Software Supply Is Not "Sale"- Madras High Court1 comments Friday, September 3, 2010The Madras High court has held in Infotech software Dealers Association vs UOI that though software is a good but a supply of it may be a service and not a sales. When a person enters into an agreement with the developer of software like an end user licence agreement for marketing the software to end user, then such transaction between the end user and the person marketing such software is only a service and not a sale.
New Direct tax code is cleared:Exemption limits hiked, will have to pay less tax under DTC2 comments Thursday, August 26, 2010The cabinet has cleared new Direct tax code which is proposed to be implemented from 01-04-2011 onwards. The new Direct Tax code proposes to raise the basic exemption limit for individual tax payers from Rs 1.6 lakh to Rs 2 lakh. So there will be no tax on incomes below Rs 2 lakh. The exemption for senior citizens has been raised to Rs 2.5 lakh, up from 2.4 lakh at present.
 Development of IT infrastructure must before implementation of GST0 comments Tuesday, August 24, 2010Goods and Service tax (GST) is the most talked about topic in the field of indirect taxation today in India. Everybody is keenly waiting for the proposed GST draft which will replace the existing system of VAT in India. The central government wants the GST to be implemented in India by 1st April, 2011. Although there are and will be been many hurdles which are to be crossed before GST is implemented in India. With the advent of GST the whole picture of indirect taxation in India will change. GST will help bringing to an end tax cascading i.e. tax on tax. But before GST is implemented all over the nation, the IT infrastructure connecting all the states must be developed. PROCEDURAL PROVISIONS RELATING TO TDS AND FILING OF TDS STATEMENTS UNDER INCOME TAX ACT 19611 comments Sunday, August 15, 2010Rule 37BA(1) provides that credit for tax deducted at source and paid to the Central Government in accordance with the provisions of Chepter XVII, shall be given to the person to whom payment has been made or credit has been given (i.e.Deductee), on the basis of information relating to deduction of tax furnished by the deductor to the income tax authority or the person authorized by such authority. ENTRY TAX IMPOSED ON NEW ITEMS AND ENTRY TAX RATES ALREADY EXISTING REVISED BY PUNJAB GOVERNMENT0 comments
PRESUMPTIVE INCOME SCHEMES FOR SMALL ASSESSEES UNDER INCOME TAX ACT 19611 comments Sunday, August 8, 2010There are many presumptive income schemes for small businessmen engaged in civil construction, transport business, retailers etc. A person covered under these schemes can declare his income under these sections on presumptive basis and can get himself free from the botheration of maintaining regular books of accounts u/s 44AA. However these provisions are optional and an assessee covered under these schemes can also declare income outside such schemes by declaring lower profits as compare to what is required under these presumptive schemes. But in such case he will have not only to maintain compulsory books of accounts u/s 44AA but also will have to get his books of accounts audited u/s 44AB. A big Flaw and Mistake in The Punjab VAT Act 20050 comments Friday, August 6, 2010There are many sections under the Punjab VAT Act where the word Designated officers is used. Many powers under the Punjab VAT Act 2005 like of assessments, of levying penalties etc have been conferred on the Designated Officers. These Designated officers are appointed and conferred powers upon under section 3 of Punjab VAT Act 2005. Wherein the state govt has been authorised to confer various powers under the Punjab VAT Act 2005 on the different officials and allow them to act as designated officers under various sections of the PVAT Act 2005 by issuing a notification to that effect. FILING INCOME TAX RETURN AFTER DUE DATE0 comments Monday, August 2, 2010The due date for filing income tax return for corporate aseessees and other aseessees who are required to get their accounts audited under Income Tax Act 1961 or under any other law for the time being in force is 30th September and for others it is 31st July every year as have been prescribed u/s 139(1). These due dates are also sometimes extended by the CBDT as this year has been done, extending the due date from 31st July to 4h August. For a layman sometimes it may create doubt if he fails to file his return of Income within due date, whether he can file his return of Income after the due date, especially when he is under no obligation to get his accounts audited under Income Tax Act or under any other law. DUE DATE OF INCOME TAX RETURNS FOR A.Y. 2010-11 HAS BEEN EXTENDED TILL 4TH AUGUST 20101 comments Saturday, July 31, 2010CBDT has extended the due date for filing income tax returns for assessment yeas 2010-11 has been extended till 4th August 2010. All paper and efilled returns will be considered as filed within due date if filed on or before 4th August 2010.
