0 SERVICE TAX(COMPLIANCE) AT A GLANCE

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0 E-payment of taxes mandatory from January

update:E payment of taxes has been made mandatory from 01.04.2008 and notification has been issued so don't consider date given in this post.PRESS RELEASE HAS BEEN ISSUED BY CBDT READ THIS.

Update:clarification on tds mandatory epayment and payment from other's bank accounts has been issued vide circular no 5/2008 dt 14/05/2008


E-payment of taxes for corporates and tax-payers coming under the provision of Section 44AB would be mandatory from January 1 next, C R Ravichandran, Chief Commissioner of Income Tax said.so from 1.1.2008 the following persons are liable to deposit Income tax online(e-payment)

  1. All Corporate
  2. All persons liable coming under section 44AB of Income Tax Act -1961

For e-payment of taxes person should have internet banking in one of the following bank.At present only following banks are authorized to the receive Income tax Payment online.

  1. Axis Bank
  2. State Bank of India
  3. Punjab National Bank
  4. Indian Overseas Bank
  5. Canara Bank
  6. Indian Bank
  7. Bank of India
  8. Corporation Bank
  9. State Bank of Bikaner & Jaipur
  10. State Bank of Travancore
  11. State Bank of Indore
  12. Vijaya Bank
  13. HDFC Bank
  14. Oriental Bank of Commerce
  15. State Bank of Patiala
  16. IDBI Bank
  17. Union Bank of India

though its a step in right direction towards complete e-management of taxes .but its unfair for taxpayers at this stage as only above banks are authorize to receive e-payment of taxes.so taxpayer have to open a new bank account in above said banks to make payment online.

please comment.

HOW TO DEPOSITE ONLINE INCOME TAX

Note:This article is based on news clip published many time in various news papers in last months.I have not found any notification on this subject.
newS clip can be checked from here .

NOW A NEWS has been published in newspapers that it would be mandatory for payment by above person if payment is more than 50000 rs in single payment and e payment would be mandatory from 01/04/2008.so it not certain unless a notification has been issued by CBDT.I have published this only due to awareness.
(added on 05/01/2008)

PRESS RELEASE HAS BEEN ISSUED BY CBDT READ THIS


1check what Chief Commisioner Of income tax has said The Hindu News
2check what is given on vijay bank site vijay bank
3check what finance minister has said to public yahoo news
4.Finance Minister statement to tns on july17,2007
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0 VALUATION RULE CHANGED FOR RENT FREE ACCOMODATION(Reduced)

CBDT has issued a NOTIFICATION NO. 271/2007, DATED 7-11-2007,vide which rules for valuation of Rent Free/Less rent Accommodation(RFA) has been changed from 1.4.06 means rules are applicable for assessment year 2006-07.These rules are Beneficial to assessee as the valuation rate has been reduced for some categories of employees.These rules are inconformity with amendment made in finance act 2007 and removed the ambiguity regarding valuation of RFA .

After this amendment valuation of perquisites in respect of Rfa will be as under
  1. valuation in case of accommodation provided by Center or State Government to employees:License fee determined by the Central Government or any State Government in respect of accommodation in accordance with the rules framed by such Government as reduced by the rent actually paid by the employee.
  2. Valuation in case of accommodation provided by other employer:
  • if house owned by employer :

    (i) 15% of salary in cities having population exceeding 25 lakhs as per 2001 census;

    (ii) 10% of salary in cities having population exceeding 10 lakhs but not exceeding 25 lakhs as per 2001 census;

    (iii) 7.5% of salary in other areas,
  • if house owned by employer:Actual amount of lease rental paid or payable by the employer or 15% of salary whichever is lower as reduced by the rent, if any, actually paid by the employee.
  1. In both above cases if any rent paid by employee to employer will be reduced from valuation arrived as above.
  2. In both case if furniture etc is also provided without rent than valuation of perquisites will be added by 10% of the cost of furniture provided.
  3. In both the above cases if accommodation provided is a hotel than valuation of RFA will be 24 % of salary except in case of transfer and period in aggregate is not more than fifteen days.

so after the above change in rule valuation of RFA is reduced by 50 % in case of many employees from assessment year 2006-07.But here main problem is that they had already submitted their return for assessment year 2006-07 as well as 2007-08.

