Government Notification regarding deletion of entry no 94 in Schedule II(B), in UK VAT Act, 2005 dated 12.12.2014
Schedule II (B)
94. River Sand and River Bajri
Click here to download the notification
River Sand & River Bajri taxable @13.50% w.e.f. 12.12.2014
Government Notification regarding deletion of entry no 94 in Schedule II(B), in UK VAT Act, 2005 dated 12.12.2014
Schedule II (B)
94. River Sand and River Bajri
Click here to download the notification
No more unexpected / fictitious demands by CPC ITD
Worried about unexpected / fictitious demands raised by CPC Income Tax Department and got feed-up of filing applications u/s 154 but the demand is still reflecting on orders u/s 143(1).
So the wait is over, as Income Tax Department has provided few facilities to deal with the same. The details obtained from income tax site is as under:
The facility to provide response against outstanding tax demand is made available to the assessee in the e-Filing portal. After Login, select e-File then select Response to Outstanding Tax Demand and the most appropriate options may be selected to provide response.
The facility to provide Grievance relating to the CPC is made available to the assessee in the e-Filing portal. After Login, select Helpdesk --> Submit Grievance--> CPC then from the drop down select Assessment Year, category and sub category of the grievance.
Similar facility for grievance relating to e-Filing can also be submitted. After Login, select Helpdesk--> Submit Grievance--> e-Filing then from the drop down select category, sub category, summary and description of the grievance.
Source : www.incomtaxefiling.gov.in News & Updates dated 11/12/2014
Article Submitted by:
Sumit Grover
Advocate
Forgot Password for e-Filing login on www.incometaxindiaefiling.gov.in ?
Forgot Password for e-Filing login on www.incometaxindiaefiling.gov.in ?
If you have forgotten your e-Filing login password and you are
unsuccessful with the other options of resetting password, then you can
use the new facility to get direct access to your Income Tax Department
e-Filing account using the net-banking facility of your bank.
At this time the facility of direct e-Filing Login through Net banking is available through the following banks:
- Corporation Bank-Retail Banking: https://www.corpretail.com/RetailBank
- Corporation Bank-Corporate Banking: https://www.corpbank.biz/CorpBank/
- Union Bank of India: https://www.unionbankonline.co.in/
- Oriental Bank of Commerce: https://www.obconline.co.in/
- City Union Bank Ltd: https://www.onlinecub.net/
- Bank of India: http://www.bankofindia.co.in/english/home.aspx
- Kotak Mahindra Bank: https://www.kotak.com/
- Punjab National Bank: https://netbanking.netpnb.com/
- Taxpayer should be a registered user of Income Tax e-Filing Portal.
- Taxpayer should have already submitted the PAN details to the Bank. PAN is required to identify the taxpayer’s e-Filing account with the Income Tax Department.
- Taxpayer have to first go to the Internet/ Net / Online Banking website of the Bank which has already registered for this facility with the Department.
- Taxpayer after logging into his Net Banking account should select “Income Tax e-Filing Login” tab/menu item
- Taxpayer should Select the account number and enter the PAN for verification and click Submit
- Taxpayer should Accept the Rules and Regulations details
- Taxpayer should confirm that he may be redirected to his Income Tax Department e-Filing account - home page.
- Taxpayer can now reset the password and also avail of all services provided by the e-Filing Website of Income Tax Department, including, filing Income Tax Return.
Advantages of using this new facility
- Taxpayer gets direct access to his e-Filing account even if he has forgotten his password.
- Taxpayer gets a secure and safe way to login into his e-Filing account.
- Taxpayer can safeguard his e-Filing account by selecting/opting for “Password Resetting” only by using Digital Signature Certificate or through this new facility of direct login from his net-banking account, thereby preventing others from unauthorized access to his account. (coming soon….)
- Other benefits (coming soon…..)