New VAT form 16-A and 16-B notified for Brick Klin and Dhaba owners opting for lump sum payment of tax under Punjab VAT Act 20051 comments Thursday, July 15, 2010The Excise and taxation department has notified new VAT form returns 16A and 16B for the Brick Klin owners and Dhaba owners respectively under the new rule 36-A added to Efiling of Income Tax Return made compulsory for Individuals and HUFs who are covered under section 44AB6 comments Sunday, July 11, 2010The Efiling of ITR 4 has been made compulsory by the Income Tax Department for the Assessment year 2010-11 for those individuals and HUFs who are required to get their accounts audited u/s 44AB of Income Tax Act by a notofication No.49/2010[F.No.142/15/2010-TPL], dated 9-7-2010.Earlier it was only Firms who were liable to get their accounts audited u/s 44AB and the companies were compulsorly required to file their ITR online.
Filling Stations in Punjab need not to calculate Input Tax or Output Tax on Petrol and Diesel under Punjab VAT Act 20051 comments Thursday, July 8, 2010Filling Station dealers i.e. Retail outlets of oil companies are not required under the Punjab VAT Act 2005 to calculate output tax or input tax on the sale and purchase of petrol and diesel in view of explanation 8 which was added lately to section 2(zg) explaining the sale price of oil companies in relation to the petrol and diesel under the Punjab VAT Act which runs as under: “The amount received or receivable by oil companies for the sale of diesel and petrol, shall be deemed to be equivalent to the price, on which the retail outlets will sell these commodities to the consumer” Understanding the provisions relating to Transfer Pricing under Income Tax Act 19611 comments Sunday, June 20, 2010With the advent of MNCs(Multi National Concerns) a trend has also been adopted by the MNCs to structure their investments and business strategy in such a way that profits are maximized in such jurisdictions where tax rates are low, which give rise to the emerging problem of transfer pricing all over the world. Many countries have made laws to deal with the issue of transfer pricing. Validity of the Entry Fees/Tax imposed on the vehicles carrying Pilgrims By State of J & K3 comments Thursday, June 17, 2010Jammu and Kashmir government said on 10th June, 2010 that Rs 2,000 would be charged as entry fee per vehicle carrying pilgrims to the cave shrines of Mata Vaishnodevi and Amarnath for a period of 3 days.
According to a notification issued by the government under Jammu and Kashnir Motor Vehicle Taxtion Act, 1957, the vehicles carrying passengers to Mata Vaishnodevi Yatra would be charged Rs 2,000 at entry point for a period of 3 days and after that Rs 2,000 will be charged per day. Compulsory Maintenance of books of account under Income Tax Act 196119 comments Saturday, June 5, 2010 It is generally seen that there is confusion among taxpayers about maintenance of books of accounts under Income Tax Act like who is required compulsorly to maintain the books of accounts and for how many years one has to keep his books of accounts. Some views are expressed on this topic as follows:
Maintainence of books of accounts by Professionals: Section 44AA of Income Tax Act and rule 6F of Income Tax rules deal with the provisions regarding maitenance of books of accounts under Income tax Act. As per section 44AA(1) read with rule 6F the persons carrying on any of the profession as mentioned below are required to maintain books of accounts and other documents as may enable the assessing officer to compute his total income, if yearly gross receipts of the profession exceeded Rs 150000 Meaning of Turnover or sales for the purpose of Tax Audit0 comments Monday, May 31, 2010A person is required to get his accounts audited u/s 44AB if
1)The turnover of business exceeds Rs 60 Lakhs, or 2)The Gross Receipts of Profession exceed Rs 15 Lakhs. In case of business what should be the meaning of turnover/sales? Should it be Gross sales or net sales? Should it include VAT, Sales tax or excise duty? The meaning of turnover/sales for the purpose of tax audit is dissussed as follows: ASSESSMENTS UNDER PUNJAB VAT ACT 20050 comments Sunday, May 30, 2010 Assessment under the Punjab VAT Act 2005 are made u/s 29. The assessment under Punjab VAT Act is made after the filing of the VAT 20 i.e annual return except in the case of Provisional Assessment. The assessment of Tax under section 29 of Punjab VAT Act 2005 can be done by two ways which can be discussed as follows:
Assessment on the basis of return filed by the dealer: Assessment may be framed on the basis of the return or returns filed by the taxable persons u/s 29(1) . Where the return is filed under Sec.26 the assessing officer under Rule 43 scrutinizies the same and proceed to make assessment under Sec. 29(1) of the Act. Section 29(1) of Punjab VAT Act 2005 runs as under: Rule 36 of Punjab VAT Rules regarding monthy filing of VAT returns ammended0 comments Wednesday, May 26, 2010Rule 36 of Punjab VAT rules which deals with the filing of VAT returns has been ammended w.e.f 18/05/2010 vide notification No . G.S.R. /P.A.8/2005/S.70/Amd.( )/2010. s.The second and third Proviso to Rule 36 (1) have been ammended to provide that the monthly VAT returns are now required to be filed by only those dealers whose annual tax liability was Rs 2 Lakh or more in the previous Year and once the dealer's annual tax liability exceeds Rs 2 lakhs he will continue to file his monthly VAT returns in Form VAT 16 for all the subsequent years irrespective of the fact that his annual tax liability becomes less than Rs 2 lakhs in the subsequent years.
