date of filing of VAT-15 return of Quarter -2 ending 30th September, 2014 for the year 2014-15, has been extended to 3rd November, 2014

Public Notice Kind Attention: Dealers/Lawyers/Chartered Accountants/Other Stakeholders In the light large number of representations received from lawyers and trade bodies, it is notified that last date of filing of VAT-15 return of Quarter -2 ending 30th September, 2014 for the year 2014-15, has been extended to 3rd November, 2014. However, dates for payment of tax will remain unchanged. Dated: 29th October, 2014                 Excise and Taxation Commissioner, Punjab

Download Conso File -- Rectify unmatched Challans in the TDS Return Statement

An important message has been displayed for the deductors on the TRACES website regardingdownloading of conso file.
The displayed message has been given below:

Attention Deductors: Your request for download of Conso File will not be accepted in case there are unmatched challans in the selected statement. Please match all challans through Online Correction before submitting request for Conso File.
This means that if there are any unmatched challans in the TDS statement filed by the deductor, the correction statement for that TDS statement cannot be filed for such regular statement for errors such as PAN Error, Short deduction due to incorrect reporting of certificates, interest andlate fee payments etc. The correction statement will be filed only when all the challans in the statement are matched.
This may arise a question that how will the unmatched challans be matched in absence ofdownload of conso files for correction of statements.
For this purpose, CPC (TDS) has provided an utility called Online Challan Correction through which any mismatch in challans in the statements filed by the deductors can be corrected through the online mechanism on the CPC (TDS) website itself.

http://contents.tdscpc.gov.in/docs/e-Tutorial%20-%20Online%20Correction-%20Challlan%20Correction.pdf

CBEC circular clarifies that services provided by Indian Banks/Entities acting as agents to off-shore Money Transfer Service Operators (MTSO) would attract Service tax

This Tax Alert summarizes the CBEC's Circular No. 180/06/2014 – ST dated 14 October 2014 (Circular) issued by the TRU that discusses Service tax applicability on activities surrounding inward remittances received from abroad to beneficiaries in India through Money Transfer Service Operators (MTSO) and the commission or fees received by agents / sub-agents appointed in India in this regard.
Circular clarifies that commission, fee or charges for services provided by Indian Banks/Entities acting as agents or sub-agents would attract Service tax.
Possibility of retrospective application of the said Circular by the revenue authorities to raise Service tax demands is not ruled out.

Due Date for filing ST-3 extended to 14th November, 2014

CBEC vide Order No. 02/2014-ST dated 24th October, 2014 has extended the due date of filing Service Tax Return, for the period April 2014 to September 2014, from 25th October 2014 to 14th November 2014.

Kisan Vikas Patra Rules--Govt. notifies revised

MINISTRY OF FINANCE

(Department of Economic Affairs)
NOTIFICATION
New Delhi, the 23rd September, 2014

GSA- 705(E).—ln exercise of the powers conferred by section 12 of the Government Saving Certificates Act, 1959 (46 of 1959) and in suppression of the Kisan Vikas Patra Rules, 1988 except as respects things done or omitted to be done before such supersession, the Central Governmenthereby makes the following rules, namely:—
1. Short title and commencement.—(1) These rules may be called the Kisan Vikas Patra Rules, 2014
(2)They shall come into force on the day of their publication in the Official Gazette. 2.

2. Definitions.—In these rules, unless the context otherwise requires, –
(a) “Act” means the Government Savings Certificates Act, 1959 (46 of 1959);
(b) “cash” means the cash in Indian currency;
(c) “Certificate” means the Kisan Vikas Patra;
(d) “Form” means a Form annexed to these rules;
(e) “Post Office” means any departmental post office in India doing Savings Bank work;
(f) “Bank” means any branch of State Bank of India and its associate banks, designated branches of Nationalised and other commercial banks, authorized for Public Provident Fund Scheme;
(g) words and expressions used herein and not defined but defined in Post Office Savings Certificate Rules, 1960 shall have the meanings respectively assigned to them in those rules.

