Monday, March 30, 2015

One Day Clearance Sale on Books 74+15% Income Tax Service Tax Company law


Major Clearance Sale  for one day 31.03.2015 .Get discount up to 74% plus additional discount of 10% if you buy two books and 15% additional discount purchase of four books.This sale is limited to one day only ,so order now.Further delivery is free all over India on almost all the books of any value.

We have sorted the most useful books on Taxation laws and Companies Laws which is given below for your ready reference.

Click Buy now  link at end of each row.

  1. Check all Major Books on Business Laws
  2. Check all Major Books on Taxation Laws
  3. Check all book @ 99 Rs (all subjects)

Limited Stock

Amount received by private co from member, directors or relatives before 01.04.2014 Not covered Under Deposit Clarification


GENERAL CIRCULAR 5/2015: DATED 30TH MARCH 2015

1) Stakeholders have sought clarifications as to whether amounts received by private companies from their members, directors or their relatives prior to 1st April, 2014 shall be considered as deposits under the Companies Act, 2013 as such amounts were not treated as 'deposits' under section 58A of the Companies Act, 1956 and rules made thereunder. 

2.The matter has been examined in consultation with RBI and it is clarified that such amounts received by private companies prior to 1st April, 20l4 shall not be treated as 'deposits' under the Companies Act,2013 and Companies (Acceptance of Deposits) Rules, 2014 subject to the condition that relevant private company shall disclose, in the notes to its financial statement for the financial year commencing on or after lst April, 2014 the figure of such amounts and the accounting head in which such amounts have been shown in the fi nancial statement. 

3. Any renewal or acceptance of fresh deposits on or after 1st April, 2014 shall, however, be in accordance with the provisions of Companies Act, 20 13 and rules made thereunder. 

4.This issues with the approval of the competent authority.

Income tax calculator for period from FY 2006-07 to FY 2015-16


The given Excel file containing Income Tax calculator as modified by Finance Bill 2015 presented on 28th February 2015.

The given Income Tax calculator contains the rate of tax for last 19 financial year (i.e Financial year 1997-98 to 2015-16) and income tax calculator for last 9 years (i.e Financial year 2006-07 to 2015-16).




CA Srikant Agarwal

ACA, CS, CMA, FRM(US), CFA (L-1, US)

Sunday, March 29, 2015

Due date Income Tax Service Tax Excise Advance Tax TDS TCS 31st March 2015


Financial year closing is most important work for every businessman , tax professional as well as for taxpayers.Financial year 2014-15 closing is Just few days ahead  i.e 31st March 2015  . We have summarized few of the things that are associated with the financial year closing and which may be helpful for you. 

Income tax,Service tax ,Vat , Excise and many other taxes are assessed on the Financial year basic,in fact  all the taxes in India (which we know ) are assessed on the Financial year basis only . So in Taxation system 31st March has a Major landmark date not only due to closing of the Financial year but also due to various due date correlated with the end of financial year i.e 31st March.

We have given few major issue related to 31st March.The list provided here under is not exhaustive and all viewers are requested contribute to list.

Foreign Remittance: TDS u/s 195: Case Law Analysis 2015: Series 2


Some of the important case laws published in India during the year 2015 pertaining to TDS u/s 195 and/or taxability of foreign companies/non-resident entities in respect of source of income in India. Discussion and analysis pertain to relevance of judgement in future proceedings, subsequent developments, other relevant case laws on the same aspect, probable arguments etc.

1. News story subject to royalty: (Agence France Presse(AFP) vs. ADIT [2015] 167 TTJ 149 (Delhi - Trib.))

The assessee an International News Agency was having its headquarters in France. AFP had been distributing its text news and photos connected with news in India through various Indian News agencies, viz., Press Trust of India and IANS. There were two categories of payments received by assessee from India one for transmission of news and the other for transmission of news photos. It provided daily reports of international events of interest which occurred in the various fields such as politics, sports, economic. AFP exercises a great degree of control and strictly regulates its news-content supplied by it to Indian news agencies and most of its information is proprietary-in-nature and copyrighted inasmuch as access to archived data, distribution rights, commercial rights, credit to AFP along with copyright symbol 'AFP©' or without copyright symbol 'AFP' (as may be determined by AFP in terms of its internal policy), which can be used except as per terms of AFP.

