CBDT Extends Due Date For Filing Tax Audit Report For AY 2013-14

The CBDT has issued an order dated 24.10.2013 under section 119 of the Act in continuation of the order dated 26.09.2013 directing that in cases where the ‘due date’ of furnishing reports of audit and corresponding income-tax returns was 30th September 2013 and where the same are furnished electronically on or before 31st October 2013, such reports of audit and returns of income shall be deemed to have been furnished within the ‘due date’ prescribed under section 139(1) of the Income-tax Act, 1961

source:- http://www.itatonline.org/info/index.php/cbdt-extends-due-date-for-filing-tax-audit-report-for-ay-2013-14/

Food/Beverages services provided by Canteen exempt from Service Tax

Amendment to Mega Exemption Notification - Food or Beverages Services provided by a Canteen exempt from Service TaxCBEC vide Notification No. 14/2013 - ST., Dated: October 22, 2013 has exempt the food or beverages services provided by a canteen by inserting entry no. 19A in the Mega Exemption List. The entry provides as under :"19A. Services provided in relation to serving of food or beverages by a canteen maintained in a factory covered under the Factories Act, 1948 (63 of 1948), having the facility of air-conditioning or central air-heating at any time during the year."[Notification No. 14/2013 ST dated 22.10.2013]Source: www.cbec.gov.in 

Labour Cost Control

Labour is another important element of cost and for overall cost control and cost reduction, of labour cost is of paramount importance. However, for control and reduction of labour cost, it is essential to compute the labour cost in a scientific manner and hence there should be proper systems of systems and processes and documentation, which will help computation of labour cost in a scientific manner.

Attention should also be paid to the productivity aspect. Low productivity results in higher labour cost per unit while higher productivity will reduce the labour cost per unit.

Various aspects of labour cost control

The following steps will be useful in controlling and reducing the labour cost.

Guidelines for the guidance of the assesses and their representatives in Appeal under Income Tax

The Appellate Tribunal has, vide F. No. 114-Ad(AT)/69, dated 13-4-1970, laid down the following guidelines for the guidance of the assesses and their representatives:

1. In all communications addressed to the Tribunal by the parties with regard to appeals or applications or crossobjections the number thereof, or, if the number is not known, the date of filing thereof, should invariably be given. Failure to furnish the information will cause avoidable correspondence and needless delay in answering correspondence.

Service Tax -Reverse Charge Mechanism

What is charging section?

Services are chargeable for service tax as per provision under section 66B but who will pay service tax has been given in section 68 of the Finance Act,1994, sub-section (2) of Section 68 speaks out as to liability to pay by service recipient. 

Sec 68 (2) is worded as follows:-

- “In respect of such taxable services as may be notified by the Central Government in the Official Gazette, the service tax thereon shall be paid by such person and in such manner as may be prescribed at the rate specified in section 66B and all the provisions of this chapter shall apply to such person as if he is the person liable for paying the service tax in relation to such service.

Provided that the Central Government may notify the service and the extent of service tax which shall be payable by such person and the provisions of this chapter shall apply to such person to the extent so specified and the remaining part of the service tax shall be paid by the service provider.”

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Labour Turnover

            Labour Turnover

            It is the rate of change in the labour force during a specified period measured against a suitable index.  The standard or usual labour turnover in the industry or locally or the labour turnover rate for a past period may be taken as the index or normal against which actual turnover rate is compared.  The methods of calculating labour turnover are given below :

Declaration Forms under CST Act,1956

Central Sales Tax (CST) is a tax on Sale levied by Central Government under the provisions of Central Sales Tax Act, 1957. As per the provisions of this Act, any movement of goods from one State to another on account of :-

(a)  sale/purchase, or

(b)  Transfer of document of Title to goods between two separate parties is considered as Interstate sale/purchase.

All such transactions are liable to CST.

Any movement of goods otherwise than as sale (i.e. stock transfer to Branch, Depot, Consignment Agent or for Job work etc) , sent outside the state , is exempted from levy of CST.

Any movement of goods, sent outside the country , is exempted from levy of CST. Example Exports, or Deemed Exports.

Also some of the Interstate transactions are exempted if goods are supplied to Special Economic Zones or to UN or Diplomatic missions etc.

The basic CST Rate as applicable to inter-state transactions is @2% but this basic rate or exemption from CST would apply if purchasing dealer issue the prescribed statutory forms to the selling dealer.

