NATURE OF TRANSACTION
MANDATORY QUOTING OF PAN (RULE 114B)
Sale/ purchase valued at Rs.5 lakh or more
i. Sale/ purchase exceeding Rs.10 lakh;
ii. Properties valued by Stamp Valuation authority at amount exceeding Rs.10 lakh will also need PAN.
Motor vehicle (other than two wheeler)
Time deposit exceeding Rs.50,000/- with a banking company
i. Deposits with Co-op banks, Post Office, Nidhi, NBFC companies will also need PAN;
ii. Deposits aggregating to more than Rs.5 lakh during the year will also need PAN
Deposit with Post Office Savings Bank
Sale or purchase of securities
Contract for sale/purchase of a value exceeding Rs.1 lakh
Opening an account (other than time deposit) with a banking company.
All new accounts.
i. Basic Savings Bank Deposit Account excluded (no PAN requirement for opening these accounts);
ii. Co-operative banks also to comply
Installation of telephone/ cellphone connections
Exceeding Rs.25,000/- at any one time (by any mode of payment)
Cash payment exceeding Rs.50,000/-.
Cash purchase of bank drafts/ pay orders/ banker's cheques
Amount aggregating to Rs.50,000/- or more during any one day
Exceeding Rs.50,000/- on any one day.
Cash deposit with banking company
Cash aggregating to Rs.50,000/- or more during any one day
Cash deposit exceeding Rs.50,000/- in a day.
Cash payment in connection with foreign travel of an amount exceeding Rs.25,000/- at any one time (including fare, payment to travel agent, purchase of forex)
Cash payment in connection with foreign travel or purchase of foreign currency of an amount exceeding Rs.50,000/- at any one time (including fare, payment to travel agent)
Application to banking company/ any other company/institution for credit card
Co-operative banks also to comply.
Mutual fund units
Payment of Rs.50,000/- or more for purchase
Payment exceeding Rs.50,000/- for purchase.
Shares of company
Payment of Rs.50,000/- or more to a company for acquiring its shares
i. Opening a demat account;
ii. Purchase or sale of shares of an unlisted company for an amount exceeding Rs.1 lakh per transaction.
Payment of Rs.50,000/- or more to a company/ institution for acquiring its debentures/ bonds
Payment exceeding Rs.50,000/-.
Payment of Rs.50,000/-or more to RBI for acquiring its bonds
Payment exceeding Rs.50,000/-.
Life insurance premium
Payment of Rs.50,000/- or more in a year as premium to an insurer
Payment exceeding Rs.50,000/- in a year.
Purchase of jewellery/bullion
Payment of Rs.5 lakh or more at any one time or against a bill
Deleted and merged with next item in this table
Purchases or sales of goods or services
Purchase/ sale of any goods or services exceeding Rs.2 lakh per transaction.
Cash cards/ prepaid instruments issued under Payment & Settlement Act
Cash payment aggregating to more than Rs.50,000 in a year.
Wednesday, 30 December 2015
Tuesday, 17 November 2015
On this issue, Hon’ble FM in his speech for Budget 2015-16 has stated as under:- “10. The third is ‘Swachh Bharat’ which we have been able to transform into a movement to regenerate India. I can speak of, for example, the 50 lakh toilets already 2 constructed in 2014-15, and I can also assure the Members of this august House that we will indeed attain the target of building six crore toilets. But, Madam, Swachh Bharat is not only a programme of hygiene and cleanliness but, at a deeper level, a programme for preventive health care, and building awareness.”
“123. ----It is also proposed to have an enabling provision to levy Swachh Bharat Cess at a rate of 2% or less on all or certain services if need arises. This Cess will be effective from a date to be notified. Resources generated from this cess will be utilised for financing and promoting initiatives towards Swachh Bharat.”
Tuesday, 20 October 2015
F. No. 225/267/2015-ITA-II
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
CENTRAL BOARD OF DIRECT TAXES
Dated: October 19, 2015
The Principal Chief Commissioners of Income-tax, Delhi / Mumbai / Bengaluru / Ahmedabad / Chennai
Subject: Use of email based communication for paperless Assessment Proceedings-reg.
