Tuesday, July 28, 2015

The due date of DVAT online return for 1st quarter of 2015-16 extended to 04th August, 2015

The last date of filing of online/hard copy of first quarter return for the year 2015-16, in Form DVAT-16, DVAT-17 and DVAT-48 along with required annexure/enclosures has been extended to 04th August, 2015. However, the tax due shall continue to be paid in the usual manner. The dealers filing the returns through digital signature need not be required to file hard copy of the return/Form DVAT-56.

The Due date of filing of Wealth Tax Return for AY 2015-16 extended to 31st August,2015

CBDT has extended the due date of filing Return of wealth for A.Y, 2015-16 to 31st August, 2015

CBDT on 27th July 2015 has extended the ‘due date’ for filing Retain of wealth by such assessees for assessment year 2015-16 from 31 st July 2015 to 31st August 2015. This is done in view of the order dated 10.06.2015 for extension of the ‘due date’ for filing Return of Income for assessment year 2015-16 under section 139 of the Income-tax Act from 31.7.2015 to 31.8.2015, 

Tuesday, July 14, 2015

MCA extends last date for filing Annual Return and Financials to 31.10.2015 without additional fee

MCA vide Circular number 10/2015 dated 13th July, 2015 has extended the last date for filing of Annual return in form MGT-7 and AOC-4 and AOC-4  XBRL to 31st October,2015.
The provisions of Companies Act 2013 are applicable on Financial Statements, Auditors’ Report and Board’s report for the year commencing on or after 1st April, 2014. The Electronic version of Forms AOC-4, AOC -4 XBRL and MGT -7 are being developed by MCA and as per MCA will be made available on the website latest by 30th September, 2015. MCA will provide AOC-4 CFS for consolidated Financial Statements latest by 31st October, 2015  

Now MCA relaxes additional fee payable on AOC-4, AOC -4 XBRL and MGT-7 up to 31st October, 2015. Further for the companies which are not liable to file its Financial Statements in XBRL format but are required to file Consolidated Financial Statements CFS would be able to file in separate CFS forms without any additional fee up to 30.11.2015.

Monday, July 13, 2015

No need to send ITR-V to CPC for Asst Year 15-16

Income tax department has given four options for e-Verification of return while uploading a return for Asst Year 2015-16 and has omitted the need for sending ITR –V to CPC. ITR –V for Asst Year 2015-16 is required to be sent to CPC only one opts for the same choosing option 4 and not verifying the same online.  Now the procedure for E Filing of return and E verification while uploading a return is declared today by the Income Tax Department and is detailed as under:

1 Upload Return à Click Submit

2 The Return is uploaded (Pending for e-Verification)

3 Four e-Verification options provided –

Taxpayer can choose any one of the options provided to e-Verify the return and there is no need to send ITR V to CPC. Taxpayer has to provide EVC and Download Ack.
Ø Option-1 à “Already have an EVC and Submit EVC”
                         Provide EVC and Submit -> Download Ack and no need to send to CPC

Ø Option-2 à “Do not have an EVC and Generate an EVC”
A)   Generate EVC through Net Banking or
B)   Generate EVC to Email ID along with Mobile
i)             Login to e-Filing Portal through NetBanking and verify
ii)            Enter the EVC sent to your registered Email Id / Mobile Number and
                        Submit to e-Verify return. Download Ack.

Ø Option-3 à “To generate Aadhaar OTP to e-Verify my return”

Enter the Aadhaar OTP sent to Mobile Number registered with
Aadhaar and Submit to e-Verify return. Download Ack
Ø Option-4 à “To e-Verify later/ To send ITR-V”

Click on Continue à Download ITR-V and Submit ITR-V to CPC after signatures as earlier or can verify later with any one of the options given above 1,2,3 

Date for filing ITR-V extended till 31.10.2015 for Asst Year 13-14 and Asst Year 14-15

The Date for Filing of ITR -V for assessment Year 13-14 and Assessment Year 14-15 extended till 31.10.2015.
In Case of  Asst Year 13-14 for all the returns filed electronically between 01.04.2014 to 31.03.2015 the submission of ITR -V to CPC has been extended till 31.10.2015
In case of Asst Year 14-15 for all the return filed electronically after 01.04.2014 till 30.06.2015 the last date for submission of ITR -V is extended till 31.10.2015  

Form 15CB Required in Case of Payments for Imports

Section 195 of the Income Tax Act 1961 dealing with payments to non-resident has been amended with effect from 01.06.2015. 