Don't worry evan if you have already filled your return ,you can file your revised return for assessment year 2006-07 & assessment year 2007-08 and can claim a refund for difference in tax due to less valuation of perquisites in respect of rent free accommodation.
you can revise your return in case you have filed your return in time.As you may aware of that belated return can not be revised.
For assessment year 2006-07 you can either file on saral return form or through e-filing.
For assessment year 2007-08 you can use new itr(as Applicable) or through e-filing.

complete notification can be downloaded from here
vauation of rent free accommodation (rule-3) (word document)
Note:In this notifiaction valuation of other perquisites has also been changed.
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0 HAPPY DIWALI

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0 NEW ACCOUNTING CODE FOR HIGHER SECONDARY CESS(HSC)

Earlier dept has issued accounting code for Higher secondary Cess(HSC) as misc receipt or one can say receipt awaiting proper accounting head .Now by circular F.No. 333/31/2007- TRU Government of India,Ministry of Finance,Department of Revenue,Tax Research Unit has issued separate head for HSC i.e also final .Circular has been issued on 10.10.2007 and applicable from that date .So new accounting code for HSC are


CUSTOM:
HSC main head for deposit:00370068
for refunds/drawbacks.......:00370069

EXCISE DUTY:
HSC main head for deposit:00380115
for refunds/drawbacks.......:00380116

SERVICE TAX
FOR TAX COLLECTION:00440426
FOR OTHER RECEIPTS..:00440427(FOR DELAY INTEREST AND PENALTY)
FOR REFUNDS................:00440428

DETAIL CIRCULAR CAN BE DOWNLOADED FROM HERE(pdf)

DETAIL CIRCULAR CAN BE DOWNLOADED FROM HERE(pdf)


latest accounting codes



DOWNLOAD ALL ACCOUNTING CODE EXCISE
DOWNLOAD ALL ACCOUNTING CODE SERVICE TAX
OLD/TEMP ACCOUNTING CODE & OLD CIRCULAR FOR YOUR READY REFERENCE IS GIVEN HEREUNDER.
service tax :00440252
excise :00380086
custom :00370034
complete text of OLD HSC TRADE NOTICE
OTHER RELATED ARTICLES
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 WITHDRAWN

KNOW YOUR SERVICE TAX NUMBER /CODE

NEW SERVICE TAX DEPOSIT SYSTEM,FREE PREPRINTED NEW TAX SERVICE TAX CHALLAN FORMS
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0 HOW TO APPLY NEW PAN ONLINE/OFFLINE & CHANGE/CORRECTION IN PAN DATA

Who should apply for PAN?
Ans. All existing assessees or taxpayers or persons who are required to file a return of income, even on behalf of others, must have a PAN. Any person, who intends to enter into economic or financial transactions where quoting PAN is mandatory, must also have a PAN.

what is the Fees for PAN application?

Ans : 60+service tax

where can i apply??

Ans

1. online(tin-nsdl)

2.through offline tin-fc (search)

3.through offline Uti & Their Authorise Agents .(search)

FORM 49A(EXCEL 615KB)

New PAN Card or/and Changes or Correction in PAN data.

Form 49APDF

As I have PAN card not interest in pan verification/APPLICATION but Want to know about my taxes ???

to view your tax deposited/collected/deducted read this article.

Register for form 26as (pan login)


Who can apply on behalf of minor, lunatic, idiot, mentally retarded, deceased and wards of court?
Ans. Section 160 of IT Act, 1961 provides that a minor, lunatic, idiot, mentally retarded, deceased, wards of court and such other persons may be represented through a Representative Assessee.
In such cases,

  • in the application for PAN, details of the a minor, lunatic, idiot, mentally retarded, deceased, wards of court, etc. should be provided.
  • Details of representative assessee have to be provided in item 14 of the application for PAN.
Is it compulsory to quote PAN on 'return of income'?

Ans. Yes, it is compulsory to quote PAN on return of income.

Do I need to apply for a new PAN when I move from one city to another?
Ans. Permanent Account Number (PAN), as the name suggests, is a permanent number and does not change.Changing the address though, may change the Assessing Officer. Such changes must, therefore, be intimated to ITD so that the PAN database of ITD can be updated. One can intimate change in address by filling up the form for Request for New PAN Card or/and Changes or Correction in PAN data. This form can be submitted at any TIN-FC or online at NSDL-TIN website.

Can I obtain or use more than one PAN?
Ans. Obtaining/possessing more than one PAN is against the law and may attract a penalty upto Rs.10,000. Therefore it is advisable not to obtain/possess more than one PAN. If you have more than one PAN, you should surrender the unused PAN by logging into ITD website at www.incometaxindia.gov.in.


