressively but there is still huge scope of non- detection. Thoughts?
Exactly .. if you sell it to someone else or on OLX .. there's no way it can be traced ... So practically u save all your money
Exactly. Are me to friend ko de dunga for little cheaper price 💀
Thankyou very much sir , this video was very informative .
Good to know info 👍🏻👍🏻👍🏻 love the content
I am in foundation! & So excited to learn all this mind blowing concept!!
❣️
@@meetbhayani Yup
Sir you are a true inspiration to students. Could you please tell if you'll conduct physical classes for 2022 batches and if yes then where ?
Thanks for the love Rohan. We are not conducting Face-to-face classes this time since the batch will have to be halted if even a single person from the staff or students gets infected with COVID. We will conduct the laptop/android based batches only for 2022 attempts.
@@TaxationWithCASahilJain Thanks a lot Sir for informing : )
Didn't know this. Thanks for sharing Sahil!
Bro your videos are very detailed and informative .
Lists of other finYTbers i watch told same thing but they were never able to provide detialed info.
Hats of to you.
Sir how would department even get slightest of idea regarding the sale of product purchased on which ITC was availed.
Usually isn't cash is the most sorted method for transferring of 2nd hand goods?
When we purchase any electronic equipment, it's usually sold as scrap in cash unless it's an exchange offer.
Is my contention correct?
Same doubt
What is the phone gets lost or stolen ?
@@jagjithoney That's immaterial.
I also have a similar contention , what if we sold the asset for 2 nd hand in cash and keep the asset in the B.S till the end of 5 years charging Depreciation each year.
Income Tax Department would not check whether I am still using the asset or not.
Is my Contention correct??
Agree with you.
I don't think government will waste their resources to find out ITC fraud worth 20k(in given case of iPhone) rather than focusing on fake ITC invoices worth thousands of crores(which has became usual practice)or just focusing on pouring other big loopholes .
Hi Sir, My CA says that its unethical to get GST input on the Mobile device as you can not make sure that it is purely used for business purposes. If you take the GST input one day govt will issue a notice. How true is that?
Then ask him about computers, we can't be using it purely for business purposes, thoda fb or insta use kar ne ki liye anyways
thank you for explaining it so clearly!!
Thankyouu for such quality content sir🙏🏻🙏🏻
Sir, this same concept I have handled in my articleship period. My CA sir explained this to the owner of a winding up company. After listening & also getting the workings done on ITC reversal, it arrived @ paying lakhs together, so he said OK & went away. But, some other so called professional CA; mind washed that owner & promised to retain some of the ITC back in the account & filed successfully. I believe department will definitely know what had happened & come to the conclusion some or the other day.
Departments only concern is big transactions ...they do not look into such nitty crities . These things happen daily
@@sahil3846 I agree. But, it's a company after all. & sold goods are all capital in nature. Company got windup too.
One or the other day department will get to know & reopen evrythng
@@sahil3846 You is telling in lacs transaction is small value?
@@rexsongodinho5623 yes
@@rexsongodinho5623 ofcourse it is
I am using indian iphone /laptop for buiseness without gst sometimes ,can I still claim in ITR expenses?
No. You cannot claim input
Yes deduction as depreciation would be allowed
I need only to count as expense ?
Damn....this was an eye opener. 👍🏼
Sir does gst input applied on cars too?? if yes pls elaborate through another video
Sir govt ko pata kaise chalega ki maine phone sell kr di and time of sale?
If i given to my brother after use
Please help me out here:
What if someone doesn't sell the product? He still ends up saving the entire GST amount? Which is a whooping 18% on iPhones
Also, What if he sells on OLX or somewhere like that for cash handouts?
Isn't this too easy for almost anybody with GST number to exploit this?
If any criminal activities are done by that person then police will catch you as you are the actual owner of that commodity. Just a thought I haf.
@@MrSingh369 I am more interested whether this loophole is exploitative or not.
Sir your topic selection for these short videos is excellent !
