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1) Budget 2015 change in TDS Rate on Royalty / Fees for Technical Services and section 195....
2) Have you also received Penalty Notice of Rs 50000 from DVAT for non-filing of DP1....
3) NIL TDS - File Declaration for Non-filing of TDS statement on TRACES....
4) List of Documents to be filed with Refund claim for Central Excise Customs and Service Tax Refund Rebate Claims Central Excise....
5) EPFO : Online helpdesk for settlement of Inoperative EPF Accounts....
6) How to determine applicable TDS Rate on making Foreign Payments....
7) CBDT issued Master Circular on Salary for FY 2014-15 ....
8) Though the second proviso to sec. 40(a)(ia) was inserted w.e.f 1.4.2013, but the same is is declaratory and curative in nature and has retrospective effect from 1.4.2005....
9) HC Says: Assessee can file the revised return even after service of intimation u/s 143(1) by department....
10) Payment made to Non Resident exclusively for the purpose of earning income from a source outside India are covered by exclusion clause u/s 9(1)(vii)(b) of the Act. Hence not liable to TDS in India....
11) How to file TDS Returns Free....
12) Commission paid by Assessee on Export Sales to Non Resident Agents is not Fees for Technical Services (FTS), hence not liable to TDS in India.....
13) MCA notifies Ind AS....
14) ITAT denies to condone delay on basis of vague affidavit of CA, raises questions on his work ethics....
15) Rebate under section 87A....
16) Key features of File Validation Utility new FVU version of e-TDS Returns....
17) Key Expectations from the Budget 2015-16....
18) Fee charged for late filing of TDS return isn't a tax; HC upholds constitutional validity of sec. 234E....
19) No sec. 115E benefit on short-term cap gain from sale of foreign exchange asset as it isn't an investment income....
20) Area-based exemption from basic excise duty doesn't extend to EC, SHEC and National Calamity Contingent Duty....
21) SC Held : Fees paid to Non Resident company to prepare scheme for raising the finance is taxable under FTS....
22) Transactions between head office and foreign branch aren't international transactions under TP provisions....
23) Addition of 'speed post' as valid mode of service is clarificatory and retrospective in nature, rules Orissa High Court....
24) CBDT Clarifies: Interest u/s 234A shall not be levied on self assessment tax paid before the due date of filing return....
25) Sum paid to NR professional for preparation of scheme for raising finance and tie up for loans was FTS....
Procedure to file TDS Return online at Income Tax Website for free
As committed by us in the previous email, today we are describing below the procedure to file your TDS Return at Income Tax Website for free.
Step 1) Go to Income Tax website http://incometaxindiaefiling.gov.in/
Step 2) Click " Register Yourself " button.
Step 3) Select " Tax Deductor and Collector" option and click continue.
Step 4) Enter your TAN click continue.
Step 5) Click on Traces link provided on the next screen.
Step 6) You will be automatically re-directed to the TRACES website.
Step 7) If your TAN is already registered on TRACES, then login into the website. OR if your TAN is not yet registered on TRACES, then first you have to register it and login the same.
Step 8) After Login into TRACES, click the link " Register with E-Filing ".
Step 9) You will redirected to E-filing TAN Registration Page.
Step 10) Fill out the complete Form and Submit..................
Click to download one time Registration Procedure.
Click to download TDS Return upload Procedure Points to remember to avoid error in the Digital signature upload :-
1) Signature file generated by ITD utility is valid only for one transaction. So a new signature file has to be generated every time for TDS return upload. 2) First of all, you have to generate digital signature file using the ITD utility tab " Register / Reset Password using DSC ". Update this file into the Profile section -> Register DSC on the ITD portal. This is one time process only.
3) Then you have to generate signature file using the ITD utility tab " Bulk Upload " and use this signature file for uploading TDS return.
4) Further, Pl note that ITD portal & ITD utility does not accept .fvu file directly, so you have to convert the same into .zip file and then upload. ZIP utility is easily available on the internet for free.
If you still face any error, please feel free to write us.
Due date for filing TDS Returns extended w.e.f.01-June-2016
This is to update you that CBDT has extended the due dates for filing TDS Return w.e.f. 01 June 2016 as below.
Existing Rule [Applicable upto 31 May 2016]
Due Date for filing TDS Return
Due Date for issuing Form 16A
Due Date for issuing Form 16
Revised Rule [ Applicable w.e.f. 01 June 2016] Quarter Ending…. Due Date for filing TDS Return Due Date for issuing Form 16A Due Date for issuing Form 16 30 June 31 July 15 Aug NA 30 September 31 October 15 Nov NA 31 December 31 January 15 Feb NA 31 March 31 May 15 June 31 May After this amendment, the due dates are same for Government Deductors as well as Non-Government Deductors.
