Friday 13 May 2016

With effect from 01/06/2016

Krishi Kalyan Cess will be levied @ 0.50% on value of all Taxable Services. Unlike Swachh Bharat Cess, *Cenvat Credit of Krishi Kalyan Cess will be available*

Wednesday 11 May 2016

key changes in services Key changes in services tax

Key changes in services tax
1. Krishi Kalyan Cess @ 0.5% on gross value of taxable servicess (from 01.06.2016) Total ST rate @ 15%
2. AC Bus service by Road Transport Corporation taxable @ 6% (from 01.06.2016)
3. Rate of ST for the package tour increased from 3.625% to 4.35%
4. ST on foreman commission at 10.15%
5. Rate of ST for sale of flats increased from 3.625% to 4.35%
6. Rate of ST for transport of goods by Rail in container other than by IR increased from 4.35% to 5.8%
7. Rate of ST for transport of used household increased from 4.35% to 5.8%
8. Assignment of radio-frequency spectrum and subsequent transfers thereof taxable
9. Senior advocate service liable to service tax.
10. Transport of passengers ropeway, cable car or aerial tramway made liable for ST
11.Interest rate reduced to 15% (if ST not collected) and 24% (if ST collected)
12.Due date for issue of SCN extended from 18 months to 30 months
13.The monetary limit for prosecution cases enhanced to Rs.2 Crores.
14.Dispute resolution scheme for the cases pending before Commissioner (Appeals)
15.New levy on services exempted only if amount received and invoice raised before the notified date
16.Spl. Exemption for construction canal, dam or other irrigation works for the period 01.07.2012 to 29.01.2014.
17.Restoration of exemption for construction of non-commercial buildings for the contracts enter prior to 01.03.2015 for the period upto 31.03.2020
18.Spl. Exemption for constriction of ports and airports for the period from 01.04.2015 to 31.03.2020 for the contracts entered prior to 01.03.2015
19.Construction under House For All (Urban) Mission / Pradhan Mantri Awas Yojana (PMAY), exempted
20.Construction of low cost houses up to a carpet area of 60 sq.m per house under Govt. scheme exempted from service tax.
21.Levy of Central Excise duty/CVD and service tax on IT Software made mutually exclusive
22.Services provided by the Indian Institutes of Management (IIM) exempted
23.Business Entity receiving any service from government to pay service tax
24.Business entity located in India to pay service tax on ocean freight availed by foreign shipping line
25.HUF and One person company (<50L T/o) to pay on quarterly basis
26.Annual returns to be filed by service provider by 30th Nov every year

Friday 6 May 2016

File correct details in TDS return in respect of Form 15G/ 15H


Sometimes it has been observed that Flag “B” is not being raised for 15G/ H Forms in quarterly TDS Statements filed.
The prevalent practice is to raise the flag only in the TDS Statements filed in the last quarter of the Financial Year, however, such transactions must be reported within the relevant quarter.
The obligation to report each transaction in the relevant quarter, where tax has not been deducted on the basis of 15G/ H Forms, falls on the deductor and non-compliance amounts to incorrect verification of completeness of TDS statement.
Form 15G/H and its relevance:
Under section 197A of the Income Tax Act 1961, Form 15G/ H is a self-declaration, which is provided by a person resident in India (not being a Company or Firm) to their deductor that the tax on his estimated total income of the previous year, in which such income is to be included in computing his total income, will be NIL. The Declaration in writing should be collected by the deductor in Duplicate.
The Declaration can be made in the following Forms:
a. Form 15H – For Senior Citizens
b. Form 15G – For other than Senior Citizens
Such declaration under section 197A can be made only for tax deductions under section 192, 193, 194, 194A, 194C, 194D, 194G, 194H, 194I, 194J, 194K, 194LA and 195.
How to show Forms 15G/ H details in TDS statements:
If the deductee provides Forms 15G or 15H to their deductor, then deductor is not liable to deduct tax at the time of payment/ credits and needs to raise Flag “B” .
The person responsible for paying any income of the nature shall deliver or cause to be delivered to the Chief Commissioner or Commissioner, a copy of the declaration, on or before the seventh day of the month next following the month in which the declaration is furnished to him.
Consequences, if deductor does not raise Flag “B”:
If the deductor does not raise Flag “B” in case of non-deduction, the rate of tax as per the relevant section under the Act will become applicable and a Short Deduction default will be raised.

Tuesday 3 May 2016

Notification No. 30/2016 dated 29.04.2016.


Dedcutor employer will furnish following details:
• In case of HRA: Name, address and permanent account number of the landlord/landlords where the aggregate rent paid during the previous year exceeds rupees one lakh.
• In case of Leave travel concession or assistance: Evidence of expenditure.
• In case of Deduction of interest under the head “Income from house property”: Name, address and permanent account number of the lender.
• In case of Deduction under Chapter VI-A: evidence of investment or expenditure.

Changes in due date of Filing TDS statement wef 01.06.2016

Sub Rule 2 of Rule 31A of Income Tax Rules specifies the due date for filing of
(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—
(i) 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
(ii)  Form No. 26Q in respect of all other deductees.
The Due date as per rule are different for Government deductors and non Government deductors , which is as follows :-
TABLE
Sl. No.Date of ending of the quarter of the financial yearDue date for Government DeductorsDue date for non-Government Deductors
(1)(2)(3)(4)
1.30th June31st July of the financial year15th July of the financial year
2. 30th September31st October of the financial year15th October of the financial year
3.31st December31st January of the financial year15th January of the financial year
4. 31st March15th May of the financial year immediately following  the financial year in which deduction is made15th May of the financial year immediately following the financial year in which deduction is made.]
To bring Uniformity and to give deductors sufficient time in filing of TDS Statement CBDT has vide Notification No. 30/2016 Dated: 29.04.2016 has revised due date for filing above referred TDS statements for Government and non-governemnt deductors wef 01.06.2016 to as follows :-
Table
Sl. No.
Date of ending of quarter of financial year
Due date wef 01.06.2016 for Government and Non-Government Deductors.
(1)
(2)
(3)
1.
30th June31st July of the financial year
2.
30th September31st October of the financial year
3.
31st December31st January of the financial year
4.
31st March31st May of the financial year immediately following the financial year in which the deduction is made”.