GstTak

  INTRODUCTION: - Major of the assets of the companies covered by current assets and in that Receivables are performs a major part in the organization and also there is risk of bad debts and hence it is necessary to have proper control over receivables and therefore in India transfer of receivables arising out of sale or loan transactions takes place quite frequently. In such a case, a firm may avail the services of specialized institutions engaged in receivables management, called factoring firms.   Factoring is very popular and necessary to enhance working capital by quick conversion of book debt in to liquid form.     FACTORING: - Basically, factoring is a kind of Financial Service in which a business organization sells its Account Receivables to another person, called a Factor, at a discount in order to raise money. However, factoring is completely different from concept of bill discounting. In bill discounting, invoices are discounted at certain rate to get the insta

  DEFINITION: - Agent: - As per Section 2(5) of CGST Act, “Agent” means a person, including a factor, broker, commission agent, arhatia , del credere agent, an auctioneer or any other mercantile agent, by whatever name called, who carries on the business of supply or receipt of goods or services or both on behalf of another.   However, the term “Recovery Agent” has not been defined in the GST Law and hence the term “Recovery Agent” can be derived from the general parlance used in the industry ie Agent, covers a person who is carrying   the business of recovery of debt on behalf of another person.   SAC CODE:- 998592:- Collection agency services.   GST RATE:- 18%     REVERSED CHARGED:- As per Section 9(3) of CGST Act, following service has been specified under RCM i.e. recipient of service needs to pay GST under RCM.   Type of Service:- Services supplied by a recovery agent to a banking company or a financial institution or a nonbanking financial company.   Se