Monthly Archives: December 2015

Salient Features of Additional 1% Tax Proposed on Inter-State Supply of Goods (GST)

Additional tax is an additional tax levy whereby states will be allowed to collect tax of one percent over and above the normal GST for the goods that enter the state. This is leviable for a maximum period of two years.

Manufacturing states such as Maharashtra,Gujarat, Tamilnadu  and West Bengal etc will be benefited. 

However, the Bill is silent on whether credit of this additional levy will be available, or will it be a cost in the supply chain. In case of latter, it could have a tax cascading effect on the supply chain. Branch transfer from one state to another state also will add to cost.

Manufacturing states claim that GST may result in major revenue loss as GST follows a destination based consumption tax model. Hence, a transitory provision has been made tor levy of 1% additional tax on supply of goods (ATSG) in the course of inter-state trade or commerce.

The 1% tax will increase cost of inter-state job work of goods. The 1% tax will increase cost of inter-state transactions and hence, to that extent, will discourage inter-state movement of goods.

Additional tax to accrue to the originating (manufacturing) State.

To be non-creditable.

Not in consonance with GST Principles

State boundaries continue to be relevant.

Levy of 1% additional tax on all inter-state supplies (including stock transfers) to impose tax burden and increase cash flow issues.

Issue of Pre-determined sales may continue to hound, if stock transfers excluded from 1% levy.

States may also ask for State GST reversals on stock transfers in such cases.

Additional 1% should be leviable when there is consideration.(It may take care of stock/branch transfer)
 
 
Please feel free to get  in touch with me at [email protected] for further queries if any
 

NEW PROCEDURE FOR 15H and FORM 15G WEF 01.12.2015

CBDT came out with Circular No. 4/2015 on 1st December, 2015 for simplification of procedure for form 15H and Form 15G.

STEP BY STEP Simplified process is as under:

  1. No Need to send physical copy of Form 15H/15G received during the month.
  2. Online upload form 15G/15H received. System will generate unique Identification Number for each form 15G/15H.
  3. The UIN will be 10 Digit Alphanumeric Number consisting first Digit as G OR H (for form 15G G and for form 15H H) followed by 9 Numeric numbers. This will also followed with TAN of the payer and assessment year for which form is received.
  4. Need to mention this number and payment to form 15G/H party in TDS quarterly Return.
  5. The tax payer (Deductor) will be asked to file exceptional report of Reconciliation of How many form 5G/H is uploaded with mention of the same in TDS Return. This report will also require mentioning how many form 15G/H is received by deductor but not uploaded by him.

So,  Now it is additional responsibility on Deductor to upload each form 15G/15H received during the month/quarter and than only file TDS return. TDS return will have all the details of payments for which form 15G/H received by Deductor with unique identification number generated while uploading form 15G/H.

Please call us on 25146854/25146855 or email me at [email protected] for further details/understating of this.

Buck Up Time for Dealers!!! More Pinch on MVAT Rate of Interest.

MVAT Rate of Interest Increased from 1.25% to 2 %

 As per the norms of Maharashtra Value Added Tax (MVAT) Act 2002, the government has chalked a stipulated period for every dealers to pay the tax, failure to which a specific rate of interest will be charged  to them under Section 30 of the Maharashtra Value Added Tax Act, 2002. The dealer is liable to pay interest on late payments as per the rate  prescribed  in  Rule  88(1)  of  Maharashtra Value Added Tax Rules, 2005.

With reference to this, the State Government has issued  Notification No. VAT 1515/CR- 8 1/ Taxation- I, dated 5th November 20 15 (relates to  revision in rate  of interest).  Due to issuance of the said notification an amendment to sub-rule (I) of the Principal rule 88 under Maharashtra Value Added Tax Rules, 2005 is  affected.( which denotes standard rate of interest i.e 1.25%)

In past the Rule 88(1) of Maharashtra Value Added tax the rate of interest charged was 1.25% of the amount of delayed tax payment. By this amendment the rates of interest prescribed under rule 88a I) for the purpose of subsection ( 1), (2) and (3) of section 30 of Maharashtra Value Added Tax Act, 2002 are revised.

This amendment shall come to force from 01 December 2015.