List of relitives U/S 56(2)VII of Income Tax Act 19610 comments Friday, May 21, 2010Relatives from whom Gift is permissible under Income Tax Act List of Male Donors List of Female Donors Father (Papa or Pitaji) Mother (Maa or Mummy) Brother (Bhai) Sister (Bahin) Son (Beta or Putra) Daughter (Beti or Putri) Grand Son (Pota or Potra) Grand Daughter (Poti or Potri) Procedure for VAT registration under Punjab VAT Act 2005 and CST Act 19560 comments Wednesday, May 19, 2010Who is required to get registered as a VAT Dealer under Punjab VAT Act 2005 Every person, except a casual trader and one dealing exclusively in goods declared tax free, whose gross turnover during the year exceeded the taxable quantum, as provided below, is liable to pay tax under the Punjab VAT Act by way of VAT on the taxable turnover. (i) in relation to any person, who imports taxable goods for sale or use in manufacturing or processing any goods in the State, rupee one;
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Software Supply Is Not "Sale"- Madras High CourtFriday, September 3, 2010The Madras High court has held in Infotech software Dealers Association vs UOI that though software is a good but a supply of it may be a service and not a sales. When a person enters into an agreement with the developer of software like an end user licence agreement for marketing the software to end user, then such transaction between the end user and the person marketing such software is only a service and not a sale.
New Direct tax code is cleared:Exemption limits hiked, will have to pay less tax under DTCThursday, August 26, 2010The cabinet has cleared new Direct tax code which is proposed to be implemented from 01-04-2011 onwards. The new Direct Tax code proposes to raise the basic exemption limit for individual tax payers from Rs 1.6 lakh to Rs 2 lakh. So there will be no tax on incomes below Rs 2 lakh. The exemption for senior citizens has been raised to Rs 2.5 lakh, up from 2.4 lakh at present.
