Friday, January 27, 2017

DVAT date extended upto 13.02.17 for Quarter ended 31.12.16

DVAT return for quarter ended on 31.12.16 in Form 16,17 & 48 which was due to be filed till 25.01.17 is extended upto 13.02.17 vide Circular No.21 dated 27.01.17 

Friday, January 20, 2017

No Penalty Under Section 234E before 01.06.2015

Section 200A was amended by Finance Bill 2015 with effect from 01.06.2015. Through this amendment in section 200A of the Income-tax Act 1961 in sub-section (1), for clauses (c) to (e), the following clauses has been be added  with effect from the 1st day of June, 2015

(c ) the fee, if any, shall be computed in accordance with the provisions of section 234E

Income tax department has been empowered to levy late fee U/s 234E @ Rs. 200/- per day on delayed filing of TDS Quarterly Statement.  So late fee levied before 01.06.2015 can be waived by the officer and the assessee for waiver can file a rectification under Section  154 or appeal can be filed for getting the demand of 234E cancelled.

As clause (c) newly inserted was effective from 01.06.2015 and prior to 1st June 2015, there was no enabling provision in the Income Tax Act for raising a demand in respect of levy of fees under section 234E consequently  no late fee under Section 234E is not payable if it pertains to the period 01.06.2015

(d) First the adjustment of the amount computed under clause (b) and clause (c) against any amount paid under section 200/201/234E and any amount paid otherwise by way of tax or interest or fee will be made and then the sum payable by, or the amount of refund due to, the deductor shall be determined. 

(e) An intimation shall be prepared and sent to the deductor determining the tax to be payable or the amount of refund due under clause (d); and (f) the amount of refund due to the deductor in pursuance of the determination under clause (d) shall be granted to the deductor.

Now ITAT ,Amritsar in the case of Sibia Healthcare Private Limited  Vs. Dy. Commissioner of Income-tax (TDS) dated 09.06.2015, has passed an order on section 234E of Income Tax Act on Levy U/S 234E  i.e on late filing of E TDS return for delay @ Rs.200/- per day  admitting that in the absence of the enabling provision under Section 200A such levy is not valid so cannot be recovered.

The main points cleared by such Judgment are as under :

ü  the adjustment in respect of levy of fees under section 234E  is  beyond the scope of permissible adjustments under section 200A.
ü  The intimation for processing of TDS Statement  is an appealable order under section 246A(a).
ü  No such levy could be effected or recovered in  the absence of the enabling provision under section 200A,.
ü  An  intimation under section 200A can be passed within 1 year from the end of the Financial Year within which the related TDS Quarterly Statement is filed,  for raising of a demand or issuing a  refund to the tax deductor.

So in Light of above decision it  has been cleared  that Late fee penalty/Fee cannot be imposed before 01.06.2015

Now caution for intimation under Section 200A if received for earlier period :

ü  The assessee should check the intimation immediately as received through mail
ü  The assessee should give the Valid E mail ID on Traces site which is Poped up if intimation is received or is checked by the assessee regularly.
ü  For such levy under Section 234E before 01.06.2015 file a rectification if no intimation received .
ü  If such intimation is received then check that appeal is filed in time so that it is not time barred.
ü  Intimation for all TDS statements filed during Financial Year 14-15 and for Quarter ended 31.03.2015 filed in Financial Year 15-16 should have been passed before 31.03.16 and 31.03.17 respectively.
TDS CPC is sending intimations through mail for the current period immediately and as well for earlier period also.