Source : www.incomtaxefiling.gov.in News & Updates dated 11/12/2014
Article Submitted by:
Sumit Grover
Advocate
CIT vs. Sulzer India Limited (Bombay High Court) Order dated 05.12.2014
CIT vs. Sulzer India Limited (Bombay High Court) Order dated 5.12.2014
The High Court had to consider whether the
judgement of the Special Bench of the Tribunal in Sulzer India Ltd vs. JCIT 138
ITD 1 (SB)(Mum) that the difference between the Net Present Value of sales-tax
liability and its future liability is not chargeable to tax u/s 41(1) is
correct or not. HELD by the High Court affirming the judgement of the Special
Bench:
Premature payment of Sales Tax already
collected but not remitted to the Government is not covered by S. 43B. because
otherwise the provision would have been worded accordingly. The applicability
of s. 41(1)(a) has to be considered in the light of whether the liability is a
loss, expenditure or trading liability. In this case, the scheme under which
the Sales Tax liability was deferred enables the Assessee to remit the Sales
Tax collected from the customers or consumers to the Government not immediately
but as agreed after 7 to 12 years. If the amount is not to be immediately paid
to the Government upon collection but can be remitted later on in terms of the
Scheme, then, we are of the opinion that the exercise undertaken by the
Government of Maharashtra in terms of the amendment made to the Bombay Sales
Tax Act and noted above, may relieve the Assessee of his obligation, but that
is not by way of obtaining remission. The worth of the amount which has to be
remitted after 7 to 12 years has been determined prematurely. That has been
done by finding out its NPV. If that is the value of the money that the State
Government would be entitled to receive after the end of 7 to 12 years, then,
we do not see how ingredients of sub section (1) of section 41 can be said to
be fulfilled. The obligation to remit to the Government the Sales Tax amount
already recovered and collected from the customers is in no way wiped out or
diluted. The obligation remains. All that has happened is an option is given to
the Assessee to approach the SICOM and request it to consider the application
of the Assessee of premature payment and discharge of the liability by finding
out its NPV. If that was a permissible exercise and in terms of the settled
law, then, we do not see how the Assessee can be said to have been benefited
and as claimed by the Revenue. The argument of Mr. Gupta is not that the
Assessee having paid Rs.3.37 crores has obtained for himself anything in terms
of section 41(1), but the Assessee is deemed to have received the sum of
Rs.4.14 crores, which is the difference between the original amount to be
remitted with the payment made. Mr. Gupta terms this as deemed payment and by
the State to the Assessee. We are unable to agree with him. The Tribunal has
found that the first requirement of section 41(1) is that the allowance or deduction
is made in respect of the loss, expenditure or a trading liability incurred by
the Assessee and the other requirement is the Assessee has subsequently
obtained any amount in respect of such loss and expenditure or obtained a
benefit in respect of such trading liability by way of a remission or cessation
thereof. As rightly noted by the Tribunal, the Sales Tax collected by the
Assessee during the relevant year amounting to Rs.7,52,01,378/was treated by
the State Government as loan liability payable after 12 years in 6 annual/equal
installments. Subsequently and pursuant to the amendment made to the 4th
proviso to section 38 of the Bombay Sales Tax Act, 1959, the Assessee accepted
the offer of SICOM, the implementing agency of the State Government, paid an
amount of Rs.3,37,13,393 to SICOM, which, according to the Assessee,
represented the NPV of the future sum as determined and prescribed by the
SICOM. In other words, what the Assessee was required to pay after 12 years in
6 equal instalments was paid by the Assessee prematurely in terms of the NPV of
the same. That the State may have received a higher sum after the period of 12
years and in installments. However, the statutory arrangement and vide section
38, 4th proviso does not amount to remission or cessation of the Assessee’s
liability assuming the same to be a trading one. Rather that obtains a payment
to the State prematurely and in terms of the correct value of the debt due to
it. There is no evidence to show that there has been any remission or cessation
of the liability by the State Government. We agree with the Tribunal that one
of the requirement of section 41(1)(a) has not been fulfilled in the facts of
the present case (CIT vs. McDowell (Kar)
referred).
Related Judgements
The second requirement of s. 41(1) is also not satisfied because in paying the NPV of the sales-tax liability, the assessee has paid the equivalent of the Future Value of the sum. As the sum of Rs. 3,37,13,393 is the NPV of the future sum of Rs.7,52,01,378 and its…
As per an incentive scheme announced by the Government of Maharashtra, the assessee entered into an agreement to avail the benefits under deferral/1993 scheme which provides for deferment of payment of taxes. This agreement not only determined the eligibility of the assessee but also laid down the terms and…
(i) The contention of revenue is that no interest at all is payable to the petitioner under Section 244A(1)(a) and (b) of the Act unless the amounts have been paid as tax. It would not cover cases where the payment is gratuitous as is evident from the fact that…
Article Submitted by:
Mr. K.K. Juneja
Advocate
Know more about your PPF account / PPF Scheme
Till
date, the Public Provident Fund (PPF)
scheme is the most popular investment in India. If you're looking for an
exemption on the money you invest, interest that is non-taxable and a maturity
amount that is exempt from tax as well, this is the instrument for you.
