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.

Saturday, January 27, 2018

31st March,2018 is the last date for filing of Income Tax return for Asst Year 2016-17 and Asst Year 2017-18

Income Tax department is sending notices to all PAN Holders on the E Mail IUDs available with the department or on the addresses available with the department for filing of returns for Asst Year 2016-17 and Asst Year 2017-18.
The Income Tax department is sending notice as given hereunder:

Dear Taxpayer,
Greetings from Income Tax Department.
It is observed that you have not filed the Income Tax Return for ABZPAXXXXN for AY 2017-18.
Therefore, it is advised that you may ascertain your tax liability for AY 2017-18 and file your Income Tax Return (ITR) without any further delay. Last date to file your return for AY 2017-18 is 31st March 2018. However, you are advised to file the Income Tax Return much before the last date to avoid last minute rush.
Please note that the law has changed and ITR for AY 2017-18 CANNOT be filed beyond 31st March 2018.
Please also link your PAN with Aadhaar on the e-Filing website. If your mobile is already linked with Aadhaar, then you can e-verify your ITR using Aadhaar OTP. e-Verification is Simple and Easy, you can e-Verify your return through NetBanking / Pre-Validated Bank Account / Bank ATM / Pre-Validated Demat Account. No need to send ITR-V to CPC Bangalore if you e-verify. To know more on e-Verification click here.
In case you require any assistance in filing of Income Tax Return, please visit www.incometaxindiaefiling.gov.in or call on 1800 103 0025.
Disclaimer: Please ignore this email if you have already filed the IT Return for AY 2017-18.

The Income Tax department is sending the notices on the basis of the information received from
-          Banks for deposits, withdrawals and loans for purchase of property, vehicle or any other assets.
-          Financial institutions for investment in  Mutual Fund and investment in shares or company deposits or loans taken for any purpose i.e purchase  of property or large investment.
-          Registrar of property on sale or purchase of property
-          Builders for receiving of large amounts on account of booking or for assured returns.
-          Insurance Companies for investing or taking high value policies or on maturity of policies.
-          Tour operators and travel agents for booking foreign tickets or high value booking of hotels.
-          Hotels for receiving large payments for booking of party banquets or lawns for parties.
-          TDS payments for making payments after tax deduction from TDS returns.
Every person who has taxable income above Rs.2.50 lacs is liable to file Income tax Return. The Income Tax return is required for VISA, for loan from bank or financial institution for purchase of property, Vehicle or education loan. Generally after receiving VISA application or loan application the applicant is required to submit three years Income Tax Return along with other documents. As per the provisions of Income Tax  Act up to Asst Year 2017-18 the income Tax return can be filed till 31st March of next Financial Year so the income tax return for two years can be filed at any point of time but with the amendment in Finance Act 2017 now the Income Tax return can be filed without any penalty for one year only.

So any person after 31st March, 2018 only return for Asst Year 2018-19 will be filed and 31st March 2018 is the last date to file the Income Tax return  for asst Year 2016-17 and asst Year 2017-18.

Friday, January 12, 2018

Alert messages from CPC & response by taxpayers - Section 143(1)(a)(vi)

CBDT instructs CPC to send alert messages and mails to tax payers asking for response for the proposed income/loss adjustments prior to issuing intimation u/s 143(1) & response / revised return to be filed by the taxpayer
For processing of Income-tax Returns which were filed in forms Itr-1 to 6 and applicability of section 143(1)(a)(vi) CBDT has issued Circular No.1/2018 dated 10/01/2018
As per circular of CBDT now CPC will be sending intimations proposing adjustments in identified returns under section 143(1)(a)(vi) of the Act, the process to be followed by the taxpayers for filing the response is as under:
 Since section 143(l)(a)(vi) of the Act is being applied for the first time while processing the returns before issuing an intimation of the proposed adjustment, the taxpayer will be informed through an e-mail and SMS communication about the variation in the tax-return vis-a-vis the information available in 26AS/ Form16 and Form 16A (the three Forms) and requesting him to submit response to the variation within one month of receiving the communication electronically.
It is of utmost necessity that the concerned taxpayer files a prompt, timely and satisfactory response to the awareness campaign or subsequent intimation proposing adjustment u/s 143(1)(a)(vi) of the Act.
In case the taxpayer does not respond within the available time-frame or the response is not satisfactory, a formal intimation u/s 143(l)(a)(vi) proposing adjustment to the returned income would be issued to him.
 In a case where no response is received from the taxpayer within thirty days of issue of such intimation, the proposed adjustment shall be made to the returned income.
 The manner for furnishing response by the taxpayer is as under:
- For furnishing the response, taxpayer is required to login in his account in the e-filing site and choose the option (View-Returns/Forms).
- In a case where communication/intimation has been issued to the taxpayer u/s 143(1)(a)(vi) of the Act, the status will be displayed in the dashboard as 'Response to Communication/Intimation u/s 143(1)(a) is pending'. 
 The taxpayer can click on the same and submit his response.
 For furnishing response on receiving the awareness message or formal intimation u/s 143(1)(a)(vi) of the Act, options are as under:

