Input Tax Credit on Capital Goods under Punjab VAT Act, 2005.2 comments Saturday, May 28, 2011
I have received a querry relating to admissibility of ITC on capital goods. I have replied to it and considering the matter of concern for dealers at large in
Question: Dear Mr Bajaj, As per our telephonic talk today I am submitting my query to you for your comments : Scope of Rule 114B regarding furnishing of PAN in certain transactions extended0 commentsAs per the new amendment in rule 114B of Income Tax Rules, now PAN will also have to be furnished in respect of payment of LIC premium of aggregating Rs. 50000 or more in a year. PAN will also be required to be furnished while making payment to a dealer of Rs. 5 Lakh or more or against a bill of Rs 5 Lakh or more for purchase of bullion or jewellery. The word Dealer has been mentioned in newly added clause (r) to Rule 114B, but who will be considered as dealer is a question to be asked, since no corresponding explanation defining the word dealer has been added in the rule. Instructions for filing Sehaj Form (ITR 1) for A.Y 2011-120 comments Friday, May 27, 2011Instructions for filing Sehaj form have been notified. Not only a layman but also every professional must go through these instructions before filing the form as many new things may come to picture which we might not be aware of. Survey party will provide the taxpayer, names, designation & contact details of CCIT, ACIT/JCIT before starting survey-CBDT0 commentsCBDT has issued some instructions for bringing transparency in the Survey Operations carried under Income Tax Act 1961. As per the instructions now the survey party will inform the taxpayer on whom survey operations are carried on, before the start of survey proceedings the name designation and contact numbers of the CCIT &Additional CIT/JCIT and also will inform the taxpayer that if he has any grivence he can contact the said authorities. The instructions as issued are produced herebelow for ready reference. Tax paid by contractee on goods supplied to contractor, is allowable as ITC to such contractor0 comments Thursday, May 26, 2011The Punjab & Haryana High Court has held in an important case namely Lajpat Rai Chanana V State of Haryana & others (2011) 38 PHT 390 (P&H) that input tax credit to a works contractor executing the works contract will be justified if the contractee has already paid the tax on the goods supplied by him to the contractor. Rates of Tax on various Goods under Punjab VAT Act 20050 comments Wednesday, May 25, 2011I am sharing hereby various schedules under Punjab VAT Act 2005 prescribing rates of tax(VAT) on various goods in Punjab. I have made every effort to provide the schedules with latest amendments but as we know the rates of goods are changed by Govt from time to time, hence the list of goods and rate of tax on goods mentioned in the schedules should not be taken as final. I will try to update the schedules with latest amendments from time to time for the sake of my knowledge as well as that of readers of my blog. INCOME FROM HOUSE PROPERTY UNDER INCOME TAX ACT 19610 commentsWHAT IS HOUSE PROPERTY? The Income Tax Act classifies 'buildings and/or land appurtenant* thereto as *House Property'. Income derived from vacant plots of land is not charged under this head but under the head Income from other sources' or *business profits'.
