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0 HAPPY NEW YEAR
Send this eCard !
I Wish to god that this year will bring more health & wealth for all of you .
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NOW 2008 will provide you more free time..............because ...........
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0 FAQ ON FBT ON ESOP
The Central Board Of Direct Taxes has released a circular Circular No 9/2007 dated 20/9/2007 which contains 25 frequently asked questions on ESOP. The excerpt of the circular is given below for the benefit of readers
Frequently Asked Questions
A number of issues have been raised by trade and industry at different fora after the presentation of the Finance Bill, 2007, after its enactment and also after the notification of Rule 40C. The questions and answers in the following section seek to clarify these issues:
1. Whether a foreign company is liable to pay FBT on shares allotted or transferred to the employees of its Indian subsidiary?
Answer In terms of the provisions of Chapter XII-H of the Act, an employer, being a company, is liable to pay FBT in respect of the fringe benefits provided or deemed to have been provided by it to its employees, directly or indirectly, during the previous year. Since the shares are allotted or transferred to employees of the Indian subsidiary, by virtue of their employment with the subsidiary company, the liability to pay fringe benefit tax on such shares vests upon the Indian subsidiary and not on the foreign company.
2. Whether charge back of costs by the foreign company to the Indian subsidiary is relevant to determine the obligation of the Indian company to pay FBT?
Answer: As stated in answer No.1, the Indian subsidiary is liable to fringe benefit tax irrespective of whether or not there is a charge back of cost by the foreign holding company.
3. Will FBT apply in case of employees of the Indian subsidiary for shares awarded by the foreign holding company if the employees of the Indian subsidiary are allotted or transferred shares while outside India?
Answer: In the answer to Question No.20 of CBDT Circular No. 8/2005 dt.
29.8.2005, it has been clarified that an employer is liable to fringe benefit tax on the value of fringe benefits provided or deemed to have been provided to employees based in India. Therefore, an Indian subsidiary would be liable to pay FBT in respect of the value of the shares allotted or transferred by the foreign holding company if the employee was based in India at any time during the period beginning with the grant of the option and ending with the date of vesting of such option (hereafter such period is referred to as ‘grant period’), irrespective of the place of location of the employee at the time of allotment or transfer of such shares.
4. How will the value of fringe benefit be determined in case where the employee was based in India only for a part of the grant period?
Answer: In a case where the employee was based in India only for a part of grant period, a proportionate amount of the value of the fringe benefit will be liable to FBT. The proportionate amount shall be determined by applying to the value of the fringe benefit, the proportion which the length of the period of stay in India by the employee during the grant period bears to the length of the grant period.
(The value of fringe benefit means the fair market value of the specified security or sweat equity shares, on the date on which the option vests with the employee, as reduced by the amount actually paid by, or recovered from, the employee in respect of such shares.)
5. Whether a foreign company is liable to fringe benefit tax in respect of shares allotted or transferred to an employee who is deputed to work in India in the year of such allotment or transfer?
Answer: A foreign company is liable to FBT in respect of shares allotted or transferred to its employee who is based in India. However, in such cases only a proportionate amount of the value of the fringe benefit will be liable to FBT. The proportionate value shall be determined
by applying to the value of the fringe benefit, the proportion which the length of the period of stay in India by the employee during the grant period bears to the length of the grant period.
(The value of fringe benefit means the fair market value of the specified security or sweat equity shares, on the date on which the option vests with the employee, as reduced by the amount actually paid by, or recovered from, the employee in respect of such shares.)
6. What will be the cost of acquisition of shares, referred to in question nos 4 and 5, where only a proportionate value of fringe benefit has been subjected to FBT?
Answer:- In accordance with section 49 (2AB) of the Act, the cost of acquisition of such shares shall be the fair market value on the date on which the option vests with the employee. The calculation of fringe benefit for the purpose of determining FBT does not change this value. Hence, the subsequent calculation of reducing such fair market value by the amount actually paid by or recovered from the employee as well as the calculation of proportionate value in certain
cases, referred to in Question No.4 & 5 above, will not change the cost of acquisition.
7. Where the benefit on account of shares allotted or transferred under Employee Stock Option Plans (ESOPs) is taxed in the hands of the employees in different countries, would the employer still be liable to FBT? If yes, can the employer claim credit for payment of tax by the employee in other countries?
