India Taxes- Due Date Alert for the month March 2015

 

No	Due Date	Related to	Compliance to be made
1	05.3.2015	Service Tax	Payment of Service Tax for the Month of February 2015
2	07.3.2015	TDS/TCS (Income Tax)	·        Deposit TDS for payments of Salary, Interest, Commission or Brokerage, Rent, Professional fee, payment to Contractors, etc. during the month of February 2015. ·        Deposit TDS from Salaries  deducted during the month of February 2015 •   Deposit TCS for collections made under section 206C including sale of scrap during the month of February 2015, if any •    Deliver a copy of Form 15G/15H, if any to CCIT or CIT for declarations received in the month of February 2015, if any
3	20.3.2015	VAT	Payment of VAT & filing of monthly return for the month of February 2015
4	20.3.2015	STPI	Filing of Softex Form for the month ended February 2015
5	31.3.2015	Service Tax	Payment of Service Tax for the Month of March 2015
6	15.03.2015	Income Tax	Payment of Last instalment of advance tax (100%) for corporate

Detailed Highlights of Railway Budget-2015

Union Railway Minister Suresh Prabhu on Thursday presented his maiden Rail Budget in Lok Sabha. The key themes of the Budget were in line with Prime Minister Narendra Modi's initiatives - Swachch Bharat Mission, Make in India and Digital India. Here are the key highlights from Rail Budget 2015:

CSR Expenditure under Income Tax Act,1961

According to estimates given by E&Y ,the new regulation of CSR will cover 3,000 companies and result in about more than $2 billion expenditure on social initiative in India. While Government estimated expenditure under social service head for 2014-15,which include health, education etc amount to $4.10 billion alone while estimated CSR spending of $2 billion itself indicate that CSR becoming strong catalyst in India’s social upliftment process.

Whether if an assessee once accepts a judicial order, it is not open to it to assail same for reasons that different decisions were subsequently rendered on same issue - YES: HC

THE issue before the Bench is - Whether if an assessee once accepts a judicial order, it is not open to it to assail the same for reasons that different decisions were subsequently rendered on the same issue. YES is the answer.

Facts of the case

The Tribunal's order for the AY 2003-04 was received by the applicant on 26.11.2008. The plea of the applicant before the Tribunal was inter-alia in regard to the principle of mutuality in regard to transfer fees received by the applicant. The Tribunal following the decision of the

Whether non-disclosure of fact during assessment that assessee did not have licence to manufacture, would amount to 'reasons to believe' for purpose of issuing notice u/s 148 - YES: HC

THE issue before the Bench is - Whether non-disclosure of fact by the assessee during assessment that he did not possess factory license to manufacture, would prima facie amount to "reasons to believe" for purpose of issuing notice u/s 148. And the answer favours the Revenue.

Facts of the case

The assessee company is engaged in the business of manufacturing speciallized Hi tech disinfectents. While filing its return, the assessee claimed deduction u/s 80IB(4) on its two Units

Section 11 A Of the central excise act – pay- Ment of different duty at the time of issue of supplementary invoices – SCN issued after one year for demanding ‘interest’ on such differential duties paid by the assesses – held such notices are barred by limitation

.

Neel Metal Products Ltd. Vs. CCE [2014] 50 Taxmann.com 225 ( Punjab & Haryana )

Facts:

The assessee, a manufacturer of auto components, sheet metal components and tools entered into long term contracts with automobiles companies for sale of finished excisable goods. On price revision, differential excise duty was paid at the time of issue of s

Taxation of Derivatives

Since, there is no transfer or delivery of the underlying asset in case of futures, the income or loss from it cannot be taxed under the head “capital gains. Therefore, depending upon the fact whether the assessee is a trader or an investor, the head of income — that is, income from business and profession or income from other sources (IFOS) — will be determined, but in either case the income will be taxed on net basis at the rates of tax applicable to the assessee.

Consequences of failure to pay the demand.

As per the provisions of section 220 of the Act, Any amount, specified as payable in a notice of demand shall be paid within thirty days of the service of the notice.

Useful Handbook Download, Published by TRACES CPC (TDS) for all Taxpayee and TDS Deductors/Collectors.

Recently a Hand Book published by Centralized Processing Cell (TDS) for all Taxpayee, Deductors/Collectors and others regarding 'Tax Credit, Online View of 26AS Statement, TDS Certificates, TDS Defaults etc.  This Hand book is very useful for all above.  Some important views about how to work TRACES CPC (TDS).

Charges collected for late filing of TDS return is a fees and not a tax

The fee sought to be levied under section 234E for late filing of TDS return is not a tax that is sought to be levied on the deductor. If the section does not empower the AO to condone the delay for furnishing of TDS return, then the said section shall not stand onerous.

