Plan your taxes better

Want your income to move up?
Do you want your income to go up? Who doesn't? That's why a lot of us slog it out, first at
school and college, then at the workplace. While many people go through the grind to be able to
earn more, they fail to take simple steps that can boost their income significantly.
Tax filing data shows that Indian taxpayers are not taking full advantage of the tax deductions
and exemptions available to them.
Our analysis shows that younger taxpayers are the worst tax planners. They may have done very
well in academics and could be drawing handsome salaries, but most of them score an F in tax
matters. According to the tax filing data, those in the 25-30 year age bracket pay a significantly
higher tax than the older taxpayers. The average minimum tax paid by a 25-year-old earning Rs
10-11 lakh a year is 12% of his income. However, 34-year-olds with the same income paid only
6% tax.
The busiest professionals are the lousiest at planning their taxes. They happily outsource the job
to wealth advisers and investment consultants, who sell them high-commission and low-yield
products.
Interestingly, senior citizens are more clued into tax rules and, therefore, manage to curtail their
tax liability to a great extent. Data shows that one in every five senior citizen assessees paid no
tax even though their average income was `4 lakh a year. Only 26% of the senior citizen
taxpayers had not claimed the full deduction under Section 80C.
Taxation rules are not rocket science. Anybody with a basic understanding of arithmetic and tax
rules can figure out how much tax he can save. You need to spend just one day to work out a tax
plan for yourself. Don't have the time? Look at it this way. If your salary is Rs 90,000, you are
earning about Rs 3,000 a day. Take a day of unpaid leave to plan your taxes and you might save
Rs 10,000-15,000. That still leaves you with an extra income of Rs 7,000-12,000. Think about
it.

Excise dept eyes higher luxury tax collection in Delhi

With an eye to boosting its luxury tax collection, the excise department has sought the help of
Delhi Police and the tourism and trade and taxes departments for maintaining intelligence
records of the city's hotels, banquet halls, spas and gyms.
According to the excise department, which is also in charge of collecting luxury tax in the
national capital, they will clamp down heavily on entities who are found to have evaded luxury
tax following a study of their financial records.
"We have requested Delhi Police, the tourism department and the department of trade and taxes
to help us keep intelligence records of Delhi's hotels, gyms, spas and banquet halls.
"We have requested police to give details of such entities registered with them as come under the
ambit of luxury tax so that we may first get the exact data," said a senior official of the
department.
The official said that hotels which charge a room rent of Rs 750 or more per day come under the
purview of luxury tax.
"The department of trade and taxes has also been asked to provide financial details of hotels and
other such entities to see if they are liable to pay luxury tax. Entities which are found to be
evading luxury will be dealt with strictly," he added.
Similarly, the excise department has also sought the tourism department's help regarding details
of all hotels registered with it with a view to tracking their earnings.
There are presently around 1,143 hotels of all categories registered with the excise department
which fall within the luxury tax bracket.
"This is the first time that we are taking such a step to increase our luxury tax collection," the
official added.
(Business Today)

Net direct tax collection at Rs 2.60 lakh crore

Net direct tax collection so far in the current fiscal stood at Rs 2.60 lakh crore, said a senior
finance ministry official.
The gross direct tax collection till September 26, 2014-15 fiscal, was at Rs 3.37 lakh crore.
Of this, corporate tax contributed was Rs 1.55 lakh crore during the period, the official said.
Personal income tax realisation stood at 1.01 lakh crore. Besides, collection of securities
transaction tax (STT) and wealth tax stood at Rs 3,222 crore and Rs 357.5 crore respectively.
The government has targeted to raise Rs 7.36 lakh crore from direct taxes in 2014-15, up from
over Rs 6.36 lakh crore collected last fiscal.
(Times of India)