Answer: Employer will be liable to FBT in India irrespective of whether employees have been charged to tax in different countries or not. An employer cannot claim any credit in India against its FBT liability for taxes paid by employees in other countries.
8. Where FBT, on account of shares allotted or transferred under ESOPs, has been paid by the employer in respect of an employee based in India and subsequently recovered from him, can such employee claim credit in a foreign country for this FBT paid by the employer in India?
Answer: Ordinarily, the employee is liable to tax in respect of fringe benefits received by him from his employer. However, the taxation of fringe benefits in the hands of the employee raises several problems. Accordingly, it was decided to introduce FBT as a surrogate tax on employer in respect of the fringe benefits provided or deemed to have been provided by it to its employees during the previous year. This being so, in a case where FBT, on account of share allotted or transferred ESOPs, has been paid by the employer in respect of an employee based in India and subsequently recovered from him; the FBT is effectively paid by the employee in respect of fringe benefits enjoyed by him. Therefore, such employee can claim credit, in a foreign country, for the FBT, on account of shares allotted or transferred under ESOPs, paid by the employer in India.
9. Whether the benefits arising on account of shares allotted ortransferred under ESOPs can be taxed as a perquisite under section 17 of the Act instead of being taxed as fringe benefit under Chapter XII-H of the said Act, at the option of the employer?
Answer: Any fringe benefit liable to be taxed in the hands of the employer under Chapter XII-H of the Act cannot be taxed in the hands of the employee as a perquisite under section 17 of the said Act. Therefore, an employer does not have an option to tax the benefit arising on account of shares allotted or transferred under ESOPs as perquisite which otherwise is to be taxed as fringe benefit.
10. Whether there will be any FBT liability in a case where the FMV on the date of vesting is less than the price paid by the employee to the employer for allotment or transfer of shares?
Answer: No. FBT would not be payable in such cases.
11. What will be the valuation methodology for foreign companies if the shares are not listed in a recognized stock exchange in India but are listed on any globally recognised stock exchange?
Answer: If the shares are not listed in a recognized stock exchange in India,the shares will be treated as unlisted. Accordingly, such shares will have to be valued by category 1 Merchant Banker registered with Securities and Exchange Board of India. However, if the shares are listed in any globally recognised stock exchange, the merchant banker shall use the listed price as one of the basis for valuation and recommend the best value.
12. Whether an independent valuation carried by any foreign merchant banker/other experts as recognized for the purposes of valuation in the foreign country be treated as sufficient compliance for the purposes of valuation of fringe benefit arising on account of allotment or transfer of shares under ESOPs of an unlisted foreign company or is it mandatory that the merchant banker should be registered with the Securities and Exchange Board of India.
Answer: For the purposes of valuation of fringe benefit arising on account of allotment or transfer of shares under ESOPs of an unlisted foreign company, it is mandatory for the valuer to be a category I Merchant Banker registered with the Securities and Exchange Board of India.
13. When there exists different methods for valuing FMV for unlisted companies, which method should be used by the merchant bankers to determine the FMV?
Answer: The Merchant Banker should determine the FMV on the basis of alternative methods and recommend the most appropriate value.
14. What is the significance of specified date? Whether the valuation is to be made on a specified date or specified security or sweat equity share is to be valued as on the specified date?
Answer: The process of valuation may be carried out by the merchant banker at any time before or after the date of vesting of the option, but the specified security or the sweat equity share is required to be valued as on the specified date.
15. What is the FMV that a company should adopt if the shares have been valued by more than one merchant banker or by one merchant banker on more than one occasion?
Answer: The valuation which value the specified security or sweat equity share on the specified date, which is closest to the date of the vesting of the option, should be adopted, if the shares have been valued by more than one Merchant Banker or by one Merchant Banker on more than one occasion.
16. Whether the fringe benefit arising on account of shares allotted or transferred under an ESOP is allowed as deduction in calculating the taxable income of the employer company?
Answer: In case where the employer purchases the shares and then subsequently transfers such shares to its employees, the expenditure so incurred is allowable as deduction in computing the
taxable income of the employer company. However, if the shares are allotted to the employees from the share capital of the company, no deduction is allowable in computing the taxable
income of the company since no expenditure has been incurred by it.
