Basic Understanding on TDS on Payments to Resident Contractors & Professionals: Section 194M, Form 26QD and FORM 16D

Basic Understanding on TDS on Payments to Resident Contractors & Professionals: Section 194M, Form 26QD, and FORM 16D

TDS on Payments to Resident Contractors

A new section 194 M has been introduced by the Finance Act, 2019. Pursuant to this clause, if the individual makes payments to contractors and practitioners above Rs. 50 Lakhs, the individual is allowed to subtract TDS at a rate of 5% from the amount payable to the resident deductee/payee. This provision applies to individuals and to HUFs who are not liable for tax audits. As announced by the Finance Minister on 14 May 2020 for FY 2020-21, the person is liable for the deduction of TDS at a rate of 3.75 percent.

TDS on payments to residential contractors and Professional Consultants

Under the new law of the TDS, i.e. Section 194J (TDS on Technical and Medical Services) and Section 194C (TDS on Contractors) Persons or HUFs not subject to audit were not entitled to deduct TDS irrespective of the volume of payment. This was the main reason for the introduction of section 194 M to cover non-audited individuals under the TDS.

Reason for the implementation of Section 194M

  • Section 194 M of the Finance Bill, 2019, allows for a tax-deductible at source on any money paid by an employee or HUF to a local contractor where the services are rendered for personal use. Therefore, this section refers both to personal and company payments.
  • Prior to the introduction of this section, there was no liability on the part of an individual or HUF to deduct tax at source in the situation referred to above.
  • Nor did the people or HUFs carrying on business or the practice (not subject to any audit) subtract any tax at source, even though the charge was made for commercial or technical purposes.
  • As a result of this loophole, a large amount of payment for contracted activities and consulting fees avoided the TDS levy, providing room for tax avoidance.

TDS rate under Section 194 M

  • The 5 percent TDS will be deducted under 194 M if the total amount paid to a resident exceeds Rs 50.00000 in a particular financial year.
  • In the case that the deductee’s PAN is not eligible, the TDS will be deducted at 20%.

What then is the time frame for depositing the TDS?

  • When any payment is made by or on behalf of the Government – the amount of the TDS will have to be paid to the Department on the day of payment.
  • Where any payment is made by any other person other than the government:

The TDS would have to be paid for:

  • If payment is rendered in March – on or before April 30 of the next financial year. For example, if the amount was paid in March 2020, the TDS will be deposited with the Department by 30 April 2020.
  • For every other month – within seven days from the end of the month in which the reduction is made. For example, if the payment had been charged in the month of September 2019, then the TDS would

The accompanying are the requirements for the deduction of TDS for payment to resident contractors and professionals above Rs. 50,00,000:

  1. It is applicable to all individuals or HUFs who make payments to resident contractors and professionals above Rs. 50,00,000.
  2. As per section 194 M, the individual or HUF that is required to have his books audited pursuant to section 44AD is not required to deduct tax under section 194M, they are covered by section 194J (TDS on Technical and Professional Services) and section 194C (TDS on Contractors)
  3. The payee must subtract TDS at the rate of 5 percent of the amount charged, in the event that no PAN is covered by the recipient, otherwise TDS is deductible at the rate of 20 percent up to the overall rent cap payable for the month of March or the last month of the lease, as the case may be. As announced by the Finance Minister on 14 May 2020 for FY 2020-21, the person is liable for the deduction of TDS at a rate of 3.75 percent.
  4. TDS shall be deducted only at the earliest of the following dates:
  • At the time of the payment of the sum, or
  • At the time of payment by cash or cheque or draft
  1. No TAN is required for that person to deduct and deposit the TDS to the Government
  2. The transaction is to be made by the individual using form 26QD, which is a call cum statement:
  • If the contractor’s work is not finished at the end of the financial year, apply Form 26QD within 30 days from the end of the fiscal year.
  • If the contractor work is between the financial year, file Form 26QD within 30 days from the end of the month when the contract/service is completed or terminated.
  1. If a person pays Rs. 50.00000 to more than one resident contractor or professional, then form 26QD shall be made twice a year for each contractor or professional, in other words, the tenant must submit form 26QB for each contractor or professional.
  2. In the case that the form needs to be submitted more than once, the invoice must also be made more than once, as a separate payment is to be made by each consultant or practitioner by their respective fees.
  3. If payment is made to a non-resident, the TDS is deductible under section 195.
  4. The entity deducting the TDS must apply the TDS certificate to the resident contractor or practitioners in Form 16B.

CBDT Has notified New TDS Return Filing Forms 26QD & 16D : 

  • Tax enforcement may be one of the most important factors for any form of business organization. It is also recommended that persons and corporations shall comply fully with the requirements of the Income Tax Act 1961. It is necessary to observe due dates for the payment of income tax deduction tax at source (TDS) in addition to the ITR filing as well as the TDS return filing. In this regard, 2 new TDS Return Filing e-forms have been introduced by the Income Tax Department, viz. Type 26QD and Type 16D.
  • Two New TDS Return Filing e-forms have been introduced by the Central Board of Direct Taxes, viz. Type 26QD and Type 16D.

What’s FORM 26QD?

  • Form 26QD is the TDS return reporting form for payments to resident contractors and practitioners 194M.
  • According to the CBDT notification, any tax deducted at source 194 M must be paid to the Central Government within 30 days from the end of the month in which the deduction was made. This deduction must be stated in the form 26QD of the Challan-cum-statement.

What is FORM 16D?

  • Form 16D is the TDS credential for reimbursement of the TDS u / s 194M.
  • According to the CBDT notification, from now on, all individuals who have to deduct tax u / s 194 M shall send a TDS certificate to the payer in Form 16D within 15 days from the due date for the TDS report filed in Form 26QD.

Details Required for Form 26QD: The CBDT had stated that individuals / HUFs making contractual or professional payments will be allowed to deduct TDS under section 194 M from the financial year 2019-20 (September 1st, 2019). TDS is deducted at 5% if the payment exceeds Rs. 50,000,000. And the TDS return for the same needs to be filed in Form 26QD. The payee will receive Form 16D as proof of the TDS deduction

  • Deductor / Payer PAN
  • Deductee / Paye PAN
  • Form of payment (work under contract/commission/brokerage or technical service charges)
  • Date of agreement/contract
  • Amount of payment
  • Number of certificates provided by the Assessment Officer pursuant to section 197 for non-deduction or lower deduction
  • Credit date
  • The TDS Rate
  • Payment details for TDS

Steps-How to fill out the form 26QD

  • Go to www.incometaxindiafiling.gov.in\
  • Click on the ‘E-Pay Tax’ button.
  • Click on ‘Continue to the NSDL website’
  • The next page will appear.
  • On Tab TDS on Contractor Payment Form 26QD.
  • Click the Proceed button.
  • Fill out the details.
  • Submit it.