Development of IT infrastructure must before implementation of GSTTuesday, August 24, 2010Goods and Service tax (GST) is the most talked about topic in the field of indirect taxation today in India. Everybody is keenly waiting for the proposed GST draft which will replace the existing system of VAT in India. The central government wants the GST to be implemented in India by 1st April, 2011. Although there are and will be been many hurdles which are to be crossed before GST is implemented in India. With the advent of GST the whole picture of indirect taxation in India will change. GST will help bringing to an end tax cascading i.e. tax on tax. But before GST is implemented all over the nation, the IT infrastructure connecting all the states must be developed. PROCEDURAL PROVISIONS RELATING TO TDS AND FILING OF TDS STATEMENTS UNDER INCOME TAX ACT 1961Sunday, August 15, 2010Rule 37BA(1) provides that credit for tax deducted at source and paid to the Central Government in accordance with the provisions of Chepter XVII, shall be given to the person to whom payment has been made or credit has been given (i.e.Deductee), on the basis of information relating to deduction of tax furnished by the deductor to the income tax authority or the person authorized by such authority. ENTRY TAX IMPOSED ON NEW ITEMS AND ENTRY TAX RATES ALREADY EXISTING REVISED BY PUNJAB GOVERNMENT
PRESUMPTIVE INCOME SCHEMES FOR SMALL ASSESSEES UNDER INCOME TAX ACT 1961Sunday, August 8, 2010There are many presumptive income schemes for small businessmen engaged in civil construction, transport business, retailers etc. A person covered under these schemes can declare his income under these sections on presumptive basis and can get himself free from the botheration of maintaining regular books of accounts u/s 44AA. However these provisions are optional and an assessee covered under these schemes can also declare income outside such schemes by declaring lower profits as compare to what is required under these presumptive schemes. But in such case he will have not only to maintain compulsory books of accounts u/s 44AA but also will have to get his books of accounts audited u/s 44AB. A big Flaw and Mistake in The Punjab VAT Act 2005Friday, August 6, 2010There are many sections under the Punjab VAT Act where the word Designated officers is used. Many powers under the Punjab VAT Act 2005 like of assessments, of levying penalties etc have been conferred on the Designated Officers. These Designated officers are appointed and conferred powers upon under section 3 of Punjab VAT Act 2005. Wherein the state govt has been authorised to confer various powers under the Punjab VAT Act 2005 on the different officials and allow them to act as designated officers under various sections of the PVAT Act 2005 by issuing a notification to that effect. FILING INCOME TAX RETURN AFTER DUE DATEMonday, August 2, 2010The due date for filing income tax return for corporate aseessees and other aseessees who are required to get their accounts audited under Income Tax Act 1961 or under any other law for the time being in force is 30th September and for others it is 31st July every year as have been prescribed u/s 139(1). These due dates are also sometimes extended by the CBDT as this year has been done, extending the due date from 31st July to 4h August. For a layman sometimes it may create doubt if he fails to file his return of Income within due date, whether he can file his return of Income after the due date, especially when he is under no obligation to get his accounts audited under Income Tax Act or under any other law. DUE DATE OF INCOME TAX RETURNS FOR A.Y. 2010-11 HAS BEEN EXTENDED TILL 4TH AUGUST 2010Saturday, July 31, 2010CBDT has extended the due date for filing income tax returns for assessment yeas 2010-11 has been extended till 4th August 2010. All paper and efilled returns will be considered as filed within due date if filed on or before 4th August 2010.
New VAT form 16-A and 16-B notified for Brick Klin and Dhaba owners opting for lump sum payment of tax under Punjab VAT Act 2005Thursday, July 15, 2010The Excise and taxation department has notified new VAT form returns 16A and 16B for the Brick Klin owners and Dhaba owners respectively under the new rule 36-A added to Efiling of Income Tax Return made compulsory for Individuals and HUFs who are covered under section 44ABSunday, July 11, 2010The Efiling of ITR 4 has been made compulsory by the Income Tax Department for the Assessment year 2010-11 for those individuals and HUFs who are required to get their accounts audited u/s 44AB of Income Tax Act by a notofication No.49/2010[F.No.142/15/2010-TPL], dated 9-7-2010.Earlier it was only Firms who were liable to get their accounts audited u/s 44AB and the companies were compulsorly required to file their ITR online.
Filling Stations in Punjab need not to calculate Input Tax or Output Tax on Petrol and Diesel under Punjab VAT Act 2005Thursday, July 8, 2010Filling Station dealers i.e. Retail outlets of oil companies are not required under the Punjab VAT Act 2005 to calculate output tax or input tax on the sale and purchase of petrol and diesel in view of explanation 8 which was added lately to section 2(zg) explaining the sale price of oil companies in relation to the petrol and diesel under the Punjab VAT Act which runs as under: “The amount received or receivable by oil companies for the sale of diesel and petrol, shall be deemed to be equivalent to the price, on which the retail outlets will sell these commodities to the consumer” Understanding the provisions relating to Transfer Pricing under Income Tax Act 1961Sunday, June 20, 2010With the advent of MNCs(Multi National Concerns) a trend has also been adopted by the MNCs to structure their investments and business strategy in such a way that profits are maximized in such jurisdictions where tax rates are low, which give rise to the emerging problem of transfer pricing all over the world. Many countries have made laws to deal with the issue of transfer pricing. Validity of the Entry Fees/Tax imposed on the vehicles carrying Pilgrims By State of J & KThursday, June 17, 2010Jammu and Kashmir government said on 10th June, 2010 that Rs 2,000 would be charged as entry fee per vehicle carrying pilgrims to the cave shrines of Mata Vaishnodevi and Amarnath for a period of 3 days.
