Wednesday, 21 December 2016

Going Digital can cut your Taxes

Government has made its mind Reduce Existing Rate of Deemed Profit u/s 44AD from 8% to 6% in respect of amounts/receipts through banking channel/digital

As per latest CBDT Press Release dated 19-12-2016:

 Under the existing provisions of section 44AD of the Income-tax Act, 1961 (the Act), in case of certain assesses (i.e. an individual, HUF or a partnership firm other than LLP) carrying on any business (other than transportation, agency, brokerage and commission) and having a turnover of Rupees Two Crore or less, the profit is deemed to be 8% of the total turnover.


Tuesday, 8 November 2016

Goods and Service Tax Registration starts

Goods and Service Tax Network (GSTN) has provided the procedures for the transition to the GST for the existing taxpayers of VAT, Service Tax and Central Excise at the website www.gst.gov.in. The schedule of the enrolment activation drive for states is given in the table below. 




Thursday, 3 November 2016

Final GST rates declared by GST Council

A four tier GST tax structure of 5, 12, 18 and 28 per cent, with lower rates for essential items and the highest for luxury and de-merits goods that would also attract an additional cess, was decided by the GST Council today. 




Saturday, 1 October 2016

Frequently Asked Questions (FAQ) on GST by CBEC

Below is the text of Detailed FAQs on GST are released by CBEC, covering more than 500 questions in 24 topics. A must read on GST.



Foreword

With the 101st Constitution Amendment Act coming into force on 8th September, 2016 and notification of the GST Council on 15th September – the road to GST rollout is clear. Government is keen on introducing GST-the biggest indirect tax reform, with effect from 01 April
2017. One of the biggest challenges is to train the indirect tax officials of both Centre and State, as well as the trade on the concepts, processes and procedures of GST.

Friday, 16 September 2016

Maharashtra VAT increases to 13.5% and 6%

Maharashtra Notification Amends Schedule C, D, & E Enhance tax rate to 6% and 13.5% w.e.f. 17-9-2016
Notification No. VAT. 1516/CR-123/Taxation-1- Dated 16th September, 2016
In exercise of the powers conferred by sub-section (1) of section 9 of the Maharashtra Value Added Tax Act, 2002 (Mah. IX of 2005), the Government of Maharashtra hereby, with effect from the 17th September 2016 amends Schedule 'C', 'D' and 'E' appended to the said Act, as follows, namely :-

Wednesday, 14 September 2016

Advance Tax Liability for the A.Y. 2017-18 F.Y. 2016-2017

Advance Tax Liability for the A.Y. 2017-18

Advance Tax provisions has been amended by the Finance Act 2016 (No. 28 of 2016) which is effective from 01-06-2016 for Assessment Year 2017-18. Following are major amendments related to Advance Tax Liability for A. Y. 2017-18:
(a)  Section 211(1) is amended to provide that advance tax will be paid in four installments of 15%, 45%, 75% and 100% of tax payable on the current income by 15th June, 15thSeptember, 15th December and 15th March, respectively in case of all assesses. Earlier upto AY 2016-17 the assessee other than corporate assessee paid Advance Tax in three Installment. Now all assessee except assessee covered u/s 44AD is treated at par for Advance Tax provisions.
(b)  Assessees covered u/s 44AD are to pay advance tax of the whole amount in one instalment on or before the 15th March of the financial year consequent upon raising of the turnover limit from Rs.1 crore to Rs. 2 crore.
Based on above amendments the advance tax related provision under income tax law is as under:



Advance tax (Section 208, 209 & 211)
Advance tax is payable on all income during the financial year in every case where the amount of such tax payable by an assessee during that year is Rs. 10,000 or more. Following is chart showing Advance Tax Liability for the A.Y. 2017-18:
Advance Tax Liability for All Assessee (other than covered under section 44AD of the I.T. Act 1961)
Due DateInstallment Payable
 On or before 15th Jun, 2016 Not less than 15% of advance tax.
 On or before 15th  Sep, 2016 Not less than 45% of advance tax as reduced by the amount paid in the earlier installment.
 On or before 15Th Dec, 2016 Not less than 75% of advance tax as reduced by the amount paid in the earlier installments.
 On or before 15Th Mar, 2017 The whole amount (100%) of advance tax as reduced by the amount paid in the earlier installments.
Advance Tax Liability for Assessee covered under section 44AD of the I.T. Act 1961
Due DateInstallment Payable
On or before 15th Jun, 2016
On or before 15th  Sep, 2016
On or before 15Th Dec, 2016
On or before 15Th Mar, 2017 The whole amount (100%) of advance tax as reduced by the amount paid in the earlier installments.
Note:
  1. Resident individuals who are over 60 years of age and do not have income chargeable under the head ‘Profits and Gains of Business or Profession’ are not required to pay advance tax.
  2. Any amount paid by way of advance tax on or before 31st March shall also be treated as advance tax paid during financial year ending on that day
  3. Deduction under Chapter VIA are allowable while computing liability of advance tax.
  4. TDS is to be reduced from total tax liability of assessee and then specified percentage be calculated of advance tax.