Foreign Remittance: TDS u/s 195: Case Law Analysis 2015: Series 1

Saturday, March 28, 2015

TAXABILITY OF NEWLY MADE ‘TAXABLE SERVICES’


As discussed Supra, the Finance Bill, 2015 vide Clause107 has proposed certain amendments in the Negative List of services given under Section 66D of the Finance Act thereby removing certain services from the Negative List. Now, in this case, the issue may crop up that the services rendered prior to the date of notification are exigible to Service tax when payments for such services are received later or invoices pertaining to services are raised later.

Levy and Collection of Service tax under the Finance Act 

In any taxing statute, the statutory provision containing the charging Section is of foremost importance. It is well settled law that levy of tax is one thing and collection thereof is quite different thing. Once the levy is attracted, the collection of tax may be at any different point/stage/ event.

Under the Finance Act, Section 66B of the Finance Act is the charging Section which levy Service tax on taxable services. We are reproducing herewith Section 66B of the Finance Act for the ease of convenience:

UNION BUDGET 2015: CHANGES IN SERVICE TAX WITH EFFECTIVE DATES AND ITS IMPACT


In the Union Budget, 2015 presented by the Hon’ble Finance Minister Shri. Arun Jaitley on February 28, 2015, Saturday, numerous changes in Direct and Indirect taxes, have been introduced to address the need of hour, the continued growth to contest the challenges paved in the way of progress. Changes in the Chapter V of the Finance Act, 1994 (“the Finance Act”) is one such step made to combat the impediments in growth by adhering the maxim - “secret of walking on water is – knowing where the stones are”. Certain imperative changes brought by the Union Budget, 2015 in the Finance Act with effect dates are:


SERVICE TAX CHANGES APPLICABLE FROM THE DATE TO BE NOTIFIED AFTER DATE OF ENACTMENT OF FINANCE BILL2015


Service Tax changes applicable From Date To Be Notified After The Enactment Of Finance Bill, 2015 
  1. Increase in rate of Service tax 
  2. Swachh Bharat Cess – Enabling Provision 
  3. Changes in relation to the Negative List – Section 66D of the Finance Act, 1994 
  4. Various other Sections under the Finance Act, 1994 
  5. Service Tax Rules, 1994 amended vide Notification No. 5/2015-ST dated 01-03-2015 
  6. Changes in Mega Exemption Notification No. No. 25/2012-ST dated 20-06-2012 vide Notification No. 6/2015-ST dated 01-03-2015 
  7. Changes in Reverse Charge Mechanism vide Notification No. 7/2015-ST dated 01-03-2015 amending Notification No. 30/2012-ST dated 20-06-2012 