In order to improve the taxpayer services, enhance the efficiency and to usher in a paperless environment for carrying out the assessment proceedings, CBDT has decided to initiate the concept of using email for corresponding with taxpayers and sending through emails the questionnaires, notice etc. at the time of scrutiny proceedings and getting responses from them using the same medium on a pilot basis. This would eliminate the necessity of visiting the Income-tax Offices by the taxpayers, particularly in smaller cases, involving limited issues and where taxpayer is able to provide details required by the AO without necessitating his physical presence.
2. Steps are being taken by CBDT to devise suitable mechanism for setting up a standardized platform for making such email based communications between the taxpayer and the Income-tax Department seamless and user friendly. To start with, it has been decided to launch a pilot project in this regard in five non-corporate charges at Delhi, Mumbai, Bengaluru, Ahmedabad & Chennai stations. Initially, 100 cases for e-hearing could be identified in each of these charges and major part of assessment processing should be conducted in electronic mode. Also, the cases covered under the aforesaid pilot project should be those which have been selected for scrutiny on the basis of AIR/CIB information or non-matching with 26AS-data. Consent of taxpayers should also be obtained in the beginning and cases of only willing taxpayers be considered under the pilot project. The officers of the Department, through their official e-mail IDs, can interact with the taxpayers at their e-mail IDs as mentioned in the respective returns of income.
3. Board desires that necessary steps may accordingly be taken for initiating the pilot project on top priority.
Deputy Secretary to the Government of India.
Sunday, 11 October 2015
A traditional approach
It was 2009 when Zero depreciation policies entered Indian Markets. Before that it was common to buy a comprehensive insurance plan. One major shortcoming of the comprehensive vehicle insurance plan is it doesn’t cover all expenses more over you will get claim only on depreciated value of parts. Insured people have to shell out money for renovating fiber, rubber and plastic parts. Owners of old cars also have to spend a large amount of money as their old motor parts are replaced by new ones. In a major road-mishap, the expense of restoring these parts can rise over Rs 1 lakh. The owner of the car has to bear these costs even though he or she is armed with a so-called comprehensive cover.
Mr. Ayush bought a brand new car and purchased a comprehensive insurance plan for his new car. Unfortunately his car met an accidents and he incurred Rs.1.5 lacs on repairs of the car. He was surprised to receive only Rs. 1.2 lacs for damages from insurance company as compensation. This is because his insurance company deducted depreciation from the claim amount. This means Mr Ayush could have saved 30,000 rupees if he would have bought zero depreciation policy.
Most of the Insurance companies offer Zero depreciation policy only for a first few years of the Vehicle which range from 3 to 5 years. Opting for Zero depreciation policy will cost you more than a comprehensive policy but if you are a peace lover them you must go for it.
You may also like to read http://armutha.blogspot.in/2015/03/all-about-start-ups-formation-and-your.html
Tuesday, 15 September 2015
MCA Update on Deposit From Relative By Private Limited Company:
Deposits rules are quickly getting aligned with old 58A exempted rules to private limited company.
Without any upper limit of amount, now a private company can accept unsecured loans apart from director even from a relative (as per definition) of a director of the company with simple declaration saying the relative has not borrowed same from others. The relative need not be a shareholder of the company.
Monday, 14 September 2015
Friday, 11 September 2015
GST Update 📢📣
Companies with an annual turnover up to Rs 25 lakh might be exempted from the proposed national goods and services tax (GST). The Centre and states are likely to settle for this threshold as they finalise the GST laws.
According to finance ministry officials, the draft of these laws is expected to be ready by the end of this month. The Centre and states are working on a mechanism to avoid dual scrutiny of companies by them. "The thinking now is that all legal entities with an annual turnover of up to Rs 25 lakh will be completely exempt. This will be applicable to one TIN (Taxpayer Identification Number)," said a ministry official.