Whether before invoking provisions of Sec 158BD against a person other than person whose premises were searched, conditions precedent are to be satisfied - YES: HC

THE issue before the Bench is - Whether before the provisions of Section 158BD are invoked against a person other than the person whose premises have been searched u/s 132 or documents and other assets have been requisitioned u/s 132A, the conditions precedent have to be satisfied. And the assessee's writ is allowed.

CBDT clarifies no interest levy for delay in furnishing tax return if tax is paid before due date for filing tax return

We are pleased to release an alert which explains Circular No.  2/2015 dated 10 February, 2015 (Circular) issued by Central Board of Direct Taxes (CBDT), being highest administrative body under the Indian Tax Laws (ITL), on levy of interest for delay in furnishing of return of income (ROI).

The ITL provides for levy of interest for delay in furnishing ROI beyond specified due date. Interest is levied on the amount of outstanding tax due after considering taxes paid during the tax year by way of advance tax, withholding tax, foreign tax credit etc. However, express language of the provision does not reckon credit of taxes paid during the period between end of tax year and due date of filing ROI (known as “self-assessment tax” or SA Tax).

I

Understanding process of obtaining lower rate of TDS certificate u/s 197

The posting had been move to another website. Please click the link below to get the access of the same.  


https://taxofindia.wordpress.com/2015/12/01/understanding-process-of-obtaining-lower-rate-of-tds-certificate-us-197/ 

Supply of final product to SEZ ‘developer’ – period prior to 31-12-2008 – NO. Reversal of CENVAT credit under rule 6 – notification no. 50/2008- C.E.(N.T.) Dated 31-12-2008 held retrorespective.

Commissioner of central Excise & Services Tax. Large Taxpayers Unit vs. Fosroc Chemicals (India) (P.) ltd.  [2014] 50 taxmann.com 389 (Karnataka)

 

§  Facts :

Assessee – Manufacturer made clearance of their final products to SEZ Developers

Even if gains have accrued on execution of the development agreement as per Chaturbhuj Dwarkadas, the subsequent modification/ supercession of the agreement means that gains are not taxable as per real income theory, (ii) expenditure on buy-back of shares of warring shareholders is business expenditure

CIT vs. Chemosyn Ltd (Bombay High Court)

(i) Even if gains have accrued on execution of the development agreement as per Chaturbhuj Dwarkadas, the subsequent modification/ supercession of the agreement means that gains are not taxable as per real income theory, (ii) expenditure on buy-back of shares of warring shareholders is business expenditure

The High Court had to consider two issues:

(

S. 147: S. 143(3) assessment order is not a scrap of paper & AO is expected to have applied his mind. Reopening on ground of "oversight, inadvertence or mistake" is not permissible

CIT vs. Jet Speed Audio Pvt. Ltd (Bombay High Court)

The assessee made a claim for deduction for bad debts which was allowed by the AO u/s 143(3). Subsequently, within four years from the end of the assessment year, the AO reopened the assessment u/s 148 on the ground that the amount written off as bad debts was a capital loss and could not allowed as a deduction. The Tribunal allowed the assessee’s appeal and quashed the reassessment proceedings. Before

Five smart things to know about direct taxes

1. Direct   taxes are paid by an individual or organisation to the government and cannot
be passed on to another individual or entity.

2. The most common example   of a direct tax is the income tax that individuals and corporates pay. Wealth tax is another direct tax that is   levied by the government.

3. The rates of direct taxes are prescribed   every year in the Finance Act, presented to the parliament with the Union Budget.

4. The Central Board of Direct Taxes,  ..a part of the Ministry   of Finance, is responsible for administration of the direct tax laws through   the income tax department.

5. The Income Tax Act and the Wealth Tax Act   prescribe the manner in which the tax will be levied, computed and collected,   and the rights of the tax payers.

Calculation of House Rent Exemption, Benefits and is PAN mandatory of Landlord for Salaried Employee.

With handful of options to save tax for the salaried taxpayers, one can definitely explore the possibility of reducing tax bill by revisiting the exemption & deduction provision. One such tool is claiming an exemption towards rent payment of residential accommodation.

Whether matter requires fresh consideration when there exists confusion about fact that Settlor and beneficiary is one and same - YES: ITAT

THE issue before the Bench is - Whether matter requires afresh consideration when there exists confusion about the fact that the Settlor and beneficiary are one and the same and further no verification has been done regarding the income being taxed in the hands of the ultimate beneficiary. YES is the answer.

Facts of the case

Tax Residency Certificate - A must for claim of benefits under DTAAs

THE Finance Minister as part of the Finance Bill, 2012, has proposed to introduce the requirement of a Tax residency certificate into the tax provisions making it mandatory for every non-resident to obtain a certificate from the Government of the country in which such person is a resident for evidencing such person's residency in that country. This is one such amendment that was adopted out of the proposals in the Direct Taxes Code Bill. The Finance Bill proposes that the benefits contained in the Double taxation avoidance agreements (DTAA) signed between India and the respective