Recent Amendments in Income Tax in Finance Act, 2015

Amendments in Income tax 2015 from bharataggarwal21

New Income Tax Return Forms for the F.Y.2013-2014 A.Y.2014-2015

S.No.	Return Form	Applicable to	Download
1.	ITR-1 (SAHAJ)	For Individuals having Income from Salary/Pension or Income from One House Property (excluding cases where loss is brought forward from previous year) or Income from Other sources (excluding winning from lottery and Income from race horses)	ITR-1 Acknowledgement
2.	ITR-2	For Individuals and HUFs not having Income from Business or Profession	ITR-2 Acknowledgement
3.	ITR-4S (SUGAM)	For Individuals and HUFs whose Income includes Business Income computed in accordance with the provisions of Section 44AD or 44AE (Presumptive Business Income)	ITR-4S Acknowledgement

Service Tax on Works Contract - PPT Presentation

Service tax on works contract from bharataggarwal21

CBDT CIRCULAR NO. 1/2014 [DATED 13-1-2014] (No TDS on Service Tax Component if Shown seperately)

Subject: TDS under Chapter XVII-B of the Income-tax Act, 1961 on service tax component comprised in the payments made to residents - clarification regarding

The Board had issued a Circular No.4/2008 dated 28-04-2008 wherein it was clarified that tax is to be deducted at source under section 194-I of the Income-tax Act, 1961 (hereafter referred to as 'the Act'), on the amount of rent paid/payable without including the service tax component. Representations/letters has been received seeking clarification whether such principle can be extended to other provisions of the Act also.

Attention of CBDT has also been drawn to the judgement of the Hon'ble Rajasthan High Court dated 1-7-2013, in the case of CIT (TDS) Jaipur v. Rajasthan Urban Infrastructure (Income-tax Appeal No.235, 222, 238 and 239/2011), holding that if as per the terms of the agreement between the payer and the payee, the amount of service tax is to be paid separately and was not included in the fees for professional services or technical services, no TDS is required to be made on the service tax component u/s 194J of the Act.

The matter has been examined afresh. In exercise of the powers conferred under section 119 of the Act, the Board has decided that wherever in terms of the agreement/contract between the payer and the payee, the service tax component comprised in the amount payable to a resident is indicated separately, tax shall be deducted at source under Chapter XVII-B of the Act on the amount paid/payable without including such service tax component.

This circular may be brought to the notice of all officer for compliance

F.NO.275/59/2012-IT(B)]

Source : Internet

Service Tax - Circular No.175 /01 /2014 – ST (F.No.354/237/2013-TRU) Dated : 10th January 2014

Levy of service tax on services provided by a Resident Welfare Association (RWA) to its own members

            Service tax on ‘club or association service’ which covers Resident Welfare Association (RWA) was introduced with effect from 16.06.2005, vide section 65(105)(zzze) read with section 65(25a)[(25a) was later renumbered as (25aa)]. Under the positive list approach which was followed prior to 1^st July 2012, exemption was available under notification No. 8/2007-ST dated 01.03.2007, if the total consideration received from an individual member by the RWA for the services does not exceed three thousand rupees per month. This notification was rescinded vide notification No. 34/2012-ST dated 20^th June 2012, with effect from 1^st July, 2012.

2.         Under the negative list approach, with effect from 1^st July, 2012, notification No.25/2012-ST [sl.no.28 (c)] provides for exemption to service by a RWA to its own members by way of reimbursement of charges or share of contribution up to five thousand rupees per month per member for sourcing of goods or services from a third person for the common use of its members.

            Certain doubts have been raised regarding the scope of the present exemption extended to RWAs under the negative list approach. These doubts have been examined and clarifications are given below:

