0 FILL PAN OTHERWISE ETDS/ETCS RETURN WILL NOT BE ACCEPTED

Recently Tax deptt. has made a announcement regarding etds/etcs return vide which they have fixed a minimum % of record/entries in etds/etcs deductee record in which you have to give/fill Pan of the deductee,otherwise the your etds/etcs return will not be accepted. Percentage is given hereunder.

  • eTDS Return
  1. In case of tax deducted from Salary (form 24q)=90% of the deductee.
  2. In any other case (form 26q)=70% of the Deductee.
  • eTCS Return
  • Form 27EQ=70% of the Deductees
Means if in your etds/etcs return % of deductee in which pan is filled is less than given % above than your return will not be accepted by Tin -fc at all.This % will be applicable on new as well as correction return but in case of correction return computation of 70% structurally valid deductee PAN will only be on deductee records added.
In My view Evan after this announcement responsibility/duty of deductor to quote pan in all the deductees record has not been reduced and he has to give pan in all the entries,the above limit is given so that if up to due date pan is not collected than fill return by at least 70/90 % of pan.

So it is requested to all please fill maximum pan you can arrange in your etds return otherwise you have to fill a revised return for rest of the deductees.

some time you have pan of the deductee but incorrect due to some reason you can verify any persons pan freeeeeeee.......online read this article.

what are the disadvantages for not giving pan in deductees record.
  1. Deductees pan ledger will not be updated & credit may be denied to him.
  2. Deductee will approach you to re-verify the deduction by you,which will create unnecessary burden for you as well as to deductee.Sometime it leads to a clue to deptt about your working .
  3. you have to revise the return after collecting correct pan.
so in present circumstances where all the returns of income tax is annexure less, it is our responsibility to quote pan of all the deductee in etds return so that his pan ledger will be updated & CREDIT OF HIS TAX DEDUCTED will be available to him without any problem.If we care for other,other will care for us.

Note:Structurally valid evan incorrect pan will be counted in 70/90 % limit.The reason behind this at the time of submission of return pan is not matched with ITD database of Pan ,Only structure of PAN is checked at the time of submission of return.for exp if i fill aaapa1234p then it will be a counted in 70% /90% .if you want to know what is structure pattern read my article link given below know your pan.

NSDL has also issued a fvu(FILE validation Utility)new from 1.10.2007 which will check correctness of pan on the above basic & validate file then only.newer version of fvu can be downladed from here

e-TDS/TCS FVU.exe (version 2.110)NEWAPPLICABLE FROM 1.10.2007

PRESS RELEASE FROM GOVT OF INDIA
NSDL STATEMENT ON ABOVE ISSUE
Related article


Inconsistencies in ETDS returns

Do and Don'ts while tax deposit

FAQ (ETDS/ETCS STATEMENTS)

FREE SOFTWARE FOR ETDS/ETCS STATEMENTS

NON FILLING OF ETDS STATEMENTS

NIL ETDS RETURN MANDATORY?

DUE DATES OF ETDS/ETCS RETURN

TDS RATES 2007-08 EXCEL

SCOPE OF ETDS/ETCS STATEMENT ENHANCED

KNOW ALL ABOUT PAN,VERIFY PAN ONLINE

Register for form 26as (pan login & View your taxes deducted/deposited/collected online)
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0 FBT ON ESOP & FBT CALCULATOR

The most debated issue in budget 2007 was taxing of Employees Stock Option Plan (ESOP). Let us evaluate the tax treatment of ESOP from point of view of employee & employer. The summary of tax treatment of ESOP is given as under:

(A) Tax treatment in hands of employee:

Salary Income

  • ESOP will not be taxed as perquisite in hands of employee irrespective of fact whether it is as per guidelines of central government (ie Approved) or not.

Capital Gains

· Employees will be subject to capital gains tax when they transfer shares/securities acquired under ESOP.

· As per Sec 47(iii) transfer does not includes transfer of capital asset under gift , will or irrevocable trust. However provs in clause (iii) of sec 47provider that where an employee transfer by way of gift or irrevocable trust shares received under Approved scheme of ESOP such transaction shall be treated as transfer.