17. Whether ESOPs issued to non-executive directors or non- employees liable to FBT?
Answer: Benefit arising out of ESOPs issued to non-employees will not be liable to FBT. However, in such cases, the taxability of such benefits in the hands of the non-employees will be determined in accordance with the existing law.
18. Which method, first-in-first-out (FIFO) or last-in-first-out (LIFO)shall be followed in case there are multiple date of vesting for different number of shares. For example if the dates of vesting are:
31 Mar 06 - 300 options - FMV Rs. 8 per share ( one share per option)
31 Mar 07 - 300 options - FMV Rs. 9 per share ( one share per option) and the employee is allotted 500 shares as on 30 September 2007, how will FBT be calculated?
Answer: In such cases, the First-in-First-Out (FIFO) method shall be followed. Hence, the FBT shall be calculated with respect to 300 shares at FMV of Rs 8 per share and 200 shares at FMV of Rs 9 per shares.
19. Whether it is binding upon the Assessing Officer to accept the valuation made by the merchant banker?
Answer: It is binding upon the Assessing Officer to accept the valuation made by the Merchant Banker unless the valuation by such banker is perverse.
20. How would the recovery of FBT be treated in the hands of the employer?
Answer: Since FBT is not an allowable deduction in computation of the income of the employer, any recovery of FBT will not be treated as income in his hands.
21. What should be the mechanism and timing of recovery of FBT?
Answer: The law does not provide for any specific mechanism or timing of recovery of FBT.
22. Is it lawful for the employer to recover FBT with respect to ESOPs granted prior to April 1, 2007?
Answer: It would be lawful for the employer to recover FBT with respect to ESOPs granted prior to April 1, 2007, but allotted or transferred to the employee after such date.
23. What will be the date of allotment of an Employee Stock Option?
Answer: The date of allotment of an Employee Stock Option shall be the date on which the underlying asset is allotted or transferred to the employee
24. Whether the FBT recovered from the employee would form the cost basis for employee for calculating Capital Gain on subsequent sale of shares?
Answer: No. The recovery of FBT from the employee by the employer will not change the cost of acquisition of the shares in the hand of the employee.
25. Will Rule 40C of Income-tax Rules, shall also apply in a case where shares are allotted or transferred to an employee under “Employee Stock Purchase Plan”, or “Employee Stock Option Scheme”, or “Employee Stock Ownership Plan”, or “Employee Stock Purchase Scheme”, or “Employee Stock Option Scheme” or “Employee Appreciation Rights or Plans”?
DOWNLOAD FAQ ON FBT ON ESOP (9/2007 DT 20.12.2007)
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- Frequently Asked Questions(etds/etcs returns)
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- FBT ON ESOP & FBT CALCULATOR
- UNDERSTAND FBT ON ESOP
you can also download FBT CALCULATOR in EXCEL+ flow chart OF FBT ON ESOP+link is also given for main clarification circulor by cbdt on fbt .(785 kb zip)
is also available in pdf format (306kb) .By Sunny Kishore Bilaney(CA final student)
A compilation on fbt at glance by CA Pramod Agrawãl , Agrawãl Associates, New Delhi‐110008
0 FBT ON ESOP AT A GLANCE
CBDT has issued FAQ on FBT on ESOP wide circular no 9/2007 dt 20/12/2007 (F. No. 142/25/2007-TPL).The circular has 25 question /answer and i think it is a step in a right direction and will clarify many doubt .you can read complete circular from link given below.
what is fbt on Esop on fbt is given in brief hereunder
METHOD OF CALCULATING FBT ON ESOP
Where, A = the Fair Market Value (FMV) of the specified security or sweat equity shares on the date of vesting of the option; and
B = the amount, if any, actually paid by, or recovered from the employee;
A company ‘X’ grants option to its employee ‘R’ on 1st April, 2004 to apply for 100 shares of the company at a predetermined price of Rs. 50/- per share with date of vesting of the option being 1st April, 2006 and exercise period being 1st April, 2006 to 31st March, 2010.