Points to be recalled by the payer/deductor:

  • All individuals or HUFs (except those subject to audit pursuant to paragraph a and b of section 44AB) making payments to residents greater than 50.000.000 are liable to deduct TDS pursuant to section 194M.
  • Tax @ 5 percent to be deducted from the payment made to the payer.
  • Collect the Payee / Deductee Permanent Account Number (PAN) and verify the same with the original PAN card.
  • The Payee / Deductee PAN as well as the Payer / Deductor PAN should be made mandatory in the online form used to provide payment information.
  • Do not commit any mistake by citing the PAN or any other information in the online form. You will notify the Income Tax Department for the purpose of error correction.
  • Download and supply the TDS certificate in Form 16D from TRACES and give it to the Payee / Deductee within 15 days from the due date of receipt of the voucher in Form 26QD.

Points to be understood by the payer/deductee

  • Provide the Payer/Deductor with PAN to provide the Income Tax Department with information on TDS.
  • Verify the amount of taxes paid by the payer/deductor in the Form 26AS Annual Tax Declaration.
  • Insist on obtaining Form 16D from the Payer / Deductor that has been downloaded from the TRACES website only.
  • The Payee / Deductee may apply to the Assessing Officer under Section 197 to obtain a Nil or Lower TDS certificate in respect of the amount paid or payable to TDS under Section 194 M if his estimated tax liability is justified to the satisfaction of the Assessing Officer in issuing such a certificate.

Main point of announcements during the Press Conference by FM Sitharaman

Key Point of announcements during all the Press Conference by FM SitharamanNirmala Sitharaman's economic package finale: All key announcements

1st Steps announced 13/5/2020 : FM Sitharaman Key Highlights:

Actions on the MSME

1. Collateral Free Car Loans. 4 year tenor with a dxatorium of 12 m mor. 100 % debt guarantee on principal and interest-3L Cr (60k Cr)

2. Subordinated loans for troubled small and medium-sized businesses (which are NPA or bankrupt)-20k Cr (4k Cr commitment of the State to CGTMSE)

3. Fund of funds to be set up for the injection of resources (which are viable)-50k Cr

4. The concept of small and medium-sized businesses is being modified in favour of small to medium-sized firms. Investment limits to be revised upwards. Additional requirements on the level of turnover may also be added. Difference between production and distribution units to be reduced

Micro Units-Investment up to 1 Cr + Turnover up to 5 Cr

Small Units – 10 Cr + 50 Cr

Medium Units – 20 Cr + 100 Cr

5. Government tenders worth up to 200 Cr will no doubt be on a regional tender basis. Global tenders will not be approved for up to 200 Cr. It will allow small and medium-sized businesses to engage in government purchases

6. Post Covid, e-market connection to be offered to all small and medium-sized enterprises. MSME receivables from the Government will be resolved over the next 45 days.

EPF Measures

7. Liquidity relief for all EPF establishments (less than 100 employees with 90% less than 15k employees). 12 per cent of the employer contribution and 12 per cent of the employee contribution is paid by the Government for March April and May. 3 months of additional funding to be received by a combined payment of 24 per cent for June July and August-2,5 k Cr.

8. Employers need to contribute 10% (compared to 12% earlier) to EPF and other institutions. Not available to the State. PSU Enterprises-6.75k Cr Liquidity

NBFC Conduct

9. 30k Cr Liquidity Scheme by NBFC, HFC and MFI Investment Grade Debt Papers completely backed by GoI.

10. 45k Cr by expansion of the framework of the Partial Credit Guarantee Scheme. AA-rated articles and below, like unrated documents, will be included in the program. The first 20% deficit to be suffered by GoI.

Discoms measures

11.-11. One time Immediate liquidity infusion-90k Cr to all decompositions against all receivables. Gen Cos will offer discounts on discom for moving on to customers

Builders

Twelve. Continuing public works-Concessional span to be extended by 3-6 m for contractors. Policy entities must partly issue bank guarantees for partly concluded contracts

Real Estate

13. The Ministry of Urban Development could use the advice of regulators to declare Covid 19 to invoke Force Majeure on contracts signed.

All registrations registered after 25 March 2020 and contracts expiring after 25 March 2020 can be extended by 6 m without unique requirements.

Taxation measures

14. TDS / TCS prices lowered by 25% on non-salary transfers from tomorrow to 31 March 2021. Will extend to all payments-50k Cr of extra liquidity

15. All outstanding refunds to charitable trusts and non-corporate taxpayers (including LLP) will be issued immediately.

The due date for all income tax returns shall be 30 November 2020 and the due date for the tax audit shall be 31 October 2020.

17. Assessments that will be barred on 30 September 2020 will be blocked on 31 December 2020.Cases that will be barred on March 31, 2021 will be delayed

18  Vivaad ka Vishwaas scheme continued until 31 December 2020 without any extra payments.

2nd Steps announced- which focus on 9 measures: 14/5/2020 : FM Sitharaman Key Highlights:

3 related to migrant workers;

• One Nation One Ration Card will be implemented-67 crore beneficiaries in 23 nations, representing 83% of the population of PDS, will be eligible for national portability by August 2020.

• Unlimited food grain deliveries to all migrants for the next 2 months. For non-card holders, 5 kg of wheat / rice per person and 1 kg of chana per family / month shall be granted for 2 months. 8 crore migrants would benefit – Rs 3500 crores to be spent on this.

It has already produced 14.62 crore working-days until 13 May, which is 40-50 per cent more enrolled than last May. Migrants returning to their states are actively enrolled.

• Policy has allowed state governments to use SDRF to set up shelter for migrants and provide them with food and water, etc.

1 was connected to Street Vendors

• Government to fund almost 50 Lakh Street Vendors with Rs 5000 Crore Special Credit Facility.

1 belonging to small merchants

• The Government of India will offer interest subsidies of 2 per cent to trigger MUDRA-Shishu Loans paid for a period of 12 months; Rs 1500 Crores to MUDRA-Shishu Loans paid.

Create employment opportunities for tribal / adivasis-plans worth Rs 6000 crores to be approved shortly under the Compensatory Afforestation Management & Planning Authority (CAMPA) Funds.

• 12,000 self-help groups (SHGs) produced more than 3 crore masks and 1.2 lakh liters of sanitizers during the period # COVID19. In the last two months, 7,200 new SHGs for urban poor have been created.

2 Local Farmers

• Rs 30,000 crores additional funding for emergency working capital by NABARD; 3 crore farmers to benefit.

• Rs 2 lakh crore concessional credit boost to 2.5 crore farmers through Kisan Credit Cards.

2 Small Farmers

• Rs 30,000 crores additional funding for emergency working capital by NABARD; 3 crore farmers to benefit.

• Rs 2 lakh crore concessional credit boost to 2.5 crore farmers through Kisan Credit Cards.

• NABARD to expand the additional re-financing funding of Rs 30,000 crores for the order for a crop loan from rural co-op banks and RRBs.

• Credit subsidy and early repayment incentive for farm loans due from 1st March to 31st May

1 for housing

• Government to initiate a scheme for affordable rental housing for migrant workers / urban poor to provide ease of living by transforming government-funded industrial housing into Affordable Rental Housing Complexes (ARHC) in the PPP mode by concessionaire. Government to extend the Credit Related Subsidy Scheme (CLSS) to the middle income community (Annual Revenue Rs 6-18 lakhs) by March 2021; 2.5 lakh middle income.