· Thus when employee transfer under gift or irrevocable trust shares acquired under approved scheme of ESOP than Fair Market Value (FMV) shall be deemed to be full of consideration received as result of transfer.

· When ESOP is not approved (i.e. not as per guidelines of central Govt.) then transfer under gift, etc is not taxable.

· When an employee transfers shares otherwise than under gift , will etc ie by sale in open market & so on he will be subject to capital gains tax & in such case sale proceeds received will be considered as full value of consideration.

· The cost of acquisition in either of two cases as stated above will be the value at which Fringe benefit is levied

· Taxability under capital gains will be also subject to period of holding, listing status of company & applicability of Security Transaction Tax (STT).

· If shares are held for more than 12 months than it is Long term capital asset or else it is Short term Capital asset.

· If shares are long term ,listed in stock exchange & STT is paid than Long term capital gain arising is exempt from tax under section 10(38)

· If shares are short term , listed & SST is paid than it will be subject to tax @10%(Plus surcharge & cess)

· If share are long term & unlisted than it will be taxed @20%

· If shares are Short term & unlisted than it will be subject to Slab rate.

In simple words if employee holds shares of of listed company recived in ESOP for more than one year & sold them in market & STT(securities Transaction Tax) paid than tax liability of employee will be Nil,so enjoy!

(B) Tax treatment in hands of employer:

· Employer will be subject to Fringe Benefit Tax (FBT) under section 115WB(1)(d), value of FBT would be 100% Fair market value of specified shares on date of vesting of shares as reduced by amount actually paid by employee as per section 115WC.

· The aforesaid fringe benefit will be taxable at the rate of 33.99%

· The CBDT will be coming up with guidelines for computation of Fair market value of shares. So far as listed securities are concerned, closing rate of shares on the date of vesting of shares is proposed to be considered as FMV of share for levy of FBT.





FBT CALCULATOR UPDATED 9/2008

Latest Hand book on FBT Sep.2008.pdf
Amendments incorporated for financial year 2008-2009 ByPramod Agrawãl Agrawãl Associates New Delhi-110008 agrawalassociates@gmail.com 		773.24 KB Download
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0 GET ONE DAY GRACE ,PAY SERVICE TAX ELECTRONICLY(online)

CBEC has issued a notification dt 12/9/2007 vide which the person who pays the service tax electronically through internet banking can now deposit it by 6th of the next month immediately following the calendar month/quarter in which the payments are received, towards the value of taxable services.


So last date for deposit the service tax after this amendment will be as following:


1) In case of assessee is

--an individual or

--proprietary firm or

--partnership firm

  • by 6th day of the month if the duty is deposited electronically through internet banking immediately following the quarter in which the payments are received, towards the value of taxable services.(How to pay online service/excise tax)
  • by 5th day of the month if the duty is deposited otherwise, immediately following the quarter in which the payments are received, towards the value of taxable services.

2) In case of any other assessee

  • by the 5th day of the month, in any other case,
immediately following the calendar month in which the payments are received, towards the value of taxable services:

IMPORTANT POINTS TO BE NOTED
  1. In first case tax is to be paid quarterly(Individual,proprietary firm,Partnership Firm)
  2. In second case tax is to be paid monthly(In any other case)
  3. Tax is to be paid in next month immediately following the calender month in which payments are received for services rendered,means if payment is yet to receive against services than no tax will be due.
  4. By paying through internet banking we can enjoy one day grace(Due date is 6th ).The online payment can be made by any assessee .
SERVICE TAX DUE DATE FOR LAST MONTH/QUARTER OF F.Y.(31st march)

  • service tax on the value of taxable services received during the month of March, or the quarter ending in March, as the case may be, shall be paid to the credit of the Central Government by the 31st day of March of the calendar year.
so for last month/quarter of the financial year, due date for service tax payment is 31st march of that financial year.

