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DUE DATE EXTENDED FOR FILING DVAT RETURN FOR IInd QUATER

Due date of filing return under DVAT for IInd Quarter further upto 17 Nov 2014

File your ITR if not filed so far otherwise you may get Notice for Non-Filing



Directorate of Income Tax (system) has observed that there Five lakhs Nine thousands Eight Hundreds Nity Eight taxpayers who had taxable income more than Rs. 10 Lkahs in the earlier previous years but during the Assessment Years these Tax payers has not filed their Income Tax Return so far.
Now All principal CCIT, CCIT and CIT has been advised by the Directorate to monitor these cases personally.
Therefore Tax payers who has income more than maximum exemption limit in the AY in 2014-15 should file their ITR if not filed so far  otherwise there is chance to have Notice from the department for Non-filing of ITR.  

Service Tax Return (ST-3) for the period from April-14 to September-14 is now available for e-filing

Service Tax Return (ST-3) for the period from April-14 to September-14  is now  available for e-filing by the assesses. The last date for filing the returns for the said period is 25th October, 2014. The assesses can file return online or use the offline utility by downloading the latest version from http://acesdownload.nic.in/ or from DOWNLOADS Section of ACES website.  For details on how to e-file in ACES or for any other information/assistance, you may visit www.aces.gov.in or contact your jurisdictional Service Tax Officer or the nearest ACES Certified Facilitation Centers (CFCs). Please file your returns in ACES well in advance to avoid rush and inconvenience at the last moment.

Due Date of Deposit of TDS/TCS during the Month of September, 2014 extended

Considering the consecutive holidays owing to the festive season and weekend during the first week in the month of October, 2014, 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 7th October, 2014 to 10th October, 2014 without entailing any consequential interest.
However, the due date for filing of TDS/TCS statements for the 2nd Quarter of the F.Y. 2014-15 shall remain the same.


Source:- Press release of GOI

Annual Return Under UP VAT is required to file online

Dealer under UPVAT whose turnover is more than Rs.50 Lacs during the Financial year, are required to file his annual return online on or before 31st October.

Due Date for filing of return of Income for Assessment Year 2014-15 Extended from 30th September, 2014 to 30th November, 2014 in Specified Cases

Press Information Bureau
Government of India
Ministry of Finance
26-September-2014 18:47 IST
 
 
 
 
 
As per the provisions of the Income-tax Act, 1961 (‘the Act’), for an assessee, who is required to obtain Tax Audit Report (TAR) under section 44AB of the Act, the due date for furnishing his return of income is 30th September of the Assessment Year.

The Central Board of Direct Taxes (‘the Board’) vide order dated 20th August, 2014 extended the due date for obtaining and furnishing of Tax Audit Report under section 44AB of the Act for Assessment Year 2014-15 from 30th September, 2014 to 30th November, 2014.

Rate of VATon Diesel Generating sets under Delhi VAT

An application filed under section 84 of Delhi Value Added Tax Act, 2004and the question put up for determination under the aforesaid provision of law is as under: -
"What is the rate of VATon Diesel Generating sets?"

Accounting Standard -1 useful for CA/CMA Student

Contributed by CA Rahul Surya a well known faculty for Accounts for last many years.  For more reading please click here
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Accounting Standard – 1
Disclosure of Accounting Policies

1.       Applicability and Nature : This AS is applicable from 01-04-1993 onwards and Mandatory for SMC, NON-SMC and Level-I,II & III (It means mandatory for all)
2.       Objective:- The main objective of this AS is to provide better understanding of the F/S by disclosing the significant accounting policies used in preparation of F/S. This also helps meaning full comparison between F/S s of different enterprises.