Frequently Asked Questions on Advance Tax


What is Advance Tax and why it is paid in Advance?
Tax is a major source of fund for any Government in the world. In India as per general provision of the Income Tax Act, 1961 every person whose income is exceeds threshold exemption limit is liable to pay income tax. However for speedy and efficient tax collection a mechanism is developed by government in the form Advance Tax. Advance tax is a payment mechanism in which tax is deposited by assessee in installment instead of entire amount deposited at the end of financial year. For assessee’s point of view advance tax is helpful for fund management as the tax liability is divided in installments.

What are the Statutory Provisions for payment of Advance Tax in India?
Following are the sections of the Income Tax Act, 1961 which deal with the provisions of advance tax:
  • Section 208: Conditions of liability to pay advance tax
  • Section 209: Computation of advance tax
  • Section 210: Payment of advance tax by the assessee of his own accord or in pursuance of order of Assessing Officer.
  • Section 211: Installments of advance tax and due dates.

Who is liable to pay Advance Tax in India?
As per section 208, advance tax shall be payable during a financial year in every case where the amount of such tax payable by the assessee is ten thousand rupees or more. Thus provision of advance tax is applicable on all assessee whose tax liability comes more than Rs.10,000/-. However in case following case advance tax need not be deposited :
1) where entire tax liability is covered by TDS deducted then in this situation advance tax is not applicable.
2) Resident individuals who are over 60 years of age and do not have income chargeable under the head ‘Profits and Gains of Business or Profession’ are not required to pay advance tax. Further assessees covered under section 44AD of the Act can deposit his liability of entire advance tax upto 15th March 2017.

What are the due dates and amount of advance tax payment paid in India?
Type of Assessee
By 15th June 2016By 15th Sept 201615th Dec 201615th March 2017
All Assessee except covered u/s 44AD
15%
45%75%
100%
Assessee Covered u/s 44AD
100%
Note: Any tax paid till 31st March 2017 is treated as advance tax.

Whether a Non-Resident Indian (NRI) or a Non Resident is required to pay Advance Tax in India?
Yes. The advance tax is applicable on both Non-Resident Indian (NRI) or a Non Resident if they have any income accrue during the year in india.

What are the mode of payment of Advance Tax?
Advance Tax can be deposited through cash, cheque and electronic mode (Debit Card/Credit Card). The challan specified for advance tax is ITNS 280. All designated branches of banks empanelled with the Income Tax Department are accepted the advance tax. Assessee can pay Advance Tax Online through TIN-NSDL website.

What are the penal consequences in case of failure to deposit Advance Tax within prescribed time?
If advance tax is not paid or the amount of advance tax paid is less than 90% of the assessed tax, the assessee shall be liable to pay simple interest @1% p.m. u/s 234B from 1st day of assessment year upto date of deposit tax & interest. Further u/s 234C if the payment of advance tax is deferred beyond the due dates, interest @1% p.m., for a period of 3 months, will be payable for every deferment, except for the last installment of 15th March where it will be 1% for one month.

How can assessee verify the status of his tax deposition and other tax credit?
Due care should be taken with respect to PAN, Assessment Year and tax Code before depsoiting advance tax. The assessee may verify status his Advance Tax deposited through following links :
  1. Form No.26 AS: The credit of tax depsoited would be reflected in Form 26AS within one week of making the payment.
  2. NSDL e-Governance: Challan Status Inquiry can be made through OLTAS Application (NSDL) by visiting https://tin.tin.nsdl.com/oltas/index.html.

Can Income tax department issue notice to assessee for payment of Advance Tax ?
Yes. Assessing Officer may pass an order u/s 210(3) of the Income Tax Act 1961 or amended order u/s 210(4) and issue a notice of demand u/s 156 requiring assessee to pay advance tax.

Whether agricultural income would be included in total income for computing advance tax ?
Yes. Net agriculture income to be taken into account for computing advance tax in terms of section 209(2) of Income Tax Act, 1961.

How to Compute Advance Tax Liability ?
The Computation of Tax Liability for the determine Advance Tax is given in below table:
Particulars
Amount
Income from salary (Net)
XXXXX
Income from house property (Net)
XXXXX
Profits and gains of business or profession(Net)
XXXXX
Capital gains(Net)
XXXXX
Income from other sources(Net)
XXXXX
Gross Total Income
XXXXX
Less : Deductions under Chapter VI-A (u/s 80C to 80U))
(XXXXX)
Total Income (i.e., taxable income)
XXXXX
Tax
on total income at applicable rates
XXXXX
Less : Rebate under section 87A
(XXXXX)
Tax Liability After Rebate
XXXXX
Add: Surcharge
XXXXX
Tax Liability After Surcharge
XXXXX
Add: Education cess @ 2% on tax liability after surcharge
XXXXX
Add: Secondary and higher education cess @ 1% on tax liability after surcharge
XXXXX
Tax liability for the year
XXXXX
Less:  TDS
(XXXXX)
Tax payable
XXXXX
Advance Tax
(Above Tax) x (specified percentage u/s 211)

Saturday, 27 August 2016

Whether GST a step towards ease of Doing Business? जीएसटी मुळे धंदा करणे खरच सोपे होईल का?