RBI keeps rates as is, says 2016 CPI target of 6% at risk

RBI keeps rates as is, says 2016 CPI target of 6% at risk The RBI Governor Raghuram Rajan stayed put on the key policy rates in his fourth bi-monthly credit policy review today but sounded caution as far as meeting 2016 inflation target was concerned. The apex bank retained the growth projection for FY15 at 5.5 percent and forecasts FY16 growth at 6.3 percent. 1 Comments (6) Moneycontrol Bureau The Reserve Bank of India Governor Raghuram Rajan stayed put on the key policy rates in his fourth bi-monthly credit policy review today, but sounded caution as far as meeting the 2016 CPI target was concerned. The RBI now believes that attaining the projected inflation target of 6 percent by January 2016 is at risk due to expected "food price shocks as the full effects of the monsoon’s passage unfold, and from geo-political developments that could materialise rapidly." Speaking to press shortly after announcing the policy, governor Rajan said the headline inflation has been buffetted slightly, but the risks are still towards the upside; hence reaching 6 percent inflation target by 2016 too is at risk. “The future policy stance will be influenced by the RBI’s projections of inflation relative to the medium term objective of 6 percent by January 2016, while being contingent on incoming data,” Rajan said. He said it would be rather easy to meet the 8 percent CPI target for 2018. "Large and persistent upside pressures on food prices have resulted in their contribution rising to almost 60 percent of headline inflation in August. The full impact of the skewed rainfall distribution carries risks to the future path of food inflation...Future food prices and the timing and magnitude of held back administered price revisions impart some uncertainty to an otherwise improving inflation outlook where lower oil prices, a relatively stable currency, and a negative output gap continue to put downward pressure. Base effects will also temper inflation in the next few months only to reverse towards the end of the year. The Reserve Bank will look through base effects," the policy statement noted. Meanwhile, key policy rates were left unchanged, which was on the expected lines. Repo rate or the rate at which RBI lends money to banks for short-term, stayed at 8 percent while the cash reserve ratio (CRR) of scheduled banks unchanged at 4.0 percent of net demand and time liabilities. Consequently, the reverse repo rate remains unchanged at 7 percent, and the marginal standing facility (MSF) rate and the Bank Rate at 9 percent. The RBI also kept the statutory liquidity ratio (SLR) of scheduled commercial banks unchanged at 22 percent of their NDTL. The apex bank also retained the growth projection for FY15 at 5.5 percent and forecasts FY16 growth at 6.3 percent. It said the quarterly growth path may slow mildly in Q2 and Q3 before recovering in Q4. The RBI also noted that liquidity presurres have eased since credit growth fell well below deposit growth in August and September. However, despite liquidity conditions remaining comfortable and deposit growth remaining normal, non food credit growth decelerated in September 2014, the lowest level since June 2001. The fifth bi-monthly monetary policy statement is scheduled on Tuesday, December 2, 2014. Posted by Jhini Sinha Phira

GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS--Company Law Settlement Scheme, 2014

Dear Corporates, to avoid last minute rush and system congestion on the MCA21 portal on account of filings under the Company Law Settlement Scheme, 2014 ending on 15.10.2014 and Annual Filings during October/November 2014, Companies are requested to file their Balance Sheet and Annual Return early without postponing it to the last days

http://mca.gov.in/Ministry/pdf/Advt-annualfiling-2013-14.pdf

NSDL releases FUV 4.30, FUV 2.139 & RPU 4.0 for TDS/TCS returns wef 28.06.2014

Tin-NSDL has released FUV 4.30, FUV 2.139 and RPU 4.0 which are effective from 28th June 2014 in respect of TDS /TCS statement filed or to be filed on or after 28th June 2014. The only change in revised RPU and FUV is Addition of New State code for TELANGANA.
A. FVU for quarterly e-TDS/TCS statement pertaining to FY 2010-11 onwards
Download e-TDS/TCS FVU.exe (Version 4.3) (applicable from June 28, 2014)

Key feature of FVU version 4.3
a. Addition of New State code for “TELANGANA”.
New State code “36” for “TELANGANA” has been added.

b. Applicability of FVU version:
From June 28, 2014, FVU version 4.3 would be mandatory for statements pertain to FY 2010-11 onwards.
B. FVU for quarterly e-TDS/TCS statement up to FY 2009-10
Download e-TDS/TCS FVU.exe (Version 2.139) (applicable from June 28, 2014)

Key feature of FVU version 2.139
a. Addition of New State code for “TELANGANA”.
New State code “36” for “TELANGANA” has been added.

b. Applicability of FVU version:
From June 28, 2014, FVU version 2.139 would be mandatory for statements pertain to FY 2007-08 to FY 2009-10.

C. NSDL RPU Version 4.0 for quarterly e-TDS/TCS statements from FY 2007-08 (applicable from June 28, 2014)

Download RPU version 4.0 (applicable from June 28, 2014)

Key features of RPU 4.0

1. Addition of State “TELANGANA”
New State “TELANGANA” has been added.
B. Incorporation of latest FVU Version 4.3 and 2.139.

TDS payment on property and how toobtain form 16B and 26QB

I would like to run the readers through the TDS payment process and the steps to be takento obtain Form 16B (for the deductor or buyer) and Form 26QB for the (seller or deductee).