No Need to Open Another Bank Account to Avail of Benefits Under Pradhan Mantri Jan Dhan Yojana (PMJDY)


Anybody Desirous of Opening an Account Can Take One Page Application form to the Nearest Bank Branch/Bank Mitr for Opening the Account; People Who do not Have Officially Valid Documents or Aadhaar Numbers Can Still Get Bank Accounts Opened by Submitting Two Copies of Signed Photographs at the Bank Branch;

Guidelines for scrutiny of Income tax cases for F.Y. 2014-15

The CBDT has issued recently Instruction No. 6 of 2014 dated 02.09.2014 and announced the procedure and criteria for compulsory manual selection of cases for scrutiny for FY 2014-15.
The guidelines can be downloaded from the link below
LINK

Last year, in case of Joginder Pal Gulati Vs. OSD-CPIO, Honourable Delhi High Court instructed to the department to provide scrutiny guidelines to the petitioner and asked for uploading the guidelines in its website also so that it could available easily to public.
Complete case law can be downloaded from link below:-
JoginderPal Gulati vs. OSD – CPIO

Reversal of Input Tax Credit U/S 10 of the DVAT Act, 2004 in respect of Credit Note/Debit Note related to discounts



1.   Under Section 10(1) of the DVAT Act, 2004, where any purchaser has been issued with a credit note or debit note in terms of section 51 of this Act or if he returns or rejects goods purchased, as a consequence of which the tax credit claimed by him in any tax period in respect of which the purchase of goods relates, becomes short or excess, he shall compensate such short or excess by adjusting the amount of the tax credit allowed to him in the tax period in which the credit note or debit note has been issued. 

Note for General procedure in Excise-Taxation-IPCC

 These are brief note on Small scale unit and general procedure under Excise Law for IPCC student who are going to appear in Nov-2014. 
write to us at  "ckbclasses@gmail.com" if you want PDF file of notes for your reference & preparation of the examination.
Please find below complete note:-

Change in new Form 3CD of Tax Audit report under Section 44AB



Central Board of Direct Taxes ‘CBDT’ has recently withdrawn the old format of Form 3CD (i.e. Annexure of Tax Audit report under section 44AB of the Income tax Act 1961) and introduced new Format in which some changes have been incorporated. Here I have made an effort to enlist the changes which have to be additionally reported while preparing the Tax Audit Report:

Due date for filing Tax audit report U/S 44AB Extended

CBDT extended due date for furnishing Tax Audit report u/s 44AB of the Income Tax Act, 1961 for AY 2014-15 from 30.09.2014 to 30.11.2014 in case of assessees who are not required to furnish report under section 92E of the Act

No CENVAT Credit for Invoice if old for more than Six months

As per amended rule 4 of the CENVAT Credit Rules , 2004, now manufacturer of a final product or provider of output service need to take cenvat credit within SIX months from the date  of  issue of any documents as specified in sub rule (1) of rule 9 of the CENVAT Credit Rules.

  As per Rule 9(1) of the CENVAT credit rules , following documents are eligible to take cenvat credit:-

Extension of due date of filing Return -Delhi VAT

Due date of Filing quarterly return has been further extended up to 19th August 2014 from 8th August 2014 for the quarter ending on 30th June 2014.

F’ Form requirement – Jobwork and goods Returned


The presumptions in law have very vital role and legislature has power to presume certain things under certain circumstances.
Section 6-A of the Central Sales Tax Act,1956 is exercise of such power by the Parliament of India.
The section was inserted in Central Sales Tax Act by CST (Amendment Act) 1972 with the following object

Enhancement of taxable value in works contract



Presently works contract for valuation purpose are categorized under three categories:-

(i) original work 
(ii) works contract relating to movable properties and 
(iii) other contracts

Service tax on the service portion involved in the execution of the works contract is presently determined in the following manner:-

E-Payment of service Tax- Made Compulsory to every Assessee



From 01st April 2010, e-payment of service tax is mandatory for those assessee who had paid excise duty or service tax of Rs. 10 lakhs or more in the preceding financial year, whether
by cash or debit in Cenvat credit account or both [vide circular No. 919/09/2010-CX dated-23.03.2010]. But now Rule 6(2) of the Service Tax Rules, 1994 will be amended with effect from 1-10-2014.