3rd days Announcement :  15/5/2020 : FM Sitharaman Key Highlights:

1. Fund of 1Lac Cr Generated for Agri Infra-Farm Gate Infra to be set up, New Warehouses will be set up, Cold Chain, Primary Agriculture Society, Aggregators in these industries, Start-up in this field.

2. Food Enterprise Micro in Nature-10000cr Micro Fund will be developed with a cluster-based approach. Will assist with infrastructure updates. Will be continuing with naming. Health & beauty products, Nutritional products, Vegan products. For eg, there’s Makhana Cluster in Bihar, Kashmir for Keshar Cluster, Kerela for Turmeric Cluster, Andhra Chilli Cluster.

3. Marine and Aqua Fund 20000Cr-Addition Fish Production 70lac Tonnes will be increased over the next 5 years. Current Lab should be set up, New Lab may be built, New Boats will be given, New Harbors will be made open. Easy Infra should be strengthened. 55 Lac Individual will gain additional jobs because of this and our exports will double because of this.

4. Animal Husbandry-Vaccination of all Livestock by Government-Various Livestock are suffering from Mouth and Foot Disease. 53Cr Patient should be vaccinated for a period of time. 13343cr is going to be invested on this. Owing to this, milk production would increase.

5. Dairy Farm – Cattle Feed Infra. For this reason, 15000cr Fund is established. Cheese, Milk Goods, Cattle Feed Plants for domestic and export consumption.

6. Promotion of Herbal Plantation-Medicinal Plants, Supplement of 4000cr for the development of an additional 10 Lake Hector of Land under Cultivation for the cultivation of herbal and medicinal plants. This will generate an extra 5000cr Income for Farmers in times to come.

7. Bees Sustaining Initiative-500cr For Bee Preserving Initiatives There is a shortage of bees in India. 2Lac Bee Keepers are going to get the advantage of it.

8. Potatoes, Onion and Tomatoes-50 per cent transport subsidies and 50 per cent storage subsidies. It is an existing scheme that is now being expanded to all vegetables. This is launched for 6 months on the basis of a 6-month pilot project.

9. Essential Goods Act should be amended-Amendment is provided by these Laws. No Limits will be imposed for the food processing industry, will not be limited and will not be punished for hoarding. This will not have an impact on the export of such items. Pulse, Onion, Potatoes, Oil Seeds and Cereals should be deregulated.

10. Farmers Get Options to market their product at an affordable price — Interstate obstacles should be eliminated. Farmers are currently allowed to market their goods to limited licensees. It is now planned to be updated.

11. Farmers do not have a common mechanism-we want to put about a regulatory system. Farmers when working with producers, aggregators, etc., we wilSingirbhar Economic Bundle

4th days Announcement :  16/5/2020 : FM Sitharaman Key Highlights:

1. Excess And Unused Land at Different 3376 Industrial Area, SEZ, etc-approximately 5Lac Hectors will be Geo Tagged and will be used for future requirements. It will help potential developers get the land soon

2. Sectors to be covered-Coal, Minerals, Defense Products, Air Storage, Power Supply Companies, Nuclear Industry, Atomic Fuel, Modern Solar Cell Manufacturing, Battery Manufacturing.

3. Reform of the Coal Sector-Government ownership will be ended. Commercial mining would be allowed on simple revenue sharing. India has the 3rd highest untapped deposits of coal.If Coal Turned to Gas, then opportunities would be given. 50000cr will be spent to build the Infra evacuation required by Ours. Today , India imports a lot of Coal, and now if the market is open to the private sector. It will now be available to everyone, and not just to the steel industry and the power industry. Partially mined mines must be re-assessed.

4. Mining of Minerals-Seamless Composite Discovery, Extraction and Development will take place from now on. There will be 500 new blocks under this scheme. The joint sale will also take place , for example Aluminum and Coal will now be auctioned together. Will eliminate the disparity between Captive and Non-Captive Mines. Now the individual may move the lease to the mine.Rationalization of stamp duties would also take place. Private corporations will now now be permitted to engage in the mining industry. The Mineral Index is also to be established.

5. Defence Production-1-The defense sector will also be introduced to make India self-reliant in India. Notify List of arms and systems that would be banned from being imported. Different products will be included in this list every year. Even the spare parts will be manufactured in India. And these weapons and systems will not be permitted to be imported. The additional allocation will be made in the form of capital for Indian companies.

6. Defence Production-Corporateization of the Ordinance Factory Boards and not privatization.They will also be listed in the stock exchanges.

7. Defense Production-FDI cap of 49 per cent will be raised to 74 per cent for the defense manufacturing sector under the automated path.

8. Civil Aviation — Air Space Management. Just 60% of Indian Airspace is publicly accessible. Optimum use of Airspace can now be done by rationalization. This will help to save commuting time as well as fuel bills.

9. Civil Aviation—6 More Airport will be auctioned on a PPP basis. The Airport Authority will receive 2300cr for this reason.

10. Civil Aviation-Create the India MRO Centre. Maintenance and maintenance of aircraft is done outside India. It’s scheduled to take place in India already. Both the Private and the Security Aircraft are going to be finished here

11. Farmers Get Options to market their product at an affordable price — Interstate obstacles should be eliminated. Farmers are currently allowed to market their goods to limited licensees. It is now planned to be updated.

12. Farmers do not have a common mechanism-we want to put about a regulatory system. Farmers when working with producers, aggregators, etc., we wilSingirbhar Economic Bundle

5th days ANNOUNCEMENTS FOCUS ON 8 SECTORS:  17/5/2020 : FM Sitharaman Key Highlights:

FIFTH AND LAST TRANCHE OF ANNOUNCEMENTS FOCUS ON 8 SECTORS:

1.  MNGERA

•           Budget estimate was Rs 61,000 crores

•           Additional Rs 40,000 crores allotted

2.  HEALTH

•           Ramping up the health infrastructure

•           All districts to have infectious diseases block

•           Public health labs to be set up in all districts at the block level

3.  Tech-driven EDUCATION

           PM e-Vidya programme for multi-mode access

•           One nation one digital facility under DIKSHA for school education

•           One year-marked TV channel for every class

•           Extensive use of radio

•           Special e-content for Divyang children

•           Top 100 universities will automatically be allowed to start online courses by May 30, 2020

 4.  Big boost for struggling businesses

•           Debts related to Covid will be excluded from default under IBC

•           No fresh insolvency case will be initiated for up to a year

•           For MSMEs, a special insolvency framework will be notified

•           Minimum threshold for insolvency raised from Rs 1 lakh to Rs 1 crore

 5.  Government moves to decriminalise Companies Act defaults

•           Majority of compoundable offences sections to be shifted to internal adjudication mechanism (IAM) and powers of RD for compounding enhanced.

•           7 compoundable offences altogether dropped and 5 to be dealt with under alternative framework.

 6.  Ease of doing business for corporates

•           Direct listing of securities by Indian public companies in permissible foreign jurisdictions. Pvt companies that list non-convertible debentures (NCDs) on stock exchanges not to be regarded as listed companies.

All sectors to be now open for private players

 7.  New Public Sector Enterprise Policy introduced

 •           pvt sector will be allowed to participate in all sectors while public sector enterprises will continue to play an important role.