NO SERVICE TAX TO BE PAID IF SERVICES ARE RENDERED BEFORE SERVICE BECOMES TAXABLE EVEN PAYMENT RECEIVED AFTER DATE OF APPLICATION OF SERVICE TAX

  • As stated above service tax become due in next month following the month in which payments are received ,but its accrue as soon as service rendered .For example: a new service has been added in service tax list on 1.4.2007 and assessee has received 10 lacs rupees on 30.4.2007 against that service for services rendered before 01.04.2007.Is this case whether service tax is payable on 5/5/2007 or not.the answer is no,as the service tax on that service is applicable from 01/04/2007 so service tax can not be made applicable on services rendered before 01/04/2007,and it doesn't matter payment recieved after 01/04/2007.This issue has also been clarified in this notification as above.
comments invited :

Full text of the new NOTIFICATION NO. 39/2007 - SERVICE TAX , DATED 12-9-2007 & old rule can be downloaded from here.



IDENTICAL CHANGES IN EXCISE DEPOSIT ALSO

Vide NOTIFICATION NO. 34/2007-CENTRAL EXCISE (N.T.), DATED 11-9-2007,deposit date has been increased by one day in case of payment made through internet.


Download Challan gar-7/tr-6 with excel addin figure to word convertor(71kbzip)

(above file includes service tax accounting code+rate of service tax+services taxable list & date of application+scope of service tax new as on 29/8/2007)
(you can all also download preprinted challan/pdf editable in adobe 8.1 reader from link given below,)

if you want to know:

  1. your location code,
  2. your any one service tax/excise registration number/code with the help of pan,
  3. your division code,
  4. your commissioner's office name
  5. download gar-7 in pdf format editable with adobe reader 8.1
click this link

Free preprinted new challan form GAR-7/TR-6,know you service tax number,assessing officer name,location code,download free GAR-7 Fillable

If you want to know
  • who should register
  • excemption limit
  • form st-1 registration form in excel
  • registration process
  • service tax return form st-3 excel /document & due date
  • penalty for late deposite of tax/return
  • other issues
check on this link
Procedural issues in Service Tax (NEW)(ALL OLD CIR...

DOWNLOAD SHORT NOTES ON ITAX ASSESSMENT AND SEARCH BY CA AJAY WADAVA AND SERVICE TAX ON RENTING AND WORKS CONTRACT BY CA ROHIT VASVANI GIVEN IN SEMINAR AT BTI NIRC BRANCH
comments invited
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0 NEW SYSTEM OF SERVICE TAX PAYMENT

Like Income tax/Fbt Central board of excise & custom(CBEC) has started new single page challan to deposit central excise or service tax named as GAR 7/TR-6 from 01.04.07 onwards.


Electronic Accounting System In Excise and Service Tax(EASIEST)


The EASIEST is the system for electronic transmission of challan data from Banks in respect of Central Excise and Service Tax payments. It envisages that a single GAR 7 challan would be used for payment of Central Excise and Service Tax instead of the earlier four challans. The salient features of the EASIEST scheme are:



1.The collecting branch captures information in the challan including a 15-character assessee code and a unique Challan Identification Number (CIN)(20digit)which is a combination of the: -----BSR code of the collecting bank branch(seven digit)
---challan tender date (eight digit)

---challan serial number. (five digit)


2. Single page challan form instead of earlier 4 page.


3. Payment can be verified online form dept/nsdl website




Fillable challan GAR-7 can be downloaded from link given below in pdf format.
BEFORE DOWNLOAD USE PREPRINTED FORM GIVEN BELOW


GAR-7 FOR EXCISE (FRONT)(625KB)

BACK(INSTRUCTION)


GAR-7 FOR SERVICE TAX (FRONT) (625KB)

GAR-7 BACK (INSTRUCTIONS)

Download GAR-7 in excel form(new with accounting code)

INSTRUCTION TO FILL THE FORMS

1. Name, Address, 15 digit Assessee Code, Commissionerate Name and 8 digit Accounting code is mandatory.
New & Final accounting code for higher secondary cess (from 10/10/2007) been issued ,read here


OLD accounting code for higher secondary cess for Your Ready refence
service tax :00440252
excise :00380086
custom :00370034