The government is looking to reconvene Parliament's monsoon session to get the Constitutional amendment Bill on GST passed in the Rajya Sabha. Three Bills - on the Centre's GST (CGST), states' GST and Integrated GST -would come up after the Constitutional Bill is cleared. Work on the drafts is on.
States wanted a threshold of Rs 10 lakh to protect their revenue, while the Centre has assured them full compensation for five years. Besides, firms with an annual turnover between Rs 25 lakh and Rs 75 lakh will have an option to pay a flat rate of one per cent or GST rate. If they decide to opt for one per cent rate, firms will not get input credits because of which many, particularly dealers, may choose the GST rate.
The exemption limit from value added tax and service tax across states - except the North-East - is close to Rs 10 lakh turnover. "There will be an impact on revenue but it will depend on how many under the Rs 25 lakh to Rs 75 lakh annual turnover bracket opt for the one per cent rate. If 60-70 per cent opt for it, there will be loss of revenue for states but they will also get compensated by the Centre," said Bipin Sapra, tax partner, EY. From the manufacturing point of view, it was important to keep the exemption limit higher, he added.
While these are likely to be part of the GST laws, a final decision on this is to be taken by the yet-unformed GST Council. This is to be constituted within two months of enacting the Constitution amendment. It would comprise the Union and state finance ministers and will be empowered to take key decisions on GST.
The idea is that entities with a turnover of up to Rs 75 lakh will not attract any checks or audits from either the state or the Centre. The Centre will give states a free run on compliance checks for companies with annual turnover above Rs 75 lakh and up to Rs 1.5 crore. "Here, the Centre will only do online scrutiny. And, if states detect non-compliance with respect to CGST, only the Centre will issue a notice. States cannot issue a notice on our behalf," said an official. However, in case of companies with annual turnover of more than Rs 1.5 crore, there will be concurrent audits by both the state government and the Centre.
"The government is still discussing a mechanism of a risk-based selection so that the checks by Centre and states do not overlap," said the official.
The government on Sunday made a renewed appeal to Opposition parties to help pass the Constitutional amendment through an extended monsoon session. It is vital that this be cleared at the earliest for the government to stick to the GST implementation timeline of April 1, 2016. The three draft legislations will lay down the fine print of the uniform indirect tax regime.
CA Anand Mutha
Wednesday, 27 May 2015
Companies(Amendment) Act, 2015 is Today notified by MCA.
Below are the vHIGHLIGHTS of the same.
1. Requirement of min. paid up capital to be do ne away with.
2. Having a Common Seal is not mandatory.
3. Section 11 pertaining to Commencement of Business Certificate to be ommited.
4. Penalty for violation of provision regarding acceptance/invitation of deposits stipulated by inserting section 76A. Min penalty 1 cr Max. 10 cr.
5. Dividend not to be given unless prev.yr losses/dep. not provided in prev. yr are set off from current year profits.
6. Auditor to report fraud/ offence involving prescribed amt. to CG. if the amt. is below it reporting to be done to audit committee/ Board and disclosure in board report.
8. Concept of omnibus approval for RPT by audit committee inserted in section 177.
9. Exemption given under rules of section 185 regarding giving loans to WOS and subsi to be incorporated in section itself.
10. Only ordinary resolution will be reqd for related party transaction.
11. No shareholder approval reqd. in case of RPT b/w holding and WOS if a/c of subsidiary consolidated.
CA Anand Mutha
Thursday, 21 May 2015
The Maharashtra government has decided to amend the Factories Act, 1948, in a bid to encourage growth of small-scale industries (SSI). Nearly 14,300 small-scale units will be freed from the inspector raj and about 190,000 new jobs will be created in the state.
At present, smaller industries may be excluded from the provisions of the Factories Act, 1948, which mandates safety guidelines and working conditions, applies to units with more than 10 workers in premises with power supply and 20 workers in premises without power. However, with the proposed amendment the limit has been increased from 20 and 40 workers.
Further, the condition with regard to prior approval of the management for overtime has been done away with. The government has proposed overtime of 115 hours from the present level of 75 hours to workers in SSI units.
Moreover, women employees in these industrial units will now be allowed to work during 7 pm and 6 am which was not allowed under section 66 (1) of the Factories Act.