3. Application of Post Office Savings Certificate Rules, 1960.—The provisions of the Post Office Savings Certificate Rules, 1960 shall, so far as may be, apply in relation to matters for which no provision has been made in these rules.

4. Denomination of Certificates.—The Kisan Vikas Patra shall be issued in denominations of 1,000/-, Rs. 5,000/-, Rs.10,000/- and Rs. 50,000/-.

5. Purchase of Certificate.—Any number of Certificates of the denominations specified in rule 4 may be purchased.

6. Type of Certificates and issue -(1) The Certificates shall be of the following types, namely :—
(a) Single holder type Certificates;
(b) Joint ‘A’ type Certificates; and
(c) Joint B’ type Certificates.
(2) (a) A single holder type Certificate may be issued to – (a) an adult for himself or on behalf of a minor or to a minor;
(b) A Joint ‘A’ type Certificate may be issued jointly to two adults payable to both holders jointly or to the survivor.
(c) A Joint `B’ type Certificates may be issued jointly to two adults payable to either of the holders or to the survivor.
Procedure for purchase of Certificate.—(i ) Any person or persons specified in rule 6, desiring to purchase a Certificate, shall present an application in a Form A either in person or through an authorised agent of the small savings schemes at a Post Office or Bank.

(2) Payment for the purchase of a Certificate may be made to a Post Office or Bank in any of the following modes, namely:—
(i) by cash; or
(ii) by locally executed cheque, pay order or demand draft drawn in favour of the Post Master; or
(iii) by presenting a duly signed withdrawal form or cheque together with the passbook for withdrawal from Savings Account standing in credit of the purchaser at the same Post Office or Bank.

8. Issue of Certificates

(1) On payment being made under rule 7, except where payment is made by a cheque, pay order or demand draft, a Certificate shall be issued immediately and the date of such Certificate shall be the date of payment.
(2) Where payment for the purchase of a Certificate is made by cheque, pay order or demand draft, the Certificate shall not be issued before the proceeds of the cheque, pay order or demand draft, as the case may be, are realised and the date of such Certificate shall be date of encashment of the cheque, pay order or demand draft, as the case may be.
(3) If for any reason a Certificate cannot be issued immediately, a provisional receipt shall be given to the purchaser which may later be exchanged for a Certificate and in such a case the date of Certificate shall be the date of provisional receipt.

9. Transfer from Post Office to Bank and vice-versa.–(1) A Certificate may be transferred from a Post Office or Bank at which it stands registered, to any other Post Office or Bank to the holder or holders making an application in Form B either at Post Office or Bank.
(2) Every such application shall be signed by the holder or holders of the Certificate :
Provided that in the case of Joint ‘A’ type Certificate or Joint ‘B’ type Certificate, the application may be signed by one of the joint holders if the other is dead.

10. Transfer of Certificate from one person to another.—(1) A Certificate may be transferred from one person to another with the consent in writing to an officer of the

POST INCORPORATION WORKS--WORKS REQUIRE TO BE DONE IN THE FIRST BOARD MEETING OF COMPANY

              CALL BOARD MEETING OF COMPANY:

       [Within 30 days of Incorporation of company- Section- 173(1)]

Issue Notice of Meeting. (At least 7 days before the meeting- As per Section- 173(3), attach agenda of Meeting in Notice.

Call First Board Meeting within 30 days of Incorporation of Company. First Directors are named in the articles; they conduct the first board of Meeting.

HOLD BOARD MEETING:

Ensure that proper quorum is present. [1/3 of total strength of Directors or 2 directors, whichever is higher. Section- 174(1)]

Read out the Agenda of Meeting.