So
it's no surprise that with these very prominent benefits, almost every
individual in the country has a PPF account and contributes to it religiously
every year.
But
do you really have total PPF knowledge? Are you aware of interest rate changes
in the PPF over time? Do you know that this money can never be attached to any
debt or liability i.e. it is yours forever? There are many ways in which you
can derive the maximum benefit from your PPF account.
Let's
get straight to the facts...
1.
PPF
stands for Public Provident Fund - a government backed, long term, retirement
savings instrument.
With a 15 year lock in, this is the longest horizon for
an investment that exists in India. If you are keen on a safe investment, a
decent rate of return, tax benefits (deduction and tax free interest) and have
a long term investment horizon, then the PPF is for you. It is a disciplined
investment avenue as your money is blocked for 15 years. PPF also offers loan
against the account which can help you during occasions like a wedding in the
family, further studies of your children, etc.
2.
The
main features are:
a. the 15 year lock in,
b. the E-E-E status (tax exemption on investment,
interest and maturity) under Section 80C,
c. the minimum investment of Rs. 500 p.a. and
maximum of Rs. 1.5 lakh p.a. (as per FY 2014-15 Union Budget)
d. and the interest rate which currently stands at
8.70% for this fiscal year. The interest rate will be announced annually, it is
no longer fixed at 8% p.a. In fact, the PPF interest rate has steadily dropped
over the years, and can be expected to slowly fall as the years proceed. Here’s
a look at what rates used to be in the hey-days of the PPF account:
Period
|
Interest
Rate p.a.
|
01 April 1986 - 14
Jan 2000
|
12.00%
|
15 Jan 2000 - 28
Feb 2001
|
11.00%
|
01 March 2001 - 28
Feb 2002
|
9.50%
|
01 March 2002 - 28
Feb 2003
|
9.00%
|
01 March 2003 - 30
Nov 2011
|
8.00%
|
01 Dec 2011 - 31
March 2012
|
8.60%
|
01 April 2012 till
date
|
8.70%
|
3.
An
NRI can't open a PPF account.
The rule of 25th July, 2003 states that 'Non Resident
Indians are not eligible to open an account under the PPF Scheme'. However
'Provided that if a resident who subsequently becomes a Non Resident during the
currency of the maturity period prescribed under the PPF scheme may continue to
subscribe to the Fund till its maturity, on a Non Repatriation Basis.' So if
you open it as an RI, and during the 15 year tenure become an NRI, you can continue
to invest, but on a non-repatriable basis.
4.
Number
of yearly transactions:
You can make up to 12 investments in a year into your PPF
account, in multiples of Rs. 5, but only one withdrawal in a fiscal year as discussed
in point no 7 below
5.
Account
mobility:
You can transfer your account from one 'Account Office'
to another for example for convenience if you shift home. You don't have to be
stuck with the inconvenience of a PPF Account in one city, while you are in
another.
6.
When
to invest:
The best time to invest is between the 1st and the 5th of
any month, preferably April each year. Interest is calculated for the calendar
month on the lowest balance at credit of your account, between the close of the
5th day and the end of the month, and is credited at the end of every year. But
keep in mind, this rule has recently been tweaked.
So no not only do you have to invest, but your deposit
has to clear and the money has to hit your PPF account on or before the 5th of
the month, for it to be considered for interest payment in that month.
7.
Regarding
withdrawals from your PPF account, there are 2 things you need to know:
a) Any time after the expiry of the 5th year from the
date that the initial subscription is made, you become eligible to withdraw an
amount of not more than 50% of the previous year's balance or of the 4th year
immediately proceeding the year of withdrawal, whichever is less. If you have
taken any loan on your PPF, this also gets factored in and reduces your
balance.
b) You cannot make more than a single withdrawal in the
year. You need to apply with Form C for any withdrawals.
8.