Firstly one has to go to the following link:
 

https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp
 

• •Once this link is opened click on Form 26QB (Payment of TDS on sale of property).
  • Select (0021) in case of non corporate payer and 0020 in case of corporate payer.
  • On filling in the various details called for in that form, click on ‘Proceed’ at the bottom of the page, this will then take you to the next page, which will give you the option to select your bank.
  • Once you select the bank, then login using the normal online process for your bank.
  • Once the payment is made the bank will let you print challan 280 with a tick on (800), which is payment of TDS on sale of property.
  • Take a printout of the challan and keep the same for your records and for the builder/seller if required.
  This is the first phase of the process. Once this is completed one has to wait for seven days for the details to be reflected on TRACES web site - https://www.tdscpc.gov.in/. As a first time user, you will have to register on this website. Once you register whether as seller or buyer, you will be able to obtain the Form 16B or 26QB which has been approved and is reflected against your PAN in your Form 26AS.
  Check Form 26 AS after seven days and you will notice that the payment you had effected against TDS on sale of property is reflected in Part F of the Form 26 AS under ‘Details of Tax Deducted at Source on Sale of Immoveable Property u/s 194(IA) [For Buyer of Property]. This will give you details such as the TDS certificate number (generated by TRACES), name of deductee, PAN of deductee, acknowledgement number, total transaction amount, transaction date, TDS deposited, date of deposit, status of booking and date of booking.
  Once the payment is reflected in 26AS as above, you will have to go to the TRACES again. Login to the website, and click on ‘Downloads’ tab. In the dropdown menu click on ‘requested downloads’. If no application has been made you will be asked to make a request for download, here fill in the acknowledgment number (nine digit number) which is reflected on Form 26AS Part F as mentioned above. Once this is done, you will be able to view the status of your application, which generates an application request number.
  Within a couple of hours, the application gets processed and you will be able to view your Form 16B by putting in the request number which you have obtained. You can take a printout of the same for your records as well as for handing over to the seller of the property. A similar process has to be followed by the seller to obtain form 26QB.
  
• MAIL QUERY--casingh.tejbir@gmail.com

How to Download TDS Certificate in Form 16B

Government has made it mandatory w.e.f 01.06.2013 on buyer of property to deduct TDS @ 1% on payment made after 01.06.2013 if Purchase Consideration of the Property exceeds Rs. 50 Lakh.  

Deductor can pay such TDS by any of the following mode:-

Either make the payment online (through e-tax payment option) immediately or make the payment subsequently through e-tax payment option (net-banking account) or by visiting any of the authorized Bank branches. However, such bank branches will make e-payment without digitization of any challan. The bank will get the challan details from the online form filled on www.tin-nsdl.com.

Once the Payment is made now the dedcuctor is required to issue TDS certificate in form 16B to the seller of the Property. Now the question is how to prepare or from where deductor can get such certificate for the purpose of issue to the seller? Answer is deductor can download such certificate from Traces website and issue to the seller.

Procedure to Download TDS certificate in form 16B is as follows:-

1. Login to:

https://www.tdscpc.gov.in/en/deductor-home.html

2. Click on Register New User and you will be asked to provide basic details such as your

• PAN
• Date of Birth
• Last, Middle and First Name and would also be required to further validate details of either tax deducted (option 1) or tax paid by you (option 2).

3. On Validation of details, your account will be created.  User ID by default would be your PAN, You would have the option of providing Pass word of your choice.  A email would be automatically generated providing you an activation link with a second code being text on your mobile.  Having activated your account, it is now ready to be used.  Services currently available are view 26AS statement and down load Form 16B in case you are the buyer of immovable Properties.  May be in near future you are able to download your Form 16 or 16A also through this window.

To download form 16B, go to download, click on request for form 16B, validate details and submit your request.  After some time the same shall be available under download menu. Click on download, click of available and download and save it your computer.

Print, sign and deliver it to the seller.

CBDT: Date of filing ITR and income tax audit report extended upto 30/11 but for ITR which are not required to be audited under income tax, date of filing itr is till 30/09/2014 only. Interest u/s 234 to be charged. (Attached Copy of Order u/s 119 of the I T Act, 1961 for Extension)

Page 1 of 3

F.No.153/53/2014-TPL (Pt.I)

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(DEPARTMENT OF REVENUE)

(CENTRAL BOARD OF DIRECT TAXES)

****

North Block, TPL Division

New Delhi, the 26th September, 2014

Order under section 119 of the Income-tax Act, 1961

Section 44AB of the Income-tax Act, 1961 („the Act‟) read with rule 6G of 

the Income-tax Rules, 1962 („the Rules‟) requires certain persons to file tax audit 

report in Form No.3CA/Form No.3CB along with prescribed particulars in Form 

No.3CD. Vide Notification No. 33/2014 dated 25th July, 2014, the forms for filing tax 

audit report have been revised. As per section 44AB of the Act, the tax audit report

has to be obtained and furnished electronically by 30th November of the Assessment 

year in case of an assessee who is required to furnish report under section 92E of the 

Act and 30th September of the Assessment year in case of other assessees. 