I.

if the taxpayer fully agrees with the proposed adjustment, he is required to file a revised return in response on receiving the message or formal intimation u/s 143(1)(a)(vi) of the Act.
II.

if the taxpayer partially agrees with the proposed adjustment, he is required to
(i)                 file a revised return for the part of the proposed adjustment with which he is in agreement &
(ii)                file a reconciliation statement for the part of the proposed adjustment with which he is not in agreement.
III.

If taxpayer disagrees with the proposed adjustment, he is required to file a reconciliation statement in support of his contention.

Saturday, January 6, 2018

CBEC issues clarification on 04.01.18 on Accommodation Services, Home stay, Printing and legal services

CBEC Clarification regarding levy of GST on accommodation services, homestays, printing, legal services etc on 04.01.2018
Accommodation Services
1. Re : Whether GST will be charged on actual tariff for accommodation services : Declared or published tariff is relevant only for determination of the tax rate slab. GST will be payable on the actual transaction value.
 2. Re: Whether GST rate will change if cost goes up more than the tariff  due to additional bed etc .: GST rate would be determined according to declared tariff for the room, and GST at the rate so determined would be levied on the entire amount charged from the customer. For example, if the declared tariff is Rs. 7000 per unit per day but the amount charged from the customer on account of extra bed is Rs. 8000, GST shall be charged at 18% on Rs. 8000.
3. Re: Ascertainment of the declared tariff : Tariff declared anywhere, say on the websites through which business is being procured or printed on tariff card or displayed at the reception will be the declared tariff. In case different tariff is declared at different places, highest of such declared tariffs shall be the declared tariff for the purpose of levy of GST.
4. Re: What rate in case of different tariff at different times depending on season or flow of tourists:  In case different tariff is declared for different seasons or periods of the year, the tariff declared for the season in which the service of accommodation is provided shall apply.
5. Re : In Case tariff differs between booking and actual usage : in case of Declared tariff at the time of supply would apply.
6. Re: In case tariff changes at the time of up gradation: If declared tariff of the accommodation provided by way of upgrade is Rs 10000, but amount charged is Rs 7000, then GST would be levied @ 28% on Rs 7000/-
7. Re: Whether Price or declared tariff includes the tax component or not in case of accommodation in hotels, inns etc. : Price/ declared tariff does not include taxes.
8.Re: Room rent in hospitals to in patients : The room rent in hospitals is exempt.
9. Re : The rate of tax on bakery items : In case bakery items are supplied by a bakery where eating place is attached to manufacturer for the purpose of composition levy in such case any service by way of serving of food or drinks including by a bakery qualifies under section 10 (1) (b) of CGST Act and hence GST rate of composition levy for the same would be 5%.
10. Re : Homestays providing accommodation through an Electronic Commerce Operator, below threshold limit are exempt from taking registration: Vide Notification No. 17/2017-Central Tax (Rate), GST in case of accommodation services provided in hotels, inns guest houses or other commercial places meant for residential or lodging purposes provided by a person having turnover below Rs. 20 lakhs (Rs. 10 lakhs in special category states) per annum are not required to take registration and such persons, even though they provide services through ECO, are not required to take registration.
Supply of Books :
CBEC has given clarification whether supply in the situations listed below shall be treated as a supply of goods or supply of service:
 1. The books are printed/ published/ sold on procuring copyright from the author or his legal heir as is the case of White Tiger Procures copyright from Ruskin Bond.
2. The books are printed/ published/ sold against a specific brand name like Manorama Year Book  
3. The books are printed/ published/ sold on paying copyright fees to a foreign publisher for publishing Indian edition of foreign books as is the case of Penguin (India) Ltd. pays fees to Routledge (London) and Ananda Publishers Ltd. pays fees to Penguin (NY)
The supply of books shall be treated as supply of goods as long as the supplier owns the books and has the legal rights to sell those books on his own account.

Provision of Legal Service to Business entity
Re : Legal services other than representational services provided by an individual advocate to a business entity are liable for GST under reverse charge mechanism:

In case of legal services including representational services provided by an advocate including a senior advocate to a business entity, GST is required to be paid by the recipient of the service under reverse charge mechanism, i.e. the business entity.