Change in Point of Taxation Rule- Service Tax



At present Rule 7 of the Point of Taxation Rules 2011 has overriding effect over all rules.
However in the budget 2014-15 an amendment has been effected which will be effective from 1st day of October 2014. Under service tax Return is filed on half yearly basis i.e. 1st April to 30th Sep and 1st Oct to march that’s why change has been effected from 1st Oct to avoid any difficulty in implementation of the provision.
After change , Rule 7 will not override the Rule 5 which deals with point of taxation in relation to service tax on new services.
 Presently first proviso to Rule 7 provides that where the payment is not made within a period of 6 months of the date of invoice, the point of taxation shall be determined as if this rule does not exist.
But after amendment, the proviso would be 'where the payment is not made within a period of 3 months of the date of invoice, the point of taxation shall be the date immediately following the said period of 3 months.'

Personal taxation and filing your Income tax return (ITR)

It is my constant endeavor to share knowledge & information to increase the awareness about the provisions of taxation because lack of awareness is the main reason for low level of compliance towards tax laws.

The filing of ITR is a legal obligation of every person whose total income during the previous year ( i.e. F.Y.2013-14) exceeds the maximum amount which is not chargeable to income tax ( i.e. Rs.2,00,000/-).
Presently there is an emphasis on self compliance by the taxpayer and Income Tax department, except in few cases, accept your ITR as it is by intimation given under section of the 143(1) of the Income tax Act. Therefore it is expected that taxpayer should disclose correct & complete information while filing ITR.
  
As 31st day July is last date for filing your “Income Tax return’ for the Financial year  2013-14 (i.e income earned during the period from 01st April to 31st march 2014), we are sharing here some tips on filing of ITR.

Changes in Custom Tariff under Budget 2014-15

SAD on Inputs/components used in manufacture of Personal Computers (laptops/desktops) and tablet computers has been exempted.

Export duty on Bauxite (natural), calcined or not, increased from 10% to 20%

Government has amended the provisions dealing with levy of Safeguard Duty to provide for such levy on inputs/raw material imported by EOU/SEZ and cleared into Domestic tariff Area(DTA )as such or for use in manufacture of final products which are cleared into DTA.

Exemption provided from levy of Education Cess and Secondary and Higher Education Cess on CVD portion of duty leviable on import of various electronic goods such as mobile phones, computers, parts and accessories of computers, etc. has been withdrawn

Be sincere to your statutory dues or bear the cost of insincerity.-Interest on delayed payment of service tax




Be sincere & serious to your statutory dues or bear the cost of insincerity.

In Union budget 2014-15, it has been proposed to increase the rate of interest to the extent 

of period of delay in payment of service tax.

It means that rate of interest would vary on the extent of delay in payment of service tax. 

More delay more interest burden.

Personal Tax Exemption Limit Raised by Rs. 50,000

Personal Tax Exemption Limit Raised by Rs. 50,000/- ; No Change in the Rate of Surcharge; 15% Investment Allowance to Manufacturing Companies, to Incentivize Small Entrepreneurs and Income from Foreign Portfolio Investors to be Treated as Capital Gains.

The General Budget 2014-15 presented by the Union Finance Minister Shri Arun Jaitley has raised the personal income-tax exemption limit by Rs. 50,000/- that is, from Rs. 2 lakh to Rs. 2.5 lakh in the case of individual taxpayers, below the age of 60 years. Exemption limit raised from Rs. 2.5 lakh to Rs. 3 lakh in the case of senior citizens. However there is no change in the rate of surcharge either for the corporates or the individuals, HUFs, firms etc. The budget proposes to continue education cess at 3 percent.

Investment limit under section 80C of the Income-tax Act has also been raised from Rs. 1 lakh to Rs. 1.5 lakh and Deduction limit on account of interest on loan in respect of self occupied house property raised from Rs.1.5 lakh to Rs.2 lakh. To incentivize small entrepreneurs an Investment allowance at the rate of 15 percent to a manufacturing company that invests more than Rs. 25 crore in any year in new plant and machinery. The benefit to be available for three years i.e. for investments upto31.03.2017. Investment allowance to manufacturing company investing more than Rs.100 crore announced last year to continue in parallel till 31.03.2015.