2. The Accounting codes for Tax and Interest/Penalty for each service is provided in the table


3. The total amount tendered should be written both in words and figures.

4. The details filled in the challan and ‘Taxpayer’s Counterfoil’ should be identical.

5. The Receiving Bank Branch Stamp should contain the following:
i) BSR code of the receiving Bank Branch (7 digits)
ii) Date of Deposit of Challan (DDMMYYYY) (8 digits)
iii) Challan Serial Number (5 digits)



Know Your Jurisdictional Office /Location Code


Based on State/District/Area Of Locality of Central Excise

Based on State/Commissionerate/Division/Range


service tax registration (STC)no has 15 letters.

first 10letter (1-10) is same as of your pan .(pan is also 10 letter )
11-12 letter are "ST" in all the service tax number.
13-15 is Sr no to all the sub office or location under one pan.
if you have only one office & applied your self only on your pan than your service tax number is

your 10 digit pan ,st,001.
suppose your pan is ABCDE1234F than your service tax number will be
ABCDE1234FST001



If you don't know your 15 digit code than you can check it from link given below from deptt database online by giving your PAN


KNOW YOUR SERVICE/EXCISE REGISTRATION NUMBER (CLICK THIS LINK)

If you don't know your 15 digit code than you can check it from link given ABOVE by giving your PAN
latest accounting codes



OTHER ARTICLES ON SERVICE TAX
Procedural issues in Service Tax (NEW)(ALL OLD CIRCULAR WITHDRAWN)

GET ONE DAY GRACE ,PAY SERVICE TAX ELECTRONICLY(online)

NEW SERVICE TAX CODING,ALL OLD CIRCULARS,CLARIFICATIONS W
ITHDRAWN

KNOW YOUR SERVICE TAX CODE

KNOW YOUR SERVICE/EXCISE DEPOSITED
Read more >>

1 Amnesty Scheme, 2007,Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975

Under the above Act

-- every employer is required to obtain Registration Certificate, deduct profession tax from salary/wages of employees and pay the tax into Government Treasury.

--Every self employed person engaged in any profession, trade, callings and employment covered by entry 2 to 20 of the schedule appended to the Act is required to obtain Enrolment Certificate and pay profession tax yearly.

but it is observed by the govt of maharastra that many firms/persons are not paying tax.

Govt of Maharashtra has issued a circular for Prof Tax Amnesty.
The Salient features of this scheme are

The duration of the Scheme is 1-9-2007 to 31-10-2007.(scheme now extended to 30.11.2007)

The detailed circular and the format of the Application form is here.



(a) For tax payers not holding Registration/ Enrolment Certificate: -

(i) Tax, interest, penalty in respect of periods prior to 1.04.2002 would be
waived in full.

(ii) In respect of periods from 1.04.2002, 90% of the interest/penalty amount would be waived.

(b) For tax payers holding Registration/ Enrolment Certificate: - 90% of the
interest and penalty amount would be waived.



The Govt Proposes to start a door to door survey from 1-11-2007.(scheme now extended to 30.11.2007)

The detailed circular and the format of the Application form is here.

contributed by CA AJAY WADKE


Maharashtra Profession Tax - Tax Payment Chalan No.VIII for Enrolled Persons Downldpdf Downldexcel
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0 ICAI SET TO MAKE CA REGISTRATION MANDATORY

Don’t be surprised if your organisation receives a directive from the Institute of Chartered Accountants of India (ICAI) asking you to verify the membership of your chartered accountant (CA). The ICAI, a statutory body established under the Chartered Accountants Act 1949, will soon ask companies to ensure that CAs employed by them are registered members of ICAI. ICAI has already started shooting letters to major corporate houses to ensure that they verify the membership of their CAs. It is estimated that as many as 60,000 CAs are not registered with ICAI that is empowered to take disciplinary actions against its members in case of any accounting malpractice. ICAI believes that there are at least 15,000 to 20,000 CAs employed in India who are not the members of the institute. CAs now settled out of India are also not enthusiastic about retaining their membership with ICAI since they are practicing under the foreign authorities. “Companies employing CAs must ensure that they are registered with ICAI so that the institute can take disciplinary action against him or her in case of any accounting fraud or violation of code of conduct,” chairman, ICAI’s Committee for Members in Industry, Uttam Agarwal told ET. He added that ICAI will not be able to punish the culprit CA if he is not registered with institute in the scenario when accounting standards are becoming stringent day by day. According to Mr Agarwal, CAs avoid registration on account of carelessness since corporates ask only for their passing certificate at the time of recruitment and not the registration number with ICAI. The registration and renewal fees are very much nominal for membership, he said. It may be mentioned here that CAs in the industry have now outnumbered the practicing CAs. Out of about 1.40 lakh CAs, about 75,000 are employed in the industry. With increasing rush of corporates to the ICAI centres for recruitment, the institute has made it mandatory for fresh pass outs to apply for membership before participating in the campus interviews – www.economictimes.com
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2 SCOPE OF ETDS/ETCS STATEMENT ENHANCED

