Title: How to Analyze NBFC Companies, Difference between NBFC and Bank
1NBFCSAND EFFECT OF GST
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2EFFECT OF GST
- The introduction of GST in Bharat could be a
substantial shift from the present tax regime. - It is expected that service sectors can have
major impact of GST than the producing or
commerce sector.
3EFFECT OF GST
Among the services provided by Banks and NBFCs,
money services like fund primarily based,
fee-based and insurance services can see major
shifts from the present state of affairs.
4EFFECT OF GST
Among the services provided by Banks and NBFCs,
money services like fund primarily based,
fee-based and insurance services can see major
shifts from the present state of affairs.
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6EFFECT OF GST
Owing to the character and volume of operations
provided by banks and NBFC vis a vis lease
transactions, rent purchase, associated with
unjust claims, fund and non-fund based mostly
services etc., GST compliance are going to be
quite tough to implement in these sectors.
7EFFECT OF GST
Under Model GST Law, the framework does not
offer a lot of edges or thought to banks and
NBFCs on understanding of the kind of
transactions created by them on an identical and
voluminous basis.
81. Widespread number of branches
Under Model GST Law, the framework does not
offer a lot of edges or thought to banks and
NBFCs on understanding of the kind of
transactions created by them on an identical and
voluminous basis. Currently, a NBFC, Banks with
pan-India operations will discharge its service
tax compliances through one centralized
registration. However, under GST, such Banks/
NBFCs would wish to get a separate registration
for every state wherever they operate.
92. Input Tax Credit leveraged and de-leveraged
Currently, Banks and NBFCs majorly decide on the
choice of reversal of fifty of the CENVAT credit
availed against inputs and input services whereas
CENVAT credit on capital merchandise may be
availed with no reversal conditions.
103. Assessment and Adjudication made bothersome
- The individual state regulators below that the
individual branch is registered would do the
assessment. - Now, each registered branch of banks and NBFCs
should justify its position on chargeability
within the individual state and reason for
utilizing input reduction in numerous states.
11CONCLUSION
- With the expectation of further details to
emerge, financial sectors face a can of worms in
terms of the manner of transacting business,
customer profiles, services matrix, IT systems
and operation to capture the data at both front
and back end. - IT systems will need to be more vigilant in terms
of serving the purpose of solving the complexity
related to GST compliance and procedures at a
higher volume.
12CONCLUSION
The impact of GST on Banks and NBFCs will be such
that operations, transactions, accounting and
compliance will need to be reconsidered in its
entirety.
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