You
can close your account or continue your account without deposits after
maturity.
This is something not many people know. People usually
assume that once your 15 year period is over, you either have to extend by a 5
year block and continue making deposits, or you have to close your account. But
there is a third option. Any time after your account matures i.e. after the 15
year tenure is over, you can withdraw the balance using Form C. but this does
not have to be done immediately. As long as the funds lie in your
account, interest will continue to be paid on your account and you will receive
the total amount including interest up to the last month preceding the month in
which you apply for a withdrawal.
9.
You can continue your
account with deposits after maturity i.e. you can extend your account.
Few people know this, but the PPF account has no limit on
how many times it can be extended after the initial 15 year block matures. Yes,
there is a 15 year lock in, but then you can extend it for periods of 5 years
at a time, indefinitely. Your account continues to operate normally i.e. you
make deposits of up to Rs. 1 lakh, earn interest and renew after 5 years if you
wish. Everything remains E-E-E. To extend by a block of 5 years, use Form H.
Keep in mind that banks themselves are not aware that
there is no limit on the extension. If you ask the bank official, you will
likely be informed that you can extend it only twice, for 2 blocks of 5 years
each. However there is no such limit announced by the Government.
If you choose to leave your funds in the account, they
will continue to earn interest for as long as they lie in the account. Interest
will continue to be paid on your account and you will receive the total amount
including interest up to the last month proceeding the
month in which you apply for a withdrawal, using Form C.
10. You
can withdraw, even if you choose to extend...
If you choose to extend by subscribing for a 5 year
block, you can make partial withdrawals (using Form C again) of up to 60% of
the amount standing at your credit at the beginning of this 5 year block
period. So you do have some degree of liquidity.
11. At
any point in your life, you are allowed to have only 1 PPF account in your
name.
You can also have an account in the name of a minor child
of whom you are the parent / guardian. However that will be the child's
account, you will simply be the guardian.
If at any time it is seen that you have more than 1
account in your own name, the second account will be deactivated, and only your
principal will be returned to you. You cannot have more than 1 PPF account in
your name.
12. Is
Loan facility available on PPF account
If
you choose to take a loan against your PPF account, you can repay it within 36
months from the
1st day of the month following the month in which the loan was sanctioned. So,
if your loan is sanctioned in June 2012, the following month is July 2012, and
you have until end July 2015 to repay your loan. The interest rate charged is
2% p.a. over the prevailing PPF interest rate.
Conclusion
There's a lot to know that can help you know more about your PPF account. And if past rate
changes is anything to go by, you can expect 8.70% interest to not last
forever. As it stands today, the PPF remains E-E-E, so if you don’t have a PPF
account, then go for it and make the most of it to add to your retirement
corpus.
Article Submitted by:
Mr. Sumit Grover
Advocate
Football & Income Tax- Penalty, in both, is Hefty
Football & Income Tax- Penalty, in both, is Hefty
Arjuna (Fictional Character): Krishna, Diwali was celebrated in pomp and splendor. Following the IPL in Cricket, the “Indian Super League” for football has started. It will be really interesting game to link Football and Income Tax Provisions. Could you explain it to me in playful manner?
Krishna (Fictional Character): Arjuna, as in football, all players run behind the ball and make a goal. The referee keeps a tab on the players blows whistle and in the event of foul play penalties are incurred in the form of “Yellow Card”, “Red Card” and other penalties. The reason behind these penalties is to ensure fair play and adherence to the rules of the game. Similarly the reason behind levying penalty under income tax is to make sure that the taxpayers comply with the Income Tax Act, officer issues notices (blows whistle) and in case of foul play levies penalty. If the game of Football and Income tax Act is connected, then “Income Tax Act” becomes the “Football Ground”, “Referee” is the “Income Tax Officer”, “Goal Keeper” is “Tax Consultant”, and the most importantly the “Taxpayers” are the “Players” of the game. One can easily learn only about following tax laws with such a correlation.
Arjuna: Krishna, What are the provisions of Penalty similar to the “Yellow Card?”
