FAQ ON SWACHH BHARAT CESS

In his speech for Budget 2015-16 the Hon’ble Minister of Finance said that "Swachh Bharat is not only a programme of hygiene and cleanliness but, at a deeper level, a programme for preventive health care, and building awareness". Since then we all were awaiting the date from which this cess is going to be enforced. At last on 6th of Nov. 2015 Central Government issued Notification No. 21/2015-Service Tax whereby announced 15th of Nov. 2015 as the date for enforcement of Swachh Bharat Cess. 

A step further, Central Government has also cleared the doubts in the mind of general public about the utilization of the fund created out of Swachh Bharat Cess. It has been promised that the proceeds of the SBC will be credited to the Consolidated Fund of India, and the Central Government may, after due appropriation made by Parliament, utilize such sums of money of the SBC for the purposes of financing and promoting Swachh Bharat initiatives or for any other purpose relating thereto.

Read More:
https://drive.google.com/file/d/0B1rRav-P4-8Jc2tQVFJzTDhsazA/view?usp=sharing

Date of enforcement of Swachh Bharat Cess

Chapter VI (Section 119) of the Finance Act 2015 contains provisions for levy and collection of Swachh Bharat Cess (SBC). Now the Government has announced 15th November, 2015 as the date from which the provisions of Section 119 would come into effect. (notificationNo.21/2015-Service Tax, dated 6th November, 2015 refers).

Copy of Notification No. 21/2015-Service Tax:-

http://www.cbec.gov.in/htdocs-servicetax/st-notifications/st-notifications-2015/st21-2015

Simultaneously, Government has also notified levy of Swachh Bharat Cess at the rate of 0.5% on all taxable services. Effectively, the rate of SBC would be 0.5% and new rate of service tax plus SBC would be 14.5%. As such SBC translates into a tax of 50 paisa only on every one hundred rupees worth of taxable services. The proceeds from this cess will be exclusively used for Swachh Bharat initiatives.

Provided that Swachh Bharat Cess shall not be leviable on services which are exempt from service tax by a notification issued under sub-section (1) of section 93 of the Finance Act, 1994 or otherwise not leviable to service tax under section 66B of the Finance Act, 1994. 

Copy of Notification No. 22/2015-Service Tax:-

http://www.cbec.gov.in/htdocs-servicetax/st-notifications/st-notifications-2015/st22-2015

ONLINE VERIFICATION OF PAN, SERVICE TAX AND CENTRAL EXCISE REGISTRATION

PAN - Online Verification

By using the PAN Verification facility, one can know/verify the Permanent Account Number (PAN). This facility is refered to as "PAN Verification" or "Know Your PAN". This facility can be accessed from : 

https://incometaxindiaefiling.gov.in/e-Filing/Services/KnowYourPanLink.html

This facility can be used to verify the PAN of individuals as well as non-individual PAN holders like firm, company, etc. To verify the PAN one has to provide basic details of the PAN holder which cover Date of Birth/Date of Incorporation of the PAN holder and surname, middle name and first name of the PAN holder.

After providing the details in the system, the verification code appearing on the screen is to be entered and then the request is to be submitting by clicking on "Submit". On clicking "Submit" the PAN verification request will be submitted. If the details provided in the system are correct and match with the database of the Income-tax Department, the Permanent Account Number linked with the respective details will be displayed along with the name and jurisdiction of the PAN holder. The status of the PAN, i.e., whether active or not will also be displayed.

Using the above discussed facility one PAN can be verified at a time. The bulk PAN verification facility can be used by Government and non-Government entities who wish to verify multiple PANs. To use the facility of "Bulk PAN Verification" one has to get himself registered as "Bulk PAN Verification User". Check the following link for registering as a "Bulk PAN Verification User" :

https://incometaxindiaefiling.gov.in/e-Filing/Registration/RegistrationHome.html

After getting registered as a "Bulk PAN Verification User", the user can carry on verification of multiple PANs by uploading the bulk PAN verification query.