Employee ‘R’ exercises his option on 31st March, 2007 and shares are allotted/transferred to him on 3rd April, 2007. On 25th October, 2007 these shares are sold for Rs. 200/- each. On the date of vesting of the option , fair market value of the share was Rs. 80/- per share. The tax
implication of above situation will be as under:-
Since shares are allotted or transferred on or after 1st April,2007, provision of fringe benefit tax are attracted. Fringe benefit with respect to employee ‘R’ is (Rs. 80 – Rs. 50) X 100 = Rs. 3,000/-.
Company ‘X’ will pay fringe benefit tax on Rs. 3,000/-.
Cost of acquisition in the hand of employee ‘R’ = Rs. 80/- per share
Capital gain = (Rs.200 – Rs. 80) X 100 = Rs. 12,000/-
Period of holding = 3rd April, 2007 to 25th October, 2007 i.e., less than 12 months. Hence, the amount of RS. 12,000/- will be charged to short term capital gain.
READ FAQ ON FBT ON ESOP(9/2007 DT 20.12.2007)
DOWNLOAD FAQ ON FBT ON ESOP (9/2007 DT 20.12.2007)
RELATED ARTICLES
Read more >>
what is fbt on Esop on fbt is given in brief hereunder
FBT ON ESOP IN BRIEF
- FBT shall apply in all cases where any specified security or sweat equity shares has been allotted or transferred by the employer to his employees;
- FBT shall be payable in the previous year in which such allotment or transfer has taken place;
- The provisions of this new clause shall apply even if the allotment or transfer is directly or indirectly;
- The provisions of this new clause shall apply even if the allotment or transfer is free of cost or at concessional rate;
- The provisions of this new clause shall apply even if the allotment or transfer is to current or former employee or employees;
- the provisions of this new clause shall apply in cases where the allotment or transfer is on or after 1st day of April, 2007.
METHOD OF CALCULATING FBT ON ESOP
A – B
Where, A = the Fair Market Value (FMV) of the specified security or sweat equity shares on the date of vesting of the option; and
B = the amount, if any, actually paid by, or recovered from the employee;
FAIR MARKET VALUE
- In a case where, on the date of the vesting of the option, the share in the company is listed on a recognized stock exchange,the fair market value shall be the average of the opening price and closing price of the share on that date on the said stock exchange;
- If on the date of vesting of the option, the share is listed on more than one recognized stock exchanges, the fair market value shall be the average of opening price and closing price of the share on the recognised stock exchange which records the highest volume of trading in the share;
- If on the date of vesting of the option, there is no trading in the share on any recognized stock exchange, the fair market value shall be,-
- the closing price of the share on any recognised stock Exchange on a date closest to the date of vesting of the option and immediately preceding such date; or
- the closing price of the share on a recognised stock exchange, which records the highest volume of trading in such share, if the closing price, as on the date closest to the date of vesting of the option and immediately preceding such date, is recorded on more than one recognized stock exchange.
- In a case where, on the date of vesting of the option, the share in the company is not listed on a recognized stock exchange,the fair market value shall be such value of the share in the company, as determined by a Category 1 Merchant Banker registered with the Security and Exchange Board of India, on the specified date.
- The specified date has been defined as to mean,-
- the date of vesting of the option; or
- any date earlier than the date of the vesting of the option, not being a date which is more than 180 days earlier than the date of the vesting.
COST OF ACQUISITION FOR CAPITAL GAIN IN HAND OF EMPLOYEES
The cost of acquisition of specified security or sweat equity shares shall be the fair market value (FMV) which has been taken into account while computing the value of fringe benefit
The period of holding in case of such specified security or sweat equity shares,
in the hand of the employee, shall be reckoned from the date of allotment or
transfer of such security or shares
PERIOD OF HOLDING FOR CAPITAL GAIN
The period of holding in case of such specified security or sweat equity shares,
in the hand of the employee, shall be reckoned from the date of allotment or
transfer of such security or shares
Illustration
A company ‘X’ grants option to its employee ‘R’ on 1st April, 2004 to apply for 100 shares of the company at a predetermined price of Rs. 50/- per share with date of vesting of the option being 1st April, 2006 and exercise period being 1st April, 2006 to 31st March, 2010.
Employee ‘R’ exercises his option on 31st March, 2007 and shares are allotted/transferred to him on 3rd April, 2007. On 25th October, 2007 these shares are sold for Rs. 200/- each. On the date of vesting of the option , fair market value of the share was Rs. 80/- per share. The tax
implication of above situation will be as under:-
Since shares are allotted or transferred on or after 1st April,2007, provision of fringe benefit tax are attracted. Fringe benefit with respect to employee ‘R’ is (Rs. 80 – Rs. 50) X 100 = Rs. 3,000/-.
