CBDT vide Circular No. 24/2022 explains in detail the employer’s obligation of deduction of tax at source from salaries under Section 192 of the Act. It broadly covers following aspects :
Such category of taxpayers may make statutory compliance of filing Form 10F till 31st March 2023 in manual form
The applicant M/s Federal Mogul Goetze India Ltd have about 3200 employees working on permanent as well as on contractual basis in its factory. The applicant entered a contract with a canteen service provider to operate and manage canteen within the factory premises. The applicant recovers a subsidized amount each month from its employees towards canteen services.
The applicant sought an advance ruling on (i) applicability of GST on subsidized deduction towards canteen facility and (ii) eligibility to ITC on GST charged by the canteen service provider.
The AAR in this case has held that the canteen services rendered by the applicant to its employees constitute ‘supply’ as per section 7 of the Central GST Act and the same merits classification under HSN code 996333 and GST at the rate of 5% without ITC facility is applicable in this case. The AAR in this case has also held that the CBIC Press Release dated July 10, 2017, which clarifies that GST is not leviable on services provided by employer to employee in terms of contractual agreement, is not applicable in this case because the clarification as per press release is applicable only in case of services provided free of cost to employees. Since in this case, a subsidized recovery is made towards canteen facility, the AAR held that the Press Release is not applicable.
Further, the AAR also held that the applicant is not entitled to ITC of GST charged by the canteen service provider because of the condition attached to payment of output GST at concessional rate of 5%.
The petitioner M/s Manappuram finance Ltd had filed a refund claim of GST paid on notice pay recovery which was rejected by the adjudicating authority. Two months after the rejection order, a favorable circular came to be issued by CBIC clarifying applicability of GST on notice pay recovery from employees. The petitioner filed a writ petition with High Court of Kerala against the refund rejection order by taking recourse to the favorable circular.
The Revenue in this case contended that the assessee has an effective alternate remedy of filing an appeal before the GST Appellate Tribunal and the petitioner can wait for constitution of Tribunal and thus the present writ petition is not maintainable.
The High court of Kerala considered the writ petition of the petitioner and held that the fact that the GST appellate tribunal is not yet constituted, cannot deprive the petitioner of justice. The HC further held that the circular issued is clarificatory in nature and thus it applies retrospectively. Considering this, the High court restored the application for refund before the adjudicating authority for fresh consideration.
Full access rights to the organization’s systems are provided to system administrators with almost boundless opportunities.This potential can harm the organization when it goes into the wrong hands. There are various number of ways that malicious insider threats can harm an organization. They can:
The organization should mitigate this to significant extent by implementing some of the following safeguards and checks,
On 15 December 2022, the Ministry of Law (“MinLaw”) announced that various COVID-19 (Temporary Measures) (Alternative Arrangements for Meetings) Orders which enable various entities to convene, hold or conduct meetings by way of electronic means will be revoked on 1 July 2023. These entities include issuers listed on the Singapore Exchange Securities Trading Limited (SGX-ST) (“listed issuers”) and non-listed entities, such as companies, variable capital companies (“VCCs”) and business trusts (“BTs”), among others.
In addition, the Accounting and Corporate Regulatory Authority (“ACRA”) and the Monetary Authority of Singapore (“MAS”) jointly announced that they are working on proposed legislative amendments to provide companies, VCCs and BTs with the option to conduct meetings by way of electronic means after the relevant Orders are revoked.
From 1 July 2023, SGX RegCo stated that listed issuers will have to conduct their general meetings in person. In the meantime, ACRA and MAS are working on proposed legislative amendments to the Companies Act 1967, the Variable Capital Companies Act 2018 and the Business Trusts Act 2004, to provide companies, VCCs and BTs with the option to conduct meetings through electronic means after the relevant Orders are revoked. Details of proposed legislative amendments are expected to be released in early 2023. SGX RegCo will work with MAS to provide guidance for listed issuers to have the option to conduct hybrid meetings.
The Accounting and Corporate Regulatory Authority (ACRA) and the Intellectual Property Office of Singapore (IPOS) have launched a public consultation for an Intangibles Disclosure Framework (Framework) to help businesses disclose and communicate their intangibles. The public consultation exercise will run from 14 December 2022 to 28 February 2023.
A public-private initiative supported by the Ministry of Finance, the Framework was developed by the Intangibles Disclosure Industry Working Group which comprises representatives from the accounting, valuation, legal and finance sectors. The Framework seeks to improve market transparency by enabling businesses to identify and disclose their intangibles. Innovation has become a global engine of growth with the value of global intangibles reaching an all-time high of more than US$74 trillion in 2021. Intangibles are the non-physical assets of a company that include technologies, brand recognition, data, trade secrets, and intellectual property (IP) such as patents, copyrights and trade marks.
The Framework aims to provide stakeholders with standardised information about a company’s intangibles, so that more informed assessments of business and financial prospects can be made. The Framework will help businesses communicate the value of their intangibles and maximise their economic potential. This will enhance information transparency and facilitate the commercialisation of intangibles, such as increasing access to financing as businesses, investors and financial institutions gain clearer insights on a company’s intangibles.
The Framework consists of four pillars:
The Framework is a key initiative under the Singapore IP Strategy 2030, a 10-year blueprint to attract and grow innovative enterprises using IA, including IP. It aims to encourage growth for companies so as to move towards a vibrant and innovative Singapore economy driven by IA.
As a general rule, purchases of goods and services from GST-registered businesses before 1 Jan 2023 will be subject to GST at 7%, and purchases on or after 1 Jan 2023 will be subject to GST at 8%.
