Karnataka State Budget Amendments to the various Commercial Tax Laws for the year 2014-15

A note on various amendments to Commercial Taxes in the State of Karnataka the amendments to the Karnataka VAT Act, 2003 are applicable with effect from 01.03.2014.

Whereas the amendments to other Commercial Taxes Laws like Entry tax and Luxury tax shall be applicable w.e.f. 01.04.2014.  

Change in Road Permit Rules-New E-sugam Notification dated 05.03.2014 applicable WEF 01.04.2014

The Commissioner of Commercial Taxes, Karnataka has issued Notification No.  ADCOM (I&C)/DC(A3)-CR:158/2013-14 dated 05/03/2014 applicable with effect from 01.04.2014 in supercession of the earlier Notification ADCOM (I&C)/P.A./CR-31/2011-12 dated 09/10/2013:

Date of Payment of Final Installment of Advance Tax Extended from 15th March to 18th March 2014

Due date of payment of advance tax is 15th march but this time it has been extended up to 18th March 2014 because 15th is falling on Sunday.Please find full detail below:-

Levy of service tax on services provided by a Resident Welfare Association (RWA) to its own members

Services provided by Resident Welfare Society are taxable foo Rs.5000/- ,Recently CBEC has issued a circular for clarification of the some issues,these doubts & clarifications are given below:-

Be prepared for closing as ending of Financial year is ahead - (Income Tax)

Under the Income Tax Act there are various provisions which empower the Tax Authorities to collect information for the purpose of assessment proceedings under this Act.

These powers are given in Section 131, Section 132 , Section 133, Section 133A, Section 133B, Section 134 and Section 135 etc .

Collection of information under these sections may be for a particular Assessee or related to any assessment proceeding but I am not going to discuss that ‘when can these powers be exercised by the Authority and how ? ‘ Instead of discussing when & how , I would like to discuss that what type of  information is collected or which type of transactions are being watched by the Department.

Information is collected either directly from the assesse through furnishing of certain data in ITR or indirectly through certain agency/department (like banks, Registrar etc) which are transacting with such data or having control over such data.

Frequently Asked Questions (FAQ) on Electronic Funds Transfer (EFT) System

 Q.1.     What is RBI-EFT System? 

Ans     RBI EFT is a Scheme introduced by Reserve Bank of India (RBI) to help banks offering their customers money transfer service from account to account of any bank branch to any other bank branch in places where EFT services are offered.

Frequently Asked Questions (FAQ) on Electronic Clearing Service-(ECS)

Q.1.     What is Electronic Clearing Service (ECS)?

Ans     It is a mode of electronic funds transfer from one bank account to another bank account using the services of a Clearing House. This is normally for bulk transfers from one account to many accounts or vice-versa. This can be used both for making payments like distribution of dividend, interest, salary, pension, etc. by institutions or for collection of amounts for purposes such as payments to utility companies like telephone, electricity, or charges such as house tax, water tax, etc or for loan installments of financial institutions/banks or regular investments of persons.

Frequently Asked Questions (FAQ) on National Electronic Funds Transfer (NEFT) System

Q.1.     What is NEFT System?

Ans     National Electronic Funds Transfer (NEFT) system is a nation wide funds transfer system to facilitate transfer of funds from any bank branch to any other bank branch.

Q. 2.    Are all bank branches in the system part of the funds transfer network?

Ans  No. As on January 31, 2007, 18500 branches of 53 banks are participating. Steps are being taken to widen the coverage both in terms of banks and branches

What is RTGS & How it waor?-FAQ) on (RTGS) System

 Q.1      What is RTGS System?

Ans     The acronym “RTGS” stands for Real Time Gross Settlement. RTGS system is a funds transfer mechanism where transfer of money takes place from one bank to another on a “real time” and on “gross” basis. This is the fastest possible money transfer system through the banking channel. Settlement in “real time” means payment transaction is not subjected to any waiting period.

Highlights of Karnataka Budget Speech - 2014-2015

18^th February, 2014

Highlights of Karnataka Budget Speech - 2014-2015 presented on 14^th February 2014 and amendments proposed in various Commercial Tax & Other Laws:

Karnataka VAT Act, 2003:

Ø  Change in Tax Rates:

Service Recipient should pay service tax to service provider if Tax already paid by service provider

Hon’ble Allahabad High Court  in the case of M/s Bhagwati Security Services (Regd.) Versus Union of India [2013 (11) TMI 649] on the following issue:

Issue:

Whether the service provider can get the reimbursement of service tax already paid by him, from the service recipient?