2. In view of the representations received by the Central Board of Direct Taxes 

(„the Board‟), the due date for obtaining and furnishing of tax audit report under 

section 44AB of the Act for assessment year 2014-15 in respect of assessees who are 

not required to furnish report under section 92E of the Act has been extended from 

30th September, 2014 to 30th November, 2014 vide Order No.133/24/2014-TPL dated 

20th August, 2014 in exercise of power of the Board under section 119 of the Act. It 

has been further clarified that the tax audit report filed during the period from 

01.04.2014 to 24.07.2014 in the pre-revised forms shall be treated as valid tax audit 

report under section 44AB.

3. After the extension of the due date for obtaining and furnishing of tax audit 

report under section 44AB of the Act, a number of representations have been received 

in the Board requesting for extension of due date for furnishing of return of income 

for the assessees who are required to obtain and furnish tax audit report under section 

44AB of the Act and for whom the due date for furnishing return of income under 

section 139(1) of the Act is 30th September, 2014. Writ petitions have also been filed 

in various High Courts for directing the Board to extend the due date for furnishing of 

return of income from 30th September, 2014 to 30th November, 2014 in conformity 

with the extension of the due date for filing of tax audit report. Page 2 of 3

4. In the High Court of Delhi, a writ petition No.5990/2014 has been filed on this 

issue. However, before the pronouncement of judgement, the petitioner withdrew the 

writ petition on 23rd September, 2014. The High Court of Madras passed interim 

order on 24.09.2014 in writ petitions No.25443 and 26306 to 26310 of 2014 and 

directed the Board to consider the request of the assessees in general and consider the 

extension of time for furnishing the return of income, in tune with the order passed by 

the Board in F. No.133/24/2014-TPL dated 20.08.2014. It has been reported that the 

High Court of Judicature at Hyderabad for the State of Telangana and the State of 

Andhra Pradesh disposed the writ petition No.28159 and 28627 of 2014 with a 

direction to the Board to dispose of the representation of the petitioners. The High 

Court of Bombay disposed of writ petition No.2492 of 2014 vide order dated 

25.09.2014 and directed the Board to look into the practical difficulties of the 

petitioners and take a just and proper decision in this matter.

5. The Gujarat High Court allowed Special Civil Application No.12656 of 2014 

with Special Civil Application No.12571 of 2014 and vide judgement dated 

22.09.2014 directed the Board to modify the order under section 119 of the Act dated 

20.08.2014 by extending the due date for furnishing the return of income to 30th

November, 2014. It has also been further stated in the said order that it would be 

open for the Board to qualify such relaxation by extending the due date for all 

purposes, except for the purpose of Explanation 1 to section 234A of the Act. 

6. In compliance to the judgement of High Court of Gujarat and after considering 

the representations made for extension of due date for furnishing of return of income

in compliance with the directions of the other High Courts, the Board, in exercise of 

power conferred by section 119 of the Act, hereby extends, subject to para 7 below, 

the `due-date‟ for furnishing return of income from 30th September, 2014 to 

30th November, 2014 for the assessment year 2014-15 for all purposes of the Act, in 

case of an assessee, who, 

(i) is required to file his return of income by 30th September, 2014 as per clause 

(a) of Explanation 2 to sub-section (1) of section 139 of the Income-tax Act, 

1961; and 

(ii) is also required to get his accounts audited under section 44AB of the Act or is 

a working partner of a firm whose accounts are required to be audited under 

section 44AB of the Act. 

7. There shall be no extension of the “due date” for the purposes of Explanation

1 to section 234A (Interest for defaults in furnishing return) of the Act and the

assessees shall remain liable for payment of interest as per the provisions of section 

234A of the Act. Page 3 of 3

8. For removal of doubt, it is clarified that for an assessee (other than working 

partner of a firm which is required to obtain and furnish tax audit report), who is 

required to file its return of income by 30th September, 2014 but not required to obtain 

and furnish tax audit report under section 44AB, the due date for furnishing of return 

of income for assessment year 2014-15 remains as 30th September, 2014.

(Rajesh Kumar Bhoot)

Director (TPL)

Copy to:-

(i) The Chairman (CBDT), All Members, Central Board of Direct Taxes for 

information.

(ii) All Cadre Controlling Pr. Chief Commissioners of Income-tax with a request to 

circulate amongst all officers in their regions/charges.

(iii) The Pr. Director General of Income Tax (Admn.) Mayur Bhawan, New Delhi.

(iv) The Director General of Income Tax (Systems) with a request for uploading it on the 

Departmental website.

(v) Commissioner of Income Tax (M&TP), CBDT.