According to a notification issued by the government under Jammu and Kashnir Motor Vehicle Taxtion Act, 1957, the vehicles carrying passengers to Mata Vaishnodevi Yatra would be charged Rs 2,000 at entry point for a period of 3 days and after that Rs 2,000 will be charged per day. Compulsory Maintenance of books of account under Income Tax Act 1961Saturday, June 5, 2010 It is generally seen that there is confusion among taxpayers about maintenance of books of accounts under Income Tax Act like who is required compulsorly to maintain the books of accounts and for how many years one has to keep his books of accounts. Some views are expressed on this topic as follows:
Maintainence of books of accounts by Professionals: Section 44AA of Income Tax Act and rule 6F of Income Tax rules deal with the provisions regarding maitenance of books of accounts under Income tax Act. As per section 44AA(1) read with rule 6F the persons carrying on any of the profession as mentioned below are required to maintain books of accounts and other documents as may enable the assessing officer to compute his total income, if yearly gross receipts of the profession exceeded Rs 150000 Meaning of Turnover or sales for the purpose of Tax AuditMonday, May 31, 2010A person is required to get his accounts audited u/s 44AB if
1)The turnover of business exceeds Rs 60 Lakhs, or 2)The Gross Receipts of Profession exceed Rs 15 Lakhs. In case of business what should be the meaning of turnover/sales? Should it be Gross sales or net sales? Should it include VAT, Sales tax or excise duty? The meaning of turnover/sales for the purpose of tax audit is dissussed as follows: ASSESSMENTS UNDER PUNJAB VAT ACT 2005Sunday, May 30, 2010 Assessment under the Punjab VAT Act 2005 are made u/s 29. The assessment under Punjab VAT Act is made after the filing of the VAT 20 i.e annual return except in the case of Provisional Assessment. The assessment of Tax under section 29 of Punjab VAT Act 2005 can be done by two ways which can be discussed as follows:
Assessment on the basis of return filed by the dealer: Assessment may be framed on the basis of the return or returns filed by the taxable persons u/s 29(1) . Where the return is filed under Sec.26 the assessing officer under Rule 43 scrutinizies the same and proceed to make assessment under Sec. 29(1) of the Act. Section 29(1) of Punjab VAT Act 2005 runs as under: Rule 36 of Punjab VAT Rules regarding monthy filing of VAT returns ammendedWednesday, May 26, 2010Rule 36 of Punjab VAT rules which deals with the filing of VAT returns has been ammended w.e.f 18/05/2010 vide notification No . G.S.R. /P.A.8/2005/S.70/Amd.( )/2010. s.The second and third Proviso to Rule 36 (1) have been ammended to provide that the monthly VAT returns are now required to be filed by only those dealers whose annual tax liability was Rs 2 Lakh or more in the previous Year and once the dealer's annual tax liability exceeds Rs 2 lakhs he will continue to file his monthly VAT returns in Form VAT 16 for all the subsequent years irrespective of the fact that his annual tax liability becomes less than Rs 2 lakhs in the subsequent years.
List of relitives U/S 56(2)VII of Income Tax Act 1961Friday, May 21, 2010Relatives from whom Gift is permissible under Income Tax Act List of Male Donors List of Female Donors Father (Papa or Pitaji) Mother (Maa or Mummy) Brother (Bhai) Sister (Bahin) Son (Beta or Putra) Daughter (Beti or Putri) Grand Son (Pota or Potra) Grand Daughter (Poti or Potri) Procedure for VAT registration under Punjab VAT Act 2005 and CST Act 1956Wednesday, May 19, 2010Who is required to get registered as a VAT Dealer under Punjab VAT Act 2005 Every person, except a casual trader and one dealing exclusively in goods declared tax free, whose gross turnover during the year exceeded the taxable quantum, as provided below, is liable to pay tax under the Punjab VAT Act by way of VAT on the taxable turnover. (i) in relation to any person, who imports taxable goods for sale or use in manufacturing or processing any goods in the State, rupee one;
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