सध्या व्यावसायिकांनमध्ये सर्वात जास्त चर्चिला जाणारा विषय म्हणजे जीएसटी मुळे त्याच्या व्याव्य्सायावर काय परिणाम होईल. या पोस्ट मध्ये माझा प्रयत्न हा आहे कि प्रस्तावित जीएसटी मॉडेल मध्ये असलेल्या विविध तरतुदी तुमच्या समोर मांडणे.

सद्य स्थिती
सध्या प्रत्येक राज्याला विविध व्यवहारांवर कर लावून कर गोळा करण्याची मुभा आहे, जसे कि विक्रीकर, मनोरंजन कर वगैरे. त्याचप्रकारे केंद्र सरकार सुद्धा विविध व्यवहारांवर कर लावून कर गोळा करते, जसे कि अबकारी (excise) कर, सेवा कर वगैरे.




प्रस्तावित मॉडेल जीएसटी२०१४ मध्ये जी १२२ सावी घटना दुरुस्ती झाली तिच्या नुसार वरील सर्व प्रकारचे कर जावून त्या जागी नवीन प्रकारची करप्रणाली अस्तित्वात येईल.

अनेक राज्यात व्यापार करणाऱ्यांना प्रत्येक राज्यात दाखला घ्यावा लागेल. नोंदणी दाखला क्रमांक "पॅन‘शी जोडलेला असेल. त्यामुळे जीएसटी आणि इन्कम टॅक्‍स या दोन्ही खात्याकडे जमा होणारी माहिती एकमेकांस देता येईल. उलाढाल रु. 10 लाखांपेक्षा कमी असेल तर नोंदणीची गरज नाही. कमी उलाढाल असणाऱ्यांसाठी आपसमेळ योजना म्हणजेच "कॉम्पोझिशन स्कीम‘ असेल. व्यापाऱ्यांनी भरलेला कर केंद्र आणि राज्य सरकारला परस्पर मिळेल. करभरणा ऑनलाइन पद्धतीनेच करावा लागेल. तसेच विवरणपत्रदेखील ऑनलाइन भरावे लागेल.

नवीन करप्रणाली मध्ये तीन प्रकारचे कर असतील

१) एस जीएसटी - वस्तू किंवा सेवा राज्यातल्या राज्यात पुरविण्यासाठी ( राज्य कर  )

२) सी जीएसटी - वस्तू किंवा सेवा राज्यातल्या राज्यात पुरविण्यासाठी ( केंद्रीय कर )

३) आय जीएसटी - वस्तू किंवा सेवा एका राज्यातून दुसऱ्या राज्यात पुरविण्यासाठी ( केंद्रीय कर )

यापैकी आय जीएसटी कर हा राज्य आणि केंद्र सरकार यामध्ये विभागला जाईल. या विभाजनासाठी स्वतंत्र अश्या जीएसटी कौन्सिल ची स्थापना केली जाईल. तसे बघितल्यास व्यापारी समुदायावर याचा काहीएक प्रत्यक्ष परिणाम होणार नाही.

जीएसटी कायदा आल्यावर खालील कर संपुष्टात येतील
1) अबकारी कर

2) सेवा कर

३) अतिरिक्त सीमा शुल्क

४) केंद्रीय विक्री कर

५) राज्य विक्री कर

६) मनोरंजन कर

७) चैनीच्या वस्तूंवरील कर

८) लोटेरी जुगार या वरील कर

९) केंद्रीय अधिभार व उपकर

१०) खारेदि कर

११) जकात


कर आकारणीसाठी जीएसटी मंडळ स्थापन करण्यात येईल त्याचे अध्यक्ष केंद्रीय अर्थमंत्री असतील व सदस्य अर्थ राज्यमंत्री असतील. कु ठल्याही एका राज्याचे अर्थ मंत्री उपाध्यक्ष असतील तर इतर राज्यांचे अर्थमंत्री सदस्य असतील. मतदानात केंद्राचा वाटा एक तृतीयांश व राज्यांचा दोन तृतीयांश असेल. म्हणजेच जीएसटी मंडळात एक तृतीयांश सदस्य केंद्राचे तर दोन तृतीयांश राज्यांचे असतील.कुठलाही कर आकारताना ७५ टक्के मतांची आवश्यकता असेल. केंद्र व राज्ये यांना कर आकारणीचा समांतर अधिकार असेल.

