TDS rates under Income Tax for the Financial Year 2012-2013

0 comments Saturday, June 30, 2012

Threshold Limit
Surcharge and Education Cess
Normal Rate
As per normal computation of income
1.      Surcharge:
No Surcharge on TDS in case of payment is made to Resident or Domestic Company
No Surcharge on TDS in case of payment is made to Non Resident other than Foreign Company
2.5% Surcharge on TDS if the recipient is a foreign company and amount exceeds Rs. 1 Crore.
2.      Education Cess
No EC or SHEC on TDS in case of payment is made to Resident or Domestic Company [Other than Salary]
3% EC and SHEC (2% + 1%) on TDS in case of Salary
3% EC and SHEC (2% + 1%) on TDS in case of payment is made to Non Resident

Interest on Specified Securities
Rs. 5,000 [Rs. 2,500 upto 30-6-2012] in case of Listed Debentures payable to resident individual or a Hindu undivided family, by a company in which public are substantially interested
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Share of Punjab Municipal Fund in VAT enhanced to 11% from 10%?

0 comments Wednesday, June 27, 2012

While making payment of VAT under Punjab VAT Act, payment of VAT(excluding surcharge) has to be made in two parts i.e 10% of VAT in the account of "Punjab Municipal Fund" and 90% in the account of "Excise and Taxation Officer". 

Whereas surcharge is required to be deposited  in two parts i.e 80% in the account of "Excise and Taxation Officer" and 20% of surcharge in the account of "Punjab Municipal Infrastructure Developmenmt Fund". However a single challan namely VAT-2AE is being used for all the payments in different heads.
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Onus lies on AO to prove an expense as unreasonable or excessive to disallow same u/s 40A(2)(a)

0 comments Sunday, June 24, 2012
Delhi ITAT has held in DCIT vs Spark Hotels (P) Ltd. that the onus lies on the assessing officer to prove that an expenditure is excessive or unreasonable so as to disallow such expenditure u/s 40A(2)(a). Unless the AO brings on record any material to prove that an expenditure is excessive or unreasonable, no disallowance of such expenditure u/s 40A(2)(a) can be made.
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Exemption of small service provider is a statutory benefit must be available to ignorant assessee

Ahmedabad CESTAT has held in Jay Travels v Commissioner of Service Tax that  Benefit of small service provider's exemption under Notification No. 6/2005-ST, dated 1-3-2005 being a statutory benefit, should be considered by adjudicating authority. The Tribunal held that since the exemption of basic limit for small service provider is a statutory benefit, hence it is ought to be granted to the innocent person who did not raise the ground that his service charges were below the exempted limit for small service provide, before the lower authorities, hence the matter was remanded by the CESTAT to reconsider the issue a fresh.
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14 new services added to negative list w.e.f 01-07-2012

0 comments Friday, June 22, 2012

While releasing the Guidance Paper Hon'ble Finance Minister also announced some new exemptions as follows:

(a) Service provided by advocates to other advocates and business entities upto a turnover of Rs. 10 lakh in the preceding financial year.

(b) Exemption to firm of advocates on the same lines as individual advocates.
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CBDT's authorizies AOs to reconcile the disputed demands if already paid


Section 119 of the Income-tax Act, 1961 – Income-tax authorities – Instructions to subordinate authorities – Authorization of AOs in certain cases to rectify/reconcile disputed arrear demand
Circular No. 4 of 2012, dated 20-6-2012
The Board has been apprised that in certain cases the assessees have disputed the figures of arrear demands shown as outstanding against them in the records of the Assessing Officer. The Assessing Officers have expressed their inability to correct/reconcile such disputed arrear demand on the ground that the period of limitation of four years as provided under sub-section (7) of section 154 of the Act has expired.
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Download form VAT-20 under Punjab VAT Act, 2005, in excel format

3 comments Wednesday, June 20, 2012
VAT-20 i.e Annual Statement is required to be filed annually as per the provisions of section 26 of Punjab VAT Act, 2005. The last date of filing VAT-20 in Punjab is 20th November every year.

This form is required to filed with due diligence as it is the final statement of the year and any error made in the quarterly or monthly returns filed during the year can be corrected only in this annual statement. Assessment under Punjab VAT Act, 2005 is also being framed on the basis of VAT-20. 
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Interest for delayed payment of tax under Punjab VAT Act, 2005


 Herebelow is the chart showing simple interest leviable on the amount of tax in case of delayed payment of tax under Punjab VAT Act, 2005 under section 32 and section 27(7).It should be noted that such simple interest is not a penal interest and is payable without any requirement of show cause notice and has to be paid along with the delayed payment of tax.
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Penalties under Punjab VAT Act, 2005


Herebelow I am sharing a complete chart showing the penalties under Punjab VAT Act, 2005 for the benefit of all readers. Please note that as per the provisions of section 61 no penalty can be levied under Punjab VAT Act, 2005 without giving a show cause notice in writing.
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Fee payable Under Punjab Value Added Tax Act, 2005


Herebelow is the chart showing various fee payable under Punjab VAT Act, 2005 alonmg with the relevant sections and rules of Punjab VAT Act and Punjab VAT Rules, 2005.
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Time Limits under Punjab Value Added Tax Act, 2005

I am sharing herebelow the various time limits under Punjab VAT Act, 2005 for example time for filing returns, applying registration, payment of taxes etc, hopefully it will be usefull for all concerned readers.
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No need to furnish PAN to deductors if income below taxable limit-section 206AA is inapplicable in such cases-Karnataka HC

0 comments Tuesday, June 19, 2012

 Karnataka High Court has held in A Kowsalya Bai vs UOI that section 206AA is not applicable to persons where income is below exempted limit. The Karnataka High Court held in a writ petition filed chalenging the constitutional vires of section 206AA of Income Tax Act, 1961 that S.206AA of the Act is made inapplicable to persons and read down from the Statute for whose income is less than the taxable limit.
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Whether F form is required if goods are sent inter-state for job work or repairs?

1 comments Sunday, June 17, 2012

Section 6A of CST Act, 1956 provides that if a dealer claims that he is not liable to pay CST on  an interstate movement of goods due to the reason that it is not sale and the goods have been transferred inter-state to any other place of his business or to his agent or principal, then he will have to produce a prescribed form i.e Form F to his assessing authority duly signed by the principal officer of his other place of business or his agent or principal as the case may be.
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Capital gain in case of gifted or inherited properties.

0 comments Monday, June 11, 2012

A capital asset being shares and securities is considered as long term capital asset if it is retained for more than 12 months and 36 months in case of other assets and gain, if any arising from its sales is considered as long term capital gain.

In case of long term capital gains the capital gains is calculated according to indexed cost of acquisition and improvement. Cost inflation index of the year of acquisition and improvement is considered for the purpose of capital gain calculation.
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No disallowance u/s 40(a)(ia) when income declared u/s 44AD

0 comments Saturday, June 2, 2012
ITAT Kolkata relying upon the decision of Punjab & Haryana High Court in CIT vs  Surendra Paul reported in 242 CTR 61 (P&H) held that where income is declared u/s 44AD even though books of accounts are maintained, no disallowance u/s 40(a)(ia) for non-deduction of TDS can be made.

It was held as under:
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