•           new policy which will broadly categorise strategic sectors and others.

•           List of strategic sectors requiring the presence of PSEs in public interest will be notified.

•           In such strategic sectors, at least one PSE will be there but pvt sector will also be allowed.

•           In other sectors, PSEs will be privatised.

•           TO minimise wasteful administrative costs, number of enterprises in strategic sectors will ordinarily be only one to four, others will be privatised/merged/brought under holding companies.

8.  State govt and resources

•           Centre has decided to increase borowing limit of states from 3% to 5% for FY21. This will give extra resources of Rs 4.28 lakh crore to states.

•           Part of the borrowing will be linked to specific reforms. Reform linkage will be in four areas:

1. One Nation One Ration Card,

2. Ease of Doing Business,

3. Power distribution,

4. Urban local body revenues.

A specific scheme will be notified by the Department of Expenditures

•           Unconditional increase of 0.50%

•           1% in 4 tranches of 0.25% with each tranche linked to clearly specified, measurable and feasible reform actions

•           0.5% of milestones are achieved in at least three out of four reform areas

Post by Rajput Jain & Associates

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

Important Updates on the reduction compliance obligation under Atmanirbhar Scheme:

Important Relevant updates on the reduction of compliance obligation under Atmanirbhar Scheme:

Covid-19 related debts shall be excluded from 'default' under IBC ...

TODAY ‘S FIFTH AND LAST TRANCH OF ANNOUNCEMENTS FOCUS ON 8 SECTORS:

1. MGNREGA Scheme 

Total budget was Rs 61,000 crores

• The extra Rs 40,000 crores allotted

2. HEALTH’s

• Setting up the public system

• Block all districts to avoid infectious diseases

• Public health laboratories to be set up at block level in all districts;

3. EDUCATION-driven technology

• PM e-Vidya multi-mode control system

• One-nation interactive school under DIKSHA for school education

• One-year Television channel for each class;

• Extensive use of radios

• Special e-content for children of Divyang

 Top 100 universities must ultimately be allowed to start online courses by 30 May 2020.

 4.  Significant support to distressed firms: Fresh IBC has been suspended for one year. As per the declaration of FM.

A.    IBC related – debts related to COVID 19 are out of IBC default

B.    No further insolvency lawsuits can be launched for up to a year. i.e No fresh insolvency case will be initiated for up to a year

C.   Minimum limit of IBC would be Rs. 1 Cr. i.e Total insolvency requirement lifted from Rs 1 lakh to Rs 1 crore

D.   Decriminalised all the sections. Few Non Compoundable offenses would become compoundable offenses.

E.    Compounding by ROC

F.    Direct listing in foreign destinations

G.   NCD listing would not be treated as listed companies for the purpose of Companiesct

H.   Covid-related loans should be exempt from default under IBC

I.      For MSMEs, a special insolvency framework will be notified

Fresh IBC proceedings suspended for a year; debts related to Covid ...

 5. State seeks to decriminalize losses under the Companies Act

• Bulk of compound crimes parts to be transferred to the Internal Adjudication System (IAM) and improved RD forces for compounding.

• 7 compounding crimes dropped entirely and 5 to be dealt with in an alternate system.

 6. Simplify of doing business for companies

• Clear listing of shares by Indian listed corporations within international jurisdiction. Pvt firms that issue non-convertible bonds (NCDs) on stock exchanges not to be considered as public entities.

All industries are now open to private parties

7. Fresh Public Sector Business Strategy

• The Pvt sector will be able to invest in all markets, while public sector companies will continue to play a significant role.

• a new policy that will categorize strategic sectors and others.

• The list of strategic sectors requiring the presence of PSEs in the public interest shall be notified.

A list of strategic sectors needing the participation of PSEs in the public interest will be identified.

• There will be at least one PSE in these strategic sectors, but the pvt sector will also be authorized.

• The PSEs should be privatized in other industries.

• To reduce unnecessary operating expenses, the number of firms in key markets will usually be just three or four, while others will be privatized / mixed / brought under holding companies.

 8. Policy management and services

• The Center has agreed to raise the State Borowing Limit from 3% to 5% for FY21. This will provide extra Rs 4.28 lakh crore capital to states.

A.   Part of the loan would be related to specific reforms. The relation between the reforms will be in four areas:

1. One Nation One Ration Card,

2. Ease of Doing Business,

3. Power distribution,

4. Urban local body revenues.

 B.   The Department of Spending should be told of a particular scheme

• Unconditional 0.50 percent rise

• 1% in 4 tranches of 0.25% for each tranche linked to specifically specified, tangible and feasible policy actions;

• 0.5 per cent of targets was reached in at least three of the four improvement regions.

Post by Rajput Jain & Associates

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

 

Complete Guidance on Udyog Aadhar registration in India

Complete Guidance on Udyog Aadhar registration in India – Registration procedure, Benefits and Documents required

Udyog Aadhaar Registration – Process, Documents Required, Benefits ...

In recent times, the Government of India has launched the Udyog Aadhaar registration process in order to improve the small-scale businesses in the region. Previously, if a person wants to start a company, he/she must be registered with both the small-scale industry and the MSME.

This step has now been facilitated by the incorporation of only 2 types under the Udyog Aadhaar Registration which are Entrepreneur Memorandum I and Entrepreneur Memorandum II, whereas the former one was used to fill out 11 various types of forms which were required earlier.

The major characteristics of Udyog Aadhaar

  • Enrolment is online instead of personal registration. It’s just a button of a task.
  • UAM can be registered by self-declaration of the company’s data.
  • Details required for registration: Personal Aadhaar number, name of the industry, address, bank details and some common information.
  • You can file more than one Udyog Aadhaar with the same Aadhaar number.
  • No filing fee.
  • After the registration number has been filled in and submitted, it is obtained in the mail-id issued.

Udyog Aadhaar Registration is a fully online process. Companies listed under the Udyog Aadhaar are eligible to obtain incentives from a range of government schemes, such as discounts, simple loan approvals, etc.

What kind of Benefits of registration of Udyog Aadhaar :

The main advantages of registration under Udyog Aadhaar are listed below:

  1. The MSME registered enterprises get the financial support from the Government to participate in foreign expo. i.e MSME registered companies receive financial support from the Government to participate in the foreign exhibition
  2. Quick Accessibility of Collateral Free Bank loans : Once registered with MSME, the micro, small or the medium enterprise would be eligible for all government scheme benefits like without guarantee loan, easy loan, loan with low rate of interest.
  3. 50 per cent grant for patent registration
  4. Simplification of obtaining licenses, approvals and other registrations
  5. ISO Certification Reimbursement
  6. NSIC Performance and Credit Rating Subsidy:
  7. Concession of electricity bills and more
  8. The enterprise is also entitled for the Government subsidies:

Potentially Details Required of Udyog Aadhaar Registration:

The information needed at the time of registration of Udyog Aadhaar are as follows:

  1. 12 Aadhaar number given to the client. In the case of a company, corporation or any other entity, the Aadhaar number of Managing Director, Approved Partner, etc. shall be given.
  2. Name of the organization under which it carries out its business.
  3. Type of business entity such as individual, firm, company, etc.
  4. Postal Business address for communication purposes, including contact numbers and e-mail address.
  5. Date of beginning of the business.
  6. Details of the previous validation of the MSME.
  7. Banking details of the client, including the bank account number and the IFSC code.
  8. Main business areas – service or manufacturing.
  9. The number of staff in the company.
  10. Complete amount of investment by the company in terms of machinery and equipment.
  11. Social Category – The applicant may pick the Social Category (General, Scheduled Caste, Scheduled Tribe or Other Backward Castes). Evidence of belonging to SC, ST or OBC can be sought by the proper authority, if and when necessary.
  12. Physically Disabled-The Applicant may choose a Physically Disabled Entrepreneur status.

