TCS to apply only on cash portion of sales transaction CBDT clarifies

0 comments Friday, June 24, 2016
Welcome clarification by CBDT on TCS on Cash Sale.

CBDT vide Circular No. 23/2016 dt. 24 June 2016 has clarified on FAQs of stakeholders reg. scope of the provisions and the procedure to be followed in case of the amended provisions of Section 206C of the Income Tax Act, as under:
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Facility of efiling of returns extended to Punjab luxury tax and Entertainment tax

0 comments Wednesday, June 8, 2016



 Kind Attention: Dealers/Chartered Accountants/Lawyers/Other Stakeholders
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Assessee cannot be asked to reverse ITC for non payment of tax by selling dealers

0 comments Tuesday, June 7, 2016
In a PATH BREAKING JUDGEMENT the Madras High Court has held that  Assessee cannot be asked to reverse input tax credit due to non-payment of taxes by the selling dealers.

Sri Lakshmi Textiles Vs. the Commissioner of Commercial Taxes and Others 

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Scope of prima facie adjustments u/s 143(1) of Income Tax Act enhanced

0 comments Saturday, May 28, 2016
The Finance Act, 2016 has made a very important amendment to section 143(1) of Income Tax Act, 1961, whereby the scope of prima facie adjustments u/s 143(1) has been enhanced while processing the returns. The following four sub-cluases and two provisos to the clause (a) of Section 143(1) have been added to allow for the following adjustments also while processing the returns:

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No entry tax on sugar in Punjab till date

0 comments Wednesday, May 18, 2016
There has been a lot of confusion off late about the levy of entry tax on import of sugar from outside the State of Punjab. The Excise and Taxation Department has been recovering entry tax on sugar imported from outside the state of Punjab.

The new entry tax law legislated by Punjab Government I.e. Punjab Development of trade commerce and Industries (Validation) Act is under challenge before the Punjab & Haryana High Court in CWP no 26998 of 2015. In the said Writ petition while passing an interim order on 27.04.2016 not only the stay on recovery of entry tax on sugar levied under an earlier ordinance I.e Ordinance no 1 of 2015 has been continued by the Hon'ble High Court but also it has been conceded by the Government councel in the court that no notification for leving  entry tax on sugar under new law (i.e validation Act) has been issued till date.

Thus it is very much clear that no entry tax is leviable on sugar imported from outside State of Punjab till date. Hence any recovery made in this regard at the check post by the Department is illegal.
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No local VAT on goods purchased inter-state or in the cource of import in works contracts-SC

1 comments Tuesday, May 3, 2016
The Hon’ble Supreme Court delivering very important judgment with regard to taxability of inter-state works contract. In the case of Commissioner, Delhi VAT  vs ABB Ltd., it has been held that in case the goods are purchased from other States or are imported from outside the country for the purpose of only using in the works contract, then the transaction would be covered under the Central Sales Tax Act and not liable to tax under local VAT act. 
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Sales Tax; Time for assessment cannot be extended when the assessment has already become time barred: SC

1 comments Monday, March 7, 2016

Supreme Court, in State of Punjab Vs. M/s. Shreyans Indus Ltd., has held that power of the Sales Tax Commissioner to extend the time to pass an order on assessment is to be exercised before the normal period of assessment expires.Three Judge Bench of the Apex Court comprising of Chief Justice of India T.S. Thakur, Justices A.K.Sikri and R. Banumati dismissed the appeals by Revenue challenging a judgement of Punjab and Haryana High Court.
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Some of the major changes proposed in the Union Budget 2016.

1 comments Tuesday, March 1, 2016



·         Government to bring Income Declaration Scheme 2016, to give opportunity to persons who have not paid full taxes in the past to come forward and declare their undisclosed income and pay tax. Scheme will start from 1st June 2016 and will remain open till date to be notified. Tax @ 30%, Surcharge @ 7.5% and penalty @ 7.5% (Total 45% ) will be charged by the Government on the undisclosed income. The tax will have to be paid on or before the date to be notified by the Central Govt.


·         No change in personal income tax slabs has been proposed. However Rebate of Rs.5000/- in tax will be allowed to individuals earning upto Rs.500000/- per year. Earlier this rebate was Rs.2000/-.


·         Turnover limit for Presumptive Taxation for Businesses has been increased from Rs.1 Crore to Rs. 2 Crore. Net Profit @ 8% will have to be declared in the Income Tax Return, if Sale is less than 2 Crores, otherwise Tax Audit will apply. Firms will have to declare income @ 8% of the Sales and pay tax on the same. Salary and interest to partners will not be allowed as deduction, as was being allowed earlier.