As per the amended Section 195(6), CA certificate in form 15CB is required to be obtained in all the cases of payments to non-resident, even in case the amount paid is not chargeable to tax in India. It is also mandatory for the payer to file an online Form 15CA in the format prescribed under Rule 37BB.

A penalty of Rs. 1,00,000/- may be levied on the payer for non-furnishing or incorrect furnishing of information in Form 15CA.

It may also be noted that the following information is required for issuing each Form 15CB:

1. Invoice: It should have complete details such as:
a. Date
b. Name and Address of Vendor (Address should be of country of remittance)
c. Name and Address of Purchaser
d. Amount of Payment in Foreign Currency
e. Description of Particulars and Nature of Payment

2. Proposed Date of Payment

3. Foreign Exchange Rate at which payment is being made and the amount of Rupees being paid

4. Details of Bank through which payment is being made:
a. Name and Address of Bank Branch
b. BSR Code

5. Details (Name and Address) of Foreign Bank to which payment is being made.

6. Tax Residency Certificate issued by the Tax Authorities of the country of the vendor, which should state the following information:
a. Name and Address of the assessee
b. Status of the assessee (individual, firm, company, etc.)
c. Nationality (in case of individual)/Country or specified territory of registration
d. Assessee’s Tax Identification Number in the country of residence
e. Residential status for the purpose of tax
f. Period for which the certificate is applicable

7. Form 10F duly filled and signed by the vendor receiving payment (format here)

8. A Certificate that the vendor does not have a Permanent Establishment in India.

Saturday, July 11, 2015

Detailed Manual Scrutiny of Service Tax Returns from 01.08.2015- CBEC

Now this is to file the Income Tax return for Asst Year 15-16 and CBEC has declared on 30.06.2015 the detailed manual scrutiny of St-3 filed for earlier years. So Assessee should reconcile the receipts and service tax liability with income tax return. The St-3 for Financial year 2014-05 have been filed before 25.04.2015 and now before filing of Income Tax return every body subject to service tax should review the ST-3 already filed. The St-3 can be revised with in 90 days from the date of filing.

Central Board of Excise and Customs has passed a circular 185/4/2015-service tax on 30 June 2015, for the manual scrutiny of Service Tax Return.
For a strong compliance verification mechanism there are three important steps:
a) Audit               
b) Anti-evasion and
c) Return Scrutiny

For a strong "Return Scrutiny" system again can be divided into two procedural methods i) Preliminary Online Scrutiny
ii) Detailed Manual Scrutiny.

As per CBEC the detailed scrutiny of ST-3 returns, with effect from 01.08.2015, should be carried out in the manner below:-
Preliminary Online scrutiny
The purpose of preliminary scrutiny of returns includes ensuring the completeness of the information furnished in the return, arithmetic correctness of the amount computed as tax and its timely payment, timely submission of the return and identification of non-filters and stop-filters. On the basis of the validation checks incorporated in ACES preliminary scrutiny of all returns is done online.
Detailed Manual Scrutiny
Purpose of detailed Scrutiny:
The purpose of the detailed manual scrutiny of returns is to ensure the correctness of the assessment made by the assessee. This includes the following measures:
ü  Checking the taxability of the service.
ü  The correctness of the value of taxable service
ü  The effective rate of tax after taking into account the admissibility of an exemption notification, abatement, or exports, if any;
ü  Ensuring the correct availment/utilization of CENVAT Credit on inputs, capital goods, and input services.
Selection of Return of Detailed Scrutiny:
The detailed return scrutiny would be conducted in respect of such assessee whose total tax paid (Cash + CENVAT) for the F.Y. 2014-15 is below Rs 50 lakhs. Each Commissionerate has to select equal number of assessee for carrying out returns scrutiny from each of these three total taxes paid bands viz., Rs 0 to Rs 10 Lakhs, Rs 10-25 lakhs and Rs 20-25 lakhs for the F.Y. 2014-15.

 Checklist for Detailed Manual Scrutiny
ü  Reconciliation for validation of the information furnished in ST-3 return;
ü  Taxability in respect of services which may have escaped assessment;
ü  Classification - for the purpose of due availment of abatement/exemption benifit);
ü  Valuation and
ü  CENVAT Credit availment/utilization.