Sl. No.	Doubt	Clarification
1.	(i) In a residential complex, monthly contribution collected from members is used by the RWA for the purpose of making payments to the third parties, in respect of commonly used services or goods [Example: for providing security service for the residential complex, maintenance or upkeep of common area and common facilities like lift, water sump, health and fitness centre, swimming pool, payment of electricity Bill for the common area and lift, etc.]. Is service tax leviable? (ii) If the contribution of a member/s of a RWA exceeds five thousand rupees per month, how should the service tax liability be calculated?	Exemption at Sl. No. 28 (c) in notification No. 25/2012-ST is provided specifically with reference to service provided by an unincorporated body or a non–profit entity registered under any law for the time being in force such as RWAs, to its own members. However, a monetary ceiling has been prescribed for this exemption, calculated in the form of five thousand rupees per month per member contribution to the RWA, for sourcing of goods or services from third person for the common use of its members. If per month per member contribution of any or some members of a RWA exceeds five thousand rupees, the entire contribution of such members whose per month contribution exceeds five thousand rupees would be ineligible for the exemption under the said notification. Service tax would then be leviable on the aggregate amount of monthly contribution of such members.
2.	(i) Is threshold exemption under notification No. 33/2012-ST available to RWA? (ii) Does ‘aggregate value’ for the pusrpose of threshold exemption, include the value of exempt service?	Threshold exemption available under notification No. 33/2012-ST is applicable to a RWA, subject to conditions prescribed in the notification. Under this notification, taxable services of aggregate value not exceeding ten lakh rupees in any financial year is exempted from service tax. As per the definition of ‘aggregate value’ provided in Explanation B of the notification, aggregate value does not include the value of services which are exempt from service tax.
3.	If a RWA provides certain services such as payment of electricity or water bill issued by third person, in the name of its members, acting as a ‘pure agent’ of its members, is exclusion from value of taxable service available for the purposes of exemptions provided in Notification 33/2012-ST or 25/2012-ST ?	In Rule 5(2) of the Service Tax (Determination of Value) Rules, 2006, it is provided that expenditure or costs incurred by a service provider as a pure agent of the recipient of service shall be excluded from the value of taxable service, subject to the conditions specified in the Rule. For illustration, where the payment for an electricity bill raised by an electricity transmission or distribution utility in the name of the owner of an apartment in respect of electricity consumed thereon, is collected and paid by the RWA to the utility, without charging any commission or a consideration by any other name, the RWA is acting as a pure agent and hence exclusion from the value of taxable service would be available. However, in the case of electricity bills issued in the name of RWA, in respect of electricity consumed for common use of lifts, motor pumps for water supply, lights in common area, etc., since there is no agent involved in these transactions, the exclusion from the value of taxable service would not be available.
4.	Is CENVAT credit available to RWA for payment of service tax?	RWA may avail cenvat credit and use the same for payment of service tax, in accordance with the Cenvat Credit Rules.

3.         Trade Notice/ Public Notice to be issued. Hindi version to follow.

[Raj Kumar Digvijay]
Under Secretary to the Government of India

 

TDS ON PURCHASE OF IMMOVABLE PROPERTY

SECTION 194-IA

TDS ON PURCHASE OF IMMOVABLE PROPERTY

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Points to Remember

1. Stamp Duty Value is of no importance for applicability of Section 194-IA. The provisions of Section 194-IA are applicable only if the consideration paid or payable is equal to or more than Rs.50 Lacs.

2. TDS provisions are applicable even if the agreement or transfer took place before 01.06.2013 and the payment is made on or after 01.06.2013. If some part payment is made before 01.06.2013 then the payments made on or after 01.06.2013 will be subject to TDS.

3.  Immovable Property means any land or building or part of the building. Such property made be situated in India or outside India.

4.  The Threshold limit of Rs.50 Lacs is applicable to each and every property separately.

5. In case of more than one buyer and the share of each buyer is less than Rs.50 Lacs and the  aggregate value of property is not less than Rs.50 Lacs then TDS provisions will be applicable and each buyer will deposit the TDS according to his share in the property.

6. In case of more than one seller, if the respective shares of each seller is less than Rs.50 Lacs and the aggregate value of property is not less than Rs.50 Lacs then TDS provisions will be applicable and TDS of each seller will be deposited according to his share in the property.

HOW TO PAY TDS ON IMMOVABLE PROPERTY

Steps for Payment of Tax

1.  Login to www.tin-nsdl.com website

or

            Click on the following link

            https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp

2. Then Select Form 26QB  - Payment of TDS on Sale of Property.

3. Then Select the Financial Year

4. Provide the following details :

·     PAN of Buyer and Seller

· Complete Address of Transferee (Buyer) and Transferor (Seller)

·  Complete address of Property Transferred, Date of Agreement or Booking

·      Total Value of Consideration (Property Value)

·      Amount Paid / Credited

·      TDS rate and TDS amount

5. Then Select the Mode of Payment of Tax

·      Through Net Banking or

·      Manual payment in bank through Challan

6. Then provide the

·      Date of Payment / Date of Credit   and

·      Date of Tax Deduction

7. Type the Captcha Code (Characters) in the box  given and click on the Proceed button

8. A Confirmation page is displayed to verify the details entered.

9. If all the above detail including the name displayed (as per ITD) is correct then, click on “SUBMIT” button.

10. In case you have made a mistake in data entry, click on “EDIT” to correct the same.

11. On confirmation, nine digit alpha numeric Acknowledgment number would be generated

12. To do the required TDS payment, please click on ‘Submit to the Bank’ button

13. On clicking on Submit to the Bank, deductor will have to login to the net-banking site with the   user ID/ password provided by the bank for net-banking purpose.

14. On successful login, enter payment details at the bank site.

15. On successful payment a challan counterfoil will be displayed containing CIN, payment details and bank name through which e-payment has been made.

16. This counterfoil is proof of payment of Tax.