The tax under this head is levied upon the owner, legal or beneficial and not upon the occupant. In case the assessee is not the owner but gets rent from sub-letting a property, the income will not be taxed as income from house property, but as income from other sources. Ownership will also include deemed ownership, i.e. persons who purchase properties on Power-of-Attorney basis or under long-term lease (twenty year or more) are also deemed to be owners. Sachin Tendulkar allowed deduction u/s 80RR on advertisement Income as an actor1 comments Tuesday, May 24, 2011MUMBAI: An Income Tax tribunal has allowed ace cricketer Sachin Tendulkar to claim deductions from his taxable income pertaining to earnings from modelling in advertisements. The two-member tribunal, which gave its order on May 20, upheld the cricket legend's argument that he was an 'actor' while appearing in commercials. No penalty u/s 271B if assessee is under bonafide belief that his turnover doesnot exceed audit limit-Delhi ITAT0 commentsDelhi ITAT in a case namely Saurabh Kumar Agarwal Vs. Income tax Officer (2011) ISI C-184 Del. (Trib.) has held that where an assessee is under a bonafide belief that his turnover doesnot exceed audit limit and therefore doesn’t get his accounts audited then it will form a reasonable cause for his failure for not obtaining the audit of his accounts u/s 44AB and hence no penalty u/s 271B can be levied. Punjab VAT- Uploading of information on bills made optional- news6 commentsThere is a news that uploading of information relating to certain sale bills which has been made compulsory by Punjab Govt as per a public notice, has been made optional instead of being compulsory. This was to be made compulsory w.e.f 01-06-2011, but now as per a news in a newspaper it has been made optional. The news is produced herebelow for ready reference Mandatory online issuing of form 16A will force deductors to revise their TDS returns0 comments Monday, May 23, 2011CBDT by a recent circular No 3/2011 [F. NO. 275/34/2011-(IT-B), DATED 13-5-2011 has made it compulsory for the Banking and other companies to issue form 16A for TDS w.e.f 01-04-2011 by downloading it from the TIN website online so as to eliminate the mis-matches in the form 26AS and the form 16A, which will facilitate the refund process. Earlier before the issue of said circular the deductee could not force the deductor to revise his TDS return if there was any mismatch between their 26AS and Form 16A. It is to be noted that issuing of Form 16A to the deductee is mandatory for every deductor under Rule 31(3) of Income Tax Rules. Section 9(2B) of CST Act is applicable retrospectively0 commentsSection 9(2B) of Central Sales Tax Act 1956 provides for interest on delayed payment of CST as per the general sales tax law of the State concerned. This provision was added we.f 12-05-2000 by section 120 of the Finance act 2000, Prior to it there was no such provision for levy of interest under CST Act. The Punjab & Haryana High Court has held in State of Haryana v Giriraj Metal and Ferro Alloys (2011) 39 PHT 101 (P&H) that the said provision u/s 9(2B) will be applicable with retrospective effect i.e w.e.f 05-01-1957(from the date of CST Act) following the decision of Supreme Court in case of Indodan Industries Limited v. State of UP and others, 2010(27) Vat and Service Tax Cases 1 Interest for non payment or delayed payment of tax under Punjab VAT Act 20051 comments Sunday, May 22, 2011Tax under any act should be deposited with the exchequer within time prescribed under such act otherwise there is generally a provision for payment of simple interest along with the tax. Section 32 of Punjab VAT Act 2005 provides for payment of simple interest along with tax due if there is non payment or delayed payment of tax under the Act. The provisions of section 32 can be discussed as follows: Stainless Steel wire is not declared goods under CST Act 1956- Supreme Court0 comments Friday, May 20, 2011Supreme Court in an important decision in a case namely Bansal Wire Industries Ltd. Versus State of U.P. has held that Stainless Steel wire is not covered under declared goods u/s 14 of CST Act 1956. The Apex court held that stainless steel doesnot fall in the entry of Tools, alloys and special steels under Iron and steels. Procedure for downloading form 16A online0 comments Thursday, May 19, 2011Here below I am sharing procedure for downloading Form 16A online. You can download the procedure by clicking at the below link: PROCEDURE FOR DOWNLOADING FORM 16A ONLINE Share | Form 16A to be downloaded online by deductors for TDS on or after 01-04-20110 commentsNow TDS certificate in Form No 16A will be downloaded and generated online from TIN central system by the deductors and the same will be issued to the deductees. A circular to this effect has been issued by CBDT. This online downloading of form 16A has been made compulsory for the banking and other companies for tax deducted on or after 1-04-2011 and optional for other deductors. Ussualy there is difference between the form 16A issued to deductees and form 26AS available online to every assessee. This ussualy happens due to wrong entries made in the TDS returns. Powers of Excise & Taxation Inspectors enhanced till 31st December 2011 to make it almost at par with ETOs in Punjab0 comments Tuesday, May 17, 2011The powers of Excise and Taxation inspectors in Punjab have been enhanced till 31st December 2011. The Excise and Taxation Inspectors have been appointed as designated officers u/s 11,13,14,26,27,28,29,30,31,32, 36, 38, 39, 40,41,45, 46,47, 48, 49, 52,53,54,55,56, 57, 58,59, 60, 66,76,77 and 83 till December 2011. No need to give indemnity