जर राज्यांना महसूल बुडण्याची भीती वाटत असली तरी जीएसटी लागू केल्यानंतर राज्यांना पहिली पाच वर्षे केंद्र सरकार महसुलातील तोटा भरून देईल. वस्तू व सेवांवर हा कर लावण्यात येईल. ज्या राज्यातील ग्राहक जास्त असतील त्या राज्यांना करात जास्त वाटा मिळेल. हा निकष बघता उत्तर प्रदेश, पश्चिम बंगाल, केरळ यांना करात जास्त वाटा मिळेल. तामिळनाडू, महाराष्ट्र व गुजरात या राज्यांना महसूल बुडण्याची भीती वाटते आहे त्यांना भरपाई दिली जाईल. किमान दोन वर्षे वस्तूंवर ०.१ टक्के जादा कर आकारणी केली जाईल. जादाचा महसूल ज्या राज्यात वस्तूंची निर्मिती झाली त्यांना मिळेल. पहिली तीन वर्षे राज्यांना १०० टक्के भरपाई दिली जाणार आहे.चौथ्या वर्षी ७५ टक्के तर पाचव्या वर्षी ५० टक्के भरपाई दिली जाईल. राज्यांचा महसूल न बुडता हा कर रेव्हेन्यू न्यूट्रल रेट) २७ टक्के राहील अशी अटकळ असली तरी तो १८ टक्के ठेवला तरी महसूल बुडणार नाही असे अर्थमंत्री जेटली यांचे म्हणणे आहे.

जीएसटी सर्व समावेशक कर प्रणाली आहे का ?

जीएसटी जरी सर्व प्रकारच्या वस्तू आणि सेवा या वरील कर वाटत असला तरी खाली दिलेल्या वस्तू चा जीएसटी मध्ये अंतर्भाव केलेला नाही

1) मद्य - यावर राज्य सरकार चा अबकारी कर चालू राहील

2) तंबाखू आणि तंबाखू जन्य इतर वस्तू - यावर केंद्र सरकारचा अबकारी कर चालू राहील

३) पेट्रोल डीझेल वगैरे - यावरील राज्याचा विक्री कर आणि केंद्र सरकारचा विक्री कर चालू राहील


दिलेल्या कराची वजावट

"एसजीएसटी‘ची वजावट एसजीएसटी भरण्यासाठी तर सीजीएसटीची वजावट सीजीएसटी भरण्यासाठी वापरता येईल. म्हणजे दोन्ही करांची माहिती वेगवेगळी ठेवावी लागेल. खरेदीवर भरलेला कर विक्रीवर भरावयाच्या करातून वजा करून आलेली रक्कम प्रत्यक्ष भरावी लागत असली तरी खरेदीवर कर भरला गेला असेल तरच वजावट मिळेल. यासाठी सर्व खरेदी-विक्री व्यवहारांची माहिती विवरणपत्रासोबत द्यावी लागेल. एक एप्रिल 2014 पासून महाराष्ट्रात "व्हॅट‘चे विवरणपत्र भरताना अशी माहिती द्यावी लागते. इतरही काही राज्यांत अशी पद्धत विकसित केली आहे. ही "जीएसटी‘ची पूर्वतयारी आहे. परदेशातून आयात मालावर आयातदाराला कर भरावा लागेल, त्याची वजावट त्याला मिळेल.

कागदावर "जीएसटी‘ची योजना सोपी दिसत असली तरी, प्रत्यक्ष कायद्याच्या तरतुदी कशा येतात, हे पाहणे खूप महत्त्वाचे आहे. ही करप्रणाली माहिती तंत्रज्ञानाच्या वापराशिवाय अंगीकृत करता येणार नाही. जीएसटी यशस्वी होण्यासाठी संगणक प्रणाली कार्यक्षम आणि कायद्याला धरून असणे महत्त्वाचे आहे; नाहीतर अनंत अडचणी येतात, असा "व्हॅट‘मधील अनुभव आहे.


Unified payment interface (UPI) next boon in transfering money


Unified Payments Interface (UPI), which will help move India towards a cashless economy, is all set to go live in next two to three working days with 21 banks. The UPI app will be available on the Google Play Store in next two to three working days for the customers to download and start using for 19 banks - Andhra Bank, Axis Bank, Bank of Maharashtra, Bhartiya Mahila Bank, Canara Bank, Catholic Syrian Bank, DCB Bank, Federal Bank, ICICI Bank, TJSB Sahakari Bank, Oriental Bank of Commerce, Karnataka Bank, UCO Bank, Union Bank of India, United Bank of India, Punjab National Bank, South Indian Bank, Vijaya Bank and YES Bank. IDBI Bank and RBL Bank will be issuers of UPI, which will enable customers to download any UPI enabled Apps mentioned above and link their account.