Thanks for the explanation
Sir jaise apne video mai btaya ke gst itc kar sakte hai…. Agar sir humne mobile ko 2 saal tak use kiya then after humne mobile sell kar diya cash transaction se toh bhi hume remaining 3 saal ki gst input ko cost mai add karna rahega? Or agar humne cash transaction se sell kiya toh IT ko toh pata hi nahi chalega na…
Pata nahi chalega, par jab tum ek aur phone khareedo ge GST pe aur ye dikh jaaega Department ko
Phir hum itc file nahi kar sakte na 5 years tak ?
@@hiteshsatwani0520 Kar sakte hai, itne chote amt me normally notice aati bhi nahi hai. But aise pakde jaa sakte hai ye bol raha hu
@@saadjsayed ok sirji👍🏻
@@hiteshsatwani0520
Sir ye jaruri thona h mai apne business ke liye ek hi laptop lu 5 years ke duration me ek aur laptop le sakta hu business expand karne ke liye. Kya ye scam hoga ya ess case me mujhe GST benefits nhi milega kya?
Sir what if I show the same as business and promotion expenditure instead of capitalised the same?
In such case one gets benefits of itc 😎
But then you won't be able to claim depreciation, so the major reason to use this technique would go in vain.
Depreciation of 60% on laptops and 15% on phones along with ITC of GST is a fair deal I think.
Then I get 100% deduction as expenditure so why do I go for depreciation and I claim itc as well.
Depreciation on computers and related devices has been changed to 40% now.
And mobile is covered under plant and machinery.
Normally promotion expenditure are covered u/s 37(1). Section 37(1) says that any expenditure (not being expenditure of the nature described in sections 30 to 36 and not being in the nature of capital expenditure or personal expenses. So I think AO will be disallowed as it is capital expenditure.
@@nikkibhatt yes correct !!
Ohh yes my bad, it's 40% & 15%
But if 100% expenses are claimed and if it results in losses being C/F it would be flagged by IT department and will come under their eyes (or if amount is large- scrutiny). And that's the last thing any assessee wants (except for professionals xD)
Also 37(1)(b) Expenditure should not be of capital nature.
Also sales Promotion expenses are being allowed based on percentage to sales when such expenses were allowed on similar ratio in preceding year provided complete information and nexus is established to the business
Worth-full 8 mins of my life....learnt something very knowledgeable & useful...mazaa ayaa.
Please continue the series.. you are a gem
Me jis mobile se Ye video dekh rha hu wo 6 saal pehle papa ne dilaya tha CMA foundation pass karne par , aur yha log 118559 rs. Ka phone 2 saal me hi bech dete hai 🤣🤣
Bhai toh ab aap kya CMA ho kya?
@@yashtawar4977 Bhai Final ka 4th Group Rehta hai, Dec,21 me exam hai
Sir is it necessary to show that ki wo mobile phone hamne sale kar dia hai... Most probably second hand phones off paper hi sale hote... Then waha pe to save ho jaega na?
"VALUE OF SUPPLY" padh lena GST mein. 😃
@@rishabhchaurasia5176 explain kr do aap padh chuka hu mai
If you have taken ITC on the phone you will have included that asset in your balance sheet as an asset.if they come for audit they may enquire.
And to claim ITC your supplier will should file GSTR-1 which will be displaying in your GSTR-2B
Aise ni hota yar audit ke time pkda jayega
fewer words and a powerful message.....nice vedio sir
thanks a lot sir ... very useful information ....
Just one correction sir (Please forgive me), The reversal will be based on Quarterly basis, and not yearly basis (5% per quarter or part thereof will be allowed to be retained. Remaining will be reversed).
You’re correct. But I never said that the reversal is done on annual basis.
I just gave a rough example without getting too technical so that it is easy for even a layman to comprehend.
@@TaxationWithCASahilJain Agreed Sir, my bad
Question of the day :why you have deleted your recently uploaded tax saving video on shares ? Was it incorrect ?