Friday, March 27, 2015

Service Tax changes effective from 01.04.2015


Service Tax changes Effective From April 1, 2015

EFFECTIVE FROM APRIL 1, 2015

EFFECTIVE FROM APRIL 1, 2015
Exemption widened on Service provided by transport of export goods by road from the place of removal to a land customs station (LCS) vide Notification No. 4/2015-ST dated 1-03-2015 (Effective From 1-04-2015):
Goods transport agency service provided for transport of export goods by road from the place of removal to an inland container depot, a container freight station, a port or airport is exempt from Service Tax vide notification No. 31/2012-ST dated 20-6-2012. Scope of this exemption is being widened to exempt such services when provided for transport of export goods by road from the place of removal to a land customs station (LCS).
Service Tax Rules, 1994 amended vide Notification No. 5/2015-ST dated 01-03-2015
Under Rule 2: New Entries under Full Reverse Charge
·         Mutual Fund/ Asset Management Company needs to pay Service tax under Reverse Charge on services received  from mutual fund agent/ distributor - 2(1)(d)(i)(EEA) inserted;
·         Lottery Distributor or Selling Agent needs to pay Service tax under Reverse Charge on services received from selling or marketing agents of lottery tickets - Rule 2(1)(d)(i)(EEB) inserted
Changes in Mega Exemption Notification No. 25/2012-ST dated 20-06-2012 vide Notification No. 6/2015-ST dated 01-03-2015
Exemptions Withdrawn:
Entry 12: Services provided to the Government, a Local authority or a Governmental authority by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of-
·         a civil structure or any other original works meant predominantly for use other than for commerce, industry, or any other business or profession;
·         a structure meant predominantly for use as (i) an educational, (ii) a clinical, or (iii) an art or cultural establishment;
·         a residential complex predominantly meant for self-use or the use of their employees or other persons specified in the Explanation 1 to clause 44 of section 65B of the said Act.
Entry 14: Services by way of construction, erection, commissioning, or installation of original works pertaining to an airport or port.
Entry 29: Services by following persons in respective capacities:
·         Mutual fund agent to a mutual fund or asset management company;
·         Distributor to a mutual fund or asset management company;
·         Selling or marketing agent of lottery tickets to a distributer or a selling agent.
Service tax on the above stated services shall be levied under Reverse Charge Mechanism on Mutual fund or Asset Management Company/ Lottery Distributor or Selling Agent w.e.f 01-04-2015
Entry 32: Services by way of making telephone calls from:
·         Departmentally run public telephone;
·         Guaranteed public telephone operating only local calls;
·         Free telephone at airport and hospital where no bill is issued
Exemptions Amended:
Entry 16: Exemption to services provided by a performing artist in folk or classical art form of (i) music, or (ii) dance, or (iii) theatre, has been restricted only to such cases where amount charged is not exceeding Rs. 1,00,000/- for a performance (except brand ambassador)
Entry 20: Exemption under Entry 20(i) substituted, transportation of food stuffs by rail or vessels from one place in India to another will be limited to milk, salt and food grains including flours, pulses and rice. [Earlier Entry 20(i): foodstuff including flours, tea, coffee, jaggery, sugar, milk products, salt and edible oil, excluding alcoholic beverages].
Entry 21: Exemption under Entry 21(d) substituted, for Services provided by a goods transport agency, by way of transport in a goods carriage of, milk, salt and food grain including flours, pulses and rice. [Earlier Entry 21(d): foodstuff including flours, tea, coffee, jaggery, sugar, milk products, salt and edible oil, excluding alcoholic beverages]
New Exemptions:
Entry 2: All ambulance services provided to patients are exempted. Hitherto, any service provided by way of transportation of a patient to and from a clinical establishment by a clinical establishment was exempt from Service tax.
Entry 26A: Life insurance service provided by way of Varishtha Pension Bima Yojna.
Entry 43: Services by operator of Common Effluent Treatment Plant by way of treatment of effluent.
Entry 44: Services by way of pre-conditioning, pre-cooling, ripening, waxing, retail packing, labelling of fruits and vegetables which do not change or alter the essential characteristics of the said fruits or vegetables.
Entry 45: Services by way of admission to a museum, national park, wildlife sanctuary, tiger reserve or zoo.
Entry 46: Services provided by way of exhibition of movie by an exhibitor to the distributor or an association of persons consisting of the exhibitor as one of its members.
Certain new definitions also provided for following terms– ‘National park’, ‘Tiger reserve’, ‘Trade union’, Wildlife sanctuary’, ‘Zoo’.
Changes in Reverse Charge Mechanism vide Notification No. 7/2015-ST dated 01-03-2015 amending Notification No. 30/2012-ST dated 20-06-2012

New Entries under Full Reverse Charge
a)     Mutual Fund/ Asset Management Company needs to pay Service tax under Reverse Charge on services received  from mutual fund agent/ distributor;
b)     Lottery Distributor or Selling Agent needs to pay Service tax under Reverse Charge on services received from selling or marketing agents of lottery tickets;

From Partial Reverse Charge to Full Reverse Charge
a)     Manpower Supply and Security services provided by an individual, HUF, partnership firm or association of persons to a business entity registered as body corporate have been brought under Full Reverse Charge as against Partial Reverse Charge mechanism applicable at present.(read what action required in transition period)

Changes In Abatement Notification No. 26/2012-ST dated 20-06-2012 vide Notification No. 8/2015-ST dated 01-03-2015

·         Uniform Abatement for transport by rail, road and vessel: A uniform abatement of 70% has been prescribed for transport by rail, road and vessel to bring parity in these sectors. Service tax shall be payable on 30% of the value of such service subject to a uniform condition of non-availment of Cenvat credit on Inputs, Capital goods and Input services.
Presently, Service tax is payable on 30% (in case of rail transport)/ 25% (in case of road transport)/ 40% (in case of transport by vessels). Further, there is no condition for availment of Cenvat credit on Inputs, Capital goods and Input services in case of transport by rail, which is now withdrawn.