Unified Payments Interface (UPI) is developed by National Payments Corporation of India (NPCI), the umbrella organisation for all retail payments system in India. According to Bankbazaar' CEO Adhil Shetty, "In the long run, UPI may replace the current NEFT, RTGS, and IMPS systems as they exist today."
This is how new UPI will work for you. A unique UPI ID is created by using your phone number that is linked to your bank account. This ID is just like an ordinary email ID. For example if your mobile number is 123456789 and you have a bank account with the Punjab National Bank, your UPI id may be 123456789@PNB. To send money from any party, all the sender has to do is open the banking app installed in his or her phone, go to 'Send money' section, and facilitate transactions through UPI mode. In the recipient details, the sender needs to add id of the recipient (for example 123456789@PNB). The money gets transferred instantly to the bank account of the recipient once approved by the sender.
Here are 5 things to know about Unified Payments Interface and how it makes customers life easy vis-a-vis payments
1. Since it has been launched keeping cashless transaction, you no longer will have to wait for hourly batches of NEFT to send or get funds or seek Mobile Money Identifier (MMID) code for IMPS transactions anymore
2. As RBI Governor Raghuram Rajan has said during its soft-launch in APril this year, UPI will turn your smartphone into a payment bank. All you need is a smartphone and your banking app to send and receive funds instantly or to make a payment while any retail purchase
3. Presently, sending or receiving money is done through either NEFT, RTGS, or IMPS system, which needs mandatory information of the recipient like bank account details of the recipient, the IFSC code of the bank, bank account number, etc. With UPI, only mobile number of the recipient is required for an instant transfer any time or day of the week using just your Smartphone
4. Shopping becomes less cumbersome even if you are not carrying or credit or debit cards. It allows you send and receive money as well as make use of its integrated payment system to make merchant payments. Transfer of money from your bank account can happen to merchant's account instantly using UPI
5. UPI-based money transactions are available 24/7 including holidays. One can transfer money from India to any other country using UPI by just opening the banking app or UPI app. Once the app is downloaded you need to select the amount to be paid, add the unique id of your beneficiary, and select 'Send'. After a confirmation password on your phone and you approval, funds gets instantly transferred to the recipient’s bank account.

Saturday, 23 July 2016

Mandatory Disclosure of Asset in Income Tax Return

There have previously been many cases wherein it has been found that the assets of a taxpayer do not justify the income earned by him. So as to keep a check on the Assets acquired and the Income earned, the tax department has mandated that all assets be disclosed in the income tax return in case of individuals earning more than Rs. 50 Lakhs from any source.
As one can see from Schedule AL in  the new income tax forms released by the income tax department for assessment year 2016-17 onwards requires that all assets as well as corresponding liabilities should be disclosed by the taxpayer in his income tax return. The condition for disclosure of assets in the income tax return is only applicable all those taxpayers who satisfy the following condition:-
  1. The total income of taxpayer is more than Rs. 50 Lakhs.
Earlier disclosure of assets and liabilities was only for taxpayers having income of more than Rs. 25 Lakhs from Proprietorship/ Partnership business. However, from assessment year 2016-17, disclosure of assets is mandatory for all category of taxpayers (including Salaried ) having income of more than Rs. 50 Lakhs.
Following points may be noted while giving a disclosure of assets as mentioned above. 
  1. All assets held by a taxpayer and his corresponding liabilities have to be furnished in Schedule AL of the income tax return. However, the business assets already disclosed in the Balance Sheet are not required to be disclosed in this schedule. Only the assets which have not been disclosed in the Balance Sheet are required to be disclosed in this Schedule. 
  2. The assets to be disclosed in the income tax return will not include any assets with personal effects i.e. to say, movable property (including wearing apparel and furniture) help for personal use by the taxpayer or any member of his family dependent on him. However, personal effects exclude the assets specifically mentioned above.
  3. Only the Cost of the Asset is to be disclosed and not its current market value.

Following is the list of Assets and liabilities which needs disclosure 
1) Land 
2) Building
3) Bank Balance
4) Fixed Deposit
5) Shares and securities
6) Insurance policies
7) Loans and advances given 
8) Cash in Hand
9) Jewellery and Bullion 
10) Archaeological collections, Drawings, paintings, sculptures, or work of art
11) Vehicles, yachts, boats and aircrafts.
12) Liabilities in relation to 1 to 11 above. 

  

Saturday, 2 July 2016

Excise Registration for Jewellers Update ( 01/07/2016)

The time limit for taking Central excise registration of an establishment by a jeweller is being extended upto 31.07.2016

The liability for payment of Central Excise Duty will be with effect from 01.03.2016. The payment for excise duty for the month of March, April , May , June  is also extended to 31.07.2016

Link of Circular - http://www.cbec.gov.in/resources//htdocs-cbec/excise/cx-circulars/cx-circulars-2016/circ1033-2016cx.pdf