13. Plant Location-Applicant can attach multiple plant locations to one registration by clicking the    Attach Plant button.

  1. Major Activity-The main activity, i.e. “Manufacturing” or “Service,” may be chosen by the company for Udyog Aadhaar. If your business involves both type of activity and if major work involves Manufacturing and a small portion of activity involves the Service sector, then select your main activity type as “Manufacturing” and if major work involves Services and a small portion of activity involves Manufacturing, then select your main activity type as “Services”
  2. National Industrial Classification Code (NIC Code)-The individual may choose various National Industrial Classification-2008 (NIC) Codes to protect all their activities. Which means that users can select multiple NICs from the Manufacturing and Service sector by clicking the “Add More” button. If you want to add Manufacturing then select the “Manufacturing” radio button and click the “Add More” button otherwise if you want to add Service then select the “Services” radio button and click the “Add More” button. The NIC codes are drawn up by the Central Statistical Organisation (CSO) under the Ministry of Statistics and System Implementation, Government of India. The applicant can use the National Industrial Classification-2008 (NIC) Scanning facility codes to escape a 3-step selection process.

Step by step procedure of Udyog Aadhaar Registration

Registration system and Process of Udyog Aadhar along with the requirement of information for Registration: Below is the legal process for the registration of Udyog Aadhaar:

1. Online visit the link of https://udyogaadhaar.gov.in/UA/UAM_Registration.aspx

2. Enter the Aadhaar number and the name of the individual who is the agent of the organization and confirm the Aadhaar number:

3. Enable the OTP

4. Upon validation, it will be redirected to Udyog Aadhaar form, which will be as follows: and Verify further Enter the following information in the field:

• Social group (e.g. SC / ST / OBC / General)

• Sex and categories

• Whether is He not physically handicapped

• Name of Enterprise

• Type of Organisation

• PAN no of the relevant person

• Address of the business entity

• The contact address of the organization and the telephone or email number of the designated person;

• Date of start of business

• Past registration details of MSME, if any

• Corporate bank info like IFSC code and bank account number

• Main activity of the unit (whether engaged in production or service)

• National Industrial Classification (NIC) Operation Code (One or more activities can be added)

• Overall number of individuals working by the company

• Overall financial investment of the company

• The district where the entity is placed

• Click on the checkbox for the declaration and submit

5. After acceptance, you will obtain an OTP for submission of the form-enter OTP and click on the final submission button.

6. After submission, it will be forwarded to the Udyog Aadhaar Memorandum page.

7. Below the Udyog Aadhaar Memorandum, you can find the Udyog Aadhaar Certificate button. Click on it to generate the Udyog Aadhaar Certificate:

8. After clicking the Create Certificate button, the Udyog Aadhaar Card will be issued.

9. If you need qualified assistance for Udyog Aadhaar, please write to us at info@carajput.com or click Here to Subscribe to Online Service.

May you register Udyog Aadhaar Registration Online without an Aadhaar Number?

No Applicant or authorized signatory who is not registered for Aadhaar shall be required to apply for Aadhaar enrolment and, if he or she is entitled to receive Aadhaar in compliance with section 3 of the Aadhaar Act, he or she may visit any Aadhaar enrolment center for Aadhaar enrolment.

  •  A.   Provided that by the time Aadhaar is allocated to the person, the registration of the UAM shall be registered by the DIC or MSME-DI concerned on behalf of that undertaking, subject to the creation of the supporting following information as an alternate and feasible form of identifying.
  • If he’s registered, his Aadhaar Enrolment ID slips; Ok
  •  copy of his application for enrolment by Aadhaar
  • B.  Any of the below papers, namely: – bank photo passbook; or voter ID card; or passport; or driving license; or PAN card; or employee photo ID card issued by the Government.

Post by Rajput Jain & Associates

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

How to incorporate the company

Image result for company incorporationSteps for incorporating the company:-

  • The first step of getting a company incorporated is obtaining the approval of name from Registrar of Companies. A company may adopt any name which is not prohibited under the Emblems and Names (Prevention of Improper Use) Act, 1950.The government has launched a web service RUN (Reserve Unique Name) for reserving name of a proposed company. We can directly submit the application for reserving name online within few minutes (there is no requirement to download e-form like INC-1, and attaching DSC), has been launched for reserving name of new company or for change in name of existing company earlier there was INC-1 for reservation of name of new company or for change in name of existing company. Application form fee shall be Rs.1000/- per form for reservation of name by using RUN web-form.

                    APPROVED NAME IS VALID FOR A PERIOD OF:

20 days from the date of approval (in case name is being reserved for a new company) or

60 days from the date of approval (in case of change of name of an existing company)

  • The preparation of MOA is the next step in the incorporation of a company. It is the law of the company, which states its objects and scope and the company relation with outside world.
  • Other than MOA, the promoters will also prepare AOA of the company. It contains rules and regulations relating to the internal management of the company.

Following other documents are also prepared:

  • Taking consent from directors and filed it with ROC.
  • Promoters have to execute power of attorney in favor of one of them.
  • Form of DIN, PAN & TAN.
  • Form for first director.
  • Form for address of registered office.
  • At the time of registration, prescribed registration fees and filing fee for each document filed for registration are to be paid at the Registrar’s office.

Also we can incorporate company in India through the

 Simplified Performa for Incorporation Company Electronically (SPICE)

MCA will bring new specified procedures for incorporation of company under companies act, 2013. Ministry of corporate affairs introduces E- Form INC-32 by a notification under SPICE Scheme. SPICE means Simplified Performa for Incorporating Company Electronically.

The SPICE form will introduced to bring facility of preparing Electronic MOA & Electronic AOA. This facility is introduced first time in Indian history for incorporation of company. Now there is no need to prepare manual MOA & AOA.

Before of this SPICE form if any person want to incorporate any company then he has to apply by filing different form for DIN, PAN, TAN, approval of name availability, registered office address, first director form etc.

Now it is mandatory to file E-Form INC-32 for incorporation of company in India. If the company is Producer Company and having more than 7 subscribers then E-Form INC-7 have to be filled and if subscribers of Producer Company are less than 7 then it has to filed E-Form INC-32 for incorporation.

According to the notification given by MCA, companies who are incorporated by filing E-Form INC-32 then that company cannot incorporate by filing E-Form INC-7 on or after 29th December, 2016. So, it is compulsory to file E-Form INC-32 for incorporation of company from the date 29 December, 2016.