bond for deferment of entry tax in Punjab- General circular earlier issued amended0 commentsPunjab Government has amended the General circular on deferment from payment of entry tax in Punjab earlier issued on 29-04-2011 in view of the directions of Punjab and Haryana High Court in Bhushan Steel case. In the circular issued on 29-04-2011 an indemnity bond was required to be submitted at the ICC barrier with ever bill which pass through the ICC barriers along with an undertaking and an affidavit to the concerned AETC of the concerned District. Section 44AB not applicable where income is declared u/s 44AE even though gross turnover exceeds audit limit0 commentsI have found the following judgment of Pune ITAT as very important one on deciding the issue where a person engaged in the business of plying leasing or hiring of goods carriages, is owning less than 10 goods carriages and also hiring some goods carriages, can he declare his income u/s 44AE in respect of goods carriages owned by him? The answer to it has been provided in affirmative by the Pune ITAT. Another important thing which is noticeable from the following order is that where a person is owning not more than 10 goods carriages but his gross turnover exceeds the audit limit u/s 44AB of Income tax Act,1961 even then he will not be required to get the books of account audited u/s 44AB, so long the income is declared u/s 44AE, in view of the provisions of section 44AE(5) of the Income Tax Act, 1961 ADDITIONS ON THE BASIS OF CASH CREDITS - SECTION 68 OF INCOME TAX ACT 19611 commentsAccording to section 68 of Income Tax Act 1961, where any sum is found credited in the books of an assessee maintained for any previous year, and the assessee offers no explanation about the nature and source of the same or the explanation offered by him is not satisfactory in the opinion of A.O., the sum so credited may be charged to income tax as the income of the assessee of that previous year. An attempt here is made to understand the provisions of section 68 of Income Tax Act,1961 herebelow:There must exist books of accounts before making addition u/s 68: The addition under u/s 68 can be made on the basis of unexplained cash credit found in the books of the asseessee, hence existence of books of an assessee is a condition precedent before an addition u/s 68 can be made.
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Input Tax Credit on Capital Goods under Punjab VAT Act, 2005.Saturday, May 28, 2011
I have received a querry relating to admissibility of ITC on capital goods. I have replied to it and considering the matter of concern for dealers at large in
Question: Dear Mr Bajaj, As per our telephonic talk today I am submitting my query to you for your comments : Scope of Rule 114B regarding furnishing of PAN in certain transactions extendedAs per the new amendment in rule 114B of Income Tax Rules, now PAN will also have to be furnished in respect of payment of LIC premium of aggregating Rs. 50000 or more in a year. PAN will also be required to be furnished while making payment to a dealer of Rs. 5 Lakh or more or against a bill of Rs 5 Lakh or more for purchase of bullion or jewellery. The word Dealer has been mentioned in newly added clause (r) to Rule 114B, but who will be considered as dealer is a question to be asked, since no corresponding explanation defining the word dealer has been added in the rule. Instructions for filing Sehaj Form (ITR 1) for A.Y 2011-12Friday, May 27, 2011Instructions for filing Sehaj form have been notified. Not only a layman but also every professional must go through these instructions before filing the form as many new things may come to picture which we might not be aware of. Survey party will provide the taxpayer, names, designation & contact details of CCIT, ACIT/JCIT before starting survey-CBDTCBDT has issued some instructions for bringing transparency in the Survey Operations carried under Income Tax Act 1961. As per the instructions now the survey party will inform the taxpayer on whom survey operations are carried on, before the start of survey proceedings the name designation and contact numbers of the CCIT &Additional CIT/JCIT and also will inform the taxpayer that if he has any grivence he can contact the said authorities. The instructions as issued are produced herebelow for ready reference. Tax paid by contractee on goods supplied to contractor, is allowable as ITC to such contractorThursday, May 26, 2011The Punjab & Haryana High Court has held in an important case namely Lajpat Rai Chanana V State of Haryana & others (2011) 38 PHT 390 (P&H) that input tax credit to a works contractor executing the works contract will be justified if the contractee has already paid the tax on the goods supplied by him to the contractor. Rates of Tax on various Goods under Punjab VAT Act 2005Wednesday, May 25, 2011I am sharing hereby various schedules under Punjab VAT Act 2005 prescribing rates of tax(VAT) on various goods in Punjab. I have made every effort to provide the schedules with latest amendments but as we know the rates of goods are changed by Govt from time to time, hence the list of goods and rate of tax on goods mentioned in the schedules should not be taken as final. I will try to update the schedules with latest amendments from time to time for the sake of my knowledge as well as that of readers of my blog. INCOME FROM HOUSE PROPERTY UNDER INCOME TAX ACT 1961WHAT IS HOUSE PROPERTY? The Income Tax Act classifies 'buildings and/or land appurtenant* thereto as *House Property'. Income derived from vacant plots of land is not charged under this head but under the head Income from other sources' or *business profits'.
