Sandeep Ahuja & Co.

Established in the year 1986, we are a leading chartered accountancy firm based in Delhi & NCR rendering comprehensive professional services which include statutory audit, internal audit, direct tax, transfer pricing, GST, bank audit, propriety audit, cost accounting, internal financial controls and risk advisory.

Monday, November 30, 2015

Extension of last date upto 30.12.2015 for AOC-4 and MGT-7 ( XBRL and Non XBRL)

MCA vide General Circular 15/ 2015 on 30.11.2015  has further extended the last date for relaxation of additional fee by 30 days i.e upto 30.12.2015 on e-forms AOC4, AOC (CFS) AOC-4 and MGT-7 whether XBRL or Non XBRL.

Saturday, November 14, 2015

Schema for Speedy disbursal of refund claims of exporters of services by CBEC

The CBEC has declared a Schema for speedy sanction of refunds in case of export of services as this year has been declared by the board as ‘Year of Taxpayer Services’ CBEC has drawn up a schema which is not a substitute for various notification issued earlier but to complement them and with the aim at enabling the ease of business to fast track sanction of refund of accumulated CENVAT credit to exporters of services. This scheme will be applicable to all refund claims which are pending as on 31-3-2015. The Schema is framed whereby on submission of a few documents a provisional payment of 80% of the claimed amount will be made within 5 working days to the claimant.The CBEC has declared the scheme vide Circular 187/6/2015-Service Tax dated 10-11-2015.

Ø  Applicable to service tax registrant exporters of services, with respect to refund claims under rule 5 of the CENVAT Credit Rules, 2004, which have been filed on or before 31-3-15
Ø  Additional documents to be submitted in addition to those required to be filed along with the claim 
   i) A certificate from the statutory auditor in the case of companies, and from a chartered accountant in the case of assessees who are not companies.
  ii) An undertaking from the registered exporter or claimant
.
Ø  On receipt of the documents in respect of pending claims an acknowledgement will be issued to the claimant & a provisional payment of 80% (eighty per cent) of the amount claimed as refund will be issued to claimant within five working days of the receipt of the documents.
Ø  This payment of 80% of the refund amount shall be purely provisional, based on the documents filed without prejudice to the department’s right to check the correctness of the claim. It is also clarified that the decision to grant provisional payment is an administrative order and not a quasi-judicial order and should not be subjected to review.
Ø  After making the provisional payment, the jurisdictional ooficer shall undertake checking the correctness of the refund claim.
Ø  During the course of verification, if it appears that a part of the amount claimed as refund is inadmissible a show cause notice (SCN) will be issued to the claimant and prior to the issuance of such a SCN, the claimant may be intimated about the inadmissible amount so that he has an opportunity to avail of the provisions of section 73(3) of the Finance Act, 1994. A speaking, appealable order will have to be passed with respect to the SCN and order will be reviewed by the jurisdictional Commissioner.
Ø  On review of the refund order, any further amount is found to be inadmissible, then, apart from filing an appeal for setting aside or modifying the relevant portion of the order, a SCN will also have to be issued for the amount not covered by the original SCN.
Ø  An MIS report may be sent by the tenth of every month to the commissioner who will ensure that the provisional payment of refunds is done strictly as per time lines without delays.

FORMAT OF CERTIFICATE BY AUDITOR / CHARTERED ACCOUNTANT ON LETTER HEAD

To
The Deputy/Assistant Commissioner of Central Excise/Service Tax
Date:

Madam/Sir

This is to certify that for M/s____________ , STC__________No.
1. The refund claim for Rs for the quarter is complete in all aspects with all the relevant documents and has been filed within the prescribed time limit.
2. The amount of Rs.____________ claimed as refund for the quarter______________ by M/s. ____________ in their application for refund dated_________ is correct as per their books of accounts and relevant records and the same is in accordance with the provisions of rule 5 of the CENVAT Credit Rules, 2004, read with the notification no. ____________ issued there under.
3. M/s___________is eligible to take CENVAT credit in terms of the CENVAT Credit Rules, 2004, for the amount which is being claimed as refund.
4. The services which are claimed to be exported, qualify to be treated as exports in terms of the rules in force at the time of the said export.
Signature of the statutory auditor/chartered accountant/



