TDS

SC ruling: No TDS on payment of Royalty to Non resident

Income Tax - The Hon’ble Supreme Court on 2nd March 2021 in the case of Engineering Analysis Centre of Excellence Private Limited Vs CIT, put a rest to the contentious issue of tax on Payment by end users or tech companies in India to suppliers abroad on import of software as ‘Royalty’. Let’s understand what was the issue […]...

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Taxation of Royalty – the SC puts a period to an ever lasting saga

Income Tax - Supreme Court Judgement in the case of Engineering Analysis Center of Excellence Private Limited vs. The Commissioner of Income Tax – dated 2nd March, 2021 TDS on Software purchased from Non-Residents ♠ The matter before the Supreme Court was – Whether payment made to Non-residents in the following 4 cases are ‘Royalties’ as per...

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Roles & Responsibilities of Banks Increased by Income Tax Departments

Income Tax - MAJOR INCOME TAX COMPLIANCE LIABILITIES ON BANKS- 1. REPORTING OF HIGH VALUE TRANSACTIONS- High Value transactions are transactions which are incurred in high denominations. Banks are required to intimate about following high value transactions to Director of Income-tax (Intelligence and Criminal Investigation) by filing Form 61A called S...

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Applicability of Section 194Q TDS on Purchase of Goods

Income Tax - Applicability of Tax Deducted at Source (TDS) u/s 194Q on Purchase of Goods- In the Budget 2021-22, a new section 194Q introduced which will be effected from 1st July 2021. This Article explains What is section 194Q, Time of Deduction of TDS under Section 194Q,  Exception to TDS Deduction under Section 194Q, TDS Rate under […]...

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Sec 194Q TDS on Purchase on Goods worth Exceeding Rs. 50 Lakhs | Correlation with 206C(1H)-TCS on Sale of Goods

Income Tax - Sec 194Q-TDS on Purchase on Goods worth Exceeding Rs. 50 Lakhs | Correlation with 206C(1H)-TCS on Sale of Goods Introduction: Budget 2021 proposes to introduce new Section 194Q.It would be effective from 01.07.2021. Who is Required to Deduct TDS: Buyer: Turnover exceeds Rs. 10 cr in preceding FY. When: Buyer is responsible for paying a s...

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e-TDS TCS RPU Version 3.5, FVU 2.166 & FUV 7.0 wef 01.01.2020

Income Tax - A. e-TDS/TCS RPU version 3.5 for Statement(s) from FY 2007-08 onwards is released (01/01/2021). Key Features – Return Preparation Utility (RPU) version 3.5 1. Addition of Section code 1940 for Form 26Q:- 1940 – TDS on e-Commerce transactions This section will be applicable for regular and correction statements pertaining to FY 202...

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ICAI requests for extension of various Income-tax due dates

Income Tax - Direct Taxes Committee of ICAI has Request(s) for extension of various due dates under Income-tax Act, 1961 especially Tax Audit Reports and related returns including Income Tax Return Forms for AY 2020-21 to Chairman, Central Board of Taxes.  Full text of the Representation is as follows:- Request(s) for extension of various due dates u...

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BCAS Representation to CPC on Difficulties faced by the taxpayers

Income Tax - BCAS has made an excellent Representation to CPC on Difficulties faced by the taxpayers alongwith their suggestions to remove the difficulties. Difficulties which BCAS bring to the attention of CPC are as follows:- Providing correct TDS credit, Satisfactory solution to be provided for grievances raised in Income-tax Portal, Demand rectifi...

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New feature in income tax portal – “Check the TDS rate applicability u/s 194N”

Income Tax - As per Sec 194N of the income tax act, TDS is to be made [email protected] 2% if the aggregate cash withdrawal/s exceeds 1 crore – where the ITR is filed for the preceding previous year. [email protected] 2%, where withdrawal exceeds Rs.20 lakhs but not Rs.1 crore, @ 5% where withdrawal exceeds Rs. 1 crore — […]...

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New e-TDS/TCS RPU Version 3.4 & FUV version 6.9 & version 2.165

Income Tax - Key Features of e-TDS/TCS Return Preparation Utility Ver. 3.4 for Regular & Correction Statement(s) from FY 2007-08 onwards 1. Section codes 194LBA(a) and 194LBA(b) for Form 26Q:- Existing section code 194LBA has been sub-divided into below mentioned two sections: 194LBA (a) – Certain income in the form of interest from units of...

