Wednesday, January 29, 2014

DVAT Extends the Date for Submission of AR-1 to 28/02/2014

DVAT hereby extends the date of submission of audit report in Form AR-1 for the year 2012-13 by dealers having turnover of Rs. 10 crores or more in 2011-12 or 2012-13 to 28/02/2014 instead of 31/01/2014 as notified earlier.

Clarification for filing Second/ Third Quarter DVAT Return online

            Clarification for filing Second/ Third Quarter DVAT Return online
                                               CIRCULAR  NO. 22 DATED 06.11.2013
1.     Form 1 Pt. R6 & R7: Rate wise break-up of Exempted Turnover
In this the Column “Tax Rate (DVAT)’ would NOT BE MANDATORY for the filers filing Second Quarter Return. However it would be MANDATORY for those who are filing the returns of Third Quarter and so on.
2.     DVAT 16 Pt R7.4: TDS Credit on the Basis of Deductor’s Certificate
The credit of TDS is to be taken on the basis of TDS Certificate in the tax period in which such certificate has been issued as provided in section 36A of Delhi Value Added Tax Act, 2004.
3.     R10 – Details of Pending Statutory forms / Declarations
a)     Here the details of the Furnished Forms/Pending forms/Missing Forms in lieu of concessional sale / stock transfer (outward) are to be provided.
b)     This would be MANDATORY if there is any Central Sale against Forms. 
c)     The dealers can also make payment themselves of the tax with interest against missing forms.
d)     This information would be used in making default Assessment without seeking any additional information or requiring the presence of dealer.
e)     This information is necessary for expediting refunds of dealers where sales/ supply against statutory forms C, F, H, etc.
f)      Information once submitted in the return would be auto-reflected in future returns and dealers will only be required to update the information.
4.     Stock/Branch Transfer against F Forms
Supply of goods for job work (inward as well as outward) is required to be supported by statutory forms ‘F’ in accordance with the requirement of Central Sales Tax Act, 1956.        
5.     Tax rate wise break up of turnover in Annexure 2A & 2B
Information pertaining to tax rate-wise turnover of purchase & sale during the course of inter-state trade and commerce in column 5 of both the annexures will NOT BE MANDATORY field for the second quarter return of the current year.
Filling up Tax Contribution (Difference of Output & Input Tax for each commodity) in block R3 of DVAT return filed in Form DVAT-16 is NOT MANDATORY for Second Quarter, but it would be MANDATORY for the Third Quarter & Onwards.
CIRCULAR  NO. 31 DATED 31.12.2013
1.     Since some dealers are not able to compile and file the information till date, Last date of filing R10 & Third Quarter Return extended to 31st January 2014.

2.     Last date of Submission of Audit Report in Form AR-I for the year 2012-13 by dealers having turnover of Rs. 10 crore or more in Financial Year 2011-12 or 2012-13  extended to 31st January 2014.

Contibuted by Shiwali Shukla ( CA Finalist )

Sunday, January 26, 2014

Service Tax on Services by Resident Welfare Association (RWA)

Prior to 1st July 2012, services provided by RWA to its members were exempt from service tax if the total consideration received from an individual member by the RWA for the services did not exceed Rs.3000/- per member per month. However, with effect from 1st July, 2012, notification No.25/2012 provides for exemption to service by a RWA to its own members by way of reimbursement of charges or share of contribution up to Rs. 5000/- per member per month for sourcing of goods or services from a third person for the common use of its members.

Important Clarifications:

Ques: (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 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 Rs.5000/- per member per month 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.

Ques: (i) Is threshold exemption under notification No. 33/2012-ST available to RWA?
(ii) Does ‘aggregate value’ for the purpose 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.

Ques: 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.

Ques: 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.

Thursday, January 23, 2014

Service tax on services provided in respect of Rice and Ginned/baled Cotton

Finance Minister has clarified that rice and ginned/baled cotton is not an “Agricultural Produce” as defined under Section 65B (5) of the Finance Act, 1994 accordingly service tax is applicable  on following services provided in respect of Rice and Ginned/baled Cotton under Negative List approach:-
Ø  Related to production including cultivation, harvesting, threshing, plant protection or seed testing; or
Ø  Related to Processes carried out at an agricultural farm make it only marketable for the primary market which do not alter the essential characteristics of    agricultural produce; or
Ø  Related to loading, unloading, packing, storage or warehousing of agricultural produce; or
Ø  Services related to construction, erection, commissioning, or installation of original works pertaining to post- harvest storage infrastructure for agricultural produce including a cold storages for such agriculture produce.

Wednesday, January 22, 2014

Saturday, January 18, 2014

Registration for FBO (Food Business Operator)

How to Apply for License/Registration of FBO (FOOD BUSINESS OPERATOR)?

Payment Criteria of Fees

Fees for Grant/Renewal of License/Registration

The fees paid by any applicant for a license shall not be refundable.