Company ‘X’ will pay fringe benefit tax on Rs. 3,000/-.
Cost of acquisition in the hand of employee ‘R’ = Rs. 80/- per share
Capital gain = (Rs.200 – Rs. 80) X 100 = Rs. 12,000/-
Period of holding = 3rd April, 2007 to 25th October, 2007 i.e., less than 12 months. Hence, the amount of RS. 12,000/- will be charged to short term capital gain.
READ FAQ ON FBT ON ESOP(9/2007 DT 20.12.2007)
DOWNLOAD FAQ ON FBT ON ESOP (9/2007 DT 20.12.2007)
RELATED ARTICLES
- Frequently Asked Questions(etds/etcs returns)
- Frequently Asked Questions (About TAN)
- FBT ON ESOP & FBT CALCULATOR
you can also download FBT CALCULATOR in EXCEL+ flow chart OF FBT ON ESOP+link is also given for main clarification circulor by cbdt on fbt .(785 kb zip)
is also available in pdf format (306kb) .By Sunny Kishore Bilaney(CA final student)
A compilation on fbt at glance by CA Pramod Agrawãl , Agrawãl Associates, New Delhi‐110008
0 Due date extend for 2007-08 for filing income tax return by the S C
The Supreme Court today directed tax payers all over the country to file Income Tax returns under the prescribed new ITR forms for assessment year 2007-08 by February 29, 2008 - the new deadline set by the government.
The direction was passed after Additional Solicitor General Mohan Parasaran informed the bench headed by Justice B N Agarwal that the Centre was issuing a notification today extending the time for filing returns till February 29, next year in relation to all categories of assessees.
The bench also set aside the Allahabad High Court order that allowed business class and professionals having income below Rs 20 lakh to file tax returns under both SARAL-2D and new return forms for the assessment year.
It held that it was not impressed by the submission of the respondent, Income-Tax Bar Association, Lucknow, that there should be some modifications in the new prescribed form.
"It is for the statutory authority to decide the type of forms. The Union of India has stated that the time for filing of returns under the prescribed form has been extended till February 28, 2008 in relation to all categories of assessees.
Earlier, the apex court on October 30 had allowed UP tax payers to file returns under 2D Saral Form as well as the new forms for assessment year 2007-08 to avoid inconvenience to tax payers who were trying to meet the October 31 deadline for filing returns.
The Union Ministry of Finance had moved the court seeking a stay on the High Court's interim order dated July 30 that allowed businessmen and professionals having income below Rs 20 lakh to file tax returns under both SARAL-2D and the new return forms for assessment year 2007-08.
REPLY BY FCA MKREDDY
THE LAST DATE IS EXTENDED ONLY FOR THOSE WHO HAVE EARLIER FILED RETURNS IN FORM 2D
REPLY BY CA RAJAN GUPTA
This extension of due date is applicable to assessees, who have,-
1. filed the return of income for the A.Y.2007-08 on or after 14 th May, 2007; and
2. filed the return in a form other than one of the forms notified for assessment year 2007-08( ITR-1 to ITR-8).
this has been clarified by CBDT in press release ,so the above comment
of sh M K REDDY (FCA) is correct
Read more >>
The direction was passed after Additional Solicitor General Mohan Parasaran informed the bench headed by Justice B N Agarwal that the Centre was issuing a notification today extending the time for filing returns till February 29, next year in relation to all categories of assessees.
The bench also set aside the Allahabad High Court order that allowed business class and professionals having income below Rs 20 lakh to file tax returns under both SARAL-2D and new return forms for the assessment year.
It held that it was not impressed by the submission of the respondent, Income-Tax Bar Association, Lucknow, that there should be some modifications in the new prescribed form.
"It is for the statutory authority to decide the type of forms. The Union of India has stated that the time for filing of returns under the prescribed form has been extended till February 28, 2008 in relation to all categories of assessees.
Earlier, the apex court on October 30 had allowed UP tax payers to file returns under 2D Saral Form as well as the new forms for assessment year 2007-08 to avoid inconvenience to tax payers who were trying to meet the October 31 deadline for filing returns.