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TDS not deductible by Uber India on Payments to Driver Partners

Uber India Systems Private Limited Vs JCIT (ITAT Mumbai)  - Uber India Systems Private Limited Vs Jt. CIT (ITAT Mumbai) Uber B.V. is involved in rendering lead generation service to the Driver-Partner and transportation service is not provided by Uber B.V. or UISPL. The transportation service is provided by the Driver- Partner to the User for which the car i...

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No TDS on refundable Security Deposits given to Landowners

Prestige Estates Projects Ltd Vs ACIT (ITAT Banglore) - Prestige Estates Projects Ltd Vs ACIT (ITAT Banglore)  Now the issue before us is with regard to whether the amount paid by the assessee towards interest free security deposit to various land owners whether it constitutes as “Consideration” in terms of Transfer of Immovable Property. In the pre...

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SC Landmark Judgement on TDS on Royalty | Section 195 Vis A Vis DTAA

Engineering Analysis Centre of Excellence Private Limited Vs CIT (Supreme Court of India) - What is of importance is that once a DTAA applies, the provisions of the Income Tax Act can only apply to the extent that they are more beneficial to the assessee and not otherwise. Further, by explanation 4 to section 90 of the Income Tax Act, it has been clarified by the Parliament that where any ...

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SC Decision on TDS deduction on Computer Software treating as Royalty

Engineering Analysis Centre of Excellence Private Limited Vs CIT (Supreme Court of India) - Engineering Analysis Centre of Excellence Private Limited Vs CIT (Supreme Court of India) Issues Involved : 1. The amounts paid by the residents in India to non-resident, foreign software suppliers; amounts to royalty, there by necessitating withholding of taxes under section 195 of Income Tax Act. ...

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No Section 271C Penalty for Non Deduction of TDS If There was Bona Fide & Reasonable Cause

Ghaziabad Development Authority Vs  Addl. CIT (ITAT Delhi) - Ghaziabad Development Authority Vs  ACIT  (ITAT Delhi) We find that on the issue of reasonable cause u/s.273B, assessee does has a prima facie case, because as per the CBDT Circular No. 275 dated 21.09.1994, it has been clarified that responsibility for making deduction tax at source u/s. 194A sho...

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TDS and Tax on Salary | Section 192 | FY 2020-21 | AY 2021-22

Circular No. 20/2020 - (03/12/2020) - CBDT issued Income Tax Circular No. 20/2020 dated 03rd December 2020 which contains provision for TDS on Salary for the Financial Year 2020-21 under Section 192 of the Income-Tax Act, 1961. Text of the Circular is as follows:- GOVERNMENT OF INDIA MINISTRY OF FINANCE (DEPARTMENT OF REVENUE) CENTRAL B...

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CBDT clarifies doubts on account of new TCS provisions

Release ID: 1660392 - (30/09/2020) - Finance Act, 2020 amended provisions relating to TCS with effect from 1st October, 2020 to provide that seller of goods shall collect tax @ 0.1 per cent (0.075% up to 31.03.2021) if the receipt of sale consideration from a buyer exceeds Rs. 50 lakh in the financial year....

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TDS under Section 194O- CBDT issues Guidelines

Circular No. 17 of 2020-Income Tax - (29/09/2020) - Finance Act, 2020 inserted a new section 194-0 in the Income-tax Act 1961 which mandates that with effect from 1st day of October, 2020, an e-commerce operator shall deduct income-tax at the rate of one per cent (subject to the provisions of proposed section 197B of the Act) of the gross amount of s...

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New Form No. 15C- Lower TDS Application by banking company or insurer

Notification No. 75/2020-Income Tax [G.S.R. 574(E)] - (22/09/2020) - CBT notifies New FORM NO 15C under Income Tax Rulee 29B for Application by a banking company or insurer for a certificate under section 195(3) of the Income – tax Act, 1961, for receipt of interest and other sums without deduction of tax vide Notification No. 75/2020-Income Tax dated 22.09.202...

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CBDT clarifies on Validly of section 194N exemptions

Circular No. 14/2020-Income Tax - (20/07/2020) - CBDT clarifies that three Section 194N exemption notifications shall be deemed to be issued under fourth proviso to section 194N as amended by the FA, 2020. ...

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Recent Posts in "TDS"

TDS not deductible by Uber India on Payments to Driver Partners

Uber India Systems Private Limited Vs JCIT (ITAT Mumbai) 

Uber India Systems Private Limited Vs Jt. CIT (ITAT Mumbai) Uber B.V. is involved in rendering lead generation service to the Driver-Partner and transportation service is not provided by Uber B.V. or UISPL. The transportation service is provided by the Driver- Partner to the User for which the car is arranged by the Driver-Partner, all [&...