Monday, 27 June 2016

Indirect Tax Ombudsman - a Tool for resolution of Complaints in Indirect Taxes

The CBEC has taken a good move to for the benefit of tax payers by setting up the post of Indirect Tax Ombudsman.
The Central Government has created 7 posts of Indirect Tax Ombudsman at 7 stations with the objective of enabling the resolution of complaints relating to public grievances against the Customs, Central Excise and Service Tax Department and to facilitate the satisfaction or settlement of such complaints. Complaints can be filed by assessee himself or his authorised representative in writing (electronic means accepted) on account of delay in the issue of refunds or rebate beyond time limits; delay in adjudication; delay in registration of taxpayers; delay in giving effect to Appellate orders; non-acknowledgement of letters or documents sent to the department, unwarranted rude behaviour of revenue Officials etc.
However, it is important to note that No complaint to the Ombudsman shall lie unless
  • Complaint is not made on an issue which has been the subject matter of any proceedings in an appeal, revision, reference or writ before Appellate Authority or Court.
  • the complainant had, before making complaint to the Ombudsman, made a representation to the Grievance Cell of the concerned Customs, C. Excise and Service Tax office and did not receive any reply within one month from the date of its receipt by the Grievance Cell or complainant is not satisfied with the reply given by the Grievance Cell,
  • the complaint is not made later than one year after the complainant has received the reply from the concerned Department of Customs, C. Excise & Service Tax,
  • complaint is not in respect of the same subject-matter already settled by the Ombudsman
The ombudsman is independent of the jurisdiction of the Customs, Central Excise and Service Tax Department. Seven Ombudsman offices are located as below:
S. No.Location
Address
Territorial Jurisdiction
DelhiThe Indirect Tax Ombudsman, New Delhi Room No. 580, 5th Floor, Hotel Samrat, Chanakyapuri, New Delhi - 110 021.NCT, Himachal Pradesh, Punjab, Haryana, Chandigarh, Jammu & Kashmir,
MumbaiIndirect Tax Ombudsman, Mumbai Utpad Shulk Bhavan, Plot No. C-24, Sector - E, Bandra-Kurla Complex, Bandra (East) Mumbai - 400 051Maharashtra and Goa
ChennaiIndirect Tax Ombudsman, Chennai26/1, Mahathma Gandhi Road, Nungambakkam, Chennai - 600 034Tamil Nadu, Puducherry, Andhra Pradesh
Kolkata-West Bengal, Bihar, Orissa, North Eastern States, Jharkhand, Andaman & Nicobar Islands
Bengaluru
Indirect Tax Ombudsman
7th Floor, 'A' Wing, Kendriya Sadan, Koramangala, Bangalore - 560 034
Karnataka, Kerala, Lakshadweep
AhmedabadIndirect Tax Ombudsman, Ahmedabad, Ministry of Finance, Department of Revenue, Excise Bhavan, Near Panjrapole, Opp. Polytechnic, Ahmedabad - 380 015Gujrat, Rajasthan, Daman & Diu, Dadra & Nagar Haveli.
LucknowIndirect Tax Ombudsman 7-A, Ashok Marg, LucknowUttar Pradesh, Uttrakhand, Madhya Pradesh, Chhattisgarh.

Saturday, 25 June 2016

Services Provided prior to 31st May 2016 exempt from Krishi Kalyan Cess (KKC)


The Central Government vide Notification No. 35/2016 - ST dated June 23, 2016 has exempted taxable services for which the invoice for the service has been issued on or before the 31st May, 2016, from the whole of Krishi Kalyan Cess provided that provision of service has been completed on or before the 31st May, 2016.


It must be noted that this Notification settled the issue of KKC being payable on services provided and invoices issued prior to 1st June 2016 and payment received after the said date. Now if only payment is received after 31st May 2016 KKC will not be required to be paid on that account.

Tuesday, 31 May 2016

New Provision of TCS on Sale of Goods and Service from 1st June 2016

New TCS @ 1%  on Cash Sale will be implemented w.e.f. 1st June, 2016 under Sub Section (1D) of Section 206C.   Being a deductor or collector the following rows of Section 206C should be read before 1st June, 2016.   Mainly this  section effect those businessmen who receive Cash from their Debtors.   The persons who receive cheques, Draft, RTGS, NEFT or E-transfer from their customers will not be effected with this section mentioned below :- 


(1D) Every person, being a seller, who receives any amount in cash as consideration for sale of bullion or jewellery 87[or any other goods (other than bullion or jewellery) or providing any service], shall, at the time of receipt of such amount in cash, collect from the buyer, a sum equal to one per cent of sale consideration as income-tax, if such consideration,—

  (i) for bullion, exceeds two hundred thousand rupees; or
 (ii) for jewellery, exceeds five hundred thousand rupees; 88[or]

88[(iii) for any goods, other than those referred to in clauses (i) and (ii), or any service, exceeds two hundred thousand rupees:

Provided that no tax shall be collected at source under this sub-section on any amount on which tax has been deducted by the payer under Chapter XVII-B.]

88[(1E) Nothing contained in sub-section (1D) in relation to sale of any goods (other than bullion or jewellery) or providing any service shall apply to such class of buyers who fulfil such conditions, as may be prescribed.

