Provisions Related to TDS Payment and Furnishing of TDS Certificate

Provisions Related to TDS Payment and Furnishing of TDS Certificate

1. Any sum deducted under section 194-IA shall be paid to the credit of the Central Government within a period of seven days from the end of the month in which the deduction is made.

2. TDS payment U/s. 194-IA  shall be accompanied by a challan-cum-statement in Form No.26QB.

3. Where tax deducted is to be deposited accompanied by a challan-cum-statement in Form No.26QB, the amount of tax so deducted shall be deposited to the credit of the Central Government by remitting it electronically within the time specified in sub-rule (2A) into the Reserve Bank of India or the State Bank of India or any authorised bank.

4. Every person responsible for deduction of tax under section 194-IA shall furnish the certificate ofdeduction of tax at source in Form No.16B to the payee within fifteen days from the due date for furnishing the challan-cum-statement in Form No.26QB.

5. Form 16B is to be generated online from the web portal.

Provisions Related to TDS Deduction and applicability

The Finance Act 2013 had provided that purchaser of an immovable property (other than agricultural land) worth over Rs 50 lakh is required to pay withholding tax at the rate of 1% from the consideration payable to a resident transferor.  The rate at which tax is to be cut is 1%, but it would go up to as high as 20% if the seller does not disclose his permanent account number.  Thisamendment is effective from 1^st June, 2013.

Key highlights of the Maharashtra budget

Key highlights of the budget are as follow:

Deputy Chief Minister and Maharashtra Finance Minister Ajit Pawar today presented Maharashtra's budget for 2013-14.
Total tax proposals to mobilize at Rs 1,150 crore
 
Increase in tax rate of gold, silver and their jewellery hiked from 1% to 1.10% for one year due to prevailing drought conditions
 
Increase in sugarcane purchase tax from 3% to 5% to raise fund for drought relief for one year
 
Tax on cigarettes hiked from 20% to 25%
 
Increase in tax on bidi from 5% to 12.5%
 
Unmanufactured tobacco to be taxed at 12.5%
 
5% levy on textile for industrial use
 
Rise in tax on certain powder, cubes and tablets from which non alcoholic beverages are prepared to 12.5% from 5%
 
Increase in tax on Paver blocks from 5% to 12.5%
 
Increase in tax on Lottery: Tax on weekly lottery will be Rs 60,000, Tax on fortnightly lottery scheme or any lottery scheme between a week and a fortnight Rs 1,25,000, Tax on monthly lottery scheme or any lottery scheme of any duration exceeding fortnight Rs 2,50,000
 
Financial Institutions liable to pay stamp duty on mortgage deeds
 
Rounding off fractions in stamp duty payable.
 
If agreement to sale is registered by paying proper stamp duty by treating as deemed conveyance deed will be charged with Rs 100 stamp duty
 
Increase in excise duty on Country Liquor to Rs 110 per proof litre from Rs 95 per proof litre,

Excise duty on Indian Made Foreign Liquor hiked from Rs 240 per proof litre to Rs 300 per proof litre,

On fragmented strong beer Rs 60 per bulk litre or 200% per cent of the manufacturing cost whichever is higher. Earlier rate on fermentes strong beer was Rs 42 per bulk litre or 175% of manufacturing cost whichever is higher
 
Increase in export fee on Indian Made Foreign Liquor (IMFL) having maximum retail price less than Rs 500 to Rs 3 per bulk litre from Re 1 per bulk litre
 
Export fee on IMFL having maximum retail price of Rs 500 or more is Rs 5 per bulk litre. It will now be increased to Rs 10 per bulk litre.
 
Tax Mobilisation to surge
 
Sales Tax & VAT Rs 62,422 crore in 2013-14 compared to Rs 53,361 crore in 2012-13

Amnesty Scheme for Service Tax Defaulters

Voluntary Compliance Encouragement Scheme, 2013 (VCES) – To motivate about 10 lakh of those registered assesses of service tax, who are not filing returns and paying tax dues, the Finance Minister has proposed to introduce a one-time scheme called ‘Voluntary Compliance Encouragement Scheme’ in 2013-14 Budget proposals. Under this scheme a defaulter can file a truthful declaration of service tax dues since 1st October, 2007 and make the payment in one or two installments before prescribed dates. In such a case, interest, penalty and other consequences will be waived.1 Scheme is proposed to be introduced to encourage voluntary compliance with the following main features:

(i) The scheme can be availed of by non-filers or stop-filers or persons who have not made a truthful declaration in their return. However it will not be applicable to persons against whom any inquiry or investigation is pending by the issue of search warrant or summon or by way of audit;

(ii) The defaulter will be required to make a truthful declaration of all his pending tax dues (from October1, 2007 to December 31, 2012) and pay at least half of that before December 31, 2013; remaining half to be paid by:

(a) June 30, 2014 without interest; or

(b) By December 31, 2014 with interest from July 1, 2014 onwards;

(iii) On compliance with all the requirements the person will have immunity from interest (as specified), penalties and other proceedings;

2 The scheme will come into force when the Finance Bill is enacted. It is clarified that the tax-payers will need to settle their dues for the period after December 31, 2012 under the present law.

