Point of taxation rules amended to allow consulting engineers to pay service tax on receipt basis0 comments Tuesday, June 28, 2011The Point of Taxation rules, 2011 has been amended expanding the scope of services which are allowed to pay service tax on reciept basis, to the consulting engineers services. In the rule 7(c) of the said rules clause (g) has also been added which relates to the "taxable services provided or to be provided to any person, by a consulting engineer in relation to advice, consultancy or technical assistance in any manner in one or more disciplines of engineering including the discipline of computer hardware engineering." Corporates and banks mandated to issue Form 16A downloaded from TIN central system0 comments GOVERNMENT OF INDIA INCOME TAX DEPARTMENT, MINISTRY OF FINANCE Form 16A – Deductee – Taxpayer It is mandatory* for corporates and banks to issue TDS certificate in Form 16A as generated from Tax Information Network of Income Tax Deptt. Please Insist on Form 16A (quarterly TDS certificate) that has been downloaded from TIN Central System only. Illustration regarding payment of surcharge in challan form VAT-2B.0 commentsIn view of notification dated 20-6-2011, calculation of amount for Challan-2, 2A and 2B is as follows :- Suppose sale is Rs. 1 lakh Tax @ 5% = 5000 additional tax @ 10% of tax = Rs. 500 Punjab Govt decided not to levy VAT on increased prices of Diesel and LPG-A minor relief0 commentsThe Punjab government today decided to provide much needed relief to the people of the state by not charging Value Added Tax (VAT) on the recently increased amount of diesel and LPG.
With the exemption of VAT on the recently increased amount, diesel would become cheaper by approximately 25 paise per litre and LPG by Rs.2.50 per cylinder. To offset the price hike, the state government had given these concessions from its own resources benefiting the farmers, transporters and general consumers. With these concessions, the state government would lose about Rs 75 crore of revenue per annum. No Reopening of assessment on ground of wrong claim, if there is no faliure on the part of assessee-Bombay High Court0 comments Monday, June 27, 2011Bombay High Court in an important case namely Titanor Components LTD V ACIT has held that reopening of assessment u/s 147/148 cannot be allowed merely because the assessee has made wrong claim of deduction in the return of income, if there was no faliure on the part of the assessee and no reason to this effect is recorded by the AO in the original assessment order. I have found this judgement as an important one in the context of reopening of assessment under Income Tax Act, hence sharing it herebelow
Clarification on levy of excise duty on branded readymade garments0 comments Sunday, June 26, 2011In the budget of 2011-12 Branded Readymade garments were brought under the Central Excise. CBEC has given a clarification in regard to issues pertaining to the levy of excise duty on branded readymade garments and made-up articles of textiles.
The Board has clarified that levy of excise duty on school uniforms, uniforms for private security guards, companies, hotels, airlines etc and made-ups such as linens, towels etc bearing the name or logo of a hotel, restaurant or airlines etc would not be treated as “branded” products merely because the name of the school, institution or company or, their logo or the name of a hotel, restaurant or airlines is either printed, embroidered or etched on them Deductions relating to Housing loan under Income Tax Act, 19610 commentsHousing loan can save your income tax. EMI we pay for housing loan includes two things principal amount and interest amount. Principal amount is deductible u/s 80C and interest paid on housing loan is deductible u/s 24 of Income Tax Act, 1961. Here below provisions of Income Tax Act relating to tax planning with housing loan are discussed. Deduction of Interest amount on housing loan: Section 24 of Income Tax Act provides for deduction of interest paid on borrowed capital taken for acquiring, constructing, repairing, renewing or reconstruction of a house property from the Net Annual Value of a House Property. The amount of interest payable on such borrowed capital is allowable as deduction on accrual basis. Residential flats has to be considered as residential house for the purpose of exemption u/s 54 of Income Tax Act, 19611 comments Saturday, June 25, 2011Karnataka High Court has held in an important case namely CIT V Smt. K.G Rukminiamma that residential flats constitute "a residential house" for the purpose of section 54, where Profit on sale of property was used for residence it was held that four residential flats cannot be construed as four residential houses for the purpose of section 54, when all were situated in the same building. It has to be construed only as "a residential house" and the assessee is entitled to the benefit accordingly
The Full Judgement is provided herebelow: [2011] 331 ITR 0211 Commissioner of Income-tax Versus Smt. K. G. Rukminiamma(Karnataka High Court) Dated - August 27, 2010 KUMAR N., JAGANNATHAN V. JJ JUDGMENT N. Kumar J.- Income Tax Returns can now be filed on Mobile Phone0 commentsI have found the following news very intersting so sharing it herebelow:
Online income tax return filing company TaxSpanner today announced launch of mobile version of its solution that would enable users to file income tax returns (ITR) from their handset. “After introducing the eFile by eMail option where customers need to just send us an email with a few details, e-filing of taxes through mobile is the next obvious step for the company,” Ankur Sharma, CEO, TaxSpanner said in a statement. Salaried Taxpayers with total Income up to Rs. 5 lakh Exempted from filing Income Tax Return for Assessment Year 2011-12-Notification issued0 comments Thursday, June 23, 2011
Cost Inflation Index for financial year 2011-12 notified0 commentsThe Government of India has notified Cost Inflation Index for the financial year 2011-12 as "785". It is to be noted that cost inflation index is used for calculating indexed cost in case of Long Term Capital Gains under Income Tax Act, 1961. The relevant notification is produced herebelow: NOTIFICATION NO. 35/2011 DATED 23-6-2011 Sports goods may be made tax free in Punjab- benefits and drawbacks which may arise out of it0 comments Wednesday, June 22, 2011There is a news that Punjab Govt is considering to make sports goods tax free under the Punjab VAT Act 2005. It may be a relief for the sports industry which is currently facing lot of competition from the sports industry in UP and also in the international market.