(1F) Every person, being a seller, who receives any amount as consideration for sale of a motor vehicle of the value exceeding ten lakh rupees, shall, at the time of receipt of such amount, collect from the buyer, a sum equal to one per cent of the sale consideration as income-tax.]

(2) The power to recover tax by collection under sub-section (1) or sub-section (1C) or sub-section (1D) shall be without prejudice to any other mode of recovery.

(3) Any person collecting any amount under sub-section (1) or sub-section (1C) or sub-section (1D) shall pay within 89[the prescribed time] the amount so collected to the credit of the Central Government or as the Board directs :

Provided that the person collecting tax on or after the 1st day of April, 2005 in accordance with the foregoing provisions of this section shall, after paying the tax collected to the credit of the Central Government within the prescribed time, prepare such statements for such period as may be prescribed and deliver or cause to be delivered to the prescribed income-tax authority90, or the person authorised by such authority, such statement in such form and verified in such manner and setting forth such particulars and within such time as may be prescribed.91

(3A) In case of an office of the Government, where the amount collected under sub-section (1) or sub-section (1C) or sub-section (1D) has been paid to the credit of the Central Government without the production of a challan, the Pay and Accounts Officer or the Treasury Officer or the Cheque Drawing and Disbursing Officer or any other person, by whatever name called, who is responsible for crediting such tax to the credit of the Central Government, shall deliver or cause to be delivered to the prescribed income-tax authority, or to the person authorised by such authority, a statement in such form, verified in such manner, setting forth such particulars and within such time as may be prescribed.

(3B) The person referred to in the proviso to sub-section (3) may also deliver to the prescribed authority under the said proviso, a correction statement for rectification of any mistake or to add, delete or update the information furnished in the statement delivered under the said proviso in such form and verified in such manner, as may be specified by the authority.

(4) Any amount collected in accordance with the provisions of this section and paid to the credit of the Central Government shall be deemed to be a payment of tax on behalf of the person from whom the amount has been collected and credit shall be given to such person for the amount so collected in a particular assessment year in accordance with the rules92 as may be prescribed by the Board from time to time.

(5) Every person collecting tax in accordance with the provisions of this section shall within such period as may be prescribed93 from the time of debit or receipt of the amount furnish to the buyer or licensee or lessee to whose account such amount is debited or from whom such payment is received, a certificate to the effect that tax has been collected, and specifying the sum so collected, the rate at which the tax has been collected and such other particulars as may be prescribed94 :

Provided that the prescribed income-tax authority or the person authorised by such authority referred to in sub-section (3) shall, within the prescribed time after the end of each financial year beginning on or after the 1st day of April, 2008, prepare and deliver to the buyer referred to in sub-section (1) or, as the case may be, to the licensee or lessee referred to in sub-section (1C), a statement in the prescribed form95 specifying the amount of tax collected and such other particulars as may be prescribed.

(5A) Every person collecting tax before the 1st day of April, 2005 in accordance with the provisions of this section shall prepare within the prescribed time after the end of each financial year, and deliver or cause to be delivered to the prescribed income-tax authority96 or such other authority or agency as may be prescribed such returns in such form and verified in such manner and setting forth such particulars and within such time as may be prescribed :

Provided that the Board may, if it considers necessary or expedient so to do, frame a scheme for the purposes of filing such returns with such other authority or agency referred to in this sub-section.

(5B) Without prejudice to the provisions of sub-section (5A), any person collecting tax, other than in a case where the seller is a company, the Central Government or a State Government, may at his option, deliver or cause to be delivered such return to the prescribed income-tax authority97 in accordance with such scheme as may be specified by the Board in this behalf, by notification in the Official Gazette, and subject to such conditions as may be specified therein, on or before the prescribed time after the end of each financial year, on a floppy, diskette, magnetic cartridge tape, CD-ROM or any other computer readable media (hereinafter referred to as the computer media) and in the manner as may be specified in that scheme:

Provided that where the person collecting tax is a company or the Central Government or a State Government, such person shall, in accordance with the provisions of this section, deliver or cause to be delivered, within the prescribed time after the end of each financial year, such returns on computer media under the said scheme.

(5C)Notwithstanding anything contained in any other law for the time being in force, a return filed on computer media shall be deemed to be a return for the purposes of sub-section (5A) and the rules made thereunder and shall be admissible in any proceedings made thereunder, without further proof of production of the original, as evidence of any contents of the original or of any facts stated therein.

(5D)Where the Assessing Officer considers that the return delivered or caused to be delivered under sub-section (5B) is defective, he may intimate the defect to the person collecting tax and give him an opportunity of rectifying the defect within a period of fifteen days from the date of such intimation or within such further period which, on an application made in this behalf, the Assessing Officer may, in his discretion, allow; and if the defect is not rectified within the said period of fifteen days or, as the case may be, the further period so allowed, then, notwithstanding anything contained in any other provision of this Act, such return shall be treated as an invalid return and the provisions of this Act shall apply as if such person had failed to deliver the return.

