Once we file a return of income tax to the tax authorities, it has to be assessed as a correct return unless it is a self assessment return under section 139 of Income Tax Act. The assessment of returned income involves verification and scrutiny of the details of income submitted.
With the enactment of Finance Act, 2014 on 6th August, 2014, all the provisions of Service Tax which were amended in Union Budget this year have come into force. Moreover, Government has notified the date of 1st October, 2014 as the date from which taxability of enhanced scope of Service Tax, new services and changes in exemptions will come into force.
Vide Notification No. 19/2014-ST dated 25.08.2014, Central Government has amended Service Tax Rules, 1994 whereby a new Rule, Rule 11 has been inserted w.e.f. 01.10.2014 for determination of rate of exchange. According to this rule, the rate of exchange for determination of value of taxable service shall be the applicable rate of exchange as per the generally accepted accounting principles on the date when point of taxation arises in terms of the Point of Taxation Rules, 2011.
R. Sekar, Commissioner of Service Tax, Mumbai released the Book – Law of Service Tax in India, (August, 2014) authored by Jaipur based Chartered Accountant and Service Tax expert Dr. Sanjiv Agarwal at a function in Mumbai. This new book on Service Tax is a set of two volumes comprising of whole gamut of law […]
Budget 2014 (Finance Bill, 2014) has been enacted on 6th August, 2014 with the President of India giving his assent and the Act been gazetted. Most of the tax provisions (Income Tax) shall come into force from first day of April, 2014, i.e., for the current financial year 2014-15 which is the relevant year for the assessment year 2015-16 (when you file your returns next year).
Individual assessees were required to file their income tax returns on or before 31st July, 2014. While most of the assessees would have filed the return, yet there may be many who could not file their returns by the due date for any reason – being on vacation, on official tour, for want of preparedness or even as a habit.
To broaden the tax base, negative list and exemptions have been pruned to the extent possible. The negative list has been reviewed and Service Tax currently leviable on sale of space or time for advertisements in broadcast media has been extended to cover such sales on other segments like online and mobile advertising (except in print media).
Union Budget 2014 brings a mixed bag of some relief and some hard times for service tax assessees. The changes are aimed at widening the tax base as also enhance the compliance levels. The emphasis has been on ensuring stability and continuity in the light of proposed goods and service tax, which will replace most of the indirect taxes (service tax, VAT, excise etc) by next fiscal.
Revised Rate of Interest w.e.f. 1.10.2014-Vide Notification No 12/2014-ST dated 11.7.2014, rate of interest to be charged on delayed payment of service tax has been enhanced w.e.f. 1.10.2014, based on period of delay. Thus, longer the delay period , higher would be the rate of interest payable. Accordingly, the rate of interest shall be as under :
While it could be said that the Union Budget 2014-15, the first of the present Government may be considered as a balanced exercise in the given circumstances, it provides impetus to real estate, infrastructure and social development including improved urban cities.
