Three Benefits in Budget-2014 for Individual Taxpayers.

The Finance Minister had announced rising Tax Exemption Limit for individual Taxpayers by Rs. 50000/- for Male and Female as well Pensions in Budget - 2014. With this increasing exemption they can get relief in Tax of Rs. 5150.00 whose Taxable Income below Rs. 500000/- annually. This is a great benefit for Individual Taxpayers.

Twenty Four Frequently Asked Questions On Employees Provident Fund (EPFO ) Answers For You!

These are the twenty four answers on FAQs given on EPFO site. Read and enrich yourself

1) Who will be covered by the Pension Scheme?

Every member of the ceased Family Pension Scheme 1971 and anyone who joins any covered establishment on or after 16-11-95 is compulsorily to join this scheme, provided his/her salary/wage is less than Rs. 6500/- per month at the date of appointment. ( now Rs. 15000).

APPOINTMENT OF DIRECTOR

Appointment of directors for this blog post does not include re – appointment of directors as such. But surely provisions are different only on compliance with Section 160 of the Companies Act 2013.

When an appointment of a director is proposed, the process starts with Notice of candidature under Section 160.

Whether facts relating to AY 2005-06 can be assumed to be known to Revenue when it came to be known only in AY 2009-10 that interest on which deduction was claimed u/s 57 was infact related to home loan - NO: HC

THE issues before the Bench are - Whether facts related to AY 2005-06 were already known to the Revenue when it was only during the assessment proceedings of AY 2009-10 it was revealed that interest expenditure on which deduction was claimed u/s 57 was infact related to home loan; whether the theory of consistency can be applied, when each assessment is a separate assessment unit; whether the obligation of the assessee to comply with the provisions of the

More Points on India Budget 2014. - Income Tax

Ø  Introduction of Investment & Real estate trust with single point of taxation

Ø  Section 80-IA benefit extended to Slurry pipeline for transportation of Iron ore & Semiconductor water fabricator manufacturing unit.

Latest Amendments in Budget-2014 which effects on TDS Compliance u/s. 40(a(ia))

There are Three major amendments in Budget-2014 effected on TDS Compliances u/s. 40(a(ia)) regarding disallowances to 30% of the amount of expenditure claimed. These amendments will take effect from 1st April, 2015 and will, accordingly, apply in relation to the assessment year 2015-16 and subsequent years means these amendments are applicable in Financial year 2014-15 onwards which is as under:

Budget 2014 - All Service Tax Amendments with notification.

The Hon'ble Finance Minister Mr. Arun Jaitley had placed an Union Budget 2014-15 on 10th July, 2014, while presenting Budget Finance Minister introduced the Finance (No.2) Bill-2014, In this Finance Bill-2014 Finance Minister amendments made in Chapter V of Service Tax. The services sector has been ensure to its stability and continuity. The Finance Minister further carry with some little changes which has been made in Service Tax by limited figers. These all changes in previous Service Tax a set of notifications are as under:

Cancellation or surrender or Deactivation of DIN

Rule 11 of the Companies (Allotment and Qualification of Directors) Rules 2014 talk about cancellation or surrender or deactivation of Director Identification Number (DIN).

The Central Government or Regional Director (Northern Region), Noida or any officer authorised by the Regional Director may, upon being satisfied on verification of particulars or documentary proof attached with the application received from any person, cancel or deactivate the DIN in case -

(a) the DIN is found to be duplicated in respect of the same person provided the data related to both the DIN shall be merged with the validly retained number;

Changes in DIN particulars

Change is truth of life and life always moves on. This may result in change in particulars specified in Director Identification Number records.

Rule 12 facilitate intimation of these changes in particulars in DIN records.

Every individual who has been allotted a Director Identification Number under these rules shall, in the event of any change in his particulars as stated in Form DIR – 3, intimate such change(s) to the Central

Whether when assessee fails to produce any proof towards claim that goods inventorized at time of Survey also included goods received from customers, such claim is to be construed as afterthought - YES: ITAT

THE issue before the Bench is - Whether when the assessee has failed to produce any proof towards its claim that the goods inventorized at the time of survey also included the goods received from its customers for remodeling, such a claim is to be construed as an afterthought. And the answer goes against the assessee.

Facts of the case

Tax Proposal for employees in Budget 2014.