Issue of Duplicate Registration or License

Documents to be enclosed for New Application for License to Central / State Licensing Authority

Details of Documents
Mandatory for whom
Signed by the proprietor/ partner or the authorised signatory.( in duplicate).
Showing dimensions in metres/square
metres and operation-wise area allocation.
Manufacturing and
processing units.
Full address and contact details.
Companies only.
 Number of machines, installed capacity and horse power used.
Manufacturing and
processing units.
Photo ID and address prooF  of Proprietor/Partner/Directors/Authorised Signatory.
Category of food which is to be manufactured.
Name and address of responsible and alternative person nominated by manufacturer.
Manufacturing and
processing units.
Water must be analysed which is to be as an ingediant in food from recognised/health laboratory.
Manufacturing and
processing units.
Sale deed/ Rent agreement/ Electricity bill, etc.
Partnership Deed/Affidavit/Memorandum & Articles of Association.
Copy of certificate obtained under Coop Act - 1861/Multi State Coop Act – 2002.
Cooperative only.
Re-labellers and Re-packers.
 Municipality or local body.
Details on whom the product is distributed.
Milk or procurement plan for milk including location of milk collection centre’s etc.
Milk and Milk Products processing units.
 Raw material for meat and meat processing plants.
Meat processing plants.
Report of water  from a recognized/ public health.
Packaged drinking water, packaged mineral
water and/or carbonated water manufacturing unit.

Documents to be included for  Renewal or Transfer of License given under other existing laws prior to these Regulations
  • Any change in documents or information provided during grant of previous license (Mandatory).
  • List of workers with their medical fitness certificates .
  • Name, qualification and details of technical personnel in charge of operation(Mandatory for manufacturing & processing units)
  • Certificate or Plan of Food Safety Management System being adopted.

Contributed by:
Ms. Tanya Gagneja
(Article Assistant)
Sandeep Ahuja & Co.

Friday, January 17, 2014


Online Filing of TDS correction is enabled from Financial Year 2013-14. Presently online filing of TDS Correction has been enabled only for two types of corrections i.e PAN and Challan Correction. Without Class II & Class III Digital Signature we would not be able to file online correction.

Step 1: Log in to Traces website using User ID & Password if the deductor is already registered otherwise first register yourself on traces.

Step 2: Register your Digital Signature and Go to Default menu & Select “Request for Correction”.

Step 3: Select the Correction Category, Form type, Quarter &Financial Year for which correction is sought.

Step4: Enter Token No. of the Quarter whose correction is to be filed & Click on “Submit Request”.

Step5: After submission of request a request number is received. This request no.  would be required to  track correction request.

Step6: Go to “Default” menu & Select “Track Correction Request”. There are two options of tracking request status.

            Option 1: Here you can track the correction request status only if you have the request no. with you.

            Option 2: Here no such request no. is required. Only by selecting the request period you can get the details of                                         request status.

Step7: When the Status shows”Available” then only we can file correction. Click on “Available” user will be navigated to                File Correction page and correct the Pan or Challan.

Step 8: In “Action summary” user can view the Corrections made by him just by Clicking on “View Corrections”.

Step 9: After that click on “Confirm” to submit the correction & Select option “Correction Ready for Submission”

Step10: Click on Submit for Processing & Confirm it by authenticating with Digital Signature of the person whose has deducted the tax. A message regarding confirmation of submission and new token number would be appeared in this message.

Contibuted by Shiwali Shukla, CA Finalist, Article at Sandeep Ahuja & Co

No TDS on Service Tax Component for payment to resident

No TDS on Service Tax Component for payments to resident
Circular No. 01/2014 issued by CBDT on 13 January 2014 :  CBDT Clarified that TDS is not required to be deducted on the Service tax component comprised in the amount payable to a resident if Service tax has been charged separately wherever so provided by the agreement/ contract between the payer and the payee.
Earlier it was restricted to Service tax on Rent Only as per Circular No 4/2008 dated 28 April 2008. In above mentioned circular CBDT clarified that tax deduction at source (TDS) under sections 194-I of Income-tax Act would be required to be made on the amount of rent paid/payable without including the service tax. 

Thursday, January 16, 2014

Correction in Tax Challans Paid online or physical

For rectifications in challans paid through online mode (internet challan)
Taxpayer may contact their concerned Assessing Officer (AO) of the Income Tax Department (ITD).
For correction - Contact TIN call centre at 020 - 27218080 or write to Indicating the subject of the mail as Online Payment of Direct Tax.
For rectifications in challans paid physically through Banks.
NSDL receives tax collection data as uploaded by the bank. NSDL is not authorized to carry out any changes in the data sent by the bank to TIN.
The fields that can be corrected by the Taxpayer through Bank are tabulated below:
Sl. No.
Type of Correction on Challan
Period for correction request (in days)
Within 7 days from challan deposit date
Assessment Year
Within 7 days from challan deposit date
Total Amount
Within 7 days from challan deposit date
Major Head
Within 3 months from challan deposit date
Minor Head
Within 3 months from challan deposit date
Nature of Payment
Within 3 months from challan deposit date
v  Any correction request initiated by the taxpayer after the time limit specified above shall be rejected by Bank.

 The tax-payer  has to submit a separate request form (in duplicate) for each challan to the concerned bank branch along with the following :
i. Copy of original challan counterfoil or Challan Copy
ii. copy of PAN card ( If correction desired for challans in Form 280, 282, 283)
 iv. The original authorization with seal of the non-individual taxpayer ( If correction desired for payments made by a tax-payer other than an individual)
The changes can be made by the banks, subject to following conditions:
i. Correction in Name is not permitted.
ii. Any combination of correction of Minor Head and Assessment Year together is not allowed.
iii. For a single challan, correction is allowed only once. However, where 1st correction request is made only for amount, a 2nd correction request will be allowed for correction in other fields.

iv. There will be no partial acceptance of change correction request, i.e. either all the requested changes will be allowed, if they pass the validation, or no change will be allowed, if any one of the requested changes fails the validation test.