(Rajesh Kumar Bhoot)

Director (TPL)

TDS not deductible on payment to non-resident translator

M/s Cosmic Global Ltd. Vs. ACIT (ITAT Chennai), ITA No. 744/Mds/2014, Date of Pronouncement: 30th July, 2014 Facts :- 
The Assessing Officer has made disallowance of Rs. 2.63 Crores under Section 40(a)(i) on account of non-deduction of tax at source on the payments made to non­resident translators. The authorities below have held translation services to be technical in nature. On the other hand, the contention of the assessee is that the payment for translation services to non-residents does not fall within the ambit of “fees for technical, managerial or consultancy services”. 
Held - In the present case, the assessee is getting the translation of the text from one language to another. The only requirement for translation from one language to other is, the proficiency of the translators in both the languages, i.e. the language from which the text is to be translated, to the language in which it is to be translated. The translator is not contribution anything more to the text which is to be translated. He is not supposed to explain or elaborate the meaning of the text. Apart from the knowledge of the language, the translator is not expected to have the knowledge of applied science or the craft or the techniques in respect of the text which is to be translated. A bare perusal of Explanation 2 to Section 9(1)(vii), which explains “fees for technical service” and the dictionary meaning of the word “technical” makes it unambiguously clear that translation services  rendered by the assessee are not technical services. 
Therefore, the payment made by the assessee to the non-resident translators would not fall within the scope of “fees for technical, managerial or consultancy service” as detailed in Explanation 2. In our considered view, the CIT(Appeals) has travelled beyond the definition of “fees for technical service” to bring the translation services within the compass of the term “fees for technical services”. In our considered opinion, the payments made by the assessee to non-residents on account of translation services do not attract the provisions of Section 194J. 
The disallowance made under Section 40(a)(i) is thus deleted. This ground of appeal of the assessee is allowed. 

Conversion of a Company into LLP--INCOME TAX Provisions

The onset of Companies Act 2013 has ushered a paradigm shift in operation and management of companies. The benefits which, hitherto were available to Private Companies in the erstwhile Companies Act, have to a large extent receded. While some call it an era of greater transparency, others (particularly small corporates) feel that the new law has hampered them from operating as a body corporate. As a substitute, people have started favouring LLPs as a medium for carrying on the businesses.
With much lower compliance burden and almost very little restrictions, coupled with status of a body corporate, LLP has become the new hot selling cake in the business world. The LLP Act contains enabling provisions pursuant to which a private company or unlisted public company (incorporated under Companies Act) would be able to convert themselves into LLPs. Provisions of clause 58 and Schedule II to Schedule IV to the Act provide procedure in this regard.
Income Tax treatment of a company converted into LLP is more or less tax neutral provided conditions specified in Section 47(xiiib) are satisfied.

Section 47(xiiib)
Following shall not be regarded as a”transfer” , therefore, no capital shall arise on the following :
1. Any transfer of a capital asset or intangible asset by a private company or unlisted public company to a limited liability partnership
2. Any transfer of a share or shares held in the company by a shareholder as a result of conversion of the company into a limited liability partnership in accordance with the provisions of section 56 or section 57 of the Limited Liability Partnership Act, 2008

Conditions for claiming exemption
Exemption shall be available only if the conversion satisfies all the below mentioned six conditions.

1. All the assets and liabilities of the company immediately before the conversion become the assets and liabilities of the limited liability partnership.
2. (a) All the shareholders of the company immediately before the conversion become the partners of the limited liability partnership
(b) Their capital contribution and profit sharing ratio in the limited liability partnership are in the same proportion as their shareholding in the company on the date of conversion.

3. The shareholders of the company do not receive any consideration or benefit, directly or indirectly, in any form or manner, other than by way of share in profit and capital contribution in the limited liability partnership.

4. The aggregate of the profit sharing ratio of the shareholders of the company in the limited liability partnership shall not be less than fifty per cent at any time during the period of five years from the date of conversion.

5. The total sales, turnover or gross receipts in the business of the company in any of the three previous years preceding the previous year in which the conversion takes place does not exceed sixty lakh rupees.

6. No amount is paid, either directly or indirectly, to any partner out of balance of accumulated profit standing in the accounts of the company on the date of conversion for a period of three years from the date of conversion.


Section 47A : Withdrawal of exemption in certain cases

Where any of the conditions specified above are not complied with, exemption from capital gains shall not be available. The conditions should be satisfied at the time of conversion.

Additionally, condition 4 and 6 should be satisfied for respective period specified therein. Where benefit Is taken under section 47(xiiib) at the time of conversion, and subsequently there is non-compliance of requirement 4 or 6, benefit availed shall be charged to tax in the manner specified below :-

1. Capital Gains exempted of the predecessor company will become income of LLP by way of capital gain in the year in which non-compliance takes place, and

2. Capital Gains exempted of the shareholder of the predecessor company on transfer of shares at the time of conversion shall become income by way of capital gain in the year in which non-compliance takes place

Other relevant points

1. Cost of acquisition & improvement
As per section 49(1)(e)
Cost of acquisition of the asset : Shall be deemed to be the cost of acquisition of predecessor company
Cost of Improvement : Any cost incurred on improvement of the assets by predecessor company and LLP shall be the cost of improvement.