Please note that the above change is effective from 01 June 2016. Therefore it does not have any impact on the filing of TDS return for Financial Year 2015-16 or earlier.
Click here to download CBDT Circular Issue related to issuance of Form-16 (For Salary Income):
However this amendment might create a practical difficulty in case of issuance of Form-16 (Salary Income), because now the due date for filing Q4 Salary TDS Return and due date for issuing Form-16 is same i,.e. 31 May. Therefore if return is filed in the last 3-4 days of extended due dates, then it shall not be possible for the system to process and generate the Form-16 before the due date. But as the amendment is effective from 01 June 2016, so the effect can be seen in next year only.
Online facility for filing TDS Returns to be shifted from NSDL to ITD
As you are already aware that currently, TDS returns can be filed online at NSDL website free of cost. However, w.e.f. May-2016 this facility is going to be discontinued and in lieu of the same, now users can file their TDS Returns online at Income Tax Department website itself.
Below is the copy of communication received from NSDL in this regard. Hope you find the same useful. Our team have been using this facility for last 4 years and its pretty good and free of cost as well.
Benefit of this Facility:-
1) No need to visit NSDL office every time for filing TDS Return.
2) Faster processing by Tax Department.
3) No fee is required to e-file.
Click here to read our previous article on - How to file TDS return free on NSDL?
Below is copy of communication received from NSDL in this regard. If you have any query, please feel free to post. We shall keep you updated on the same.
" Dear Online Upload user, As you are aware, currently online upload of e-TDS/TCS statement(s) and Annual Information return (AIR) facility is provided by NSDL e-Governance Infrastructure Limited (NSDL e-Gov) on behalf of Income Tax Department (ITD). We hereby inform that from May 1, 2016, the functionality of Online Upload of e-TDS/TCS statement(s) will be available on e-filing portal of ITD. You may visit e-filing portal of ITD. For queries, kindly contact e-filing Helpdesk at 1800 4250 0025 / 91 80 2650 0025. Otherwise, the users who are desirous to file e-TDS/TCS statements/AIR can file the same through our TIN-FC agents. To know the nearest TIN-FC, please visit at the TIN website at https://www.tin-nsdl.com/tin-facilities.php. Thanks and Regards Online Upload Team "
Liquidation of Companies comparison b/w old and new company act
Liquidation As per Companies act 2013 1. Company can be wind up by passing special resolution 2 company can also be wound up if it is authorized by the article on occurrence of certain events 3.where company is to be wound up it directors or majority of directors should issue an affidavit stating reflecting the solvency condition of the company 4. Such declaration shall be made within 5 weeks immediately preceding the date of the passing resolution 5.Such declaration shall accompanied with auditors reports prepared as per concerning section 6 Notice of wing up should be sent to creditors by registered pos 7 Notice of any resolution passed at meeting of creditors shall be sent to registrar of company within 10 days after passing 8 After passing resolution for winding up, advertisement should be published in gazette & also in news paper 9. If the assets of company may not able to pay off all the debts , then company can apply by disolution by tribunal 10 company in general meeting should appoint liquidator from the list prepared by CG 11 Creditors can change liquidators 12 Every rights of directors would be t/f to liquidator of company Liquidation As per Companies act 1956 1 Voluntary liquidation of company can be done by special resolution or by passing resolution if AOA of company authorise the same on occurance of some specific event 2. Within 14 days of passing resolution, company shall give advertisement in official gazette & local news paper. 3 Liquidation will begin after passing resolution 4 Majority of directors shall file an affidavit that company has no debts or company will pay debt within 3 years from date of commencement of liquidation 5. Such declaration shall be made within 5 weeks of passing resolution & shall file with registrar. 6 Such declaration shall be accompanied with auditors report I.e profit & loss A/c of the company from date of last such report upto last transaction of company 7 The company in general meeting shall appoint one or two directors & they will also fix the remuneration. Remuneration of the Liquidator cannot be increased in any circumstances 8 On the appointment of the liquidator all right of director will transfer to him. 9 Notice of appointment of directors to registrar within 10 days of appointment.Liquidator so appointed is required to call the meeting of creditors, if he thinks the assets of the company is not sufficient to pay the debt 10. If process of liquidation is continuing for more than 1 year then he is required to call general meeting. 11. As per sec 511, proceeds received from sale of assets shall be distributed on pari passu basis and on the basis interest in the company 12.Company act does not define the qualification of liquidator but it prohibits some person from being appointed as liquidator. Normally, a professional can be liquidator of the company. 15 Body corporate can not be appointed as liquidator of the company
Finance Budget 2015 Documets
Finance Budget 2015 has been presented by Finance Minister, Shri Arun Jaitley on 28-Feb-2015.
Below are the documents available for download.
