Sales Tax; Time for assessment cannot be extended when the assessment has already become time barred: SC1 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.
1 comments Tuesday, March 1, 2016Read On
BUDGET 2016 PROPOSALS
INCOME DECLARATION SCHEME 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/-.
PRESUMPTIVE TAXATION SCHEME
· 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 & RETURNS
· 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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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 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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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:
0 comments Friday, January 22, 2016Read On
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
0 comments Sunday, January 17, 2016Read On
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.
0 comments Tuesday, December 15, 2015Read On
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.
1 comments Thursday, November 19, 2015Read On
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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GOVERNMENT OF PUNJAB
DEPARTMENT OF EXCISE & TAXATION
KIND ATTENTION: DEALERS/CHARTERED ACCOUNTANTS/LAWYERS/OTHER STAKEHOLDERS
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.
Excise & Taxation Commissioner, Punjab
0 comments Tuesday, November 17, 2015Read On
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.
Amendment to Section 2(14)(III)(b) relating to measurement of distance aerially to apply prospectively0 comments Friday, October 9, 2015
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
CENTRAL BOARD OF DIRECT TAXES
Circular No. 17/2015
Dated : 06th October, 2015
SUBJECT : MEASUREMENT OF THE DISTANCE FOR THE PURPOSE OF SECTION 2(14)(III)(B) OF THE INCOME-TAX ACT FOR THE PERIOD PRIOR TO ASSESSMENT YEAR 2014-15.
"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.
(D S CHAUDHRY)
CIT (A & J), CBDT, New Delhi.
0 comments Wednesday, October 7, 2015Read On
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
the 6 th of October, 2015
Order under section 119(1) of Income-tax Act, 1961
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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.
0 comments Sunday, October 4, 2015Read On
Luxury Tax Registration
To apply for new ‘Luxury Tax registration’ the below documents are needed to submit in concerned district office front window by dealer who is applying for new Registration:-
0 comments Friday, October 2, 2015Read On
Value Added Tax (VAT)
To apply for new registration for VAT/CST in punjab the below documents are needed to submit in concerned district office front window by dealer who is applying for new Registration:-
3 comments Sunday, September 20, 2015Read On
In the construction and real estate industry it is common practice for the Contractors to sub contract the whole of the contract for execution on back to back basis. While sub-contracting on back to back basis the main contractor retains its profit element from the total consideration received from the contractee. In such case the question which arises whether such profit element is subject to any tax under VAT.
0 comments Thursday, September 10, 2015Read On
Earlier I had shared with my readers that I had filed writ petitions along with other similar petitions challenging the Constitutional validity of section 62(5) of Punjab VAT Act, 2005 before Punjab & Haryana High Court.
The arguments in all such writ petitions have been finally concluded and the judgement has been reserved by the Hon'ble Punjab and Haryana High Court on 09.09.2015.
Writ petitions challenging enhancement of assessment period from 3 to 6 years under Punjab VAT dismissed by High Court0 comments Saturday, August 8, 2015
0 comments Thursday, July 30, 2015Read On
GOVERNMENT OF PUNJAB
DEPARTMENT OF EXCISE & TAXATION
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