(Note: In case of any additional details required, the same may be obtained from the assessee through requisition rather than through a visit. Calling of such additional documents must be done with the approval of jurisdiction DC/AC  so as to obviate the complaint of administrative intrusion).
The CBEC has tightened the rope by laying down the procedure for Documenting the Findings as given hereunder:
In order to ensure transparency of the Scrutiny Process, for this, an observation sheet should be prepared as Annexure IV, bears one-to-one co-relation with the checklist.
It is also possible that the officer may come across some issues which may have to be referred to audit or anti-evasion.
In cases where detailed scrutiny of returns in detection of defaults in service tax payment it appears that the proviso to section 73(1) of the Finance Act, 1994 is invoked, the ST-3 returns of the past periods should also be verified and the results of such verification should be recorded.
All Scrutiny findings in a month must be discussed in a Monthly Scrutiny Monitoring Committee Meeting headed by the Additional/Joint Commissioner in-charge of the Division where each range should present their scrutiny findings in a form of a 'Scrutiny Report' given as Annexure V.
The timelines to be followed for starting detailed manual scrutiny as per the detailed process below:
ü  Forwarding of official mail ids of the Zonal Nodal Officers by 06.07.2015
ü  Forwarding of data by DGS & DM by 08.07.2015
ü  Finalization of the list of the returns of the assessee selected for detailed manual scrutiny and dispatch of the intimation Letter by 15.07.2015
ü  Commencement of Detailed Manual Scrutiny of selected returns by 01.08.2015
Note: Even after the introduction of GST, it may be appreciated that the basic principles of scrutiny of returns and reconciliation of records would remain the same. 

Income Tax Rates,Forms, Check list for return filing for Asst Year 2015-16

The extended last date for filing of Income Tax Return for Asst Year 2015-16 is 31.08.2015 for the assesses who are not subject to audit. This date has been extended from 31.07.2015 to 31.08.2015 by one month due to revision in forms by the CBDT. The forms are given very late so the government had to extend the last date by one month. here below are given Tax rates applicable for different assessees, advance tax rates, Forms in which tax returna are to filed for Asst Year 2015-16 and check list of documents required for preparing for filing of returns. 

1.1 Tax Rates:
1.1.1 For Individuals & HUF                                                                                                                       (Rs In Lacs)
(Exclusive of education cess 3%)
General / NRI
Senior Citizen

(Age : 60 till 79 years)
Super Senior Citizen

(Age: 80 years and above)
2015-16/ 2016-17
Upto 2.5
Upto 3
Upto 5
2.5 to 5
3 to 5
5 to 10
5 to 10
5 to 10
Above 10
Above 10
Above 10

Note :  1. Exclusive of surcharge @ 10% for A.Y. 2015-16 and @ 12% for A.Y. 2016-17 whose total
                    income exceeds Rs 1 crore.                                                                                                     
                2. Tax Credit as per Sec. 87 A will be provided to First Bracket Resident Individual i.e. Net                    Income upto Rs. 5,00,000. Credit will be equal to the Actual Tax Payable or Rs. 2,000                       whichever is less.

1.1.2 For Co-Operative Societies: 
Rate of Tax
(Exclusive of education cess 3%)
Upto Rs. 10,000
From Rs. 10,001 to Rs. 20,000
More than Rs. 20,000

     Note : 1.Exclusive of surcharge @ 10% for A.Y  2015-16 and @ 12% for A.Y. 2016-17 whose total income exceeds  Rs. 1 Crore.
1.1.3 For AOP and BOI:
            Shares of Members are Determinate         
Shares of Members are  Indeterminate         
Members is an Individual / HUF
Members is a Company
Members is an Individual / HUF
Members is a Company
When None of the member has income in excess Basic exemption limit.
When any of the member have income in excess of Basic Exemption limit.
When total income of member company is taxable at rate higher than the Maximum Marginal Rates (i.e. in case of Foreign Companies)

Tax will be charged on the Total income of AOP/BOI at MMR of 34.61%
(Maximum Marginal Rate is 33.99% for A.Y. 2015-16)
Where income of AOI/ BOI is taxable at rate higher than the MMR then, the Total Income of AOI/BOI will be taxed at such higher rate.
(i.e. in case of Foreign Companies )
AOP/BOI will be taxed at the slab rates specified in 1.1.1
AOP/BOI will be taxed at the Maximum Marginal Rate of 34.61%
Tax will be charged on that portion of AOP/BOI at such higher rate

1.1.4 For Other Assesses
Other Assesses
Income Tax Rate
MAT Rate
Dividend Distribution Tax Rate
(Inclusive of Education Cess @ 3% & Surcharge of 12% of Income Tax)
Domestic Companies
Foreign Companies
Firms/LLP/Local Autho.