To bring greater certainty and to encourage fund manager to shift to India, income arising to foreign portfolio investors from transaction in securities will be treated as capital gains. Concessional rate of 15 percent on foreign dividends without any sunset date will be continued.

To augment low cost long term foreign borrowings for Indian companies, the eligible date of borrowing in foreign currency has been extended from 31.03.2015 to 31.03.2017 for a concessional tax rate of 5 percent on interest payments. Tax incentive extended to all types of bonds instead of only infrastructure bonds.

The budget proposes introduction of a “Roll Back” provision in the Advanced Pricing Agreement (APA) scheme so that an APA entered into for future transactions is also applicable to international transactions undertaken in previous four years in specified circumstances.To remove tax arbitrage, rate of tax on long term capital gains has been increased from 10 percent to 20 percent on transfer of units of Mutual funds, other than equity oriented funds.

60 more Ayakar Seva Kendras will be opened during the current financial year to promote excellence in service delivery. Net effect of the direct tax proposals will result in revenue loss of Rs.22,200 crore.

PAN is required to mention if entered in transactions:-

In certain situation/transaction, quoting PAN is compulsory if you are entered in these situation.

List of documents required while submitting application for PAN

Resource:- www.Incometaxindia.gov.in

Update your Mobile Number and email for direct communication from IT Department



A valid Email ID and Mobile Number has to be registered/ updated on the e-filing website of the Income Tax Department so that direct communication with taxpayer can be possible.

The Department will send separate One Time Passwords (OTP) also referred as PIN on the mobile and email provided by the taxpayer. The OTPs have to be entered by the taxpayer after logging into their e-filing account to authenticate the same.

TDS Deductor cannot be held liable as ‘assessee in default’ if department has not proved that tax could not be recovered from the recipient of income.



TDS Deductor cannot be held liable as ‘assessee in default’ if department has not proved that tax could not be recovered from the recipient of income.

Assesse, a public sector bank could not deduct tax on interest on deposit made thus held assessee in default u/s 201/210(IA), however ITAT Agra held that Assessee cannot be held liable unless department has discharged that tax could not be recovered from recipient of income or recipient has also failed to pay tax directly.

Crdeit for TDS cannot be denied on the ground of discrepancy in Form 26AS filed by the deductor.

It is common problem faced by Income tax payers that they get demand notice along with penalty (sometime) for the grounds on which they don't have any control like :-
(i) TDS Deductor has committed some mistake while filing his TDS Return consequently figure shown in assessee ITR does not match with figure provided by the deductor to the department, or
(ii) Data given in ITR does not match with data of department because nodal agency ( NSDL or bank collecting Tax) not updated their files in time or not uploaded correctly.
In the situation , Income Tax payer either get demand notice or some time not getting refund for which he is very much eligible.

Last year, Honourable Delhi High Court in a Public Interest Litigation in Court On its Own Motion vs. Commissioner of Income Tax, 2013 (352) ITR 273 took it seriously and the Court noticed that:-

Classification of Goods Under Excise- for CA-IPCC Students



CLASSIFICATION OF GOODS
The excise duty is chargeable at different goods at different rates. For easy identification & determine the rate of duty, goods are put in to group or sub-group, such grouping is known as classification of goods Therefore, goods are classified for determination of duty.

Why Classification:-

Notes on Excise for CA/CS/CMA examination



Matter given below is the compilation of the P.P.T. presented during my class for Taxation-IPCC (CA) but it is useful for CS and CMA examination also. Students who are preparing for the professional examination like CA, CMA, CS etc can be benefited as these are compiled through study material and some other books for the students. All the best for examination.
 
Central Excise Law

Documents for registration under Delhi VAT




Registration Fee:-
        
         The application for registration shall be accompanied by a fee of Rs.1025/-
    It shall be paid online after login.

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



18th February, 2014

Highlights of Karnataka Budget Speech - 2014-2015 presented on 14th 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 20th February, 2014 vide number S.O.496 (E), dated the 20th 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