1) Budget Speech by Finance Minister
2) Finance Bill, 2015
3) Memorandum explaining the Finance Bill, 2015
4) Key Highlights of Budget 2015
5) Budget analysis by ICAI
Budget 2015 change in TDS Rate on Royalty / Fees for Technical Services and section 195
Budget 2015 change in TDS Rate on Royalty / Fees for Technical Services and section 195
Amendment in section 115A -
TDS rate u/s 115A has been proposed to be reduced from 25% to 10%. Amendment in section 195 -
It is further proposed to amend the provisions of section 195 of the Act to provide that the person responsible for paying any sum, whether chargeable to tax or not, to a non-resident, not being a company, or to a foreign company, shall be required to furnish the information of the prescribed sum in such form and manner as may be prescribed. In case of non-furnishing of information or furnishing of incorrect information under sub-section (6) of section 195(6) of the Act, a penalty of Rs. 1,00,000 shall be levied. Below is the summary for your understanding.
TDS rate on foreign payments depends on two conditions. First, whether deductee provides a valid TRC or not? Second, whether deductee holds a valid PAN in India or not?
Below is the matrix showing applicable TDS rates depending on the availability of TRC & PAN. TDS RATE ON FOREIGN PAYMENTS CASE Whether TRC is available? Whether PAN is available? Treatment Possible Challenges CASE A Yes Yes Grossing Up should be done @ DTAA Rate.
TDS should be deducted @ DTAA Rate. NA CASE B No No Grossing Up should be done @ applicable IT Act Rate.
TDS should be deducted @ applicable IT Act Rate or 20%, whichever is higher. Foreign Income Tax Authority may decline to give TDS credit in excess of rate prescribed in DTAA. CASE C No Yes Grossing Up should be done @ applicable IT Act Rate.
TDS should be deducted @ applicable IT Act Rate. Foreign Income Tax Authority may decline to give TDS credit in excess of rate prescribed in DTAA. CASE D Yes No Grossing Up should be done @ DTAA Rate (Bosch Ltd. ITAT Bangalore).
TDS should be deducted @ applicable IT Act Rate or 20%, whichever is higher. Foreign Income Tax Authority may decline to give TDS credit in excess of rate prescribed in DTAA. Note IT Act Rates (as mentioned above) has to be increased by Surcharge & Education Cess. DTAA rates need not to be increased by Surcharge & Education Cess. Requirement of TRC for claiming Relief under DTAA 1) TRC became mandatory w.e.f. 01/04/12 2) Format of TRC notified w.e.f. 17/09/12 3) If TRC is not in specified format then a declaration in Form 10F is also mandatory along with the required documents w.e.f. 01/08/13. &nbs
SC Held : Fees paid to Non Resident company to prepare scheme for raising the finance is taxable under FTS
IN THE SUPREME COURT OF INDIA
CIVIL APPEAL NO. 7796 OF 1997
GVK Industries Ltd.
Income Tax Officer Facts & Summary -
1) GVK Industries Ltd. entered into an agreement with ABB Projects & Trade Finance International Ltd. (Non Resident Company incorporated in Zurich, Switzerland) to prepare a scheme for raising the required finance and tie up the required finance.
2) For providing these services, the NRC was to be paid, what is termed as, "SUCESS FEE" at the rate of 0.75% of the total debt financing.
3) The NRC rendered professional services from Zurich by correspondence as to how to execute the documents for sanction of loan by the financial institutions within and outside the country. With advice of NRC the appellant-company approached the Indian Financial Institutions with the Industrial Development Bank of India (IDBI) acting as the Lead Financier for its Rupee loan requirement and for a part of its foreign currency loan requirement it approached International Finance Corporation (IFC), Washington DC, USA. After successful rendering of services the NRC sent invoice to the appellant-company for payment of success fee amount i.e., US $.17,15,476.16 (Rs.5.4 Crores). 4) Appellant-company approached the concerned income tax officer, the first respondent herein, for issuing a ‘No Objection Certificate’ to remit the said sum duly pointing out that the NRC had no place of business in India; that all the services rendered by it were from outside India; and that no part of success fee could be said to arise or accrue or deemed to arise or accrue in India attracting the liability under the Income-tax Act, 1961 (for brevity, ‘the Act’) by the NRC. It was also stated as the NRC had no business connection Section 9(1)(i) is not attracted and further as NRC had rendered no technical services Section 9(1)(vii) is also no attracted.
5) The first respondent scanning the application filed by the company refused to issue ‘No Objection Certificate’ by his order dated September 27, 1994.