Note: 1. Alternate Minimum Tax (AMT) is applicable to all persons (other than companies)   claiming profit linked deductions under chapter VI- A (80-H to 80RRB excluding 80P ) and Section 10AA, provided the adjusted income exceeds Rs 20 Lacs.
2. Marginal Relief is available in case income exceeds Rs. 1 Crore or Rs. 10 Crore, as the case may be, to the extent marginal tax exceeds marginal income.

Applicability of Surcharge & Education Cess:

Applicable to Companies

Total Income
< Rs 1 Cr.

Rs  1 Cr. to Rs. 10 Cr.
> Rs 10 Cr.
Education Cess

1.2  Advance Tax:

Due Date
Non- Company
15th June
Upto 15%
15th Sep.
Upto 15%
Upto  30%
15th Dec.
Upto 75%
Upto 60%
15th Mar.

Notes:  1.  Advance Tax is not Applicable if Liability to pay Advance Tax is less than Rs.10,000.
                2.  Sr. Citizen who does not have Income from Business and Profession is not required to pay                       Advance Tax.
1.3 Checklist of documents for filing  Income Tax return
1.       Adhaar Card Number
2.       Passport Number
3.       A copy of  last year's tax return
4.       Bank Statement- All Bank Account Number with Number, IFSC Code except dormant
5.       TDS certificates
6.       Saving certificate/ deductions
7.       Interest statement
8.       Balance sheet & profit loss account and other audit reports wherever applicable
9.       Assets outside India and Foreign Income
10.   Bank Account Outside India

1.4  ITR Forms  updated on Income tax site till date:

a)     ITR -1 (Sahaj) : For individuals  having income from salaries , one house property , other sources (Interest, etc)
Points to Remember:
1.          Income from Salary / Pension : Ensure to fill details as per Form 16 issued by employer.
2.          Income from one House Property : If you have income or loss from House Property , select the appropriate option  whether the house property is self occupied or let out.
3.          Income from other sources : Ensure to fill details as per Form 16 A issued by deductor.
4.          Deductions :
80CCG : Enter deduction amount do not enter investment amount.
80D      :Individual = Maximum Rs. 15000/-(Sr. Citizen Rs. 20000)
                Individual + Parent = Maximum Rs. 30000/-
                Individual+ Parent (Sr. citizen)= maximum Rs. 35000/-
                Individual (Sr. citizen)+ parents (sr citizen)= Maximum Rs. 40000/-
80DD   : Expenditure for medical treatment for dependent relative , maximum eligible                              amount is Rs. 50000/-(Rs. 100000/- for severe disability)
80DDB :Medical expenditure for specified diseases . Maximum eligible amount is RS.                                   40000/-(Sr. citizen Rs. 60000/-)         
80G      : Do not delete the rows while entering the detail.
80U     : In case of person with disability . Maximum eligible amount is RS. 50000/- (Rs.                             100000/-for severe disability).

5.        Surcharge @10% if income exceeds Rs. 1 crore
6.          Calculate relief u/s 89: Please ensure to submit form 10E.

b)        ITR -2  : For Individual and HUF not having  Income from business or profession

Point to remember :
1.          Detail of income from outside India and tax relief : In case TIN has not been allotted  in the country , please mention the passport number.
2.          TDS :
TAN of deductor (As per form 16)                     : Enter valid TAN no upto 10characters .
Unique TDS Certificate no.(As per Form 16A) : Enter 8 characters , and in case the unique TDS certificate no. is 6 or 7 characters , you need not prefix any zeros.
3.          same as point 4-6 of ITR-1

c)         ITR -2A  : For individuals and HUF not having Income from business or profession and                                              capital gains and who do not hold foreign assets

Point to remember :
1.             Same as above point 1-3 of ITR-2.

d)        ITR -4S  : Presumptive Business Income tax return

Point to remember :
1.          44AE (Calculation of profit and gains of plying , hiring or leasing goods carriage):
 Period of holding(in months)              :Part of month shall be deemed as full month.
Income per vehicle                                    :must be >=Rs. 7500 pm per vehicle
2.          If Tax Return Prepare for any reimbursement from
the government , amount thereof(to filled by TRP):                  Enter TRP reimbursemnet amount

  ITR Forms  Not yet updated  on  Income Tax site till date

a)        ITR -3  : Individuals and HUF being partners in a firm but not carrying business under                                              proprietorship

b)        ITR -4 :  Individuals earning income from proprietorship

c)         ITR -5  : Firms , AOP, BOI
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c)         ITR -5  : Firms , AOP, BOI