2. Period of holding of asset
As per Section 2(42A)(b), for the purpose of determining period of holding of capital asset for determining nature of capital gain, period for which the asset was held by predecessor company shall be included.

3. Set-Off and Carry-Forward of losses
As per section 72A (6A), accumulated loss under head business/profession (Except speculative loss) and the unabsorbed depreciation of the predecessor company, shall be deemed to be the loss or allowance for depreciation of the successor LLP of the year in which conversion takes place.
However, if any of the aforementioned six conditions are not complied with, the set off of loss or allowance of depreciation made in any previous year by LLP, shall be deemed to be the income of the LLP chargeable to tax in the year in which such conditions are not complied with.

4. MAT Credit
MAT credit in the hands of the predecessor company shall not be allowed to the successor LLP

5. Deprecation apportionment of the year of conversion between the Company and LLP
As per 5th proviso to section 32(1), depreciation of the year in which conversion took place, shall be apportioned between the predecessor company and succeeding LLP in the ratio of number of days for which assets were used by them.

Changes in E-Forms by MCA dated 21st September, 2014

Changes in E-Form
Ministry of Corporate Affairs on 21st September, 2014 has updated various E-Forms that are required to be filed under Companies Act, 2013 and rules made there under. The major changes were made pursuant to the amendment to Companies (Appointment and Qualification of Directors) Amendment Rules, 2014 which was dated 18th September, 2014. The changes to the e-forms broadly pertains to the amendment that was brought about in the Appointment and Qualification of Director Rules and for those forms which were hitherto not directly filed with the Registrar of Companies, which were filed as attachment to different E-Forms for instance Form DPT-4 was required to be filed as an attachment to E-Form GNL-2. Following are brief details on various forms that have been updated and changes in the concerned E-Form:-

Sr. No.	E-Form	Particular of the E-form	Changes in the E Form
	Form DIR-3C	Intimation of Director Identification Number by the company to the Registrar.	E Form DIR- 3C is a newly introduced e-form. This form is akin to Form DIN-3 under the Companies Act, 1956. A director of the company will be required to intimate its DIN to the company in form DIR-3B and the company in turn will be required to intimate to ROC in form DIR- 3C within 15 days of receipt of such intimation from the concerned Director. In case of Manager/ Secretary, PAN will be required to be intimated to ROC within 15 days of intimation by the concerned personnel in Form DIR-3C. However the form DIR-3C, if required, to be filed only for director appointed prior to 30th June, 2007.
	Form INC-27	Conversion of public company into private company or private company into public company	There is no material change in the content of the form.
	Form DIR-3	Application for allotmentof Director Identification Number	Pursuant to present modification, verification under form DIR-4 by the applicant will not be required to be attached to the E Form DIR-3. Earlier the verification by the applicant has to be attached to the form. However, the said verification need to be certified by the concerned applicant itself by attesting through Digital Signature Certificate.
4.	Form DIR-6	Intimation of change in particulars of Director to be given to the Central Government	In present modification, copy of verification by the director in Form No. DIR-7 will not be required to be attached in E-Form DIR-6. However the content of Form DIR-7 will be required to be verified by the applicant in the E Form DIR-6 itself by attesting through Digital Signature Certificate.
	Form ADT-3	Notice of Resignation by the Auditor	In present modification date of resignation needs to be mentioned in the form itself and earlier this form was required to be filed as an attachment to E Form GNL-2,   now the same will be required through E-Filling with MCA.
	Form DPT-4	Statement regarding deposits existing on the commencement of the Act	Earlier this form was required to be attached to E Form GNL-2 where as now this form is required to be filed through E-Filling with MCA.
	Form MGT-10	Changes in shareholding position of promoters and top ten shareholders	Earlier this form was required to be attached to E Form GNL-2 where as now this form is required to be filed through E-Filling with MCA.

Service Tax Return (ST-3) for the period from April 2014 to September 2014

Automation of Central Excise and Service Tax (ACES)
Dear Sir/Ma'am,
Service Tax Return (ST-3) for the period from April-14 to September-14 will be made available for e-filing by the assesses. The last date for filing the returns for the said period is 25th October, 2014. The assesses can file return online or use the offline utility by downloading the latest version fromhttp://acesdownload.nic.in/ or from "DOWNLOADS" Section of ACES website. For details on how to e-file in ACES or for any other information/assistance, you may visit www.aces.gov.in or contact your jurisdictional Service Tax Officer or the nearest ACES Certified Facilitation Centres (CFCs). Please file your returns in ACES well in advance to avoid rush and inconvenience at the last moment.
Regards,
ACES Administrator

Procedure for VAT registration under Punjab VAT Act 2005

Who is required to get registered as a VAT Dealer under Punjab VAT Act 2005?