Business to be Transacted in First Board Meeting within thirty days of Incorporation

S. NO.	PARTIULAR
	Elect the Chairman of Meeting.
	To keep in Safe Custody Certificate of Incorporation.
	Maintain copy of Incorporation Documents: The company shall maintain and preserve at its registered office copies of all documents and information as originally filed on incorporation till the dissolution of the Company. [Section-7(4)]
	Confirmation of appointment of first Director of Company. The person whose name will be mentioned in Articles of Association will be First Director of Company, in case of absence of name in Article of Association, subscribers of Memorandum of Association will be first Director of Company.
	Maintain a Registered Office As per Section -12(1) company shall, on and from the 15 (fifteenth) day of its incorporation and at all times thereafter, have a registered office capable of receiving and acknowledging all communications and notices as may be addressed to it. Practically company should have registered office at the time of incorporation of company.
	Appointment of First Auditor of Company. As per Section- 139(6) - The First auditor of company shall be appointed by the Board of Directors within 30 (thirty) days from the date of registration of the company.
	Issue Share Certificate to Subscribers of Memorandum. As per Section- 56(4)(a) – Every company shall issue Share Certificatewithin a period of 2 (two) month from the date of incorporation
	Adopt Letter Head of Company. As per Section- 3(c) – on letter head of Company following things should be mentioned: Name of Company. The address of Registered Office of Company. Corporate Identification Number. Telephone No. Fax No., if any E-email ID, if any
	Adopt and Affix Board outside the Registered office. As per Section- 3(c) - on Board of Company following things should be mentioned: Name of Company. Registered office address of company. Affix it outside of every office or place in which its business is carried on.
	Adoption of Common Seal of Company. As per Section- 3(b) – The Company have its name engraved in legible characters on its seal.
	Authorize Director to maintain of Books and Registers. Registers which required being maintained as per Companies Act-2013 given in my other article.(Series-18)
	Authorize Director to maintain of Minute Books. As per Section-118(1) – Every Company shall prepare minutes of every meeting with in 30 (Thirty) days of the conclusion of every such meeting.
	Open Current Account of Company. Company should open Bank account of Company before issue of shares. Because as per Section-11 director require to give declaration that company have received amount of shares from the subscribers.
	Adopt rubber stamps. Prepare two rubber stamps. One round stamp in the name of company. Second one in the name of Director.
	Obtain Permanent Account Number (PAN) of Company. As per Form No. 49A of Income Tax Act.
	Obtain TAN No.
	If Company in Service Industry- Apply for Service Tax Number.
	If company is engage in transaction of Sale and Purchase- apply for Sales Tax Registration No.
	Apply for Certificate of Commencement of Business. Before commencing any business or exercising Borrowing Powers a declaration has to be filed by a director in e-Form No.21 and duly verified by a certifying Professional, with the Registrar that every subscriber to the memorandum has paid the value of the shares agreed to be taken by him and the paid-up share capital of the company is not less than five lakh rupees in case of a public company and not less than one lakh rupees in case of a private company on the date of making of this declaration
	The ROC will issue certificate of Commencement of Business after filling of Form-21.
	Suggestion- List of Stationary Items to get Printed copy of Memorandum of Association and Article of Association. Minutes Loose Leaf (100 pages) & Minutes Binder (optional). Printed Share Certificates (Minimum 50 share certificates) (Optional). Statutory Books and Registers which a company should maintain- List of registers are given in other Article (Series-18).

