sec 2(77) – Non-resident taxable person

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sec 2(77) – Non-resident taxable person 2017-04-14T03:48:06+00:00

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    #1318 |

    “non-resident taxable person” means any person who occasionally undertakes transactions involving supply of goods or services or both, whether as principal or agent or in any other capacity, but who has no fixed place of business or residence in India;

    Priya MadrechaPriya Madrecha
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    The meaning of the term ‘non-resident taxable person’ covers all person who undertake transactions involving supply of goods or services or both, whether or not such supplies are taxable, so long as such person neither has a fixed place of business nor residence in India.
    Every such person who intends to affect any taxable supplies under the GST law, should compulsorily obtain registration under the GST law before commencing business, irrespective of the turnover during the year. The application for registration shall be made at least 5 days prior to the commencement of business.
    However, a person who does not undertake transactions involving any supplies “occasionally”, he would not be treated as a non-resident taxable person. The law does not define the frequency implied by the expression “occasionally”. Therefore, where there is a reasonable frequency of occurrence of supplies in India, it must be construed as transactions occurring occasionally.
    Note: This definition is adequately large to also include foreigners effecting supplies outside India. The law makes no specification any requirement that the “occasional” undertaking of supplies must be in India. This could make room for GST officers to question such foreign entities/ persons as to why they should not take registration under the GST law, although the intent of the law is only to cover those persons who occasionally undertaking transactions involving supplies in India.

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