Krishna: Arjuna, while playing on the Football Ground if, a player pushes other players or creates any obstruction then the referee whistles and show a Yellow Card. Yellow Card represents a mild penalty. If you look at Income Tax, the taxpayers are intimated by a prior notice and thereafter a penalty is levied. One needs to understand some provisions of mild penalty. As per Section 271 F, if Income Tax Return is not filed before the due date then a notice may be sent. After that if return is still not filed before the end assessment year, then a penalty of Rs. 5,000/- may be imposed. For e.g. Salaried assesse is required to file Return of Income tax for the year 2013-14 before 31st July 2014. If not filed till then it can be filed up to 31st March 2015 and in case of non-compliance a penalty of Rs. 5,000/- may be imposed. As per section 271 (1) (b) if the notice is unattended by the taxpayer or a reply is not received, the income tax officer may levy penalty of up to Rs. 10,000/-. Similarly as per section 271 H if incorrect TDS returns are filed then penalty of minimum Rs. 10,000/- to maximum of Rs. 100,000/- may be imposed. Apart from these, if income tax act is not conformed to, there are various other provisions under which the income tax officer may raise Yellow card.
Arjuna: Krishna, Which provisions of the income tax can fall under the “Red Card” penalty?
Krishna: Arjuna, on the Football Ground, if a player “knowingly” pushes another player or creates obstructions then the referee gives a Red Card penalty which results in the player being sent out of the ground. There are various provisions in Income Tax Act which are synonymous to the Red Card penalty. As per section 271 A if books of accounts are not maintained then penalty of Rs. 25,000/- may be imposed. If a Tax Audit is not carried out then a minimum penalty of 0.5% of the turnover or maximum of Rs. 150,000/- may be imposed. Similarly as per section 271 D and 271 E if loan or deposit is accepted or repaid in cash above Rs. 20,000/- then penalty equivalent of that amount may be levied. As per section 271 C if provisions of TDS were not followed then penalty equivalent to that amount may be levied. As per section 145 if proper books of accounts are not maintained then the penalty provisions are like the “Red Card” which means that the income tax officer rejects the books of accounts and self-assesse and impose tax, interest and penalty.
Arjuna: Krishna, it will be intriguing to know how “Penalty Kick” works on the taxpayer!
Krishna: Arjuna, Penalty Kick can have a very severe impact. In Football when the player goes in the “D” area for making a goal and opponent player knowingly obstruct then a Penalty Kick is given. After that the goal keeper can only rely on his luck to save the goal and the team may win or lose the game! Similarly if income tax provisions were knowingly not followed then a heavy penalty may be levied. In this “Knowingly” word is very important. For e.g. if taxpayer knowingly avails deduction by showing false expenditure or conceals sales and evades tax, then a heavy penalty is imposed, which is just like penalty kick. As per section 271 (1) (c) if taxpayers conceal the income or give false particulars or information of expenses or income then a penalty of minimum of 100% of tax evaded and maximum of 300% of penalty may be levied. This is one of the harsher provisions of penalty under the Income tax. Many cases are filed against this provision of penalty. Further in the game of football, in a few rare cases, a goal may be cancelled due to the “Off Side” (i.e. in wrong direction or not as per rule of the game). Similarly if wrong penalty is levied then taxpayer may get relief in the appeal. But this is possible only if provisions of the law are followed. Unaware taxpayers may suffer because of their bonafied belief.
Arjuna: Krishna, guide as to what a taxpayer should do to avoid a penalty?
Krishna: Arjuna, one of the major reasons behind levying penalty is the financial loss of the government. Loss is incurred if tax or interest is not paid on time and hence penalty is imposed. Further penalty, provisions are made for punishing tax evaders. Many Taxpayers get confused between “Tax Planning” and “Tax Avoidance”. “Tax Planning” means planning in way such that tax can be reduced in compliance with the provisions of the law. “Tax Avoidance” means evading taxes on account of wrong interpretations of tax laws or convenient negligence of the tax laws for earning unwanted benefit, because of which this penalty is imposed. Business should be carried out within the boundaries of tax laws i.e. the football should not go beyond the boundaries of ground. Mistakes do happen in life. The one who makes mistakes and learns from them goes ahead. But mistake should not be made knowingly. A good referee levies penalty as per rules of the game but doesn’t differentiate between players. Tax officers should also behave in a similar manner. The one who follows tax laws diligently should not be scared about penalties because penalties can be appealed. Please remember in following the rules of nature lies the joys of life!
Article Submitted by:
Mr. K.K. Juneja
Advocate
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