To help Singaporeans cope with the impact of the GST increase, the Government rolled out a $6.6 billion Assurance Package earlier this year. In Nov 2022, it was announced that this package would be further enhanced to $8 billion. More details will be shared at Budget 2023.
Singaporean households will also continue to benefit from the permanent GST Voucher Scheme and the absorption of GST for publicly subsidised education and healthcare.
Ahead of the GST rate change, here are 3 things you need to know:
From 1 January 2023, the prices displayed by GST-registered businesses must be inclusive of GST at 8%. That is the final price you pay. Businesses that are unable to switch their price display overnight may display 2 prices:
An exemption is granted to hotels and F&B establishments that impose service charge on their goods and services. They are not required to display GST-inclusive prices due to an exemption to ease their operations. However, they must still display a prominent statement so that customers are aware that the prices are subject to GST and service charge.
Generally, purchases of goods and services from GST-registered businesses before 1 Jan 2023 will be subject to GST at 7%, and purchases on/after 1 Jan 2023 will be subject to GST at 8%. As a consumer, you may order an item or sign up for services but only pay at a later date. WHEN you pay for the goods and services will determine which GST rate will be charged.
For transactions that span 1 Jan 2023, GST transitional rules may apply. A transaction spans the GST rate change where one or more of the following events takes place wholly or partially on/after 1 Jan 2023:
The delivery of goods or performance of services
If a business raises its prices, it is not acceptable for the business to use the GST increase as the reason for raising prices before the GST rate change, nor is it acceptable for a business to raise prices by more than the GST increase after the GST rate change, citing the GST increase as the reason.
In a statement on Friday (2 December), the Ministry of Finance (MOF) and the Inland Revenue Authority of Singapore (IRAS) said that the Annual Values (AV) of most residential units, which include private properties and HDB flats, will be revised upwards from 1 January, reflecting the rise in market rents. The AV revision is part of IRAS annual review of properties.
The property tax payable is derived by multiplying the property tax rate with the AV of the property. As a concession, owner-occupiers enjoy lower property tax rates for their homes, while all non-owner-occupied residential properties – which include second homes and those held for renting out or investment – are taxed at higher residential tax rates.
The government will provide a one-off 60 per cent property tax rebate for all owner-occupied properties, up to a maximum of S$60, they said. “All one- and two-room HDB owner-occupiers will continue to pay no property tax in 2023 as their AVs remain below $8,000. For the majority of owner-occupiers in other HDB flat types, they will pay between $30 and $70 more in property tax compared to 2022, after taking into account the rebate,” MOF and IRAS noted. The rebate will be automatically offset against any property tax payable in 2023.
Since the last revision of AVs on 1 January 2022, market rents of HDB flats and private residential properties have risen by more than 20 per cent.
Singapore has signed Avoidance of Double Taxation Agreements (“DTAs”), limited DTAs and Exchange of Information Arrangements (“EOI Arrangements”) with around 100 jurisdictions.
Some of the DTAs have been amended by the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (“MLI”).
The MLI is an agreement negotiated under Action 15 of the OECD/G20 Base Erosion and Profit Shifting (BEPS) Project. It is intended to allow jurisdictions to swiftly amend their tax treaties to implement the tax treaty related BEPS recommendations. Singapore has worked with more than 100 jurisdictions around the world to develop the MLI and the negotiation of the MLI text was concluded on 24 November 2016 in Paris.
The MLI includes both mandatory provisions (i.e. the minimum standards under the BEPS Project) as well as non-mandatory provisions. Jurisdictions have the flexibility to determine how its DTA network would be amended by the MLI. More information on the MLI can be found on the OECD website.
Some of the DTAs provide for mandatory binding arbitration provisions or have been modified by Part VI (Arbitration) of the MLI to include mandatory binding arbitration provisions.
Singapore Exchange (SGX Group) today launched the SGX Sustainable Fixed Income initiative. The new initiative identifies fixed income securities listed on Singapore Exchange Securities Trading Limited that meet recognised standards of green, social and sustainability fixed income securities.
The SGX Sustainable Fixed Income initiative allows investors to more easily identify investments that meet certain criteria at issuance. These criteria are:
Issuers may use an SGX Sustainable Fixed Income mark to identify the securities as having met these requirements.
To maintain recognition under the SGX Sustainable Fixed Income initiative, issuers must publish any post-issuance reports such as the annual report, as required under the applicable recognised standard, as well as information on any material developments which may affect alignment with the recognised standards. Such reports and information must be made publicly available.
The list of fixed income securities recognised under the SGX Sustainable Fixed Income initiative is published on the SGX website and on Greennode, a GSS bond information hub operated by Marketnode. Marketnode, an SGX Group and Temasek joint venture, is a digital markets infrastructure provider. Issuers can use the recognition to demonstrate their commitment to the Recognised Standards, and to raise their visibility and profile with investors that are interested in sustainable fixed income. They can also upload sustainability-related reports and other documentation through SGXNet to inform investors of their sustainable finance strategy.
For investors, the recognition will enable them to easily identify sustainable fixed income securities and to access sustainability-related information. Moreover, the criteria that SGX imposes provide investors with assurance that the GSS fixed income securities recognised under the SGX Sustainable Fixed Income initiative have been independently verified for alignment with the Recognised Standards
Estimated Chargeable Income (ECI) (December year-end)- 31- March-2023
GST Return: October 2022 – December 2022- 31 January 2023
Form C-S/C -30-November-2023