LETTER BY THE CLAIMANT

To
The Deputy/Assistant Commissioner of Central Excise/Service Tax
Date:
M/s ________________ , STC No. _______________ hereby undertake that for any amount provisionally paid to me for the refund claim for Rs._____________ for the quarter __________, filed on ___________, in case there is a difference between the amount provisionally paid to me and the amount found to be admissible, I shall pay the said differential amount upon intimation about its inadmissibility, along with applicable interest thereon.
Signature of the claimant

Thursday, November 12, 2015

Important Points on Swachh Bharat Cess on ServiceTax

Ø Swachh Bharat Cess shall be payable on the Service Tax on the value of services and not like Education Cess to be computed on Tax. Swachh Bharat Cess ison value of Services not on ServiceTax.
Ø  Swachh Bharat Cess shall be applicable on all taxable services irrespective of the person liable to deposit the tax.  Swachh Bharat Cess shall be payable in cases where service tax is payable under of reverse charge mechanism and shall be payable by the service recipient only in respect of services where service tax is payable under reverse charge mechanism.
Ø  Swachh Bharat Cess shall not be payable in case of services which are exempted from payment of service tax.
Ø  Swachh Bharat Cess shall be payable on the abated value as if such cess is not payable on exempted services then as per explanation provided Notification No 22/2015 this cess should be payable on the abated value of service and not on full value of service.
Ø  Swachh Bharat Cess is to be charged separately on the invoice.
Ø  Swachh Bharat Cess has been made applicable from 15.11.2015 but no amendment made in Cenvat Credit Rules,2004 for availing and utilizing amount paid on account of such cess. So till the time there is no such amendment no Cenvat Credit is allowable on account of such Cess paid on invoices for expenses.
Ø  Swachh Bharat Cess shall be applicable to services covered under Rule 6 of the service tax like services by travel agents and insurance agents or insurance companies till the time such rules are changed.
Ø  Swachh Bharat Cess shall be applicable on services provided before and billed later after 15.11.15 as per point of taxation rules 2011. 

Friday, November 6, 2015

Service tax including Swachh Bharat Cess will be 14.5% from November 15, 2015.

Swachh Bharat Cess was announced in Financial Budget 2015 and  for the purposes of financing and promoting Swachh Bharat initiatives or for any other purpose relating thereto and now vide Notification No. 21/2015-ST on November 6, 2015 Swachh Bharat Cess is made applicable from November 15, 2015


Now, the Central Government has declared Swachh Bharat Cess at the rate of 0.5% to be levied on value of all taxable services from November 15, 2015 over and above the present 14% Service tax rate. Consequently the effective rate of Service tax including Swachh Bharat Cess will be 14.5% from November 15, 2015.

Notice for submission of response to Non –Filers of Income Tax Return

Income Tax department has started sending notices to Non-Filers of return from PAN database. That means all PAN holders who are not filing Income Tax Return are receiving notice by E-mail or by post.
Income Tax department is sending notice for all earlier years where ever return is not filed and advising to submit online response by 15th of December, 2015. in three steps: 

Step 1: Login to e-filing portal https://incometaxindiaefiling.gov.in
Step 2: View Information summary under compliance section on the portal & mention if the information relates to other PAN
Step 3: Upload Return or submit details  & keep the printout of submitted response for record.


However it seems easy to follow but tax payers are advised to take out the details from their Bank accounts first and if income is taxable then they should file the return otherwise there will be a heavy penalty on tax evasion. The Monitoring system started by the Income Tax Department called as NMS – Non Filers Monitoring System has been started as department is expecting a good potential of tax collection from Non-filers.