(6) Any person responsible for collecting the tax who fails to collect the tax in accordance with the provisions of this section, shall, notwithstanding such failure, be liable to pay the tax to the credit of the Central Government in accordance with the provisions of sub-section (3).

(6A) If any person responsible for collecting tax in accordance with the provisions of this section does not collect the whole or any part of the tax or after collecting, fails to pay the tax as required by or under this Act, he shall, without prejudice to any other consequences which he may incur, be deemed to be an assessee in default in respect of the tax:

Provided that any person, other than a person referred to in sub-section (1D), responsible for collecting tax in accordance with the provisions of this section, who fails to collect the whole or any part of the tax on the amount received from a buyer or licensee or lessee or on the amount debited to the account of the buyer or licensee or lessee shall not be deemed to be an assessee in default in respect of such tax if such buyer or licensee or lessee—

  (i) has furnished his return of income under section 139;
 (ii) has taken into account such amount for computing income in such return of income; and
(iii) has paid the tax due on the income declared by him in such return of income,
and the person furnishes a certificate to this effect from an accountant in such form as may be prescribed98:]

Provided further that no penalty shall be charged under section 221 from such person unless the Assessing Officer is satisfied that the person has without good and sufficient reasons failed to collect and pay the tax.

(7) Without prejudice to the provisions of sub-section (6), if the person responsible for collecting tax does not collect the tax or after collecting the tax fails to pay it as required under this section, he shall be liable to pay simple interest at the rate of one per cent per month or part thereof on the amount of such tax from the date on which such tax was collectible to the date on which the tax was actually paid and such interest shall be paid before furnishing the quarterly statement for each quarter in accordance with the provisions of sub-section (3):

Provided that in case any person, other than a person referred to in sub-section (1D), responsible for collecting tax in accordance with the provisions of this section, fails to collect the whole or any part of the tax on the amount received from a buyer or licensee or lessee or on the amount debited to the account of the buyer or licensee or lessee but is not deemed to be an assessee in default under the first proviso of sub-section (6A), the interest shall be payable from the date on which such tax was collectible to the date of furnishing of return of income by such buyer or licensee or lessee.

(8) Where the tax has not been paid as aforesaid, after it is collected, the amount of the tax together with the amount of simple interest thereon referred to in sub-section (7) shall be a charge upon all the assets of the person responsible for collecting tax.

(9) Where the Assessing Officer is satisfied that the total income of the buyer or licensee or lessee justifies the collection of the tax at any lower rate than the relevant rate specified in sub-section (1) or sub-section (1C) or sub-section (1D), the Assessing Officer shall, on an application99 made by the buyer or licensee or lessee in this behalf, give to him a certificate for collection of tax at such lower rate than the relevant rate specified in sub-section (1) or sub-section (1C) or sub-section (1D).

(10) Where a certificate under sub-section (9) is given, the person responsible for collecting the tax shall, until such certificate is cancelled by the Assessing Officer, collect the tax at the rates specified in such certificate.

(11) The Board may, having regard to the convenience of assessees and the interests of revenue, by notification in the Official Gazette, make rules specifying the cases in which, and the circumstances under which, an application may be made for the grant of a certificate under sub-section (9) and the conditions subject to which such certificate may be granted and providing for all other matters connected therewith.

Explanation.—For the purposes of this section,—
(a) "accountant" shall have the meaning assigned to it in the Explanation to sub-section (2) of section 288;
(aa) "buyer" with respect to—

  (i) sub-section (1) means a person who obtains in any sale, by way of auction, tender or any other mode, goods of the nature specified in the Table in sub-section (1) or the right to receive any such goods but does not include,—

(A) a public sector company, the Central Government, a State Government, and an embassy, a High Commission, legation, commission, consulate and the trade representation, of a foreign State and a club; or

(B) a buyer in the retail sale of such goods purchased by him for personal consumption;
 (ii) sub-section (1D) 1[or sub-section (1F)] means a person who obtains in any sale, goods of the nature specified in the said sub-section;

 (ab) "jewellery" shall have the meaning assigned to it in the Explanation to sub-clause (ii) of clause (14) of section 2;

(b) "scrap" means waste and scrap from the manufacture or mechanical working of materials which is definitely not usable as such because of breakage, cutting up, wear and other reasons;

(c) "seller" means the Central Government, a State Government or any local authority or corporation or authority established by or under a Central, State or Provincial Act, or any company or firm or co-operative society and also includes an individual or a Hindu undivided family whose total sales, gross receipts or turnover from the business or profession carried on by him exceed the monetary limits specified under clause (a) or clause (b) of section 44AB during the financial year immediately preceding the financial year in which the goods of the nature specified in the Table in sub-section (1) or sub-section (1D) are sold 2[or services referred to in sub-section (1D) are provided].

Recommendations made by the GST Council in its 22nd Meeting held on 6th October 2017

The GST Council, in its 22nd Meeting which was held today in the national capital under Chairmanship of the Union Minister of Finance and C...