Every person, except a casual trader and one dealing exclusively in goods declared tax free, whose gross turnover during the year exceeded the taxable quantum, as provided below, is liable to pay tax under the Punjab VAT Act by way of VAT on the taxable turnover.
S. No, Particulars Taxable Turnover Limit
(i) in relation to any person, who imports taxable goodsfor sale or use in manufacturing or processing any goods in the State, Rs. one
(ii) in relation to a person, who receives goods onconsignment/branch transfer basis from within or outside the State on which no tax has been paid under this Act, Rs. one
(iii) in relation to a person, liable to pay purchase tax under section 19, Rs. one
(iv) in relation to a person, who is a manufacturer, Rs one lakh
(v) in relation to a person, who is running a hotel/restaurant, Rs five lakh
(vi) in relation to a person, who is running a bakery Rs. Ten Lakh
(vii) in relation to voluntary registration Rs five Lakh
(viii) in relation to any other person Rs. fifty Lakh

Documents required for VAT Registration under Punjab VAT Act
1. Proof for VAT eligibility – generally a bill for purchase of goods made from Outside the State of Punjab.
2. Proof of identification. (Ration Card, Driving Licence etc.) of prop./Partner/Managing Director.
3. Proof of business premises – if the Business premises is on rent. (Rent paid receipt/Rent Deed) or if the owner has his own business premises then proof of ownership.
4. Incorporation Document of the Taxpayer:-
If the concern is Limited Company then the copy of Memorandum of association and copy of Resolution.
If the concern is a firm then partnership deed.
If it has any other constitution then proof of that constitution.
5. Proof of the PAN of the Prop, if the concern is Proprietorship/ Proof of the PAN of the firm if the firm is partnership.
6. Two photographs for VAT and Centre —
In case of proprietorship Concern – Two Photo of Proprietor.
In case of Partnership firm :-Two Photo of all the partners,
In case of Company – Two Photo of managing director
7 Bank account number and name of bank.
8. Two sureties each having TIN and owning property or bank guarantee of Rs. 100000 (50000 for tax under PVAT Act and Rs 50000 for tax under CST Act)
9. List of following categories of goods:-
Goods to be traded.
Goods to be manufactured.
Goods to be purchased for use in manufacture.
Every Photostat copy should be attested to be a true copy by the proprietor./ partner/director as the case may be.

Duties and rights of tax payers----TDS

The duties of person deducting tax at source and the rights of the tax payers has been given below:

Duties of person deducting tax at source

Deduct Tax at Correct Rate and deposit in Government Account – Sec 200

Every person responsible for deducting tax at source shall at the time of payment or credit of income, whichever is earlier, verify whether the payment being made is to be subject to deduction of tax at source. If it is so, he must deduct such tax as per the prescribed rates. Further he is required to deposit such tax deducted in the Central Government Account within the prescribed time as specified in Rule 30.

Issue a TDS certificate

Further, such person is required to issue a certificate of tax deduction at source u/s 203 to the person from whose income the TDS has been done, in the prescribed proforma i.e. Form No.16A within prescribed time(as discussed earlier).

File Prescribed Return/Quarterly Statement

A return of TDS is a comprehensive statement containing details of payments made and taxes deducted thereon along with other prescribed details. For deductions made prior to 01.04.2005 earlier every deductor was required as per the provisions of Section 206 (read with Rule 36A and 37) to prepare and deliver an annual return, of tax deducted at source. However w.e.f. 01.04.2005 there is no requirement to file annual returns and instead Quarterly statements of TDS are to be submitted in form 26Q by the deductors.

Rights of Tax Payers

Credit of TDS – If tax has been deducted at source u/s 192 to 194 A/B/BB/C/ D/E/EE/F/G/H/I/J/K, 195, 196A/B/C and D, the person from whose income (payment) the tax has been deducted i.e. Payee or assessee shall not be asked upon to pay the tax himself to the extent tax has been deducted (Sec.205). Moreover u/s 199 such tax deducted at source shall be treated as payment of tax on behalf of the payee (assessee).

TDS Certificate – U/s 203 payee (tax payer) is entitled to obtain a certificate from the payer (tax deductor) in Form 16-A specifying the amount of tax deducted and other prescribed particulars.