SPICE Form (INC-32) has following features:-

  • Maximum number of allowed subscribers is seven. If subscribers are more than seven then E-Form INC-7 is filled and normal incorporation procedures of E-Form INC-7 are applied.
  • Maximum twenty directors are allowed.
  • Maximum three directors are allowed for filing application for Director Identification Number.
  • In this form name of company can also be applied.
  • DSC of subscriber is affixed on the INC-33 (E-MOA) For automatically generating date of sign by the form.
  • Applying for PAN / TAN will be compulsory for all the company who are incorporated through SPICE form.

Following difficulties are faced while filing SPICE Form (INC-32):-

  • For foreign subscribers it is difficult to incorporate the company without violating the rule 13 of the companies’ rules, 2014.
  • If company name is approved already in E-Form INC-1 then whether company can apply for incorporation in E-Form INC-32 or not
  • If both the person doesn’t have DIN No. whether they can apply for the incorporation of Company. Or one person mandatorily requires having DIN for filing of this form
  • For incorporation of producer company this form is filled or not.
  • If any company want to incorporate through INC-7 then how the company can do so.

Following documents are attached with the SPICE E-Form (INC-32):-

  1. E-MOA & E-AOA required to be attached.
  2. INC-9 Affidavit and declaration by first subscriber and director (on duly authorized Stamp Papers).
  3. DIR-2 declaration from first Directors along with Copy of Proof of Identity and residential address.
  4. NOC from the owner of the property.
  5. Proof of Office address (Conveyance/ Lease deed/ Rent Agreement etc. along with rent receipts);
  6. Copy of the utility bills (not older than two months)
  7. Declaration from the director non acceptance of Deposit. (On duly authorized Stamp Papers).
  8. In case of subscribers/ Director does not have a DIN, it is compulsory to attach Proof of identity and residential address of the subscribers
  9. E- 49A and E-49B will be filed through MCA website (filed form will be generate by the SRN of INC-33 E-MOA).

Incorporate a new company in a progressive country like India and take following benefits:-

  • In country like India, you have complete ownership of your company.
  • You can also take exemption from taxes in startups companies if eligible.
  • For the foreign person one special benefit is he does not have to require physically present in India he can operate from outside the India except one time present at the time of incorporation.
  • For incorporation you have to open a bank account and you have benefit that ownership of bank account is your own company name.
  • In country like India, Privacy of your all operations is maintained.
  • Annual fees is nominal in India.
  • You have permission to be traded in foreign or can do international business easily.
  • You can purchase properties in India in your company name.
  • Even you can easily set up a operation of an international company.
  • For foreign people one more benefit is they can easily get the business visa for India residency.

You can get above benefits by incorporating your entity in a progressive country like India and also you can get extra benefits in setting up your corporate bank account easily through Rajput Jain& associates.

How Rajput Jain & associates offers services for helping you in formation of company in India it is a one step solution for you:-

  • Get the most comprehensive and perfect Company Formation advice.
  • Helping in set-up your branch company out from your Global entity structure easily.
  • Helping in getting your Commercial License and acquire your India residence visa
  • You can take advantage of Accounting & GST / Tax Consultancy & Advisory Services
  • Easily get Tax Agency Appointment
  • You can get easily perfect Financial Auditor for your existing company
  • You can get all the services before and after the incorporation of company.

Disclaimer:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. The author is a Chartered Accountant and the Chief Gardener & Founder Director of Rajput Jain & Associates , a leading Tax & Investment Planning Advisory Service Provider. His blog can be found at https://carajput.com/blog/For any query you can write to info@carajput.com. Hope the information will assist you in your Professional endeavors. For query or help, contact:   info@carajput.com or call at 09811322785/4 9555 5555 480)

CORPORATE AND PROFESSIONAL UPDATE MARCH 15, 2017

Professional Update For the Day:

annual-compliance-of-a-private-limited-company

DIRECT TAX:

·        CBDT clarified that Existence of undisclosed bank deposits non-mandatory on the date of PMGKY payment.

·        CBDT has asked Taxmen to Fast track cases against shell firms also to file prosecution cases against those companies which claimed bogus long-term capital gains. While the SFIO has filed cases against 49 shell companies, Rs 3,900 crore is believed to have been laundered by 559 persons with the help of 54 professionals. Also, Rs 1,238 crore cash has been deposited in shell co’s, post demonetization.

·        Penalty can’t be imposed u/s 271(1)(c) of the Income Tax Act, 1961, where substantial question of law had been admitted by the High Court in respect of quantum proceedings. CIT Vs. Advaita Estate Dev. Pvt. Ltd., High Court of Bombay.

·        ITAT Ahmedabad held that forfeiture of share application money which has been duly received by the appellant in terms of prospect and credited to capital reserve account was a capital receipt and is not taxable. DCIT(OSD) Vs Mahalaxmi Rubtech Ltd. (ITAT Ahmedabad).

·        Sec. 271(1)(c): If the quantum appeal is admitted by the High Court, it means that the issue is debatable and penalty cannot be levied. Argument of the Dept that Nayan Builders 368 ITR 722 (Bom) does not lay down this proposition is not correct. CIT Vs Advaita Estate Development Pvt. Ltd (Bombay High Court)

·        Entitlement for deduction U/s 80IB – amount under the head VKGUY [Vishesh Krishi Gram Udhyog Yojana] and on account of DEPB – these benefits do not form part of the net profits of eligible industrial undertaking for the purposes of Sections 80I/80IA/80IB – ITAT Jaipur in case of [M/s Neel Kanth Gum & Chemicals Vs. ACIT].

·        New India Assurance to refund TDS amount to claimant as it had wrongly deducted TDS on compensation: HC[2017] 79 taxmann.com 76 (Gujarat)

·        Expenditure incurred for re- possession of the club – capital or revenue in nature – when as per the JDA, the ownership is vested in the assessee and the plot owners have no right in the assets of the club, it cannot be said that creating the asset of the club is a revenue expenditure – ITAT Bangalore in case of [G.R. Developers Vs. The ACIT, Circle-3 (1) , Bangalore].

·        Operation Clean Money; Income Tax Department identifies 17.92 Lakh persons whose tax profiles were not in line with the cash deposits made by them during the demonetization period.

·        CBDT reported the direct tax collections up to February 2017 to witness steady growth trend. The collection net of refunds stands at Rs. 6.17 lakh crore which is 10.7% more.

INDIRECT TAX:

·        Excise: CBEC issued Master Circular providing the clarity and uniformity on the issues dealing with Show Cause Notice, Adjudication Proceedings and Recovery of duty vide Circular No. 1053/02/2017-CX dated March 10, 2017. CESTAT allows assessee’s appeal, remands issue for determination whether Food Processor accessories are assessable at MRP u/s 4A or at the transaction value u/s 4 of Central Excise Act, when same not cleared as part of package containing Food Processor [TS-47-CESTAT-2017-EXC]

·        Service Tax: In the absence of a statutory provision which prescribes that registration is mandatory and that if such a registration is not made the assessee is not entitled to the benefit of refund, the committed a serious error in rejecting the claim for refund on the ground which is not existence in law. Commissioner, Service Tax Vs M/S Pangea 3 Legal Database Systems Pvt. Ltd. (Allahabad High Court)

·        Date of filing of DVAT Return in Form 16, 17 & 48 for Q-3, 2016-17 has been extended up to 17.03.2017 vide Circular No. 26 dated 08.03.2017.

