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