If yes then pls tell the problem in that thing
New thing to learn. Thanks a lot.
Very informative video 👍🏼❤️
Sir practically when i ll sale the iphone, i wont show in the books itsef, bcoz either i ll take cash or exchange my existing phone with new phone, again on which i ll claim gst paid as itc on new phone..
To sir poora gst claim ho gya..
Theoretically what u are saying is valid, but practically it wont happen this way ever…😀😀
So if I buy a phone claiming gst then I can resale it for cash?..or can I exchange the phone for buying a new phone?..if I do exchange can I claim gst on the new phone too?
@@MB-eg7ip yes u can claim itc both ways..if u would have sold the phone for cash, then dont show this cash in books...no one will ask for this cash bcoz it ll be in thousands only...no big deal...but make sure that the new invoice is shown at full amount(ie, excl the exhange of old phonne or refund) bcoz if it is on net basis then u ll claim only balance itc...
eg_ new iphone-1.2L...u have old iphone which can be sold/exchnged for 20k...u ll ask seller to provide 20k in cash or adjust when u buy new iphone..u can do whatever u want just that ask the seller to prepare the invoice at 1.2L only and not 1L bcoz u can get itc on 1.2L full amt...u can take credit note/refund or whatever separately in diff invoice or in separate billing...
Amazing thumbnail sir 😂
Sir on computers and laptops the depreciation is 40% pa.
In this case how does the calculation of GST and ITC work ?
subscribed, thanks for the info...
Sir can you please clear how much depreciation we can claim on Smartphones? And can we claim both ITC and Depreciate at the same time?
Thank you in advance
Depreciation would be exclusive of ITC if claimed.
Smartphones fall under other plant and machinery category and are subjected to 15% rate of depreciation.
Sir America se jaake le aayenge 81000 ka mil jaayega iphone 13 pro max😂😂
I have a question sir ?
what will happen when capital goods is damaged and you are not using it?
Why his head is magnified!??
The question explained very well btw! Thank you!
Sir itne sweet hai, yeh gussa kaise krte honge 😁😂 even gaali bhi bolte honge toh kitne sweet karike se bolte honge 😂😂
at 7:05 - awesom punch line 😂👊
Aaj kuch naya sikhane mila... Thank you sir ji... 👍❤️🙏🏻
Sir, for Nil rated Goods( Panner or sweet corn) of GST in GSTR1 which tab we need to update for B2B or B2C transaction.
if its for customers then b2c.if it is sold wholeale to other business owner b2b with proper record's of transactions.well currently there is gst on paneer.check it.
thanks for the video it helped.
very informative, thanks.
I like your videos even I am not from finance background. from every video I learn something new. Thank you for making such a great content. I would like to ask one question regarding this video, what if I bug mobile phone get GST return, but I will sell after 1 year, I will sell phone to individual who is not think about GST and all. at that situation, what will happen? Thank you.
I’ve a question can we legally Claim gst even if we use the capital good (phone laptop etc) for official use?
If yes how to make sure we are not debited again during gst audit !
Sir, what if, if capital goods purchased in earlier tax regime & not claimed ITC and now selling in GST?
Explained beautifully 👌
Love you very much Sir 😘😘😘aaj tak sar phoda,lekin ye samajh nahi paya tha... Ab practically samjha,aur yakeen nahi hua itni se baat ke liye itna dimaak kharaaab kiya tha... Thanks very much
Brilliant yaar... I love your videos....
Really u r great teacher...❤️
i have no problem. coz i buy the things, I actually need so It's with me forever until it dies. ❤️
Very good information thanks a lot 👍😁😁
Nicely explained!
Sir, what if the capital asset got damaged or discarded (not sold or transferred) before the expiry of 5 years???
Informative video
Great job sir
Thank you sir for adding sub titles
The way you explain the taxation is awesome sir.
Sahil Bhaji bahut vadhia....ghaint explanation......Dhanwad ji.....
Hanji good evening ur videos never fail us sir!
Very well explained.
Very well explanation ..