·        CBEC vide Circular No. 1053/02/2017-CX dated March 10, 2017 has issued the Master Circular providing the clarity and uniformity on the issues dealing with Show Cause Notice, Adjudication Proceedings and Recovery of duty.

·        In the absence of a statutory provision which prescribes that registration is mandatory and that if such a registration is not made the assessee is not entitled to the benefit of refund, the committed a serious error in rejecting the claim for refund on the ground which is not existence in law.Commissioner, Service Tax Vs M/S Pangea 3 Legal Database Systems Pvt. Ltd. (Allahabad High Court)

·        CESTAT allows assessee’s appeal, remands issue for determination whether Food Processor accessories are assessable at MRP u/s 4A or at the transaction value u/s 4 of Central Excise Act, when same not cleared as part of package containing Food Processor [TS-47-CESTAT-2017-EXC]

 OTHER UPDATES

·        RBI has cancelled the certificate of registration of some NBFC in of the powers conferred on it under Section 45-IA (6) of the Reserve Bank of India Act, 1934.

·        RBI issued notification that Section 269SS and 269T of the Income Tax Act, 1961 would be applicable to all NBFCs with immediate effect. Currently, the relevant threshold is Rs 20,000 Vide Notification No. DNBR (PD) CC.No.086/03.10.001/2016-17 dated 09.03.2017.

·        RBI notified the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Fourth Amendment) Regulations, 2017 which shall come into force from the date of their publication in the Official Gazette. Vide Notification No. FEMA.387/2017-RB dated 09.03.2017.

Key Dates:

Payment of Advance Income Tax by all assesses (100%): 15.03.2017

E-payment of PF for Feb: 15.03.2017

“Our hopes & dreams should be like hair & nail. No matter how many times they are cut, but they never stop growing.”

Life shrinks or expands in proportion to one’s courage.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 011-23343333 / 9555555480

We look forward for your valuable comments. www.carajput.com  Continue reading

CORPORATE AND PROFESSIONAL UPDATE JAN 09, 2017

Professional Update for the Day:

12112090_641118839325014_7134893405186083746_n

Direct Tax:-

  • Bombay High Court in the below cited case held that when the assessee’s volume of purchasing & selling shares is quite high with higher frequency of buying and selling with holding 75 days or less then its prima facie indicate that it is engaged in trading of shares unless the assessee provide a sound reasoning that why transactions should not be considered as trading activity. [Pine Tree Finserve Pvt. Ltd. Vs CIT]
  • CBDT notification no. 2/2017 Report cash deposit in Bank & Post Office A/c’s between 01.04.2016 to 09.11.2016.

Indirect Tax:-

  • SC dismisses assessee’s SLP for lack of merit against HC order denying service tax refund under Notification No. 41/2007-ST absent inclusion of exported services from date of issue of Notification[TS-1-SC-2017-ST]
  • Delhi HC shows leniency to assessee, reduces penalty levied u/s 78 of Finance Act to 25% of entire tax due on deposit of balance amount within 30 days, where assessee failed to obtain registration or file ST returns despite liability [TS-555-HC-2016(DEL)-ST]
  • CBEC notified that overseas companies providing online information and database access (‘OIDAR’) services will have to pay service tax from December 1, 2016.

MCA Update:-

  • MCA, in the interest of public, directs that certain provisions of Companies Act, 2013 shall not apply or shall apply with some exceptions, modifications and adaptations to an unlisted company which is licensed to operate by RBI or SEBI or IRDA located in an approved multi services SEZ set-up Vide Notification.

Other Update:-

  • Black money would be taxable at higher rates; Finance Minister Mr. Jaitley said on Demonetization, IDS & Cashless Economy.
  • Causal taxable person or non-resident taxable person must apply for registration at least 5 days before actual commencement of business.

Key Dates:-

  • Return by units paying duty > 1 crore (CENVAT + PLA) for December – 10.01.2017.
  • Return of Non SSI assesses for December – 10.01.2017.
  • Return of SSI assesses for quarter ending December – 10.01.2017.
  • Return for EOUs for December – 10.01.2017.
  • Due date to deposit of DVAT of December – 21.01.2017.

“Nothing is interesting if you are not interested.”

“Expectation is a gift, not a burden. When people expect something from you, it means you have given them reasons to believe in you.”

We look forward for your valuable comment www.carajput.com

FOR FURTHER QUERIES CONTACT US:

W: www.carajput.com             E: info@carajput.com            T: 011-233-4-3333 , 9-555-555-480

Disclaimer:

All efforts are made to keep the content of this site correct and up-to-date. But, this site does not make any claim regarding the information provided on its pages as correct and up-to-date. The contents of this site cannot be treated or interpreted as a statement of law. In case, any loss or damage is caused to any person due to his/her treating or interpreting the contents of this site or any part thereof as correct, complete and up-to-date statement of law out of ignorance or otherwise, this site will not be liable in any manner whatsoever for such loss or damage.

The visitors may visit the web site of Government site Like Income Tax Department, Services Tax, Excise, Etc for resolving their doubts or for clarifications.

CORPORATE AND PROFESSIONAL UPDATE JAN 07, 2017

Professional Update for the Day:

tp-and-business-restructuring_raw

Direct Tax:-

  • CBDT issues circular for TDS on salary for FY 2016-17 Vide Circular No 01/2017. Circular contains rates of deduction of income-tax on income chargeable under the head “Salaries” and provide illustrations on calculation of tax liability.
  • CBDT issues Press release regarding India and Kazakhstan signing Protocol to amend the Double Taxation Avoidance Convention (DTAC).
  • In revised GST Model Law, business vertical has been defined in sec 2(18) itself & reference to AS-17 (Segment Reporting) has been removed.

Indirect Tax:-

  • CESTAT Mumbai held that as per rule 11(1) of CENVAT Credit Rules, 2004 read with Notification 23/2004 – CE, the amount of credit earned by the manufacturer under CENVAT Credit Rules, 2002, which existed prior to 10.09.2004, can be utilized by them as per transitional rule 11 of the new CENVAT Credit Rules, 2004. [ Arbes Tools Pvt. Ltd. Vs CCE ]
  • Madras High Court has held that the assessee is entitled to Service Tax Credit on catering services. M/s IP Rings Ltd v. CESTAT Chennai.

Other Update:-

  • SEBI relaxes rules for angel funds to boost start-up funding .To give a fillip to start-up funding; markets regulator SEBI has relaxed its rules for investment by angel funds.
  • Securities and Exchange Board of India (SEBI) has issued much awaited guidance note on board evaluation.

Key Dates:-

  • Due date of deposit of Tax deducted/collected for month of December – 07.01.2017.
  • Return by units paying duty > 1 crore (CENVAT + PLA) for December – 10.01.2017.
  • Return of Non SSI assesses for December – 10.01.2017.
  • Return of SSI assesses for quarter ending December – 10.01.2017.
  • Return for EOUs for December – 10.01.2017.
  • Due date to deposit of DVAT of December – 21.01.2017.

