Income Tax : Recently, the Section 44AD has been revised and now it is applicable to all businesses instead of only to civil construction busin...
Income Tax : Form 16 or 16A are provided by employer to employee as a proof of tax deduction. At the end of the financial year, tax payers file...
Income Tax : Nowadays many people are using their own website as the source of their income. The income is for allowing other brands to put adv...
Goods and Services Tax : The State of Gujarat has shown significant interest in developing e-platform for Commercial Taxes (VAT) since last 2 years. Since ...
Service Tax : Renting of Immovable Property is one such tax under the net of Service Tax law. The levy was under controversy since years and eve...
Recently, the Section 44AD has been revised and now it is applicable to all businesses instead of only to civil construction business. On the other outset, limit of tax audit u/s 44AB is increased to Rs. 60 lakh from earlier limit of Rs. 40 lakh. Being an entrepreneur first, I had lot of disappointments on increase of limit as now there will be lesser business men falling under the tax audit bracket. While secondly, I was really happy all business men who want to show profit lesser than 8% fall under the bracket of tax audit though not directly but indirectly.
Form 16 or 16A are provided by employer to employee as a proof of tax deduction. At the end of the financial year, tax payers file their income tax returns (ITR) from the income tax details provided in form 16 or 16A. On the other side, as a part of e-governance, tax payer is provided 26AS annual statement showing his total TDS deducted during the year. This facility is available on income tax portal www.incometaxindia.gov.in.
Nowadays many people are using their own website as the source of their income. The income is for allowing other brands to put advertisements on website. The brands are interested in such website because it is niche in terms of traffic.
The State of Gujarat has shown significant interest in developing e-platform for Commercial Taxes (VAT) since last 2 years. Since December 2011, the e-Registration facility has been enabled and the procedure designed for online registration is absolutely clear and systematic approach. Not only that forms like 402-403, permissions for paying lump sum taxes under WCT Rules, WCT returns etc. have been made online and improvements in e-services is remarkable.
Renting of Immovable Property is one such tax under the net of Service Tax law. The levy was under controversy since years and eventually turned off as deemed levy and adding more pain levied from retrospective date. However for rehabilitation of service tax law in this regard the Section 80(2) was introduced in budget 2012-13.
ACES has started accepting Service Tax (ST-3) returns for the period April to June 2012 revising the earlier forms by removing few bugs. The extended time to file now is till 25th Nov for Apr to Jun 12 ST Returns. Returns for July to September 2012 is still undergoing some structural changes.
The threshold exemption limit (currently Rs. 10 lakh) is only available to service providers and not to service receivers. In this case, service tax under reverse charge is to be paid by service receivers from very first rupee paid to service providers (given that other exemptions are not available) and the amount of turnover of service receiver or service provider is totally irrelevant.
Budget 2011-12 has made many significant changes in Service Tax and also gave emphasize to penal provisions including prosecution. Section 70 of Finance Act, 1994 reading with Rule 7 of Service Tax Rules, 1994 mandates every service tax payer to file half yearly return within 25 days. If the return is not filed within the time specified then following amount of penalty is levied:
Finance Minister, since last two budgets, is planning to cover more and more TDS applicability, strict compliance of TDS provisions and heavy penal clauses for non-compliance under direct tax law. In fact, TDS is a far more easy and early collection of tax both for administration and compliance. However, every time an easy collection of tax mechanisms (like TDS) are introduced, it forces us to think if government fail to collect taxes from the person who is suppose to bare it or is government looking to emphasize on levy of taxes only and let collection be a burden on public who never intended to be the payer of tax?
With the introduction of deeming provision in the definition of Construction of Complex Service sub-clause (zzzh) of section 65(105) of the Finance Act, 1994 effective from 01-07-2010, construction of residential complex is taxable to builders and it has removed plethora of doubts regarding taxability of builder in service tax gamut.