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No TDS on refundable Security Deposits given to Landowners

Prestige Estates Projects Ltd Vs ACIT (ITAT Banglore)

Prestige Estates Projects Ltd Vs ACIT (ITAT Banglore)  Now the issue before us is with regard to whether the amount paid by the assessee towards interest free security deposit to various land owners whether it constitutes as “Consideration” in terms of Transfer of Immovable Property. In the present case, as per JDA cum General Power ...

Read More

SC ruling: No TDS on payment of Royalty to Non resident

The Hon’ble Supreme Court on 2nd March 2021 in the case of Engineering Analysis Centre of Excellence Private Limited Vs CIT, put a rest to the contentious issue of tax on Payment by end users or tech companies in India to suppliers abroad on import of software as ‘Royalty’. Let’s understand what was the issue […]...

Read More
Posted Under: Income Tax |

Taxation of Royalty – the SC puts a period to an ever lasting saga

Supreme Court Judgement in the case of Engineering Analysis Center of Excellence Private Limited vs. The Commissioner of Income Tax – dated 2nd March, 2021 TDS on Software purchased from Non-Residents ♠ The matter before the Supreme Court was – Whether payment made to Non-residents in the following 4 cases are ‘Royalties’ as per...

Read More
Posted Under: Income Tax |

SC Landmark Judgement on TDS on Royalty | Section 195 Vis A Vis DTAA

Engineering Analysis Centre of Excellence Private Limited Vs CIT (Supreme Court of India)

What is of importance is that once a DTAA applies, the provisions of the Income Tax Act can only apply to the extent that they are more beneficial to the assessee and not otherwise. Further, by explanation 4 to section 90 of the Income Tax Act, it has been clarified by the Parliament that where any term is defined in a DTAA, the definitio...

Read More

SC Decision on TDS deduction on Computer Software treating as Royalty

Engineering Analysis Centre of Excellence Private Limited Vs CIT (Supreme Court of India)

Engineering Analysis Centre of Excellence Private Limited Vs CIT (Supreme Court of India) Issues Involved : 1. The amounts paid by the residents in India to non-resident, foreign software suppliers; amounts to royalty, there by necessitating withholding of taxes under section 195 of Income Tax Act. 2. Whether such is income taxable in ind...

Read More

No Section 271C Penalty for Non Deduction of TDS If There was Bona Fide & Reasonable Cause

Ghaziabad Development Authority Vs  Addl. CIT (ITAT Delhi)

Ghaziabad Development Authority Vs  ACIT  (ITAT Delhi) We find that on the issue of reasonable cause u/s.273B, assessee does has a prima facie case, because as per the CBDT Circular No. 275 dated 21.09.1994, it has been clarified that responsibility for making deduction tax at source u/s. 194A should be that of Collector (Land Acquisiti...

Read More

Roles & Responsibilities of Banks Increased by Income Tax Departments

MAJOR INCOME TAX COMPLIANCE LIABILITIES ON BANKS- 1. REPORTING OF HIGH VALUE TRANSACTIONS- High Value transactions are transactions which are incurred in high denominations. Banks are required to intimate about following high value transactions to Director of Income-tax (Intelligence and Criminal Investigation) by filing Form 61A called S...

Read More
Posted Under: Income Tax |

Applicability of Section 194Q TDS on Purchase of Goods

Applicability of Tax Deducted at Source (TDS) u/s 194Q on Purchase of Goods- In the Budget 2021-22, a new section 194Q introduced which will be effected from 1st July 2021. This Article explains What is section 194Q, Time of Deduction of TDS under Section 194Q,  Exception to TDS Deduction under Section 194Q, TDS Rate under […]...

Read More
Posted Under: Income Tax |

Sec 194Q TDS on Purchase on Goods worth Exceeding Rs. 50 Lakhs | Correlation with 206C(1H)-TCS on Sale of Goods

Sec 194Q-TDS on Purchase on Goods worth Exceeding Rs. 50 Lakhs | Correlation with 206C(1H)-TCS on Sale of Goods Introduction: Budget 2021 proposes to introduce new Section 194Q.It would be effective from 01.07.2021. Who is Required to Deduct TDS: Buyer: Turnover exceeds Rs. 10 cr in preceding FY. When: Buyer is responsible for paying a s...

Read More
Posted Under: Income Tax |

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