Some of the points relating to CST rates are as follows:

Input Tax Credit Provisions in brief- Bihar and Kerala

State	BIHAR  {Sec.16 / Rule 12,14,15,}	KERALA  {Sec.11,12,13 / Rule 12-A,12-C,13,14,15,46,47,47-A}
Full VAT Input Tax Credits - Eligibility / admissibility & purposes specified	On VAT-paid purchases upon receipt of Tax invoice; for Sale/resale of taxable goods in/from Bihar; for Capital goods for resale or manufacture of taxable goods; Use in manufacture / packing of taxable goods for sale	On ALL VAT-paid goods purchased, for purposes of Resale in/from Kerala, for use in works contracts, for use as input/capital goods in manufacture / processing of goods; for packing; for inter-State sale.

Input Tax Credit provisions in brief- Andhra Pradesh Assam

State	ANDHRA  PRADESH    {Sec.13,22,38 / Rule 16,20}	ASSAM  {Sec.11,14,15 / Rule 9,11,12}
Full VAT Input Tax Credits - Eligibility / admissibility & purposes specified	On ALL VAT-paid goods at point of purchase on receipt of Tax invoice during Tax period, if such goods are for use in business;                                 E.T. paid eligible for adjustment against output VAT.	On VAT-paid purchases in Tax period following after receipt of Tax invoice; for Sale/resale of taxable goods in/from Assam; for Capital goods for manufacture of taxable goods; Use in manufacture/packing of taxable goods for sale

Service Tax on services provided by directors to the Company

Reverse charge mechanism was introduced purposefully to cover unorganized sectors like GTA or cover small service providers because for them paying tax may not be a problem but understanding of legal provisions and then complying with those provisions could really have become difficult but now reverse charge has become fashion and government applying to any sector even those sector can understand the law and can manage as well. Reverse charge on legal service/ service by directors to the company are the best example where Government collecting tax on reverse charge basis while it should have been directly collected through these service providers themselves.

Amendment in service tax on construction , complex services

Amendment in service tax on construction , complex services

CBEC has amended Notification No. 26/2012- ST dated 20.06.2012 with a view to remove the ambiguity prevailing on the rate of abatement of service tax on construction of residential unit.

Revised ST 3 -Service Tax

è The ST- 3 return filing which was due by 25-10-2012 for the period “01-04-2012 to 30-06-2012”, but data has been provided for the period 01^st April 2012 to 30^th June 2012 (one quarter only) as per CBEC instruction vide letter F.No.137/22/2012 dated 28^th September 2012.

Karnataka Budget 2013-14

Highlights of Karnataka Budget Speech - 2013-2014 and amendments proposed in various Commercial Tax & Other Laws:

      Karnataka VAT Act, 2003:

Ø  Change in Tax Rates:

• The general rate of VAT which was increased from 5 % and 14 % to 5.5 % and 14.5 % respectively, earlier, shall continue to be  applicable up to 31.07.2013 and shall be reduced to the original rates with effect from August 2013
• VAT exemption on paddy, rice, wheat, pulses and products of rice and wheat extended for one more year from 01.04.2013

Hon'ble Delhi High Court Held CBEC Circulars ultra vires regarding CA’s liability to pay higher service tax rate on services rendered/ invoice raised before 01.04.2012 but payment received thereafter

Hon'ble Delhi High Court Held that CBEC Circular is ultra vires regarding CA’s liability to pay higher service tax rate on services rendered/ invoice raised before 01.04.2012 but payment received thereafter

Del-VAT- Extension of due date of Filing of online returns for third quarter of 2012-13

GOVERNMENT OF NATIONAL CAPITAL TERRITORY OF DELHI
DEPARTMENT OF TRADE AND TAXES
No.F.7(420)Policy/VAT/2011/1144-1151                                              New Delhi: 23.01.2013
CIRCULAR No. 27 OF 2012-13
Subject:  Filing of online returns for third quarter of 2012-13

In order to facilitate the filling of online DVAT/CST returns, in exercise of the powers conferred under Rule 49A of the DVAT Rules, 2005, the last date of online filing of return for the third quarter of 2012-13 is extended upto 01.02.2013. The last date of filing of hard copy of the return for the above return period is also extended upto 05.02.2013.

Get Service tax Registration certificate modified as per new accotuting code

1.	Modifications in ST 1 and ST 2 and New Accounting Codes:
	1.  New Registrants: In terms of Notification No 48/2012 dated 30.11.12 ( Click here to see the Notification), Service Tax Registration Application Form (ST-1) has been modified and is available in ACES for use by the new applicants seeking registration as a Service Tax assessee.Earlier, vide Notification No 19/2012 dated 5.6.12 effective from 01.07.2012

Centralised Registration under Service Tax-List of Documents to be submitted

LIST OF DOCUMENTS AND THE CHECK-LIST FOR APPLICATION OF CENTRALISED REGISTRATION under Service Tax (As per trade Notice )