The Union Ministry of Finance had moved the court seeking a stay on the High Court's interim order dated July 30 that allowed businessmen and professionals having income below Rs 20 lakh to file tax returns under both SARAL-2D and the new return forms for assessment year 2007-08.
I WANT TO CONFIRM THAT WHETHER THE DATE HAS BEEN EXTENDED FOR ALL THE TAXPAYERS OR ONLY FOR THOSE WHO HAVE ALREADY FILED RETURN UNDER OLD FORM 2D. WHETHER AN ASSESSEE WHO HAS NOT FILED THE RETURN FOR A.Y 2007-08 UNDER ANY OF THE FORM, WILL HE BE COVERED UNDER THIS EXTENDED DATE OF HE WILL BE CONSIDERED AS AFTER DUE DATE?????
REPLY BY FCA MKREDDY
THE LAST DATE IS EXTENDED ONLY FOR THOSE WHO HAVE EARLIER FILED RETURNS IN FORM 2D
REPLY BY CA RAJAN GUPTA
This extension of due date is applicable to assessees, who have,-
1. filed the return of income for the A.Y.2007-08 on or after 14 th May, 2007; and
2. filed the return in a form other than one of the forms notified for assessment year 2007-08( ITR-1 to ITR-8).
this has been clarified by CBDT in press release ,so the above comment
of sh M K REDDY (FCA) is correct
0 Commissionerate initiates action to ensure mandatory E payment
E-payment is one of the most convenient and effective method of payment of duties, taxes or bills to the government. The payment of duties through electronic mode is not only safe, it also saves assessee time as well as it saves the expenses on account of bank draft charges etc. It also reduces frauds as the e-payments are made through secured protocols on the website of the banks.
In order to promote and ensure payment of the Service Tax by electronic mode, Government of India made payment of Service Tax, mandatory for the assesses who had paid service tax of Rs. 50 lacs or above in the preceding financial year or has already paid service tax of Rs. 50 lacs in the current financial year, by incorporating changes in the Rules (6) of the Service Tax Rules 1994. All the banks authorized by the Central Board of Excise and Customs have already developed facility to receive e-payment. However, many assessees, who are required to pay service tax electronically, are not following the rules and still paying the service tax through manual mode.
It has been, decided by the Service Tax Commissionerate,
The assessees who may find any difficulty in e-payment may contact the Divisional Assistant Commissioners/ Deputy Commissioners or the other senior officers, whose addresses and contact numbers are given on service tax
HOW TO PAY SERVICE/EXCISE TAX ONLINE ELECTRONIC
SOURCE :GOVT SITE
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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
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NEW SERVICE TAX DEPOSIT SYSTEM,FREE PREPRINTED NEW TAX SERVICE TAX CHALLAN FORMS
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0 whether the outsourcing of legal work to an associate by a law firm can be categorized under Business Support Service.
The doubt was raised whether the outsourcing of legal work to an associate by a law firm can be categorized under Business Support Service.
The Board has clarified that the services provided by lawyer in their professional capacity relating to law it are not taxable under the service tax. The clarification of the Board is as follows
- “The matter has been examined. The scope of taxable service namely “business support service” has been explained in TRU’s letter F.NO.334/4/2006-tru DATED 28.02.06. As regards services provided by lawyers in their professional capacity relating to law, the Finance Minister has already made the position clear on the floor of Parliament. It is also pertinent to note that the Empowered Committee of State Finance Ministers has included Legal Service in the list of services which are not presently taxed. This has been accepted in principle”.
SOURCE:GOVT WEB SITE
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DOWNLOAD RETURN FORM ST-3 EXCEL
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
NEW ACCOUNTING CODE FOR HIGHER SECONDARY CESS(HSC)
0 FILE YOUR SERVICE TAX RETURN ONLINE
Good news for all ,Now you can file your Service Tax return Online ,through internet,to file the return you must have
Earlier as a trail this service is available for selected services only but now every service provided can file return online.
Before filing the online return you should register your self to dept for a login user name and Password.
for this you should apply in simple application and submit the same to the respective Commissionerate.
Download application for registration of user name to file return (ST-3) online.