DIN-3 replaced by DIR-3C

This is to inform that the e-form DIR-3C, i.e., replacing e-form DIN-3 has been introduced by MCA for filing. This form is for intimating DIN of Directors to ROCs. Some of the companies were facing issues in filing of the forms due to non-availability of signatory details of the Directors in MCA portal.
In this regard, Companies which do not have any of their Directors/Signatory details registered in the MCA2 1 system and who are desirous of filing DIR-3C Form are advised to get atleast one authorised signatory registered by contacting the concerned Registrar of Companies. ROCs have been requested by the MCA to allow entry of details from their offices also.
Further, CLSS-2014 Scheme is available to corporates for filing of their overdue documents and companies desirous of availing benefit of the scheme may update their directors details (by using e-form DIR-3C) to enable themselves to file their Balance Sheets, Annual Returns and other annual documents on MCA portal.
Since the Company Law Settlement Scheme, 2014 is ending on 15th October, 2014, professionals are requested to file e-form DIR- 3C for updating directors details of the companies and thereafter file the overdue documents as part of CLSS Scheme at the earliest convenience to avoid last minute rush and system congestion on the MCA2 1 portal.

Report 15G/ 15H transaction & raise Flag B in Quarterly TDS Returns

CPC-TDS Communication to Banks Regarding Non reportingof 15G/H transaction in contravention of rule 31A (4) of Income Tax Rules read with section 200 of Income Tax Act

1) In this regard, it is to inform you that ________ branches out of ________ active branches of your bank have not reportedtransaction of payment of interest on which tax was not deducted in view of declaration of 15G or 15H form by the payee. We are also sending a separate communication to the non-compliant branches, attached in the list.
2) __________ branches have in all reported __________ transactions involving declarationof 15G or 15H. The amount involved in such transactions is to the tune of Rs. _______ Crore for F.Y. 2013-14. Form 15G/15H can be submitted by the payee only if the income including the interest income is less than the taxable amount.
3) You are requested to reconcile the amount of Rs. ______ Crore reported by your bank branches with the interest amount paid to payees who declared 15G or 15H as per core banking solution of your bank. In case of discrepancy, it is requested that the relevant branches may be instructed on top priority to comply to the provisions of Income tax act in respect of complete & correct reporting of transactions involving 15G or 15H declaration.
Since the due date of filing Q2 2014 TDS Statements (October 15) is approaching fast, you are requested to ensure the details of 15G/H transactions from your source data and raise Flag “B” in the Original TDS Statements. Also, please ensure submission of Correction Statements for previous Quarterly TDS Statements of the branches.

CPC (TDS) reminder to Banks for raising Flag “B” in TDS Quarterly Statements against 15G/H transactions
As you may be aware that the depositors submit form 15G/H to the bank for no deduction of tax to be made on the interest payments made to them. As per rule 31A (4) of Income TaxRules read with section 200 of Income Tax Act, the referenced 15G/H transactions are required to be reported by raising Flag “B” in relevant TDS Statements (Form 26Q).
However, CPC(TDS) has observed from its records that you have not raised Flag ‘B’ for  No deduction on account of 15G/H  even against a single transaction as reported in the TDS Statement(s) submitted for various quarters of Financial Year 2013-14.

It is highly improbable that not even a single depositor has submitted form 15G/H to you for non-deduction of tax on the interest payments. Accordingly, you are advised to take the following action:Actions to be taken:

– Since the due date of filing Q2 2014 TDS Statements (October 15) is approaching fast, you are requested to check the details of 15G/H transactions from your source data and raise Flag “B” in the Original TDS Statements.
– Please submit Correction Statements for previous Quarterly TDS Statements by taking following actions:
Download the Conso File from our portal.
Prepare the correction statement with appropriate changes.
Please ensure that the TDS Deposited amount equals the TDS Deducted amount in your correction statement. Submit the Correction Statement at TIN Facilitation Centre.