Form 26AS – As per section 203AA the prescribed income tax authority or the person authorized by such authority (as referred in section 200(3))will be required to deliver to the person from whose income the tax has been deducted/paid, a statement of deduction of tax in the prescribed form. Such statement as per rule 31AB will be required to be furnished in Form no.26AS by the 31st July following the financial year during which the taxes were deducted/paid (also refer Notification no. 928 E dt. 30.6.2005 of CBDT).

Due Date Alert for the month September 2014

 

	Due Date	Related to	Compliance to be made
1	05.09.2014	Service Tax	Payment of Service Tax for the Month of August 2014
2	07.09.2014	TDS/TCS (Income Tax)	·        Deposit TDS for payments of Salary, Interest, Commission or Brokerage, Rent, Professional fee, payment to Contractors, etc. during the month of August 2014. ·        Deposit TDS from Salaries  deducted during the month of August 2014 •   Deposit TCS for collections made under section 206C including sale of scrap during the month of August 2014, if any •    Deliver a copy of Form 15G/15H, if any to CCIT or CIT for declarations received in the month of August 2014, if any
3	15.09.2014	Income Tax	Payment of second instalment of advance tax (45%) for corporate
4	20.09.2014	STPI	Filing of monthly softex forms
5	20.09.2014	VAT	Payment of VAT & filing of monthly return for the month of August 2014
6	30.09.2014	Income Tax	Income Tax  and Wealth Tax Return filing along Excluding Transfer pricing

FILE NIL TDS RETURN ONLINE

This article is applicable to all persons having the TAN No. (for TDS deduction purposes)
Currently, if there is no TDS to be deducted, no action is taken in terms of filing TDS return for the particular quarter.
Due to this practice of non-intimation, the Income Tax department has been finding it diificult to differentiate between the following two types of deductors.
1. Deductors required to file return but not filed.
2. Deductors not required to file return due to NIL TDS
Henceforth,the Deptt. has introduced a new functionality in the TRACES site wherein the persons who are not required to submit a return of TDS due to non applicability in any particular quarter shall have to submit a Declaration for the same on TRACES.
Procedure for filing of Nil TDS return/ declaration for non filing of TDS statement is given below:
1. Login through your registered id at www.tdscppc.gov.in ( TRACES site)
2. Go to “Statement/Payments TAB after login > Declaration for Non filing of TDS statement (as shown in the image below).

Please remember that  your single company may have taken multiple TAN at different location of India in the past. The Tax manager should now find all unused TAN and try to surrender the same.  till the time same not surrendered, please file nil TDS return.

NIL TDS – File Declaration for Non-filing of TDS statement on TRACES

Your urgent attention is invited to relevant CBDT Circulars and provisions of the Income Tax Act, mandating filing of TDS Statements and Issuance of TDS Certificates downloaded from TRACES. But If you are not required to submit TDS statement for FY 2013-14 and not filed any TDS Statements in FY 2013-14 , than you are required to submit a declaration by taking appropriate action as suggested under “Action to be taken” in this Article.
1. Mandatory filing of TDS Statements: Under the provisions of section 200(3) of the Income Tax Act, 1961 read with Rule 31A, which reads as follows:
Every person responsible for deduction of tax under Chapter XVII-B, shall, in accordance with the provisions of sub-section (3) of section 200, deliver, or cause to be delivered, the following quarterly statements to the Director General of Income-tax (Systems) or the person authorised by the Director General of Income-tax (Systems), namely:
a. Statement of deduction of tax under section 192 in Form No. 24Q;
b. Statement of deduction of tax under sections 193 to 196D in-
Form No. 27Q in respect of the deductee who is a non-resident not being a company or a foreign company or resident but not ordinarily resident; and
Form No. 26Q in respect of all other deductees.
It is, therefore, advised to file the applicable TDS Statements at the earliest to comply with the above provisions.

2. Implications of Non/ Late filing of TDS Statements:
For Deductors: In case of late filing of TDS Statements, a fee shall be levied on the deductor u/s 234E of the IT Act which reads as under:
• Where a person fails to deliver or cause to be delivered a statement within the time prescribed in sub-section (3) of section 200 or the proviso to sub-section (3) of section 206C, he shall be liable to pay, by way of fee, a sum of two hundred rupees for every day during which the failure continues
For Tax payers: Non/ Late filing of TDS statements results into the TDS Credit not being available to the deductees. They, therefore, will not be able to claim the credit for tax already deducted from the payments made to them. Please note that TDS Certificates will not be available until the TDS Statements are duly filed.

3. Actions to be taken:
Please file the relevant TDS Statement without any further delay.
If you are not required to file the same, please submit a declaration for Non-filing on TRACES. For this purpose, you can login to TRACES, navigate to “Statements/ Payments” menu and submit details under “Declaration for Non-Filing of Statements”.
Issue TDS certificates after generating and downloading the same from TRACES. TDS Certificates downloaded only from TRACES Portal will be valid.