·         Any person paying tax under presumptive taxation scheme (section 44AD) will have to pay tax under the scheme for a continuous period of 5 years. If he opts out of the scheme during any year, then the option to pay tax on presumptive basis will not be allowed to him for next 5 years, and he will have to maintain proper books of accounts and get them audited during those 5 years.

·         Presumptive Tax introduced for Professionals like doctors, engineers, chartered accountants, architects. Professionals will have to declare income @ 50% of Gross receipts, otherwise will have to get the books of accounts audited. Tax Audit Limit for professionals increased to Rs. 50 lakhs.



·         Advance Tax will now have to be paid in four installments by all assessees – 15th June, 15th September, 15th December, 15th March. Earlier these installments were only for the Companies.

·         If Income Tax Return (in which Refund is due) is filed late, then department will not pay interest for the delayed period.

·         Now Income Tax Return can be filed only till one year from the end of the Financial Year. Earlier this limit was 2 years.

·         Income Tax Return which was filed after the due date could not be revised. Now the late filed return can also be revised if there is any mistake in the original return.

·         Earlier Dividends were exempt in the hands of the recipients. Now Dividend recipient will be liable to pay tax @ 10% if dividend received during the year is more than 10 lakhs.


·         Threshold limit for deduction of TDS on Commission has been increased from Rs.5000/- to Rs.15000/-. TDS on Commission reduced from 10% to 5%.

·         Threshold limit for deduction of TDS on Contract (Section 194C) increased to Rs.100000/- per year from Rs.75000/-.

·         Recipients of  Rental Income can also file Form 15G/15H for non deduction of TDS, if total income is below taxable limit.

·         TCS @ 1% introduced on Sale of any Goods or Services in Cash exceeding Rs.2 lakhs. If any Goods/Services are sold and payment is received in Cash exceeding Rs. 2 lakhs, then TCS will have to be collected from the person and paid to the government on monthly basis.



·         Krishi  Kalyan Cess @0.5% introduced. W.e.f. 1st June 2016, effective rate of service tax will be 15% (Service Tax 14%, Swach Bharat Cess 0.5%, Krishi Kalyan Cess @ 0.5%).

·         Annual Return of Service Tax introduced. Earlier there were only two half yearly returns of service tax. Now there will be three returns -  2 Half yearly and one annual.

·         Delayed payment of Service Tax, Interest @ 15% will have to be paid. However if Service Tax is collected but not paid to Government, then interest @ 24% will have to be paid 

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Presumptive income scheme under budget 2016


I. Amendments to section 44AD:

The existing provisions contained in the said section (applicable to individual, HUF or partnership firm) provides that notwithstanding anything to the contrary contained in section 28 to 43C, in the case of an assessee engaged in an eligible business having total turnover or gross receipts not exceeding one crore rupees, a sum equal to 8% of the total turnover or gross receipts, or, as the case may be, a sum higher than the aforesaid sum declared by the assessee in his return of income, shall be deemed to be the profits and gains of such business chargeable to tax under the head "Profit and gains of business or profession".
Further, under the existing scheme as per proviso to section 44AD(2), where the eligible assessee is a firm, the salary and interest paid to its partners shall be deducted from the income computed under sub-section (1) of section 44AD subject to the conditions and limits specified in section 40(b).
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The Indirect Tax Dispute Resolution Scheme, 2016 - A Step Towards Resolving Pending Litigations


1.0 Introduction:
The Finance Bill, 2016 has proposed THE INDIRECT TAX DISPUTE RESOLUTION SCHEME, 2016 for indirect tax disputes. The scheme is new to the indirect tax laws and is proposed to aimat resolving the litigations pending under the said Acts in a peacefull manner. The scheme is optional and provides relief to those litigants who want to buy peace of mind. The scheme is analysed as follows:

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10 Big Tax-Related Announcements In Budget 2016

Finance Minister Arun Jaitley did not change income tax slabs in his third Budget, but he did tweak some deductions and announced multiple new cesses, which will impact tax liability for the common man.
Here is a complete list of new tax measures announced in Budget 2016:
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Pilot project for online issuance of ‘C’ forms for dealers of District Mohali

0 comments Friday, January 22, 2016

Public Notice

Subject: Launching of Pilot Project for online issuance of ‘C’ forms in SAS Nagar, Mohali.

