CapitalStars Financial Research Pvt Ltd


CapitalStars Financial Research Private Limited is an advisory company incepted with a vision of providing fair and accurate trading and investment calls in share and commodity market.we specialize in thorough fundamental and technical research analysis in equity and commodity market to provide best equity and commodity tips to traders and investors.we provide intraday as well as delivery stock tips in NSE and BSEand commodity tips in MCX and NCDEX. Read More

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In this service we provide 3-4 intraday calls in MCX with a high level of accuracy. The calls are given in Precious Metals, Base Metals and Energies. You can also avail Free Tips for two days to test our accuracy and if satisfied you can join the services with Capital Stars. Read More

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We provide you around 1-2 nifty calls, Bank Nifty Futures, nifty futures tips, sgx nifty tips Daily. You can gain more profit, Get 2 days free trial calls. Read More

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Equity Market Services

In this service we provide 2-4 intraday stock cash calls in NSE/BSE with a high level of accuracy.You can also avail Free Stock Tips for two days to test our accuracy and if satisfied you can join stock cash services with Capital Stars. Read More

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CapitalStars provides Free Trial in Intraday as well as in Positional Services of Equity, Derivatives, and Commodities and Forex Markets. We provide recommendations in NSE, BSE, MCX, NCDEX, and MCX-SX etc. We render you enough entry and exit time in our calls so clients can easily maximize their profits. Read More

Wednesday, 17 May 2017

GST provision may lead to closure of branches & formation of shell firms : 17 May 2017


The introduction of the goods and services tax (GST) in July will pose a challenge for the enforcement authorities due to a provision in the GST law that mandates companies transferring goods to a branch outside the state to pay the interstate goods and services tax (IGST). However, if the same company sells goods to customers on approval basis outside the state, it gets six months to pay the IGST.

Surendra Mehta, secretary, Indian Bullion and Jewellers Association (IBJA), said: “This provision will lead to branches closing down, and start shell companies at branch locations to defer the payment.”

Customers in India and their advisors look for ways to find loopholes to reduce, delay, or avoid tax payments. Jewellery, textiles, and other industries in which the tax burden is likely to be higher than the ones prevailing now, or those in the chain not paying tax currently will come in the tax net once the GST comes into force. In all these industries unorganised trade and the grey market had always operated.

rough road

Many jewellers are growing beyond state boundaries and opening shops across the country while in textiles the grey market is huge and there is no excise on fabric now. The provision of tax on transferring goods to branches outside the state and sale outside state in approval bases could cause compliance issues.

Rahul Mehta, chairman, Indian Clothing Manufacturers Association, said: “The Indian evil genius usually succeeds over government policies and regulations. Under the GST, a single trail found in a chain will be noticed and hence it will not be easy to skip tax sleuths eyes.”

Asher O, managing director (Indian Operations), Malabar Group said, “For companies doing business on a pan-Indian basis, under the model GST law, the matter of concern would be the valuation of stocks being transferred and the availing of input tax credit. The taxability of stock transfers under GST will exert a considerable impact on the cash flow, due to the fact that the tax will be paid on the date of stock transfer and input tax credit will be effectively used when stocks will be liquidated by the receiving branch. Hence, under the GST, for businesses engaged in stock transfers, particularly the jewellery industry, tax instances will necessitate the need for additional working capital."

Capitalstars Financial Research Private Limited is a research house and an investment advisory carrying out operations in the Indian Equities and Commodity market.We also provide 2 days free trial to our client.Join our services and trade with us. 

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