FAQ ABOUT E FILING
Q. Is e-filing compulsory ?
A. No. E-filing of returns is an assesse facilitation measure of the department in continuation of its modernization and simplification program. It is an alternative to the manual filing of returns.
Q. What about assesses who fall under more than one category ?
A. Assesses have to file separate returns for each of the services provided by them.
Q. To whom should I make a request for e-filing permission?
A. The assesse should file an application to their jurisdictional AC / DC as elucidated in TN mentioned above, for e-filing permission.
Q. How will the permission for e-filing of returns be communicated to the me ?
A. The permission for e-filing will be communicated to the assesse through the e-mail address provided by him. It would also contain the user ID and password required for e-filing.
Q. Is it necessary for me to have an e-mail address ?
A. Yes. They should mention a trusted e-mail address in their application, so that the department can send them their User Word and Pass word, to help them file their Return.
DOWN LOAD ALL FAQ ABOUT E FILING OF ST-3
DOWNLOAD E-FILING MANUAL
LINK TO SITE WHERE YOU CAN FILE RETURN ONLINE ST-3 AFTER ISSUE OF USER NAME PASSWORD
RELATED ARTICLES
DOWNLOAD RETURN FORM ST-3 EXCEL
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
NEW ACCOUNTING CODE FOR HIGHER SECONDARY CESS(HSC)
Read more >>
- 15 digit STP Code (PAN based or Temp No.) and (know your STP)
- have been using the same in your challans(GAR-7 EXCEL/GAR-PDF EDITABLE) used to paid the tax for the period for which you are going to file Service Tax return.
Earlier as a trail this service is available for selected services only but now every service provided can file return online.
Before filing the online return you should register your self to dept for a login user name and Password.
for this you should apply in simple application and submit the same to the respective Commissionerate.
Download application for registration of user name to file return (ST-3) online.
FAQ ABOUT E FILING
Q. Is e-filing compulsory ?
A. No. E-filing of returns is an assesse facilitation measure of the department in continuation of its modernization and simplification program. It is an alternative to the manual filing of returns.
Q. What about assesses who fall under more than one category ?
A. Assesses have to file separate returns for each of the services provided by them.
Q. To whom should I make a request for e-filing permission?
A. The assesse should file an application to their jurisdictional AC / DC as elucidated in TN mentioned above, for e-filing permission.
Q. How will the permission for e-filing of returns be communicated to the me ?
A. The permission for e-filing will be communicated to the assesse through the e-mail address provided by him. It would also contain the user ID and password required for e-filing.
Q. Is it necessary for me to have an e-mail address ?
A. Yes. They should mention a trusted e-mail address in their application, so that the department can send them their User Word and Pass word, to help them file their Return.
DOWN LOAD ALL FAQ ABOUT E FILING OF ST-3
DOWNLOAD E-FILING MANUAL
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0 WRONG PAN ON CHALLAN,WHAT TO DO?
Faq given about oltas On Tin Nsdl website has given the following comments about the above question .OtherSimilar queries reproduced hereunder for your ready reference:
After depositing the tax at the bank, I have noticed that I have mentioned wrong PAN, or I have received my PAN after making the challan payment. How do I get this incorporated in my challan information?
Ans. You should approach your Assessing Officer with an application containing the details of correct PAN and CIN and request him to make the necessary correction.
Ans. In case you have to deposit appellate fees, copying charges or other miscellaneous payments, tick box 0020, thereafter tick box '400 Regular Tax' under 'Type of Payment' and fill up the amount to be paid in 'Others' column under 'Details of Payment'. In case of non-corporates such as individuals, partnership firms, societies etc. the same procedure is to be followed except that the box 0021 should be ticked at the top of the challan instead of 0020
Is it possible for us to deposit many challans with a single cheque?
Ans. No, you should deposit separate cheques for each challan.
Can I make income tax payment using the internet?
Ans. You can make income tax payment through the internet. This facility is called e-Tax payment. Details of the same are available at NSDL-TIN website and the Income Tax Department website( How to deposit tax online)
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NEW ITR & CHALLAN FORMS
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Frequently Asked Questions(etds/etcs returns)
Frequently Asked Questions (About TAN)
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After depositing the tax at the bank, I have noticed that I have mentioned wrong PAN, or I have received my PAN after making the challan payment. How do I get this incorporated in my challan information?