Kind Attention : Dealers/Lawyers/Chartered Accountants/Other Stakeholders of S.A.S Nagar Mohali

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Services by Excise and Taxation Department brought under Punjab Right to Service Act, 2011

0 comments Sunday, January 17, 2016
The Government of Punjab has notified the additional services, stipulated time limit, designated officers, first appellate authorities and second appellate authorities for the purpose of Section 3 of the Punjab Right To Service Act, 2011. This new notification has also brought many services provided by Excise and Taxation department Punjab such as registration, cancellation, issuance of refund/penalty/assessment orders etc, under the ambit of Right to Service Act, 2011.
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Punjab Govt. promuglates new ordinance on entry tax with retrospective effect from 06.05.2015

0 comments Tuesday, December 15, 2015
The Punjab Government has promuglated new ordinance namely THE PUNJAB DEVELOPMENT OF TRADE, COMMERCE AND INDUSTRIES (VALIDATION) ORDINANCE, 2015 to levy entry tax on the goods specified in the schedule apended to such ordinance. The schedule appended to such ordinance contains only one item i.e. sugar.
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VAT on all automobiles reduced to 12% under Punjab VAT Act, 2005

1 comments Thursday, November 19, 2015
The Punjab Government, Excise and Taxation department, Punjab has reduced VAT on all automobiles (i.e. commercial vehicles, passenger vehicles, three wheelers, two wheelers) from 13% to 12%. That means now all automobiles will be taxable @ 13.2%(after adding surcharge of 10% as applicable u/s 8-B of PVAT Act, 2005.)
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Due date for efiling of VAT-20 of year 2014-15 extended to 30th November 2015






This is to inform all the concerned that the last date of e-filing of VAT-20 for the year 2014-15 has been extended till 30th November, 2015. 

Dated: 19th November, 2015

 Excise & Taxation Commissioner, Punjab
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Mere bonafide mistake in calculating reversal of ITC does not attract penalty-Punjab VAT Tribunal

0 comments Tuesday, November 17, 2015
In one of my cases namely M/s Shree Ganesh Roller Flour Mills Akalpur Road, Phillaur, District Jalandhar Versus The State of Punjab. Appeal No. 38 of 2015 decided on 10.09.2015 it has been decided by Punjab VAT Tribunal that mere bonafide mistake in calculating reversal of ITC does not attract penalty. The matter remanded back to DETC(A) for passing a speaking order considering the observations of the Tribunal.
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Amendment to Section 2(14)(III)(b) relating to measurement of distance aerially to apply prospectively

0 comments Friday, October 9, 2015








Circular No. 17/2015

Dated : 06th October, 2015






"Agricultural Land" is excluded from the definition of capital asset as per section 2(14)(iii) of the Income-tax Act based, inter-alia, on its proximity to a municipality or cantonment board.  The method of measuring the distance of the said land from the municipality, has given rise to considerable litigation. Although, the amendment by the Finance Act  2013  w.e.f. 1.04.2014 prescribes the measurement of the distance to be taken aerially, ambiguity persists in respect of earlier periods.



2. The matter has been examined in light of judicial decisions on the subject. The Nagpur Bench of the Hon. Bombay High Court vide order dated 30.03.2015 in ITA 151 of 2013 in the case of Smt. Maltibai R Kadu has held that the amendment prescribing distance to be measured aerially, applies prospectively i.e. in relation to assessment year 2014-15 and subsequent assessment years. For the period prior to assessment year 2014-15, the High Court held that the distance between the municipal limit and the agricultural land is to be measured having regard to the shortest road distance. The said decision of the High Court has been accepted and the aforesaid disputed issue has not been further contested.



3. Being a settled issue, no appeals may henceforth be filed on this ground by the officers of the Department and appeals already filed, if any, on this issue before various Courts/ Tribunals may be withdrawn/ not pressed upon.  This may be brought to the notice of all concerned.



CIT (A & J), CBDT, New Delhi.

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ITR For A.Y 2014-15 can now also be e- verified

0 comments Wednesday, October 7, 2015
Government of India 
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
North Block, 
New Delhi, 
the 6 th of October, 2015

Order under section 119(1) of Income-tax Act, 1961
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All you need to know about tax free bonds

Tax-free bonds are a very attractive investment opportunity available for an investor. Tax-fee bonds offer good diversification within the fixed income category with the additional advantage of tax-free gain alongside safety of capital. i.e., no tax on the interest and get the full slice of interest without any cut – 100% yours.
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