Direct Tax Collection during April-September 2014 increases by 15.00 percent

Gross Direct Taxes Collections during April-September of the Current Financial Year 2014-15 is up by 15.00 percent and stood at Rs. 3,46,144 crore as against Rs. 3,01,063 crore Collected during the same Period Last Year

Gross Direct Taxes collections during April-September of the current Financial Year 2014-15 is up by 15.00 percent and stood at Rs.3,46,144 crore as against Rs. 3,01,063 crore collected during the same period last year. Gross collections of Corporate Tax has shown an increase of 15.31 percent and stood at Rs.2,22,616 crore as against Rs. 1,93,054 crore collected during the same period last year. Gross collection of Personal Income Tax, including STT and Wealth Tax, is up by 14.37 percent and stood at Rs. 1,23,528 crore as against Rs. 1,08,009 crore collected during the same period last year. Securities Transaction Tax (STT) stands at Rs. 3223 crore at a growth of 45.83%. Net Direct Tax collections is up by 7.09 percent and stands at Rs. 2,68,836 crore, as compared to Rs. 2,51,028 crore during the same period in the last fiscal.
Advance tax collections have shown a growth of 15.28% during the first half of the year as against the growth of 7.66% shown at the same time previous year. Growth in Tax Deduction at Source(TDS) is 9.47% as against 14.22% in the same period last year.

Finance Act, 2014 ----Service Tax, which are applicable from 1st October, 2014.

1. Service Tax is applicable on Radio Taxi (the abatement presently available to rent-a-cab service would also be made available to radio taxi service, to bring them on par);
2. Advertisements in internet websites, out-of-home media, on film screen in theatres, bill boards, conveyances, buildings, cell phones, Automated Teller Machines, tickets, commercial publications, aerial advertising, etc. (sale of space for advertisements in newspapers, book other than business directories/yellow pages/trade catalogues would continue to be non-taxable) are leviable to Service Tax;
3. Introduction of variable Rates of Interest:

Extent of delay	Simple interest rate per annum (Revised)	Simple interest rate per annum (Existing)
Up to six months	18%	18%
More than six months & upto one year	18% for first six months, and 24% for the period of delay beyond six months	18%
More than one year	18% for first six months, 24% for second six months, and 30% for the period of delay beyond one year	18%

 

4. Mandatory E-payment for every assessee;
5. Partial Reverse Charge Mechanism – In Renting of motor vehicle, where the service provider does not take abatement, the portion of service tax payable by the service provider and service receiver is modified as 50% each;
6. Rate of Exchange for value of taxable service shall be the applicable rate of exchange as per the generally accepted accounting principles on the date when point of taxation arises in terms of the Point of Taxation Rules, 2011;
7. Service Tax on service portion in Works Contract - In Rule 2A of the Service Tax (Determination of Value) Rules, 2006, category “B‟ and “C‟ of works contracts are proposed to be merged into one single category, with percentage of service portion as 70%;
8. Place of Provision of Services rules, 2012:

Rule	Applicable Changes
Rule 4	Provision for prescribing conditions for determination of place of provision of repair service carried out on temporarily imported goods is being omitted.
Rule 9	The definition of intermediary is being amended to include the intermediary of goods in its scope. Service consisting of hiring of Vessels (excluding yachts) and Aircraft is being excluded from rule 9(d).

 

9. Point of Taxation in respect of reverse charge will be the payment date or the first day that occurs immediately after a period of three months from the date of invoice, whichever is earlier; and
10. Abatement provisions:

• Taxable portion in respect of transport of goods by vessel is being reduced from 50% to 40%.
• For Renting of any motor vehicle designed to carry passengers, the word ‘motor cab’ will be substituted for the word ‘motor vehicle.
• CENVAT credit of input service of renting of motor cab is allowed to a Rent a Cab Service provider taking the benefit of abatement scheme subject to conditions mentioned in Notification 08/2014-ST.
• CENVAT credit of Tour Operator Service is allowed to a Tour Operator taking the benefit of abatement scheme subject to conditions mentioned in Notification 08/2014-ST.

e-TDS/TCS – FVU version 4.4 from FY 2010-11 & onwards wef 23.09.2014

Key feature of FVU version 4.4

♣ Lower/ Non-deduction Certificate number issued by Assessing Officer (in deductee details): Length of field ‘Certificate number issued by the Assessing Officer u/s 197 for non-deduction/lower deduction’ under deductee details (i.e. in Annexure I) has been restricted to 10 digits. Certificate number to be quoted only in case of lower deduction/no deduction. This validation is applicable to regular and correction (C3 & C9) statements pertaining to FY 2013-14 and onwards.