What documents should I submit along with the application form?
Ans. You have to submit the following documents with the application form:
A] Proof of identity (POI)
1. Individual and HUF Applicants who are citizens of India and located within India at the time of application for PAN: Copy of any one of the following will serve as a proof of identity:
  • School leaving certificate
  • Matriculation certificate
  • Degree of recognized educational institution
  • Depository account statement
  • Valid Credit card
  • Bank account statement
  • Water bill
  • Ration card
  • Property tax assessment order
  • Passport
  • Voter's identity card
  • Driving license
  • Certificate of identity signed by a Member of Parliament or Member of Legislative Assembly or Municipal Councilor or a Gazetted Officer

Note:

  • Document being submitted should be in the full name of the applicant as mentioned in the PAN application.
  • In case the PAN applicant is a minor, any of above documents of any of the parents or guardian of such minor shall serve as proof of identity.
  • In case PAN application is made on behalf of a HUF, any of above documents in respect of karta of the HUF will serve as proof of identity.
2. Citizen of India located outside India at the time of application for PAN:
Copy of passport will serve as a proof of identity

3. Foreign Citizen located in India at the time of application for PAN
Copy of passport will serve as a proof of identity

4. Foreign Citizen located outside India at the time of application for PAN
Copy of any one of the following will serve as a proof of identity:
  • Passport
  • Other National ID attested by Indian Embassy/Consulate/High Commission
B] Proof of address (POA)
The documents for POI and POA depend on the citizenship and the status of the applicant.
1. Individual and HUF Applicants who are citizens of India and located within India at the time of application for PAN: Copy of any one of the following will serve as a proof of address:
  1. Electricity bill*
  2. Telephone bill*
  3. Depository account statement*
  4. Credit card statement*
  5. Bank account statement*
  6. Rent receipt*
  7. Employer certificate*
  8. Ration card
  9. Passport
  10. Voter's identity card
  11. Property tax assessment order
  12. Driving license
  13. Certificate of address signed by a Member of Parliament or Member of Legislative Assembly or Municipal Councilor or a Gazetted Officer.

Note:

  • *For serial numbers 1 to 7, proof of address should not be more than six months old from the date of application.
  • Document being submitted should be in the full name of the applicant as mentioned in the PAN application.
  • In case the PAN applicant is a minor, any of above documents of any of the parents or guardian of such minor shall serve as proof of address.
  • In case PAN application is made on behalf of a HUF, any of above documents in respect of Karta of the HUF will serve as proof of address.
  • It is mandatory for individuals and HUF to mention their residential address on the PAN application and to submit valid proof of the same.

2. Citizen of India located outside India at the time of application for PAN
Copy of any one of the following will serve as a proof of address:

  • Passport
  • Copy of bank account statement in country of residence
3. Foreign Citizen located in India at the time of application for PAN
Copy of any one of the following will serve as a proof of address:
  • Passport
  • Copy of bank account statement in India
4. Foreign Citizen located outside India at the time of application for PAN
Copy of any one of the following will serve as a proof of address:
  • Passport
  • Other National ID attested by Indian Embassy/Consulate/High Commission
  • Copy of bank account statement in country of residence, duly attested by Indian Embassy/High Commission or Consulate in the country where applicant is located
Which documents will serve as proof of identity and address for applicants other than individual and HUF?
Ans. List of documents which are acceptable as proof of identity and address for applicants other than individual and HUF is as below: 1. Having office of their own in India:
Type of Applicant Documents for proof of identity and address
Company Copy of certificate of registration issued by Registrar of Companies.
Firms Copy of certificate of registration issued by Registrar of firms or
Copy of Partnership Deed.
AOP (Trusts) Copy of trust deed or
Copy of certificate of registration number issued by Charity Commissioner.
AOP/BOI/Local Authority/Artificial Juridical Person Copy of agreement or
Copy of certificate of registration number issued by Charity Commissioner /Registrar of Co-operative Society / any other Competent Authority or
any other Document originating from any Central / State Government Department establishing identity and address of such person.

2. Having no office of their own in India
Type of Applicant Documents for proof of identity and address
Company/Firms/AOP (Trusts)/AOP/ BOI/Local Authority/Artificial Juridical Person Copy of registration certificate of the respective country duly attested by Indian Embassy in the country where applicant is located or
Copy of certificate of registration with the competent authority in India or
Copy of approval issued by the competent authority in India or
Copy of the accompanying documents alongwith the approval issued by competent authority in India or
Copy of the application (duly acknowledged) made by the applicant before the competent authority in India.