Service tax rate is increase to 14 % w.e.f. 1st June 2015. In this regard the provider of service must keep in mind the point of taxation rules in order to calculate the correct rate of tax. For the purpose of simplicity one can go through below mentioned point To understand the impact of change in rate of service tax.
1. Service Provision is complete till 31.05.2015 and Invoice raised till 31.05.2015 but Payment received on or after 01.06.2015- 12.36% applicable.
2. Service complete till 31.05.2015, Invoice raised on or after 01.06.2015 but Payment is received till 31.05.2015 - 12.36%
3. Service Provision complete till 31.05.2015 and Invoice raised on or after 01.06.2015 and Payment also received after 01.06.2015- 14%
4. Invoice raised till 31.05.2015 in advance and some part of total consideration has been paid till 31.05.2015 but Service Provision is being done on or after 01.06.2015 -12.36% for such part payment, 14% for balance to be recd.
5. Entire consideration received till 31.05.2015 but no invoice raised till 31.05.2015 and no service provided -14%
6. Even if entire service has been provided on or after 01.06.2015 but both payment as well as invoicing has been done till 31.05.2015 then -12.36%
CA Anand Mutha
Wednesday, 8 April 2015
Prime Minister Narendra Modi will launch MUDRA bank or the Micro Units Development and Refinance Agency Ltd. bank in Delhi on Wednesday.
Here's your 10-point cheatsheet to this story.
1) The bank will be an agency to refinance micro-finance institutions and will also act as regulator for the sector.
2) Finance Minister Arun Jaitley in his first full-year Budget in February had proposed the creation of MUDRA bank with a corpus of Rs 20,000 crore and credit guarantee corpus of Rs 3,000 crore.
3) MUDRA bank is expected to benefit about 5.77 crore small business units.
4) Among others, the bank will benefit small manufacturing units, shopkeepers, fruit and vegetable sellers, beauty parlour owners, truck operators, hawkers, artisans in rural and urban areas with financing requirements up to Rs 10 lakh.
5) MUDRA bank will be responsible for regulating and refinancing all micro-finance institutions (MFIs) which are in the business of lending to micro or small business entities engaged in manufacturing, trading and services activities.
6) MUDRA bank would lay down policy guidelines for micro/small enterprise financing business, registration of MFI entities, regulation of MFI entities and accreditation /rating of MFI entities.
7) "The initial products and schemes under this umbrella have already been created and the interventions have been named 'Shishu', 'Kishor' and 'Tarun' to signify the stage of growth/development and funding needs of the beneficiary micro unit/entrepreneur," the Finance Ministry said.
8) 'Shishu' would cover loans up to Rs 50,000 while 'Kishor' above Rs 50,000 and up to Rs 5 lakh. 'Tarun' category will cover loans of above Rs 5 lakh and upto Rs 10 lakh.
9) The Finance Ministry said measures to be taken up by MUDRA are targeted towards mainstreaming young, educated or skilled workers and entrepreneurs including women entrepreneurs.
10) Banks, particularly dominant state lenders who are already under pressure over bad loans, have largely held back from lending to a sector where debt repayment installments can often be less than the cost of pursuing the payment.
Tuesday, 10 March 2015
जीएसटी कायद्या अंतर्गत एका राज्यातून दुसऱ्या राज्यात मालाची वाहतूक करताना मालवाहतूकदाराला आता इलेक्ट्रॉनिक वेबिल अर्थात ई-वे बिल बाळगावे ला...
Grant of refund of security deposit Rs.25000 under mvat act. Voluntary deposit scheme was applicable wef 1.5.2011. As per rule 60A(2)(b) an ...
२२ मार्च २०१७ ला लोकसभेने मंजूर केलेल्या वित्त विधेयकात रोखीने केल्या जाणाऱ्या व्यवहारांवर अनेक निर्बंध लादले आहेत. वित्तीय वर्ष २०१७ २०१८...
How to interact with departmental officers & Reply to SCN and adjudication- Service Tax The service tax payer at times fears the inter...