Link to Download Service Tax Voluntary Compliance Encouragement Scheme,2013 - 

http://taxguru.in/wp-content/uploads/2013/03/bill6.pdf

HIDDEN PROPOSALS IN BUDGET 2013-14

Hidden proposal I --in Income Tax Act 1961 by Finance Bill 2013

Under the existing provisions of section 56, the transfer of immoveable properties (stamp value of which exceeds Rs.50,000) without consideration is treated as income in the hands of recipient but transfer of such property for inadequate consideration is outside the ambit of such provisions.
It is now proposed that if the consideration for transfer of such property is less than the stamp duty value of the property by an amount exceeding Rs.50,000/-then the difference between the stamp duty value and the stated consideration shall be treated as income of the recipient.
For example, the stamp duty value of the property is one lakh while the consideration for transfer is Rs.30,000/-. The difference of Rs.70,000/- shall be deemed income of the recipient.
However, it is also proposed that where the date of agreement and date of registering the document is different then, stamp duty value would be taken as on the date of agreement provided such consideration or part thereof had been paid by any mode other than cash on or before the date of agreement.
Necessary amendment is being proposed in section 56.

Hidden proposal II --in Income Tax Act 1961 by Finance Bill 2013

Agricultural income & capital gain on agricultural land:

under the existing provisions, the distance from the limits of the municipality is to be measured by road. It is now proposed that distance is to be measured aerially. How the aerial distance will be calculated is not prescribed.
Further, under the proposed amendment, the distance from the municipality shall now be 2 KM from the local limits of municipality having population of more than 10000 but not exceeding one lakh; 6 KM from the local limits of municipality having population of more than one lakh but not exceeding ten lakhs; and 8 KM from the local limits of municipality having population of more than 10 lakhs.
(The necessary amendments have been made in sections 2(1A) & 2(14))

Hidden proposal III --in Income Tax Act 1961 by Finance Bill 2013

Under the existing provisions, the provisions of section 50C are applicable only to the transfer of capital assets. Such provisions are not applicable to sale or transfer of immoveable properties by a person engaged in the business of real estate.
It is now proposed to insert section 43CA, similar to section 50C, so as to apply such deeming provisions to the transactions of transfer of immoveable properties by a person engaged in the business of real estate. For example, if the builder transfers a flat to the buyer at a consideration of Rs.30 lakhs but value for the purpose of stamp duty is taken at Rs.35 lakhs then, the profit of the builder shall be computed as if the sale consideration is Rs.35 lakhs.
It is also proposed that the existing provisions of section 50C(2) will apply to such transactions also.
However, it is also proposed that where the date of agreement and date of registering the document is different then, stamp duty value would be taken as on the date of agreement provided such consideration or part thereof had been paid by any mode other than cash on or before the date of agreement.

HIGHLIGHTS BUDGET 2013-14 INDIRECT TAXES

Indirect Taxes

1. Service Tax on AC Restaurants

2. 2% customs, CVD on coal imports

3.  Excise duty raised by18% for cigarettes

4.  Cut abatement rate on expensive homes to 75%

5.  Customs duty unchanged for non agri products

6.  Extend tax benefit to electrical vehicles

7.  Excise duty on SUVs raised from 27% to 30%. Will not apply to SUVs registered as taxis

8.  Amnesty Scheme for Service Tax Defaulters

9.  Exempts imported ships and vessels from duty

10.  Excise Duty cut on leather, leather good machines

11.  No Change in Normal Rate of Service Tax & Excise Duty

12.  Import Duty Hiked on Set top boxes

HIGHLIGHTS OF BUDGET 2013-14 DIRCT TAXES

1 Tax credit of '2,000 for income up to '5 lakh:   2 Additional surcharge on taxes only for 1 year:   3 To continue with education cess at 3%:   4 10% surcharge on companies with income over '10 cr:   5 DDT surcharge raised to 10% from 5%:   6 Extend 80IA by 1 year:   7 Tax holiday for power plants extended to March 2014:   8 15% tax on dividend from overseas arms to continue:   9 FY14 fiscal deficit seen at 4.8% vs 5.2% in FY13:   10 TDS at 1% of land deals over '50 lakh:   11 To reduce STT on equity futures, MF units:   12 Agri commodities to be exempt from CTT:   13 To introduce CTT on non agri futures contracts at 0.1%:   14 To incorporate decisions on GAAR:   15 STT reduced from 0.17% to 0.1%:   16 DTC is work in progress:

MCA Site not Working –What to do?

MCA has kept entire corporate on hold. New companies are not incorporating and existing companies can’t file their returns due. On 17 January 2013, MCA changed its drivers of site. Earlier TCS use to manage MCA21, not batten has been passed to Infosys. The site is under transitional stage and hence some problems are bound to occur. We don’t blame MCA for it, because MCA21 has drastically improved filling and compliance in India. It’s a e-governance project, which the government can definitely boast of.

My concern is different. MCA has not given any clarifications waiver of additional fees, whose due date falls between this period. They have extended time limit for filling 23AC/ACA and Cost Compliance Report in xbrl mode. But they have not done the same in case of other forms.

Let us say, if I have changed my registered office on 24 December 2012, I have to file Form 18 latest by 23 January 2013. However, site is non-functional during this time period. Let us assume that site become operational today i.e. 2 February 2013. If I try to upload that form, MCA will demand additional fees.

This is injustice for all corporate. They have been charged additional fees without their fault. MCA should come out with solution to this problem. They must relax due dates of forms which falls due during this transits period. Due date shall be extended to 15 February 2013 or any other reasonable duration for all forms.

MCA shall work out this solution at the earliest in the best interest of stakeholders.