“Optimism is the faith that leads to achievement. Nothing can be done without hope and confidence.”

“Birth & Death are two fixed ends, the game is in between. It’s not that you have to win every time, but more important is how you participate.”

We look forward for your valuable comment www.carajput.com

FOR FURTHER QUERIES CONTACT US:

W: www.carajput.com             E: info@carajput.com            T: 011-233-4-3333 , 9-555-555-480

Disclaimer:

All efforts are made to keep the content of this site correct and up-to-date. But, this site does not make any claim regarding the information provided on its pages as correct and up-to-date. The contents of this site cannot be treated or interpreted as a statement of law. In case, any loss or damage is caused to any person due to his/her treating or interpreting the contents of this site or any part thereof as correct, complete and up-to-date statement of law out of ignorance or otherwise, this site will not be liable in any manner whatsoever for such loss or damage.

The visitors may visit the web site of Government site Like Income Tax Department, Services Tax, Excise, Etc for resolving their doubts or for clarifications.

CORPORATE AND PROFESSIONAL UPDATE JAN 06, 2017

Professional Update for the Day:

Company-name-approval-in-india-venture-care-750x422

Direct Tax:-

  • CBDT has issued press circular regarding signing of three more Advance Pricing Agreements (APAs). These agreements pertain to the Engineering goods & Shipping sectors of the economy. The international transactions covered in these agreements include Intra-group services & support services.
  • Punjab & Haryana Court in the below cited case held that deduction under section 80IB is allowable over the period of 6 years which follows that conditions for claiming deduction must remain fulfilled in all years for which deduction being claimed.
  • Supreme Court in Gopal and Sons(HUF) vs. CIT Kolkata-XI has held that even if a HUF itself is not a registered shareholder, the provisions of deemed dividend are attracted once the payment is received by the HUF, and shareholder is a member of the said HUF and has substantial interest in it.

Indirect Tax:-

  • CBEC has issued a circular via circular no. 1/2017- Customs regarding extending the Single Window Interface for Facilitation of Trade (SWIFT) to Exports.
  • Supreme court in the below cited case held that in case the goods are purchased from other states or are imported from outside the country for the purpose of only using in the works contract, then the transaction would be covered under the Central Sales Tax Act and not liable to tax under local VAT act. [Commissioner, Delhi Value Added Tax Vs M/s. ABB ltd.]

GST Update:-

  • GST aggregate turnover includes exports, exempt (including non-taxable) & inter-state supplies calculated PAN wise on all India basis.

Other Update:-

  • Finance Minister expressed confidence that direct and indirect tax mop-up will surpass budget estimate of Rs.16.3 lakh crore by March-end.
  • SEBI issued Guidelines for participation/functioning of Eligible Foreign Investors (EFIs) and FPIs in International Financial Services Centre (IFSC).
  • ICAI  issued exposure draft standard on auditing (SA) 720 (Revised) The auditor’s responsibilities relating to other information.

Key Dates:-

  • E-Payment of Service Tax for the month of December – 06.01.2017.
  • Due date of deposit of Tax deducted/collected for month of December – 07.01.2017.
  • Due date to deposit of DVAT of December – 21.01.2017.

“Infuse your life with action. Don’t wait for it to happen. Make it happen. Make your own future. Make your own hope.”

“There is nothing called “Darkness”, It’s just absence of light.similarly,  there is nothing called “Problem”. It’s just Absence of an idea to find solution.”

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FOR FURTHER QUERIES CONTACT US:

W: www.carajput.com             E: info@carajput.com            T: 011-233-4-3333 , 9-555-555-480

Disclaimer:

All efforts are made to keep the content of this site correct and up-to-date. But, this site does not make any claim regarding the information provided on its pages as correct and up-to-date. The contents of this site cannot be treated or interpreted as a statement of law. In case, any loss or damage is caused to any person due to his/her treating or interpreting the contents of this site or any part thereof as correct, complete and up-to-date statement of law out of ignorance or otherwise, this site will not be liable in any manner whatsoever for such loss or damage.

The visitors may visit the web site of Government site Like Income Tax Department, Services Tax, Excise, Etc for resolving their doubts or for clarifications.

CORPORATE AND PROFESSIONAL UPDATE JAN 03, 2017

Professional Update for the Day:

11987074_919610658111019_5991428056741075136_n

Direct Tax:-

  • CBDT has issued a press release regarding signing of Third Protocol between India and Singapore for amending the Double Taxation Avoidance Agreement (DTAA) for the avoidance of double taxation & prevention of fiscal evasion with respect to taxes on income.
  • Gujarat High Court held that a reference to the Transfer Pricing Officer(TPO) can be made only after passing a speaking order disposing of the objections raised by the assessee. In this case, the reference was made without passing such a speaking order, the reference so made was invalid. [M/s Alpha Nipon Innovatives Ltd. Vs CIT]
  • Income from vacant house property – income would not be assessed under Section 23(1)(c) but under Section 23(1)(a) – Punjab And Haryana High Court in case of [Susham Singla Vs. The CIT, Patiala].
  • Whether the provisions of Section 36 and Section 43-B are mutually exclusive and the Assessee is legally entitled to claim deduction of employees’ contribution to provident fund and ESI u/s 43-B as amended vide FA, 2003, even if the said deduction was not admissible u/s 36(1)(va) – Held Yes – Allahabad High Court in case of [Sagun Foundry Private Limited Vs. CIT, Kanpur].

Indirect Tax:-

  • Punjab & Haryana High Court has held that Input Tax Credit cannot be disallowed merely for a technical defect in the VAT Invoice such as not mentioning of words “ Input Tax Credit is available to a person against this copy” as per Rule 54 of the Punjab VAT Rules, 2005. [M/s Avdesh Tracks Pvt. Ltd. Vs State of Punjab & another]
  • Service tax dept. pulled up for unfair arrest of Make My Trip top officials; HC ordered tax refund. Makemytrip (India) (P.) Ltd. v. Union of India [2016] (Delhi).

MCA Update:-

  • MCA has notified the Companies (lncorporation) Fiffh Amendment Rules, 2016 which shall be applicable with effect from 1st Day of January, 2017.

ESIC Update:-

  • ESI applicability salary limit increased from Rs 15,000 PM to Rs 21,000 PM.

RBI Update:-

  • RBI has issued clarification on Interest Subvention Scheme for Short Term Crop Loans during the year 2016-17.

Other Update:-

  • In exercise of the powers conferred by Subsection (c) of Section 199B of the Finance Act, 2016 (28 of 2016),the Central Government in consultation with the Reserve Bank of India notified the Pradhan Mantri Garib Kalyan Deposit Scheme (PMGK), 2016.
  • NRIs and Indians returning from abroad will have to physically show the junked 500 and 1,000 rupee notes to Customs officials at the airport and get a declaration form stamped before they can deposit the demonetized currency in RBI during the grace period.

Key Dates:-

  • E-Payment of Service Tax for the month of December – 06.01.2017.
  • Due date of deposit of Tax deducted/collected for month of December – 07.01.2017.
  • Due date to deposit of DVAT of December – 21.01.2017.

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