Thursday, November 5, 2015

Statutory Due Dates in Nov,2015

Date
Statutory Act
Applicable Form
Obligation
06/11/2015
Service Tax
Challan No.GAR-7
Last date for E- payment of Service Tax in case of companies for the month October 
06/11/2015
Central Excise
Challan No.GAR-7
Monthly-payment of Central Excise Duties for the previous month –For non SUI units
07/11/2015
Income Tax
Challan No.ITNS-281/17
Payment of TDS deducted/TCS collected in October
10/11/2015
Income Tax
Form No.15G,15H, 27C
Submission of Forms received in Previous month to IT Commissioner
14/11/2015
Service Tax
ST-3
Extended Due Date for the Half Year Ended on 30.09.2015
15/11/2015
Income Tax
Form 16A & 27D
Quarterly TDS certificate by a person being an office of the Government for the quarter ending September 30, 2015
15/11/2015
ESI
ESI Challan
Payment of ESI of October
15/11/2015
D-VAT
DVAT-20
Deposit of DVAT TDS for October
15/11/2015
Provident Fund
Electronic Challan Cum Return(ECR)
E-Payment of PF for October (Cheques to be cleared by 20th)
16/11/2015
D-VAT
D-VAT Return
Extended Due Date for  DVAT Return for Quarter ended on 30.09.14
21/11/2015
D-VAT
D-VAT-20 & Central
Deposit of VAT & CST for October for Monthly Dealers
22/11/2015
Income Tax

Issue of TDS Certificate for tax deducted under Sec- 194-IA in Oct
30/11/2015
Income Tax
Annual Return of Income/Wealth
Annual Return of Income/Wealth if assessee is required to submit a report under section 92E pertaining to international or specified domestic transaction(s)
30/11/2015
Income Tax

Audit Report under section 44AB if assessee is required to submit a report under section 92E pertaining to international or specified domestic transaction(s)
30/11/2015

MCA –AOC-4 & MGT-7
Annual Return, Balance Sheet (Form AOC-4, MGT-7 XBRL/Non XBRL )
Extended due date for Annual Return of the company, Financial Statements and CFS for Fin Year 2014-15 without additional fee for AOC-4 ( XBRL and Non – XBRL), MGT-7, AOC CFS