Facts of the case:

M/S. Bhagwati Security Services (Regd.), the Petitioner (“the Assessee” or “the Company”) was providing security services under the service Agreement (“the Agreement”) to BSNL. The Company deposited service tax to the Department on the basis of demand raised by the authorities. Thereafter, the Company applied for reimbursement of service tax from BSNL, which was denied on the ground that the same was not provided in the Agreement. The Company filed petition in the High Court.

Held:

The Hon’ble High Court after going through the Agreement and other legal provisions of the Finance Act and rules thereof held that:

Exchange Rate of Foreign Currency Relating to Imported and Export Goods Notified

In exercise of the powers conferred by Section 14 of the Customs Act, 1962 (52 of 1962), and in super session of the notification of the Government of India in the Ministry of Finance (Department of Revenue) No.13/2014-CUSTOMS (N.T.), dated the 20^th February, 2014 vide number S.O.496 (E), dated the 20^th February, 2014,

Due-Date of Filing of TDS/TCS Statements for FY 2012-13 (2nd to 4th Quarter) and FY 2013-14 (1st to 3rd Quarter) Extended upto 31.03.2014 in the Case of Government Deductors

The CBDT has decided, as a one-time exception, to ex-post facto extend the due date of filing of TDS/TCS statements for FY 2012-13 (2nd to 4th Quarter) and FY 2013-14 (1st to 3rd Quarter) to 31.03.2014 in the case of Government deductors.

Frequently Asked questions on Form T-2

Form T-2 has been notified by the Commissioner, Trade & Taxes of Delhi VAT, requiring the dealers to furnish details of invoices and goods receipt note in respect of goods purchased or received as stock transfer from outside Delhi, and made applicable from 15th march 2014.

A compilation of various questions & issues have been summarized below to understand the applicability thereof

Frequently Asked questions on Form T-2

List of Documents to be filed with Refund claim for Central Excise, Customs and Service Tax Refund/ Rebate Claims

List of Documents to be filed with Refund claim for Central Excise, Customs and Service Tax Refund/ Rebate Claims can be downloaded from the page "download".

This list has been provided by the CBEC website.Please note that The list is illustrative only and the refund sanctioning authority may call for any other documents to satisfy about correctness of refund claim. However, the said documents would either be prescribed by issue of a Trade Notice or by a written letter.

Extension of date for withdrawl of currwncy note issued prior to 2005

For security reasons Reserve Bank Of India had decided to withdraw bank note printed prior to 2005 and these are supposed to get exchanged before 30th June 2014 but these note be legal even after 1st July 2014 as RBI clarfied, Clarfication can be read below:-

Revision of Interest Rates for Small Savings Schemes for the Financial Year 2014-15 Announced by The Government

            Various decisions taken by the Government of India on the recommendations of the Shyamala Gopinath Committee for Comprehensive Review of National Small Savings Fund (NSSF), were communicated to all concerned by the Government through its Office Memorandum dated 11^th November, 2011.

Due date of filing Annul Return for FY 2012-13 in UP VAT further extended up to 30th June 2014 from 29-01-2014

Due date of filing Annual Return in Uttar Pradesh Value Added Tax Act,2008 has been further extended from 29th January 2014 to 30th June 2014 . For notification please CLICK HERE or go to download section.

"T-2" under Delhi VAT come back again

Commissioner of Trade tax of Delhi has issued a notification regarding filing of information of invoice & Goods receipt note.This would be applicable from 15th March 2014.

As per notification every shall submit details of Invoice and Goods receipt Note before the goods physically enter to boundary of the Delhi if:-

(1) His Gross Turnover GTO) in the Financial year 2012-13 was more 1 crore or

(2) his GTO in current year attains the lower limit of Rs.1 crore on any date 
but dealer who is dealing in tax free goods exclusively will not be required to file such information.

Such details have to be furnished for all goods purchased or received as stock transfer or received on consignment basis

Details has to be submitted in prescribed and in electronically mode (i.e.online uploading) in department's website.

 Details can be submitted through mobile also but same must be furnished in website also within 24 hours

For more detail of notification can be reached HERE