Service Tax and Central Excise registration- Online Verification

The facility enables the Assessee to view its details (name, address, location code) as present in the Assessee Master provided by CBEC. Details of Assessee codes allotted for Service Tax and Central Excise can be viewed using this facility.

https://cbec-easiest.gov.in/EST/AssesseeVerification.do

15th August

MAJOR INITIATIVE ON IMPROVING 'EASE OF DOING BUSINESS' IN INDIA

Process of applying for Industrial License (IL) and Industrial Entrepreneur Memorandum (IEM) has been made online and this service is now available to entrepreneurs on 24×7 bases at the eBiz website. This had led to ease of filing applications and online payment of service charges.

Read More:

https://drive.google.com/file/d/0B1rRav-P4-8JVkt4amhkeWtoOUE/view?usp=sharing

Extension of E.S.I. Scheme to Construction Site Workers

ESI Scheme has been extended to the construction site workers deployed in the implemented areas. In a partial modification in Instruction No. 4/99 vide a circular No. P-12(1l)- 1l/27/99-Ins.IV dated 14.06.1999 the implementation will  be  effective w.e. f. 01.08.2015.
Read more:
https://drive.google.com/file/d/0B1rRav-P4-8JLVB3Zlk4ZTVacHc/view?usp=sharing

Reporting on Fraud under Section 143(12) of the Companies Act, 2013

       With the introduction of section 143(12) of the Companies Act, 2013, the Central Government is apparently seeking the support of the auditors in bringing in greater transparency and discipline in the corporate world to protect the interests of the shareholders as also the public, at large. The Institute of Chartered Accountants has come out with a Guidance Note on Reporting on Fraud under Section 143(12) of the Companies Act, 2013 with a aim to address auditors responsibility while carrying out a limited review or other attest services, issues in reporting on section 143(12) in audit of consolidated financial statements and more of such incidental issues that would arise before the auditors in complying with the requirements of this section and the related Rules. Besides, this Guidance Note gives much needed guidance on the concepts of reasons to believe”, “suspicion”, etc., and other procedures involved.

Following presentation is based on the above subject:-

https://drive.google.com/file/d/0B1rRav-P4-8JYkdERGdLTG1Ib2c/view?usp=sharing

SIMPLIFIED ITR FORMS

Government notifies simplified ITR forms; now taxpayers earning exempt income above Rs 5,000 can file ITR-1 and 4S

https://drive.google.com/file/d/0B1rRav-P4-8JTDRkMk56Mk9xOE0/view?usp=sharing

Valuation and Abatement for Goods Transport Agency (GTA) Service

As per Serial No. 7 of Notification 26/2012-ST, dated 20/6/2012, the service tax is payable for services provided by GTA on 25% of gross amount charged. The abatement of 75% of gross amount charged is permitted for determining the value on which tax is payable. This prohibits availment of credit on inputs, capital goods and input services used for providing taxable service.

With effect from 1/4/2015, amendment has been made vide notification no.08/2015-ST, dated 1/3/2015, which has reduced abatement from 75% to 70%. Thus service tax will be payable on 30% of the value as against 25% of the value with effect from 1/4/2015.

As per notification no 14/2015-ST, dated 19/5/2015, rate of service tax has been raised to 14% with effect from 1/6/2015, instead of 12.36% (Service tax 12%, Education cess 2% and Secondary and Higher Education cess 1%) up-till 31/5/2015

Illustrations: 

Let amount of GTA service charged is Rs.50,000.00

Service Tax before 1/4/2015

Value of GTA service charged is Rs.50,000.00

Less: Abatement @ 75%              Rs.37,500.00

Taxable value                               Rs.12,500.00

Service Tax on above @12.36%  Rs.1,545.00

Service Tax after  1/4/2015 up to 31/5/2015

Value of GTA service charged is Rs.50,000.00

Less: Abatement @ 70%              Rs.35,000.00

Taxable value                               Rs.15,000.00

Service Tax on above @12.36%  Rs.1,854.00

Service Tax from  1/6/2015 

Value of GTA service charged is Rs.50,000.00

Less: Abatement @ 70%              Rs.35,000.00

Taxable value                               Rs.15,000.00

Service Tax on above @14%  Rs.2,100.00

Guidance Note on Reporting on Fraud under Section 143(12) of the Companies Act, 2013

Auditors have always had an important role to play in enhancing the credibility of the financial information.  With  the  introduction  of section  143(12)  of  the  Companies  Act,  2013, the Central Government is apparently seeking the support of the auditors in bringing in greater transparency and discipline in the corporate world to protect the interests of the shareholders as also the public, at large. 