Held by Supreme Court -
As the factual matrix in the case at hand, would exposit the NRC had acted as a consultant. It had the skill, acumen and knowledge in the specialized field i.e. preparation of a scheme for required finances and to tie-up required loans. The nature of activities undertaken by the NRC has earlier been referred to by us. The nature of service referred by the NRC, can be said with certainty would come within the ambit and sweep of the term ‘consultancy service’ and, therefore, it has been rightly held that the tax at source should have been deducted as the amount paid as fee could be taxable under the head ‘fee for technical service’. Once the tax is payable paid the grant of ‘No Objection Certificate’ was not legally permissible. Ergo, the judgment and order passed by the High Court are absolutely impregnable.
To download full judgement click here
Key Expectations from the Budget 2015-16
Direct-taxes 1. Tax Incentives to the manufacturing sector The Modi Government seeks to boost Indian manufacturing with a "Make in India" campaign. So, one can expect tax incentives for the manufacturing sector in the forthcoming Union Budget. The tax incentives are more likely to be by way of investment-linked incentives rather than profit-linked incentives. Therefore, amendment may be made in the following sections of the Income-tax Act to boost manufacturing sector: (a) Section 32AC (Investment Allowance): The Finance (No. 2) Act, 2014 amended section 32AC to allow investment allowance of 15% to manufacturing companies who have made investment in new plant and machinery in excess of Rs. 25 Crores during previous year. The threshold of Rs. 25 Crore is pretty high for micro and small enterprises. So, one can expect the threshold limit of investment to be lowered even further to say Rs. 5 crores so that micro and small enterprises would be able to avail the benefits under section 32AC. (b) Section 32(1)(iia) (Additional depreciation): On similar lines of section 32AC, Section 32(1)(iia) provides additional depreciation at the rate of 20% on new plant and machinery acquired and installed by an assessee engaged in the business of manufacture or production of any article or thing or in the business of generation or generation and distribution of power. It is quite possible that to incentivize investments and simplify matters, additional depreciation of 20% may be scrapped and merged in investment allowance and total investment allowance of 35% may be allowed. Read More 2. Need clarity on taxability of capital gains in development agreements In development agreement ('DA'), the land owner hands over the vacant possession of the land to the developers and also assigns the development rights to the developers. In return of giving up the land, the land owner receives an agreed share in the developed property. The taxability of transactions resulting from DA has been contentious issue since a long time. A few of those issues are mentioned as under: (a) Year of taxability of capital gains, i.e., year of entering into DA or the year of allowing of actual possession or the year of receipt of developed property; (b) Non claiming of deductions under section 54EC or section 54 in absence of receipt of money where taxability is fixed in the year of entering DA; (c) Consideration for transfer of capital asset i.e. value of land transferred or value of developed property received. The Budget, 2015 should come up with clear provisions regarding year of taxability of capital gains arising from transactions resulting from DA along with a proper computation mechanism. The difficulty faced in claiming exemption under sections 54 and 54F of the Act should also be kept in mind while making such provisions. Read More 3. Electronic Maintenance of books of account Section 128 of the Companies Act, 2013 allows companies to keep books of account and other relevant papers in electronic format. In contrast, Section 2(12A) of the Act requires maintenance of books of account in written format or print-outs of data stored in a floppy, disc, tape or any other form of electro-magnetic data storage device. Thus, in current scenario, when Government of India is taking holistic approach for e-Governance plans, it is recommended that the Income-tax Act should permit electronic maintenance of boo
Tribunal couldn't restore appeal when assessee didn't pray for extension of pre-deposit time before HC and SC
Where High Court/Supreme Court has confirmed pre-deposit order of Tribunal and there was no prayer before High Court/Supreme Court seeking extension of time to make pre-deposit, Tribunal cannot restore appeal even after belated compliance with pre-deposit order.
a) On assessee's stay application, Tribunal directed pre-deposit in part.
b) Assessee filed appeal thereagainst before High Court, which was dismissed and a special leave petition before Supreme Court, which was also dismissed.
c) After the dismissal of SLP, assessee made pre-deposit and applied for restoration of appeal before Tribunal.
d) Tribunal held that since its order had merged with order of High Court/Supreme Court, it did not have power to restore appeal.
e) Assessee challenged Tribunal's decision before High Court.
High Court held in favour of revenue as under:
1) Once a substantive appeal has been filed before the High Court against an order of the Tribunal on the application for waiver of pre-deposit, the order of the Tribunal, in such a case, would merge with the order of the High Court.
2) No prayer was made before the High Court which dismissed the appeal for extension of time for pre-deposit or for restoration of the appeal. No such prayer was also made before the Supreme Court when the special leave petition was dismissed. In that view of the matter, the Tribunal was not in error in dismissing the miscellaneous application – Kisaan Gramodyog Sansthan v. Commissioner of Central Excise, Kanpur (2015) 54 taxmann.com 155 (Allahabad)
Source - Taxmann