·         Reduction in abatement for classes other than economy class: The abatement for classes other than economy class (i.e. business/ first class) has been reduced from 60% to 40%. Accordingly, Service tax would be payable on 60% of the value of such higher classes.
At present, Service tax is payable on 40% of the value of transport of passenger by air for economy as well as higher classes (i.e. business/ first class).

·         Abatement in relation to Chit fund withdrawn:  Abatement for the services provided in relation to Chit fund stands withdrawn. Consequently, Service tax shall be paid by on full consideration received by the foremen of Chit fund.


A2Z Taxcorp LLP I Tax and Law Practitioners
Flat No. 34B, Ground Floor, Pocket - 1,
Mayur Vihar, Phase–I, Delhi – 110091 India
Desktel:+91-11-22757595/ 42427056
Mobile:+91 9810604563
bimaljain@a2ztaxcorp.com
www.a2ztaxcorp.com

SERVICE TAX CHANGES EFFECTIVE FROM 01.03.2015


Service Tax changes Effective From March 1, 2015 


EFFECTIVE FROM MARCH 1, 2015
Notification No. 42/2012-ST dated 29-06-2012 rescinded vide Notification No. 3/2015-ST dated 1-03-2015.
The exemption vide Notification No. 42/2012-ST dated 29-6-2012, to the service provided by a commission agent located outside India to an exporter located in India, become redundant in view of the amendment made in the previous budget, in the definition of “intermediary” in the Place of Provision of Services Rules, 2012 to include intermediary of goods in its scope at par with Intermediary for services.
Service Tax Rules, 1994 amended vide Notification No. 5/2015-ST dated 01-03-2015
Under Rule 2: Aggregator Model taxable under Full Reverse Charge Mechanism
·         Definition of the terms ‘aggregator’and ‘brand name or trade name’ has been specifically inserted;
·         Aggregator means a person, who owns and manages a web based software application, and by means of the application and a communication device, enables a potential customer to connect with persons providing service of a particular kind under the brand name or trade name of the Aggregator.

As is evident from the nature of transactions there are 3 parties involved under an Aggregator Model:
- The Aggregator;
- Service Provider using the brand name or trade name of Aggregator; and
- Customer
·         Service received by Aggregator is brought under Reverse Charge Mechanism.

Under Rule 4: New Registration Process
·         Rule 4(9) inserted to provide that the CBEC shall, by way of an order, specify the conditions, safeguards and procedure for registration in Service tax.
In this regard Order No. 1/15-ST dated 28-02-2015, effective from 1-03-2015 has been issued, prescribing documentation, time limits and procedure for registration for single premises. Registration for single premises: within 2 days of filing of application.

New Rule 4C has been inserted after Rule 4B of the Service Tax Rules – Corresponding changes made in Rule 5 thereof:
·         Provision for issuing digitally signed invoices, bill or challan has been added along with the option of maintaining of records in electronic form and their authentication by means of digital signatures.
·         It is further provided that the conditions and procedure in this regard shall be specified by the CBEC.


A2Z Taxcorp LLP I Tax and Law Practitioners
Flat No. 34B, Ground Floor, Pocket - 1,
Mayur Vihar, Phase–I, Delhi – 110091 India
Desktel:+91-11-22757595/ 42427056
Mobile:+91 9810604563
bimaljain@a2ztaxcorp.com
www.a2ztaxcorp.com

Thursday, March 26, 2015

HIKE IN RATE OF SERVICE TAX – OPEN ISSUES


The Union Budget, 2015 has proposed an increase in the rate of Service tax from 12.36% to flat 14% with abolishment of Education cess and Secondary & Higher Secondary Education cess. Further pursuing with Mr. Narendra Modi’s Dream of Swachh Bharat, a new Chapter VI has been inserted in the Finance Bill, 2015 that contains a new levy of cess called the ‘Swachh Bharat Cess’ (“SB Cess”) which may be levied on all or any of the taxable services at the rate of 2% of the value of such services. With SB Cess, Service tax rate may increase from present 12.36% to 16%.

Since the change in rate of Service tax will take place from the date of enactment of the Finance Bill, 2015, issues may build up in respect of the ongoing transactions for which certain advance payment is received prior to enactment of the Finance Bill, 2015 but the completion of provision of service may take place post facto thereof.