The revised interest rates are as follows:

  • Any dues which are related to any period before 30/11/2015, the rate of interest will be 1.25% per month till 30/11/2015.
  • For December 2015 rate of Interest is 1.25% per month. (i.e for 1 month)
  • For January & February 2016 Rate of Interest is 1.5% per month.(i.e for 2nd & 3rd month)
  • From March 2016 Rate of Interest will be 2% per month till date of payment.(i.e. from 4th month)

Hence, if any dues are pending related to period before 30/11/2015, you can pay the same before 31/12/2015 at the rate of interest 1.25% pm.

Please feel free to get in touch at [email protected] for further queries if any

INCOME TAX RETURN OF DECEASED TO BE FILED BY THE LEGAL HEIR

Every individuals needs to file their income tax returns year after year. Individuals having income more than exempted income needs to file Income Tax Return every year. But, it’s not only the livings that have to pay their taxes. Unfortunately if one of family members has died during the financial year and he/she was liable to pay tax, you might need to file a return on his or her behalf.

Section 159 of the Income-Tax Act lays down the liabilities of the legal representatives of a deceased person. In most cases, the individual’s spouse or eldest son/daughter assumes the status of legal heir or representative.

“As a legal heir, you have to file the return on behalf of the deceased for income earned till the date of death. Any income earned after the date of death is taxable in the hands of the legal heir or executor of the deceased’s estate,”  The returns have to be filed as if the deceased had not died, in the same manner and extent as the deceased did. Benefit of basic exemption limit of income not chargeable to ax also can be taken.

For filing the income tax returns there are 2 vital things which need to be performed:

  • REGISTERING AS LEGAL HEIR

 

  • FILING INCOME TAX RETURN

 

REGISTERING AS LEGAL HEIR:

User should register as a Legal Heir to do e-Filing on behalf of the deceased. This is a new feature provided for Individual user. A Legal Heir can file Income Tax Return, View Status of Income Tax Return, ITR-V Acknowledgment and other filing status in respect of the Income Tax Return of the deceased person for the e-Filed Assessment Year

Following are the steps for registration of Legal Heir:

Step 1: Go to Income Tax Dept.’s Website –https://incometaxindiaefiling.gov.in

Step 2: Login to e-Filing portal using Legal Heir Credentials

Step 3: My Account – Register as Legal Heir

Step 4: Requesting

Select the Type of Request–New Request

Enter the details of Deceased, Select the files to upload, Attach a Zip File containing PDF of the scanned documents as mentioned below:

  • Copy of death certificate
  • Copy of pan card of the deceased
  • Self Attested pan card copy and
  • Legal Heir Certificate (Please refer below)

The legal heir certificate issued by court of law. The legal heir certificate issued by the Local revenue authorities. The certificate of surviving family members issued by the local revenue authorities. The registered will. The Family pension certificate issued by the State/Central government.

The certificate of surviving family members issued by the local revenue authorities is the most common certificate available. This certificate required to be in English/Hindi language and same needs to be duly notarized.

(maximum size of the Zip file should not exceed more than 26 MB).

Click Submit & You will get Acknowledgement from the Dept. with a Transaction ID

Step 5: Checking the status of request.

My Request List – My Request List

Select the Type of Request – Add Legal Heir Request

Click submit

The status of the request can be seen here. There are 3 types of status that can be seen, Pending, Rejected and Approved.

In case of Rejection, Dept. will provide the ground for such rejection, which can be viewed by clicking on Transaction ID

After completing the whole process and once the requested is approved, you will be able to use all the services for yourself (Legal Heir) and for the Deceased.

  •  FILING INCOME TAX RETURN

Following are the steps for filing income tax return

  • Go to Income Tax Dept.’s Website – https://incometaxindiaefiling.gov.in
  • Login to e-Filing portal using Legal Heir Credentials
  • Go to e-File – Upload Return 
  • Fill the details and select the XML File
  • PAN: Select the PAN of Deceased (Note: Dropdown list will show both PAN, Legal Heir as well as of Deceased)
  • ITR Form Name: Select the ITR Form to upload (i.e. ITR 1, 2, etc….)
  • Select Assessment Year
  • Upload the XML File
  • Legal Heir can digitally sign the ITR of Deceased using his/her DSC
  • Click Submit
  • Select the e-Verify Option, as per your choice ( Note: I have selected “Option4 – I would like to Send ITR-V/ I would like to e-Verify later”)
  • Download ITR-V (if not e-Verified) Verify and send the Signed ITR-V to the CPC center.

Please feel free to get in touch at [email protected] for any further enquiries on the above