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