The tax under this head is levied upon the owner, legal or beneficial and not upon the occupant. In case the assessee is not the owner but gets rent from sub-letting a property, the income will not be taxed as income from house property, but as income from other sources. Ownership will also include deemed ownership, i.e. persons who purchase properties on Power-of-Attorney basis or under long-term lease (twenty year or more) are also deemed to be owners. Sachin Tendulkar allowed deduction u/s 80RR on advertisement Income as an actorTuesday, May 24, 2011MUMBAI: An Income Tax tribunal has allowed ace cricketer Sachin Tendulkar to claim deductions from his taxable income pertaining to earnings from modelling in advertisements. The two-member tribunal, which gave its order on May 20, upheld the cricket legend's argument that he was an 'actor' while appearing in commercials. No penalty u/s 271B if assessee is under bonafide belief that his turnover doesnot exceed audit limit-Delhi ITATDelhi ITAT in a case namely Saurabh Kumar Agarwal Vs. Income tax Officer (2011) ISI C-184 Del. (Trib.) has held that where an assessee is under a bonafide belief that his turnover doesnot exceed audit limit and therefore doesn’t get his accounts audited then it will form a reasonable cause for his failure for not obtaining the audit of his accounts u/s 44AB and hence no penalty u/s 271B can be levied. Punjab VAT- Uploading of information on bills made optional- newsThere is a news that uploading of information relating to certain sale bills which has been made compulsory by Punjab Govt as per a public notice, has been made optional instead of being compulsory. This was to be made compulsory w.e.f 01-06-2011, but now as per a news in a newspaper it has been made optional. The news is produced herebelow for ready reference Mandatory online issuing of form 16A will force deductors to revise their TDS returnsMonday, May 23, 2011CBDT by a recent circular No 3/2011 [F. NO. 275/34/2011-(IT-B), DATED 13-5-2011 has made it compulsory for the Banking and other companies to issue form 16A for TDS w.e.f 01-04-2011 by downloading it from the TIN website online so as to eliminate the mis-matches in the form 26AS and the form 16A, which will facilitate the refund process. Earlier before the issue of said circular the deductee could not force the deductor to revise his TDS return if there was any mismatch between their 26AS and Form 16A. It is to be noted that issuing of Form 16A to the deductee is mandatory for every deductor under Rule 31(3) of Income Tax Rules. Section 9(2B) of CST Act is applicable retrospectivelySection 9(2B) of Central Sales Tax Act 1956 provides for interest on delayed payment of CST as per the general sales tax law of the State concerned. This provision was added we.f 12-05-2000 by section 120 of the Finance act 2000, Prior to it there was no such provision for levy of interest under CST Act. The Punjab & Haryana High Court has held in State of Haryana v Giriraj Metal and Ferro Alloys (2011) 39 PHT 101 (P&H) that the said provision u/s 9(2B) will be applicable with retrospective effect i.e w.e.f 05-01-1957(from the date of CST Act) following the decision of Supreme Court in case of Indodan Industries Limited v. State of UP and others, 2010(27) Vat and Service Tax Cases 1 Interest for non payment or delayed payment of tax under Punjab VAT Act 2005Sunday, May 22, 2011Tax under any act should be deposited with the exchequer within time prescribed under such act otherwise there is generally a provision for payment of simple interest along with the tax. Section 32 of Punjab VAT Act 2005 provides for payment of simple interest along with tax due if there is non payment or delayed payment of tax under the Act. The provisions of section 32 can be discussed as follows: Stainless Steel wire is not declared goods under CST Act 1956- Supreme CourtFriday, May 20, 2011Supreme Court in an important decision in a case namely Bansal Wire Industries