Guidance Note on Reporting on Fraud under Section 143(12) of the Companies Act, 2013 is aimed to address the intent, scope, implementation and collateral repercussions of the provisions of this section and the related Rules on the auditors and the companies which were subject matter of much debate before this Guidance Note.

Full Text of the Guidance Note:
https://drive.google.com/file/d/0B1rRav-P4-8JalFTY1B5WGhWaWM/view?usp=sharing

Proposed TDS and TCS Amendments under Finance Bill, 2015

The Finance Bill, 2015 proposes to streamline the provisions of TDS and TCS under the Income Tax Act. The key proposals seek to bring uniformity between the TDS and TCS provisions, strengthen TDS provisions relating to salary income, resolve the uncertainty surrounding taxation of interest payments by cooperative banks to members and encompass reporting requirements under section 195(6) of the Income Tax Act to those payments that are not chargeable to income tax.

Read the Article:

https://drive.google.com/file/d/0B1rRav-P4-8JQ3docEpzOTNGZ00/view?usp=sharing

FINANCE BILL 2015-2016

FINANCE BILL 2015-2016
https://drive.google.com/file/d/0B1rRav-P4-8JWE5NTm9ORW5rQ0E/view?usp=sharing

REGISTRATION UNDER SERVICE TAX MADE MORE COMPLICATED

The Central Board of Excise and Customs vide ORDER No. 1/2015-SERVICE TAX specifies the  documentation, time limits and procedure with respect to filing of registration applications for single premises, which shall come into effect from 1-3-2015. This is in supercession of Order No. 2/2011-Service Tax dated 13-12-2011.

https://drive.google.com/file/d/0B1rRav-P4-8JTG5leE80ZDNDS28/view?usp=sharing

ASSESSEE NOT ENTITLED TO INTEREST ON REFUND OF EXCESS SELF-ASSESSMENT TAX PAID

RULES DELHI HIGH COURT

Refund of excess self-assessment paid by assessee was not eligible for interest as the provisions of Section 244A would not apply thereto.

Read More:

https://drive.google.com/file/d/0B1rRav-P4-8JODV3U3NUNGJLZjA/view?usp=sharing

VACANCY

REQUIRED ARTICLED ASSISTANTS

At Vinay Kaushik & Co. you will experience professional environment to get the valued exposure in the fields of Direct and Indirect Taxes, Corporate Laws, Labour Laws, Management consultancy, Accounting and Auditing.

Apply at the below mentioned address:

VINAY KAUSHIK & CO.

CHARTERED ACCOUNTANTS

2^ND FLOOR, MERIDIAN TOWER-II,

NEAR PASSPORT OFFICE, INDIRA GANDHI MARG,

UDHNA DARWAJA, SURAT-395003.

TEL. +261-2333527 / 6534665

CELL +9227907024

Applications may also be forwarded by Email:

vinay.kaushik@icai.org 

CBEC to curb practice of its officers of issuing Excise/ST summons in casual manner

SECTION 14 OF THE CENTRAL EXCISE ACT, 1944 - POWER TO SUMMON PERSONS TO GIVE EVIDENCE AND PRODUCE DOCUMENTS IN INQUIRIES UNDER THIS ACT - INSTRUCTIONS FOR ISSUE OF SUMMONS IN CENTRAL EXCISE AND SERVICE TAX MATTERS

INSTRUCTION [F.NO. 207/07/2014-CX-6], DATED 20-1-2015

Read full text of Instructions:
https://drive.google.com/file/d/0B1rRav-P4-8JVEZ0WlBqOGQ1OVU/view?usp=sharing

Gujarat Government has extended the date of Filing Audit Report for F.Y. 2013-2014

Gujarat Commercial Tax Department has issued a notification dated 28/01/2015, whereby last date for filing online Gujarat Vat Audit report has been extended to 30/06/2015.

Read: original text 
 https://drive.google.com/file/d/0B1rRav-P4-8JdWpwR2xYaEt5Rlk/view?usp=sharing