Tuesday, January 3, 2017

Due Dates in January,2017

Statutory Act
Applicable Form
Service Tax
G.A.R. -7
Last date for payment of Service Tax
Income Tax
Challan No.-281
Payment of TDS/TCS deducted/collected in Dec, 2016
ER-1, ER-3
Last date of filing of ER-1 & ER-3 (monthly return for large tax payers & SSI unit respectively for Dec 2016-17)
Income Tax
Form 27EQ
Last date of filing TCS return for Q3
Provident Fund
Electronic Challan Cum Return(ECR)
E-Payment of PF for January
Payment of ESIC Liability for January
Last date for E-Payment of D-VAT for the month of December.
DVAT – 43
Issue of DVAT certificate for deduction made in December.
File DVAT/CST Return online for Quarter ended December,2016
Furnish Application for refund in form DVAT-23 online
Income Tax
TCS- Form 16
​​Quarterly TCS certificate (in respect of tax collected by any person) for the quarter ending December 31st ,2016
Income Tax
24Q & 26Q
Submission of ​Quarterly statement of TDS deposited for the quarter ending December 31, 2016 ​​​
TDS on Property Sale
TDS on Property
​​Due date for deposit of tax deducted at source under Section 194-IA​ for purchase of property for the month of June, 2016​
Last date for Provisional  registration of GST - for existing taxpayer registered under sales & Service Tax.