The summary of India budget impact only in respect of Income tax for employees is given below

 

1. Increase of Basic exemption limit: Major expectation of increase in basic exemption limit has been given in the budget; the limit has been increased from Rs.2 lakhs to Rs. 2.50 lakhs for

Stymying FIAT decision cleverly eased out - Rule 6 of Valuation Rules, 2000 amended

THE Supreme Court in the case of CCE, Mumbai vs. Fiat India (P) Ltd. 2012-TIOL-58-SC-CX held that where products were sold at considerable losses for an unduly long period of time for the purpose of market penetration, the transaction value cannot be accepted for the purpose of levy of excise duty. The review petitions filed by Fiat were also dismissed 2012-TIOL-110-SC-CX.

The Supreme Court in its order dated 29.08.2012 also emphatically held that merely because the assessee had not sold the cars to the related person and the element of flow back directly

Commission Agent now covered under Service Tax

ONE of the important amendment in the Place of Provision of Service Rules, 2012 (PPS) is the change in the definition of the term "intermediary", with effect from 01.10.2014.

Existing Definition:

CIRCULAR No. 178/4/2014 ST Dt. 11.07.2014 has been issued to clarify the manner of distribution of credit by Input Service Distributor.

 

The malady which necessitated the issue of this circular can be explained as under.

The relevant provision, which led to doubts was,

"credit of service tax attributable to service used by more than one unit shall be distributed pro rata on the basis of the turnover of such units during the relevant period to the total turnover of all its units, which are operational in the current year, during the said relevant period”

Explanation 3. - For the purposes of this rule, the ‘relevant period' shall be, -

TAKE CENVAT CREDIT IN SIX MONTHS ONLY OTHERWISE LAPSE

IN what could be termed a draconian development, Rule 4(1) of the CENVAT Credit Rules, 2004 is proposed to be to amended with effect from September 1, 2014 to provide that the manufacturer or the service provider should avail of CENVAT credit of the duty paid on inputs or the service tax paid on input services, within 6 months from the date of the relevant document specified in Rule 9(1) of the CCR, 2004, eg. Invoice. The proviso to Rule 4(7), in terms of which, the service recipient who has taken CENVAT credit on the basis of the receipt of the documents referred to rule 9(1) of the CCR, 2004 is required to reverse the credit if the payment is not made within 3 months of the date of the input invoice, etc. stands.

Service Tax Key Changes in Budget 2014

 

Budget 2014 has introduced numerous changes with respect to Service Tax. These changes are discussed in a chronological order (i.e. changes applicable from 11th July 2014, changes applicable from date of assent to Finance Bill, changes applicable from the date of notification after assent to Finance Bill, 1 st September 2014 and 1 October 2014) in the ensuing paragraphs:-

NOTICE U/S 148 CANNOT BE CHALLENGED IN WRIT PETITION

S. 147: In view of the verdicts of the Supreme Court in GKN Driveshafts & Chhabil Dass Agarwal a s. 148 notice & order on objections cannot be challenged in a Writ Petition

 

 

The Court had to consider whether an order passed by the AO on the objections of an assessee can be assailed before the Court under Article 226 of the Constitution of India. HELD by the High Court in the negative:

 

Whether when assessee files estimate of income showing NIL advance tax liability on basis of loss returns of previous years it attracts penal provisions of Sec 273(2)(c) - NO: HC

THE issue before the Bench is - Whether when assessee files estimate of income showing NIL advance tax liability on basis of loss returns of previous years it attracts penal provisions of Sec 273(2)(c). NO, says the High Court.

Facts of the case

The appellant is a Public Limited Company, engaged in the manufacture and sale of synthetics

CBDT Revises Monetary Limit For Filing Appeals To ITAT, High Court And SC

The CBDT has issued Instruction No 5/2014 dated 10.07.2014 whereby, with a view to reducing litigation, the monetary limits for filing of appeals by the Department before Income Tax Appellate Tribunal, High Courts and Supreme Court, have been upwardly revised.

S. 54/54F: Two flats, even though acquired under different agreements & from different sellers, are one residential unit if there is a common kitchen

CIT vs. Devdas Naik (Bombay High Court)

The department’s argument that the law laid down by the Tribunal in ITO v/s Sushila M. Jhaveri 107 ITD 327 (Mum)(SB) and confirmed by this Court in CIT v/s Raman Kumar Suri (Income Tax Appeal No.6962 of 2010, decided on 27.11. 2012) on the availability of exemption u/s 54 is applicable only when the house purchased is a single unit and not where two flats, one acquired in the assessee’s name and another jointly in the names of the assessee and his