Quoting of PAN for specified transactions

Amended Rules regarding quoting of PAN for specified transactions

(Applicable w.e.f. 1^st January 2016)

In order to curb the circulation of black money and widening of tax base, to collect information of certain types of transactions from third parties in a non-intrusive manner, the Income-tax Rules require quoting of Permanent Account Number (PAN) where the transactions exceed a specified limit. Persons who do not hold PAN are required to fill a form and furnish any one of the specified documents to establish their identity.

    

     One of the recommendations of the Special Investigation Team (SIT) on Black Money was that quoting of PAN should be made mandatory for all sales and purchases of goods and services where the payment exceeds Rs.1 lakh. Accepting this recommendation, the Finance Minister made an announcement to this effect in his Budget Speech. The Government has since received numerous representations from various quarters regarding the burden of compliance this proposal would entail. Considering the representations, it has been decided that quoting of PAN will be required for transactions of an amount exceeding Rs.2 lakh regardless of the mode of payment.

GST roll-out deadline likely to be pushed back to April 1, 2017

The central government has set a new deadline for goods and services tax (GST) as April 1, 2017, a good one year after the current one of April 1, 2016.

Salient Features of Model GST Act

Background

The model law of the much anticipated GST will probably be out by the end of January next year for general public for feedback however a model GST Act is getting circulated of which source of release could not be independently verified in the absence of it being unavailable on the government portal.

We are tried to brief the features of the Model GST as per this model. There would be separate Acts for CGST, SGST and IGST. The model Act would guide for drafting GST Act for each of the state.

Input Tax Credit under proposed GST Law

Goods and service tax more popularly known as GST is knocking on the door.  Merits & demerits of GST would be evaluated in due course of time however we need to get ready before its entry in our system. Input tax credit system is the one of the core area of GST where we can see major changes and benefits. Here just trying to brief the mechanism of Input credit under GST.

Form C under central Sales Tax Act 1956

I made an effort to understand the concept of Inter-State Sale/purchase under Central sales Tax Act, 1956 (CST)in my last post.Now going to discuss Form C:-

Circular explaining law relating satisfaction note under section 158BD/153C

The CBDT has circular in which CBDT has explained the law relating to recording of satisfaction note by the Assessing Officer.

Copy of circular is appended below:-

Validate certificate under section-197

It is very common that deductor get certificate for lower deduction of TDS from the deductee. On the basis of such certificate, lower TDS is deducted and while filing TDS return, deductor mention the certificate number in return however demand of short deduction arises due to wrong quoting of 197 certificate number.

It happens because when the deductor accepts from deductee a manually issued lower deduction certificate by assessing officer & quotes the same in TDS statements. To resolve the issue CPC(TDS) has provided the facility of validating the 197 certificate to the deductors and that if the 197 certificate is not valid as per TRACES validation, the deductor should always insist upon an ITD system generated certificate having a unique 10 digit alpha numeric number. The entire procedure for this is explained in the advisory letter issued by CBDT.