Incorporation of Company under Companies Act 2013- Part-1

Ministry of Corporate Affairs (‘MCA’) has come up with new rules for Incorporation of Company with simplified procedure.MCA has now issued a New E-form called SPICe which is a simplified version  of previous forms . Now Incorporation of companies can be done through two ways :
1.     SPICe e-form
2.     Revised INC-7(Normal procedure)
A brief description of both forms along with their Advantages and using steps are detailed here
SPICE : A Simplified Proforma For Incorporating Company
(for OPC & Company having less than seven Subscribers)
The Ministry of Corporate Affairs has taken another bold & appreciable initiative by Simplified Proforma for Incorporating Company Electronically (SPICe) e-Form with the specific objective of providing speedy incorporation related services within stipulated time frames
Salient Features of SPICe- eform(INC-32)
·         SPICe- e form (INC-32) can be filed even if INC-1 has already been filed for application of “ Name of Company”
·         SPICE has provided Digital filing for MOA and AOA through forms INC-33 and INC-34 respectively.
·         MOA can be copied from a pre-drafted file and AOA can be pre- drafted against the clauses given in Form INC-34.
·         Digital Signature of directors can be affixed with INC-34 and INC-35 electronically.
·         INC-32 is  a Simplified version of INC-29 with a addition of details regarding MOA and AOA
·          Incorporation of Section -8 Companies.
·         The filing fee for SPICe has also been reduced from Rs.2000 to Rs.500 and number of resubmissions from three to two.
Advantages of Filing SPICe- eform (INC-32)
·         No Requirement to file Several  Documents for Incorporation  of company
·          A  simplified and completely electronic  form for Company Incorporation
·         Standard format of e-Memorandum of Association as per Companies Act, 2013
·         Standard format of e-Articles of Association as per Companies Act, 2013
·          Memorandum and Articles will now be filed as linked e-forms (except for Section 8 companies)
·         Provision to apply for Company Incorporation with a preapproved Company Name
·         Mandatory DSCs of Subscribers and Witnesses (max 7+1) in SPICe MOA and SPICe AOA
·         A hassle free and time saving procedure for Incorporation of Companies in India.
Procedure for Incorporation of company using Spice-e form
In the Previous E-form INC-29  there was a restriction i.e. if Company filed INC-1 for proposal of name then it was not possible for the Company to file INC-29.Because INC-29 was not providing the way to file if company already has got name approval by INC-1.
But in INC-32 at point no. 5(a)(i) of INC-32 there is a option “Whether Name is already approved by Registrar of Companies” Company has to select  Yes or No in this Option.
In case of Yes (Means Company has got name approval in INC-1) then mention the SRN of such INC-1. But in case name is not approved by INC-1 then mention the name and significance as we were applying in INC-29.
SPICe will be the Sole, Simplified & Versatile form available for incorporation of One Person Company & Company having up to seven Subscribers including Section 8 companies. It is Just a simpler Version of INC-29  with few modifications in it .the major change in INC-32 is now stakeholders can digitally file MOA & AOA of company Through form INC-33 & INC34 respectively.
E-memorandum of Association:  This is new feature. Now e-MOA (Electronic MOA) has been prescribed by MCA. In e-form No. INC-33. This is the first time facility provided by the Ministry to prepare MOA & AOA in electronic mode
Information Required to be Mentioned In Form INC-33:
  • Select the table applicable on Company [A,B,C,D,E]. Based on selected table, relevant fields would be displayed below
  • SRN of INC-1, If filed. (this should be same as mentioned in the linked form INC-32)
    • Then press Prefill button.
    • Then Name and State will be prefilled.
    • Give the correct details of the objects to be pursued by the company.
    • Mention the required information (furtherance of object, Share Capital, subscriber details, liability clause) in the form
  • If INC-1 not filed then fill the following information
    • Mention the Name of Company
    • State of Incorporation
    • Objects of Company
    • Furtherance of Object
    • Fill the subscriber sheet
    • Detail of Capital of the Company
  • Instead of Signature of Subscriber affix the DSC of subscribers.
By affixation of DSC of the subscriber on the INC-33 (e-moa) date of signing will be filling automatically by the form.
  • Instead of Signature of witness affix the DSC of [2]
  • Click on Check form and file with INC-32 in linkage.
E-Article of Association: This is new feature. Now e-AOA (Electronic AOA) has been prescribed by MCA. In e-form No. INC-34. This is the first time facility provided by the Ministry to prepare MOA & AOA in electronic mode.
Information Required to be Mention In Form INC-34:
  • Select the applicable standard table as notified under Schedule I to the Companies Act, 2013.
  • On the basis of selection, relevant ‘Articles’ clauses will be appear.
  • To hide any article, click on 1st check box ‘Not applicable’ against the respective article.
  • To entrench the article, click on 2nd check box ‘Altered’ against the respective article.
  • Director name(s) should be entered mandatorily under “Board of directors”. Mention different appointments as a sub-article E.g. (a) – Managing Director, (b) – Director Names etc.
  • Articles in addition to the standard table shall be mentioned in last blank box ‘Others
  • Mention SRN of INC-1, If filed. If not filed then mention the proposed name.
  • Instead of writing of clause of AOA just select from any two options IF
    – Not Applicable’ or
  • Altered
  • Instead of Signature of Subscriber affix the DSC of subscribers.
By affixation of DSC of the subscriber on the INC-33 (e-moa) date of signing will be filling automatically by the form.
  • Instead of Signature of witness affix the DSC of Witness.
  • Click on Check form and file with INC-32 in linkage.
Mandatory Attachments:
  • Affidavit and declaration by first subscriber(s) and director(s);
  • Proof of Office address (Conveyance/ Lease deed/ Rent Agreement etc. along with rent receipts);
  • Copy of the utility bills (not older than two months)
  • Companies have option to go by route of e-form INC-32 or earlier route INC-1, INC-7, DIR-12 and INC-22.
  • Director has to give declaration at the end of the form that he have check the name on MCA website and Trade Mark Website.
  • DSC of Director will be affix on form. {In case of director don’t have DIN then mention PAN No. of director at the place of affixing of DSC)
  • DSC of professional will also affix on the form.
  • List of main divisions of industrial activities given as Annexure A in the instruction Kit of INC-32.
  • Only one name can be applied for approval in this e-form. Therefore, one is advised to duly check the proposed name and follow name availability guidelines, existing trade marks to avoid rejection.
  • Only Three re-submissions are allow
·          In case of  the witness doesn’t have DSC then follow the normal incorporation procedure
Revised INC-7 (For Company having more than seven subscribers)
·         Companies have option to go by route of e-form INC-32 or earlier route INC-1, INC-7, DIR-12 and INC-22.
·         INC-2 is deprecated and INC-7 shall be used for incorporating Part I Companies and companies with more than seven subscribers only.
·         A revised INC-7 shall be made available on MCA portal w.e.f. 15th January 2017 For Companies having more than seven subscribers or foreign national subscribers not having a valid DIN
·         Stakeholders who have already filed INC-2 or INC-7 prior to the notification of this change would be able to resubmit previous versions of these forms (if required), within a stipulated time period.
·         Filing Form 3 within 30 days of incorporation is mandatory. It is advised to ensure that Form 3 (Information with regard to Limited Liability Partnership agreement and changes, if any, made therein) has been mandatorily filed for initial agreement before filing of Form 8.

Contributed by: Anita Kanwar CA Finalist at Sandeep Ahuja & co