Point of Taxation for New Levy of Krishi Kalyan Cess(KKC)

Government is seeking to impose KKC in cases, where the invoice and provision of service has taken place prior to June 1, 2016, however payment is not received till June 1, 2016. This would imply that on all debtors as on May 31, 2016, assesses will be liable to pay KKC. KKC would be payable in case liability to pay Service tax is on service provider but under similar situation KKC would not be payable when liability to pay Service tax is on the service recipient under reverse charge.

Read more:

https://drive.google.com/file/d/0B1rRav-P4-8JY0RKcnZMOWpvMWM/view?usp=sharing

FINANCE BILL

FINANCE BILL NO 18 OF 2016
https://drive.google.com/file/d/0B1rRav-P4-8JbXRMMURwTUFuM0U/view?usp=sharing

BUDGET HIGHLIGHTS 2016-2017

BUDGET HIGHLIGHTS 2016-2017

https://drive.google.com/file/d/0B1rRav-P4-8JRXhueFJVeVlZUU0/view?usp=sharing

E-PAYMENT UNDER GVAT

Gujarat Commercial Tax department has issued a circular dated 06.01.2016 making e-payment of Gujarat VAT mandatory for those traders whose total amount payable (tax, interest and penalty) is equal or more than  Rs.50,000.00 ( Rupees Fifty Thousand) in any one tax period. This is effective for all those tax payments, including interest and penalty, required to be made for the month of December 2015 or Quarter ending on 31st December 2015, i.e. up to 22.01.2016 and also for all such amounts payable for all the tax periods there after.

Copy of the circular:
https://drive.google.com/file/d/0B1rRav-P4-8JMkN6eGVpSnF5Sm8/view?usp=sharing

How the e-payment is  made?
Explained in the link below through snap shots:
https://drive.google.com/open?id=0B1rRav-P4-8JbUdIUXpUZ2h1Wjg

Courtesy: CA. Kamlesh Sandanshiv

                                              Partner

                       Vinay Kaushik & Co.

                     Chartered Accountants

REGISTRATION OF COMPANY’S NAME – RECENT CHANGES

On 26th Jan., 2016 Government has notified the Companies (Incorporation) Amendment Rules, 2016. With the amendment, process of  registration of company has been more simplified.

Read More:
https://drive.google.com/file/d/0B1rRav-P4-8JcjdnN2dhR3daM3c/view?usp=sharing

Source: http://www.mca.gov.in/Ministry/pdf/Amendement_Rules_22012016.pdf

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