Ans. You should approach your Assessing Officer with an application containing the details of correct PAN and CIN and request him to make the necessary correction.
After depositing my tax at the bank, I have noticed that I have mentioned the Assessment Year/Minor Head incorrectly in my challan. Whom do I approach to have this corrected?
Ans. You should approach your Assessing Officer with an application containing the details of your PAN and the CIN and request him to carry out the necessary corrections.
If I have to deposit fees for filing appeal, what should I do?Ans. In case you have to deposit appellate fees, copying charges or other miscellaneous payments, tick box 0020, thereafter tick box '400 Regular Tax' under 'Type of Payment' and fill up the amount to be paid in 'Others' column under 'Details of Payment'. In case of non-corporates such as individuals, partnership firms, societies etc. the same procedure is to be followed except that the box 0021 should be ticked at the top of the challan instead of 0020
Is it possible for us to deposit many challans with a single cheque?
Ans. No, you should deposit separate cheques for each challan.
Can I make income tax payment using the internet?
Ans. You can make income tax payment through the internet. This facility is called e-Tax payment. Details of the same are available at NSDL-TIN website and the Income Tax Department website( How to deposit tax online)
We have to deposit taxes on account of TDS on salaries of our employees as well as TDS on interest paid to fixed deposit holders who are individuals and other corporates. Can we combine the three payments in one challan?
Ans. No, you will have to use three separate challans.
The TDS on salaries of employees will have to be deposited with Challan No. ITNS 281 by ticking the box '0021 non-companies' as the TDS pertains to individuals (non-companies). The code 92B will have to be filled up under 'Nature of Payment'. (Codes for 'Nature of Payment' are mentioned behind the challan.)
In respect of interest paid to fixed deposit holders, you will have to first of all segregate the interest payable/paid to companies (Corporates) and non-companies.
- For the portion of TDS pertaining to companies, fill up Challan No ITNS 281 and tick box '0020 companies' as the TDS pertains to companies.
- For the portion of TDS relating to non-companies, fill up a separate Challan No. ITNS No. 281 and tick box '0021 non-companies' as TDS pertains to non-companies.
- Fill up the 'Nature of Payment' as per codes given behind Challan No. ITNS 281. In this case also the code will be 94A.
related articles
DO & DONT"S while TAX DEPOSIT
NEW ITR & CHALLAN FORMS
INCONSISTENCY IN QTRLY ETDS/ETCS STATEMENT
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0 How to check ip address of sender in yahoo mail
From title you have already got that this information is not have any relation with the Indian taxes,but as the use of computers,internet,email are increasing day by day in business and a bit in taxes matters also.with such a environment every one is prone to some cyber crime .but "Know your(others) IP address" is a important for every one who use the internet in what ever manner.
so you want to know your ip address,address is shown in yellow bar in the table shown below.
through ip address one can reach easily to the person who have visited your site or send you a mail.so check your ip address detail now.
Note:Some time city shown in ip address is not updated & might not be the exact where your location.but through isp it can also be located .
How to check ip address of sender in yahoo mail
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so you want to know your ip address,address is shown in yellow bar in the table shown below.
through ip address one can reach easily to the person who have visited your site or send you a mail.so check your ip address detail now.
Note:Some time city shown in ip address is not updated & might not be the exact where your location.but through isp it can also be located .
How to check ip address of sender in yahoo mail
- Log into your Yahoo! mail with your username and password.
- Click on Inbox or whichever folder you have stored your mail.
- Open the mail.
- If you do not see the headers above the mail message, your headers are not displayed. To display the headers,
- Click on Options on the top-right corner
- In the Mail Options page, click on General Preferences
- Scroll down to Messages where you have the Headers option
- Make sure that Show all headers on incoming messages is selected
- Click on the Save button
- Go back to the mails and open that mail
- You should see similar headers like this:
- You may copy the headers and use my IP address detection script to ease the process. Or if you want to manually find the IP address, proceed to 7.
- Look for Received: from followed by the IP address between square brackets [ ]. Here, it is 202.65.138.109.
That is be the IP address of the sender.
If there are many instances of Received: from with the IP address, select the IP address in the last pattern. If there are no instances of Received: from with the IP address, select the first IP address in X-Originating-IP.
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