Wednesday, November 4, 2015

Business Activity Codes for MGT-7 Annual Return for Fin Year 14-15

Main Activity Code
Description of Main Activity
Business Activity Code
Description of Business Activity
A
Agriculture, forestry, fishing
A1
Production of crops and animals
A2
Forestry and logging
A3
Fishing and aquaculture
A4
Support activities to agriculture and Other Activities including hunting
B
Mining and quarrying
B1
Mining of Coal and lignite
B2
Extraction of Crude Petroleum & Natural gas
B3
Mining of Metal Ores
B4
Other Mining & Quarrying Activities
B5
Mining Support Services activities
C
Manufacturing
C1
Food, beverages and tobacco products
C2
Textile, leather and other apparel products
C3
Wood and wood products, furniture, paper and paper products
C4
Printing, reproduction of recorded media
C5
Coke and refined petroleum products
C6
Chemical and chemical products, pharmaceuticals, medicinal chemical and botanical products
C7
Metal and metal products
C8
Plastic products, non-metallic mineral products, rubber products, fabricated metal products
C9
Computer, electronic, Communication and scientific measuring & control equipment
C10
Electrical equipment, General Purpose and Special purpose Machinery & equipment, Transport equipment
C11
Motor vehicles, trailers, semi trailers and other Transport Vehicles
C12
Repair & installation of machinery & equipment, motor vehicles
C13
Other manufacturing including jewellery, musical instruments, medical instruments, sports goods, etc. activities
D
Electricity, gas, steam and air condition supply
D1
Electric power generation, transmission and distribution
D2
Manufacture of gas, distribution of gaseous fuels
D3
Steam and air conditioning supply
E
Water supply, sewerage and waste management
E1
Water collection, treatment and supply
E2
Sewerage
E3
Waste collection, treatment and disposal activities, materials recovery and Other waste management services
F
Construction
F1
Buildings
F2
Roads, railways, Utility projects
F3
Demolition & site preparation, Electrical, plumbing & other Specialized construction Activities
G
Trade
G1
Wholesale Trading
G2
Retail Trading
H
Transport and storage
H1
Land Transport via Road
H2
Land transport via Railways & Pipelines
H3
Water transport
H4
Air transport
H5
Services incidental to land, water & air transportation
H6
Warehousing and storage
H7
Postal & Courier activities
I
Accommodation and Food Service
I1
Accommodation services provided by Hotel, Inns, Resorts, holiday homes, hostel, etc.
I2
Food and beverage services provided by hotels, restaurants, caterers, etc.
J
Information and communication
J1
Publishing of Newspapers, Books, periodicals, etc. activities
J2
Publishing of computer operating systems, system software, application software, games, etc.
J3
Motion picture, video and television programme production, sound recording and music publishing activities
J4
Broadcasting and programming activities
J5
Wired, wireless or satellite Telecommunication activities
J6
Computer programming, consultancy and related activities
J7
Data processing, hosting and related activities; web portal
J8
Other information & communication service activities
K
Financial and insurance Service
K1
Banking activities by Central, Commercial and Saving banks
K2
Activities by Trusts, funds and other financial holding companies
K3
Life/Non-life Insurance and Reinsurance activities
K4
Pension Fund activities
K5
Financial and Credit leasing activities
K6
Fund Management Services
K7
Financial Advisory, brokerage and Consultancy Services
K8
Other financial activities
L
Real Estate
L1
Real estate activities with own or leased property
L2
Real estate activities on fee or contract basis
M
Professional, Scientific and Technical
M1
Legal activities
M2
Accounting, book keeping and auditing activities, tax consultancy
M3
Management consultancy activities
M4
Architecture, engineering activities, technical testing and analysis activities
M5
Scientific research and development
M6
Advertising and market research
M7
Specialized Design & Photographic activities
M8
Veterinary activities
M9
Other professional, scientific and technical activities
N
Support service to Organizations
N1
Rental and leasing of motor vehicles, machinery, equipment, capital goods, etc. activities
N2
Placement agencies and HR management services
N3
Travel agency and tour operators
N4
Security and investigation activities
N5
Housekeeping & maintenance service
N6
Office administrative and other business activities including call centers, organising conventions, collection agencies, packaging activities etc.
N7
Other support services to organizations
O
Public Services by Government agencies
O1
Administration relating to Executive, Legislation and other public service by government agencies
O2
Regulation of healthcare, education, cultural and other social services
O3
Administration of activities relating to Foreign affairs, Defence, public order, compulsory social security, etc.
P
Education
P1
Primary & Secondary Education services
P2
Higher education, technical & vocational education
P3
Sports, recreation, cultural and other education
P4
Educational support services
Q
Hospital and Medical Care
Q1
Hospital activities
Q2
Medical and dental practice, Nursing, pathology, blood bank services, etc.
Q3
Residential Nursing care activities
Q4
Residential care for elderly, disabled and other ailments
Q5
Counselling, welfare, referral activities without accommodation for elderly and disabled
Q6
Other Hospital and Medical Care Activities
R
Arts, entertainment and recreation
R1
Creative, arts and entertainment activities
R2
Library, archives, museums and other cultural activities
R3
Gambling & betting activities
R4
Sports, amusement and recreation activities
S
Personal and Household service
S1
Activities of membership organisations
S2
Repair of computers and personal and household goods
S3
Washing and cleaning of textile and fur products, Hair dressing and other beauty treatment
S4
Other Personal service activities
T
Goods and service producing activities of households for own use
T1
Activities of households as employers of domestics personnel
T2
Undifferentiated goods and service producing activities of households for own use
U
Activities of extraterritorial organizations and bodies
U1
Activities of extraterritorial organizations such as UN and its agencies, IMF, World Bank, OPEC, European Commission, etc.

Compiled by Annu Khokher, CA Finalist