Is father’s name compulsory for female applicants (including married/divorced/widow)?
Ans. Female applicants, irrespective of their marital status, should write only father’s name in the PAN application form. There is no provision to mention husband's name in the application.

How do I obtain a new PAN card without any changes in details?
Ans. When you have a PAN but have not received your PAN card/in case you have lost your PAN card, then you have to fill all the columns in the form for Request for New PAN Card or/and Changes or Correction in PAN data but do not have to tick any of the boxes on the left margin. In case of an individual, you have to affix a colour photograph of the size 2.5 cm X 3.5 cm.

I have been allotted more than one PAN, what is the procedure for cancellation of other PAN(s)?
Ans. You have to mention the PAN which you are using currently on top of the application form. All other PAN/s inadvertently allotted to you should be mentioned at item no. 10 and the corresponding PAN card(s) should be submitted for cancellation along with the form.

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1 less than 70 % pan how to file etds return(new fuv 2.110)

Facts :A bank manager has deducted tax on interest paid on deposits in bank by farmer and had deposited the amount deducted ,but the now the problem is that no farmer has PAN ,and evan they have not applied for it & not willing to apply for pan also,as they have no other income than agriculture income & interest on deposit from bank.But as per new fuv 2.110 minimum 70 % pan is necessary to file the return.so how he can file etds return.

point wise answer to your queries are

point:1:If customer does not have a pan then whether it is mandatory to deduct tax or not on interest.

Answer: Yes ,it is mandatory to deduct tax ,no matter the deductee has a pan or not.Means liability to deduct tax does not change on the basis whether deductee has a pan or not.
However ,Bank Manager can take form 15G and 15 H as the case may be from the farmers.

Point:2:If the deductor has less than 70% of Pan ,how he can file etds return.

Ans:The Govt. has issued this circular to fill at least 70%/90% pan because person generally have a tendency not to fill Pan in etds return ,evan if they can manage to collect the same from deductee.If pan is not filled in the etds return than whole purpose of etds return and e management of tax will be defeated .But due to this circular genuine cases are also faces problem like of yours.

So to file the return in present circumstances ,first of all ,try to obtain maximum pan you can do,pursue persons (deductee) to apply new pan if possible,it will take only 15 days to get new pan ,and it can be checked online with in 8-10 days online from date of application.Tell them if they will not obtain the pan ,they will not able to file their return & in result can not claim refufd for which they are otherwise eligible.

Moreover communicate to deductee in writing to submit their pan & please don't forget to mention their (deductee)responsibility to submit Pan to deductor under Income Tax Act & Penalty applicable If he does not do so.

I am giving you one other solution for filing the etds return without the pan,but the solution is not 100% accurate /valid solution.By this solution you will able to file the return but it has there own drawback and consequences .So take your own decision ,file return by applying following solution or do not fill the return at all.


solution is very simple ,

  1. .Fill the available Pan against the deductee.
  2. Fill Pan not available"PANNOTAVBL" against up to 30% OF entries.
  3. Fill false pan against rest of the entries.False pan means a pan which is structurally(know pan structure) valid but not in pan data base of income tax like put aaapa5555a against rest of the deductee .Please ensure that false pan is not in ITD database Otherwise credit will be given to pan holder
  4. Revise your return within assessment year or after receipt of all(minimum) missing pan.
fuv 2.110 checks only structure of the pan ,and does not match pan with pan data base of the income tax so by this trick the return can be passed through fuv and a valid return file can be generated.

This solution should be applied only after taking your client in confidence and as a last alternative and only after 200% try to collect valid pan from the deductee.

In my opinion in genuine cases income tax deptt will not take serious view . The reason behind this the deductor can not go door to door if deductee has not provide pan to the deductor.It is a responsibility of deductee to provide pan to deductor and deductor's responsibility is to fill pan while filing etds return,so deductor should not be sufferer due to irresponsible act of the deductee.

note:one more think i would like to add deductee record on which nil tax has been deducted and shown as reson for non deduction (column 428)"b" will not be counted while calculating the 70% of deductee record.

please comment if have a different idea or if you like something to add.

Update :11.08.08
How to fill etds return with insufficient pan (official word)


related issues:

NEW FILE VALIDATION UTILITY(FVU 2.116)DIRECT LINK DOWNLOAD NOW
what is new in 2.116 FVU(applicable from01.04.2008)


NEW FILE VALIDATION UTILITY(FVU 2.110)DIRECT LINK DOWNLOAD NOW

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Register for form 26as (pan login & View your taxes deducted/deposited/collected online)
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