Proposed Imporant Changes in Income Tax in the budget of 2010-2011

0 comments Friday, February 26, 2010
The Budget for the year 2010-11 has been presented on 26/02/2010. The proposed important changes in Income Tax Act 1961 and rates in the finance bill 2010 are provided here below:

Upto Rs. 1,60,000 Nil.
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Penalities under PVAT or CST Act can be adjusted against Excess Input Tax Credit

0 comments Wednesday, February 24, 2010
Section 15 of PVAT Act 2005 deals with the Net Tax Payable by a taxable person. Sub section 1 of Section 15 provides that the output tax under PVAT Act shall be adjusted from the Input Tax Credit for determining Net Tax Payable by a taxable Person. If any excess ITC is still left then it is to be adjusted from the CST liability under CST Act 1956 at the option of the taxable person as per section 15(2) of PVAT Act.

Section 15(3) of PVAT Act provides that the Excess ITC if any left after adjustment of output tax or CST liability u/s 15(1) and 15(2) then such ITC shall be adjusted against any outstanding tax, Penality or Interest under PVAT Act 2005 or CST Act 1956 as the case may be.
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Some Views on Penal Provisions u/s 29(8) of MVAT Act

0 comments Tuesday, February 16, 2010
t is well esteblished principle that the power to levy penality under taxation laws is incidental and ancillary to the power of collection of tax and is provided to make sure the compliance of tax deposits by the assessees. Taxation laws are welfare laws i.e they are for the welfare of the general public at large.
Recently I have come across section 29(8) of MVAT Act which provides for the leving of penality on the dealers who fails to file their return for any period within the prescribed time to the tune of Rs. 5000 and the word ‘shall’ has been used in the said section for leving penality. The section 29(8) of MVAT Act runs as under:
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Treatment of Entry Tax under PVAT Act levied in Punjab

0 comments Friday, February 12, 2010

The Government of Punjab has recently imposed Entry Tax on 12 new items under section 3A of Punjab Tax on Entry of Goods into Local Areas Act, 2000 (Punjab Act No.9 of 2000). The List of which has already been provided in the articles published earlier.
The Entry Tax has been levied in the hands of every person including a taxable person registered under PVAT Act 2005. The word person has been defined under the Punjab Tax on Entry of Goods into Local Areas Act, 2000 as including:
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C Forms under CST Act can be submitted evan at the appellatte stage

2 comments Monday, February 8, 2010
Under section 8(1) of the Central Sales Tax Act 1956 an Interstate sale to a registered dealer can be made at the concessional rate of Central sales tax i.e @2% existing at this time. But for claiming concessional rate of CST the seller needs to produce a declaration in the prescribed form duly filed and signed by the registered dealer in a prescribed form obtained from a prescibed authority.

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Capital Gains under Income Tax Act 1961

0 comments Sunday, February 7, 2010
Any Income derived from a Capital asset movable or immovable is taxable under the head Capital Gains under Income Tax Act 1961. The Capital Gains have been divided in two parts under Income Tax Act 1961. One is short term capital gain and other is long term capital gain.

1.Short Term Capital Gains : If any taxpayer has sold a Capital asset within 36 months and Shares or securities within 12 months of its purchase then the gain arising out of its sales after deducting therefrom the expenses of sale(Commission etc) and the cost of acquistion and improvement is treated as short term capital gain and is included in the income of the taxpayer.
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Summary on declared goods under CST Act 1956

0 comments Saturday, February 6, 2010
Declared goods are the goods of special importance on which there are certain restrictions placed under CST Act 1956 on imposition of sales tax or VAT by the states. Article286(3)(a) of the Constitution of india authorises parliament to declare some goods as of special importance and to impose restrictions and conditions in regard to power of the states in regard to levy, rates and other incidence of tax on such goods. Exercising this power the Parliament vide section 14 of the Central Sales Tax Act 1956 has declared some goods as of special importance and has placed restrictions u/s 15 of CST Act on the imposition of sales tax or VAT on such goods by the state Governments.

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Entry Tax Imposed on new goods in Punjab

0 comments Thursday, February 4, 2010
The Government of Punjab,Department of Excise & Taxation has levied Entry tax on 12 new items Punjab Tax on Entry of Goods into Local Areas Act, 2000 (Punjab Act No.9 of 2000) with effect from 05-02-2010 vide notifications dated 01-02-2010. The new goods on which entry tax has been imposed along with the tax rate applicable are summarized hereinafter

Name of Goods Rate Applicable

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Surcharge Additional Tax levied under PVAT Act

The Government of Punjab has levied Surcharge/Additional Tax @10% on all the goods under Punjab VAT Act 2005 other than those seecified as declared goods under section 14 of Central sales Tax Act 1956 with effect from 05-02-2010. However this surcharge or additional tax will be levied on Liquor with effect from 01-04-2010.
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Scrutiny Assessements under Income Tax Act 1961

0 comments Wednesday, February 3, 2010

The Scrutiny Assessements under Income Tax Act 1961 are made u/s 143(3). For many years now many of the returns of the assesses are accepted as they are being filed by the assesses and intimation is sent u/s 143(1) and only fewer cases are selected for scrutiny assessement based upon some predetermined criterias. Therefore every assessee desires that his return should be accepted as it is filed u/s 143(1) and not subjected to scrutiny. Some important points relating to the assessements and scrutiny assessements are discussed herebelow:
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