♣ Amount paid/ credited (in deductee details): Value in field “Amount paid/ Credited” to the deductee in case of Form no. 24Q should be less than or equal to 999999999.00. This validation is applicable to regular and correction (C3 & C9) statements pertaining to all FYs.

♣ Total Taxable income (in salary details – Annexure II): Value in field “Total Taxable Income” to the deductee in case of Form no. 24Q-Q4 should be less than or equal to 00. This validation is applicable to regular and C4 correction statements pertaining to all FYs.

♣ Deductee reference number and Employee serial number (in deductee details): It is mandatory to quote in the field “Deductee reference no.” (In case of Form no. 26Q) and “Employee serial no.” (In case of Form no. 24Q), where PAN of the deductee is invalid. This validation is applicable to regular and correction (C3 & C9) statements pertaining to all FYs.

♣ Total tax deducted amount (in deductee details): In case of Form no. 24Q, value quoted in field “Total Tax deducted amount” should be less than or equal to value quoted in field “Amount paid/ credited” under deductee details. This validation is applicable to regular and correction (C3 & C9) statements pertaining to all FYs.

♣ Accounts Office Identification Number (AIN): It is mandatory to quote the AIN in case of Form no. 24Q and 26Q for deductor category “Central Government” & “State Government”. This validation is applicable to regular and correction (C1 & C2, C3 (if deductor details are updated)) statements pertaining to FY 2013-14 onwards.

♣ Collection code “J” (Sale of certain Minerals) and “K” (Cash case of Bullion andJewellary): Collection code “J” and “K” is applicable only for TCS (Form no. 27EQ) regular and C9 correction statements pertaining to Q2 of FY 2012-13 onwards.

♣ Remarks for higher deduction (in deductee details): Remarks for higher deduction in deductee details i.e., flag “C” to be mentioned only if the deductee PAN is structurally This validation is applicable to regular statement and correction (C3 & C9) statements pertaining to FY 2010-11 onwards:

♣ Country name (in deductee details): In case of Form no. 27Q, the country name “MEXICO” has been updated to “UNITED MEXICAN STATES”. This change is applicable to regular and correction (C3 & C9) statements pertaining to FY 2013-14 onwards.

♣ Applicability of FVU version:

From September 23, 2014, FVU version 4.4 would be mandatory for statements pertain to FY 2010-11 onwards.

♣ Link to Download e-TDS/TCS FVU.exe (Version 4.4)

https://www.tin-nsdl.com/download/e-tds/FVU%204.4.zip

Tax dept extends date for TDS deposit to 10 Oct 2014

The last date for deposit of Tax Deducted at Source (TDS) has been extended by three days to
October 10 due to festivals.
"The Central Board of Direct Taxes (CBDT) has issued an order to extend the last date of deposit
of tax deducted at source/tax collected at source during the month of September, 2014 from
October 7 to October 10 without entailing any consequential interest," an official statement said.
The extension has been given considering the consecutive holidays owing to the festive season
and weekend during the first week in the month of October, 2014, it added.
However, the due date for filing of TDS/TCS statements for the second quarter of the 2014-15
fiscal shall remain the same.
(Business Standard)

Service tax electronically through internet banking-Compulsory

With effect from 1st October, 2014; every assessee is required to pay service tax electronically through internet banking therefore service tax liability for the month of September, 2014 or quarter ending September, 2014 is required to be paid electronically irrespective of the constitution of assessee and quantum of turnover/service tax.

Here we would also like to mention that relaxation from e-payment may be allowed by the Deputy Commissioner/Asst. Commissioner on case to case basis.

(Notification No. 09/2014-ST)