CBDT has enhanced the scope of filling Etds/Etcs return by amending the rule 31A(applicable on etds) and 31AA(applicable on etcs) vide Income-tax (Ninth Amendment) Rules, 2007
NOTIFICATION No. 238/2007, dated 30-8-2007.Now following person are liable to file etds/etcs return.

1. All Government department/office or

2. All companies.or

3. All person required to get his accounts audited under section 44AB in the immediately preceding financial year; or

4 The number of deductees’ records in a quarterly statement for any quarter of the immediately preceding financial year is equal to or more than fifty,

Person given at sr no 1 and 2 is already liable to file etds/etcs statement now scope is enhanced and person at sr no 3 and 4 is also liable to file etds/etcs statements.

This rules are applicable from 01.09.2007

So by this amendment every deductor
--if a company,if a govt office,if account to be audited u/s 44Ab
--who has filed
-----a tds return with more than 50 deductee records
-----in any of the quarter
---- in immediately preceding year
is liable to be file a etds/etcs return from 01/09/2007 onwards.

lets examine sr no 4 given above in detail.Rule 31A is covering etds statements and rule 31AA is covering etcs statements.

1.ques:whether tcs return(27eq) is to filled electronically if deductees records in tds return(form 24q,26q) is more than or equal to 50 in proceeding year in any of the quarter.

ans:No, in my opinion as the tds and tcs provision are governed by different rule ,hence person is not liable for filling tcs return electronically even if deductees record is more than in case of tds returns (form 24q,26q)

2.Ques:whether tds return of form 26q is to be filled electronically if deductees records in tds return of employees (form 24q) id more than or equal to 50 as stated above or vice versa.

Ans:As both return 24q(for employees) and 26 q (for contractors etc) is covered under same rule i.e 31A and from plain reading of the rule it answer can be concluded as yes,but in my opinion the limit is defined for 24 q and 26 q is seprate and return is not required to be filed.
but my suggestion is please file your return electronically.As it is easy to file a etds return than manual return moreover you are safe Even if dept has a different view than ours.

ques3:what is the meaning of deductees records more than and equal to 50.

ans:please do not interpret number of deductees=number of deducteed records .

example1: if a person has a 20 employees in a particular qtr and deducting tax every month from the salary of each employee than in while filling etds return (24Q) deductees record will be counted as 60(number of employees from whom tax deducted x number of month) not equal to 20 employees

example2:if a person has given some contracts to 5 different contractors and credited contractors account more than 50 times in a quarter than he is liable to file etds return.as
no deductees records will be more than 50 Even number of deductees are only file.

ques:if a number of deductees records in present qtr is more than 50 but it was less than 50 in proceeding financial year,is return required to be filed electronically.

ans : no ,he is not liable to file,person who has started their work this year only and has no proceeding year are also not required to file electronic return ,but my suggestion to that friend is please file it electronically as it is easy to file large return electronically than manual.

this is my views ,comments invited.

Full text of

The notification

Rule 31A before notification

Rule 31AA before notification

other related articles

Inconsistencies in ETDS returns

Do and Don'ts while tax deposit

FAQ (ETDS/ETCS STATEMENTS)

FREE SOFTWARE FOR ETDS/ETCS STATEMENTS

NON FILLING OF ETDS STATEMENTS

NIL ETDS RETURN MANDATORY?

DUE DATES OF ETDS/ETCS RETURN

TDS RATES 2007-08 EXCEL
Read more >>
 
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