Ltd. Versus State of U.P. has held that Stainless Steel wire is not covered under declared goods u/s 14 of CST Act 1956. The Apex court held that stainless steel doesnot fall in the entry of Tools, alloys and special steels under Iron and steels. Procedure for downloading form 16A onlineThursday, May 19, 2011Here below I am sharing procedure for downloading Form 16A online. You can download the procedure by clicking at the below link: PROCEDURE FOR DOWNLOADING FORM 16A ONLINE Share | Form 16A to be downloaded online by deductors for TDS on or after 01-04-2011Now TDS certificate in Form No 16A will be downloaded and generated online from TIN central system by the deductors and the same will be issued to the deductees. A circular to this effect has been issued by CBDT. This online downloading of form 16A has been made compulsory for the banking and other companies for tax deducted on or after 1-04-2011 and optional for other deductors. Ussualy there is difference between the form 16A issued to deductees and form 26AS available online to every assessee. This ussualy happens due to wrong entries made in the TDS returns. Powers of Excise & Taxation Inspectors enhanced till 31st December 2011 to make it almost at par with ETOs in PunjabTuesday, May 17, 2011The powers of Excise and Taxation inspectors in Punjab have been enhanced till 31st December 2011. The Excise and Taxation Inspectors have been appointed as designated officers u/s 11,13,14,26,27,28,29,30,31,32, 36, 38, 39, 40,41,45, 46,47, 48, 49, 52,53,54,55,56, 57, 58,59, 60, 66,76,77 and 83 till December 2011. No need to give indemnity bond for deferment of entry tax in Punjab- General circular earlier issued amendedPunjab Government has amended the General circular on deferment from payment of entry tax in Punjab earlier issued on 29-04-2011 in view of the directions of Punjab and Haryana High Court in Bhushan Steel case. In the circular issued on 29-04-2011 an indemnity bond was required to be submitted at the ICC barrier with ever bill which pass through the ICC barriers along with an undertaking and an affidavit to the concerned AETC of the concerned District. Section 44AB not applicable where income is declared u/s 44AE even though gross turnover exceeds audit limitI have found the following judgment of Pune ITAT as very important one on deciding the issue where a person engaged in the business of plying leasing or hiring of goods carriages, is owning less than 10 goods carriages and also hiring some goods carriages, can he declare his income u/s 44AE in respect of goods carriages owned by him? The answer to it has been provided in affirmative by the Pune ITAT. Another important thing which is noticeable from the following order is that where a person is owning not more than 10 goods carriages but his gross turnover exceeds the audit limit u/s 44AB of Income tax Act,1961 even then he will not be required to get the books of account audited u/s 44AB, so long the income is declared u/s 44AE, in view of the provisions of section 44AE(5) of the Income Tax Act, 1961 ADDITIONS ON THE BASIS OF CASH CREDITS - SECTION 68 OF INCOME TAX ACT 1961According to section 68 of Income Tax Act 1961, where any sum is found credited in the books of an assessee maintained for any previous year, and the assessee offers no explanation about the nature and source of the same or the explanation offered by him is not satisfactory in the opinion of A.O., the sum so credited may be charged to income tax as the income of the assessee of that previous year. An attempt here is made to understand the provisions of section 68 of Income Tax Act,1961 herebelow:There must exist books of accounts before making addition u/s 68: The addition under u/s 68 can be made on the basis of unexplained cash credit found in the books of the asseessee, hence existence of books of an assessee is a condition precedent before an addition u/s 68 can be made.
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