But making sports goods tax free would result in that the tax paid on the purchase of raw material by the manufacturers will be lost and no input tax credit of such tax paid will be available, since as per section 13 of Punjab VAT Act, ITC of tax paid on purchase of any goods is not available, if tax free goods are manufactured out of it. Punjab may impose VAT on pre-owned car dealers-News0 commentsThe Punjab government has proposed value added tax (VAT) on pre-owned car dealers, making second hand cars costlier, and it is likely to be approved by the Cabinet at its meeting on Wednesday.
Sources said it has been proposed by the state excise and taxation department to levy VAT on vehicles which are bought from the pre-owned car dealerships in the state and is on the agenda of Wednesday’s cabinet meet. Taxpayers can also Verify their form 16A online0 comments Tuesday, June 21, 2011A taxpayer who has been issued form 16A by his deductor can verify such form online to check whether it is correct as per the TDS return of the deductor or not. This facility is provided by NSDL at their website tin.nsdl.com. No registration at the NSDL is required to check form 16A online. You will be required to fill the folowing details to verify form 16A.
Rule 37 of Punjab VAT rules amended-mode of payment of surcharge/additional tax changed-New form VAT-2B notified0 commentsA new VAT form namely VAT-2B for payment of surcharge has been introduced under the Punjab VAT Rules and the mode of payment of surcharge/additional tax @ 10% levied u/s 8-B of Punjab VAT Act, has been changed.
Rule 37 of Punjab VAT Rules has been amended to add a new sub-rule 2-A in the said rule, which provides that surcharge or additional tax which is levied @ 10% u/s 8-B of Punjab VAT Act will now be deposited in the ratio of eighty percent in the challan form VAT-2 and twenty percent in the challan form VAT-2B. It is to be noted that uptill now surcharge/additional tax was deposited one hundred percent in form VAT 2. The rest of normal vat tax is deposited in the ratio of 90% in form VAT 2 and 10% in form VAT 2A and there has been no change in the mode of payment of such normal vat tax. Kerala High Court interimly stayed recovery of service tax on Restaurant and short term accomodation service0 commentsKerala High Court has granted an interim stay against any coercive steps of recovery of service tax or against any proceedings for imposing penalty for a period of two months on Restaurant and short term accommodation service. The full order is as follows IN THE HIGH COURT OF KERALA AT ERNAKULAM Present: THE HON‘BLE MR.JUSTICE C.K.ABDUL REHIM Thursday the 16th day of June 2011/26TH JYAISHTA 1933 WP(C).No.14045/2011 (E) PETITIONERS/ No Income tax on income received on behalf of funds established for annual medical check ups0 comments Monday, June 20, 2011CBDT has issued a notification giving relief to the salaried class person by exempting the funds withdrawn from the welfare funds established for the purpose of meeting the cost of annual medical tests or medical checkups of the member, his spouse and dependent children.
Section 23AAA of Income Tax Act exempts income received by any person on behalf of fund esteblished for such purposes notified by the Board in the Official Gazette for the welfare of employees or their dependents subject to fulfillment of certain conditions. The following purposes were notified by CBDT vide notification No.[S.O.672(E) (F. No. 142/16/95-TPL)], DATED 27-7-1995: Deduction u/s 80GG of Income Tax Act, 19610 comments Sunday, June 19, 2011If you are living in a rented house, the rent paid may help you save your income tax. Section 8GG of Income Tax Act provides deduction for House rent paid from the Gross Total Income subject to certain conditions. Section 80GG was omitted by the Finance Act 1997 w.e.f 1998-99, but it was restored again by Finance (No 2) Act, 1998 with retrospective effect i.e A.Y 1998-99.
Herebelow some important points relating to deduction under section 80GG are provided. Quantum of deduction: The deduction u/s 80GG shall be available as minimum of the following amounts: No reversal of ITC on evaporation of Petroleum Products by Petroleum dealers-PVAT Tribunal5 comments There has been a lot of dispute on the issue whether the Petroleum products dealers should reverse the Input Tax Credit on the evaporation of petrol, diesel and other petroleum products as Rule 21(1) of Punjab VAT Rules, 2005 provides for disallowance of Input tax credit for tax paid on purchase of those goods which have been lost or damaged or destroyed beyond repair because of any theft, fire or natural clamity (please note the words because of any theft, fire or natural clamity have been removed from Rule 21(1) w.e.f 06-11-2008) The Punjab & Haryana High Court in Bharat Petroleum Corporation Limited Vs. State of Punjab [(2009) 12 STM 463 (HC-P&H)] decided the above issue on merits in favour of the revenue and also at the same time dismissed the petition stating that the petitioner has the alternative statutory remedy of filing the appeal before lower appellate authorities. NO TDS u/s 194C onseperate contract of supply of material- Bangalore ITAT4 commentsITAT at Bangalore has held in an important case namely M/s Karnataka Power Transmission Corporation Ltd., vs The Income-tax Officer that where a person has entered into seperate contracts of supply of material and contract of labour then TDS u/s 194C will be deducted on the Contract of labour only since both are seperate contracts and are divisible. No TDS is liable to be decuted on the contract of supply of goods, hence the assessee cannot be treated as assessee in default.
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