How to E-file TDS / TCS Statement from 01.05.2016

There is change in procedure in e-filing of TDS and TCS statements from 1^st May,2016. A step by step procedure to upload online quarterly TDS/TCS statements on the e-Filing portal  with effect from 1st May, 2016 is given as under:

 1. Pre-Requisites for Uploading TDS Statement

 2. How to Upload TDS/TCS Statement 

3. How to view Filed TDS / TCS Statement.

Pre-Requisites for Uploading TDS Statement

• To upload TDS, user should hold valid TAN and should be registered in e-Filing.
• Statement should be prepared using the Return Preparation Utility (RPU) and validated using the File Validation Utility (FVU). The utilities can be downloaded from tin-nsdl website (https://www.tin-nsdl.com/).
• Valid DSC should be registered in e-Filing. Upload TDS/TCS Statement

To Upload TDS, the steps are as below:

Step 1: In e-Filing Homepage, Click on “Login Here”

Step 2: Enter User ID (TAN), Password, and Captcha. Click Login.

Step 3: àPost login, go to TDS  Upload TDS.

Step 4: In the form provided, select the appropriate statement details from the drop down boxes for

I FVU Version

I Assessment Year

I Form Name

I Quarter

I Upload Type

Note:

> TDS can be uploaded from Assessment Year 2011-12.

> Only Regular Statements can be uploaded, the Correction statement can be uploaded only through tin-nsdl portal.

Step 5: Click Validate to Validate Statement details.
View Filed TDS Statement

To View the Filed TDS statement, the steps are as below: Step 1:  View FiledàLogin to e-Filing, Go to TDS  TDS.

Step 2: In the form provided, select the details from the drop down boxes for Assessment Year, Form Name and Quarter respectively for which the TDS was uploaded.

Step 3: Click on “View Details”.

Step 4: The status of the TDS uploaded is displayed.

Once uploaded the status of the statement would be “Uploaded”. The uploaded file will be processed and validated. Upon validation the status will be either be “Accepted” or “Rejected” and would be reflected within 24 hours from the time of upload. In case if “Rejected”, the rejection reason will be displayed.

If the status is “Rejected”, click on the Token Number to view the error details.

Reason for rejection would be displayed as below:

Step 6: If the status is “Accepted”, click on the Token Number to see the details of acknowledgement of the statement uploaded for all future reference.

Contributed by : Suhasani Dang CA Finalist from Sandeep Ahuja & Co

Procedure for filing Stay Application of Demand

As per Section 220 of the Income Tax Act Any tax, interest or any demand order if passed under any section of the Act it becomes payable within 30 days of the service of notice of demand. Therefore, unless the demand is stayed, the demand has to be paid within that time notwithstanding an appeal has been filed by the assessee against the demand or rectification under Section 154 is filed or not.

A Stay of realization of tax cannot be allowed just because an appeal has been preferred or filed. Therefore, it is very significant for assessees to take steps to prevent any coercive methods from being taken by the Department to recover the outstanding dues either through attachment of Bank account or adjustment of demand against any refund due to the assessee.

As CPC has uploaded demands against orders in various sections raised by the department on the website. Now a days department send the notice under section 245 for adjustment of demand known or not known to the assessee. At the time of  filing Online response against such notice  if assessee opts for the Appeal Filed before CIT Appeal and enters the date of such appeal immediately he gets the POP up option for date of application for stay of demand. However ‘STAY OF DEMAND’ term is not used by AO as per the directions of CBDT but in common language this term is used to keep the assessee not in default till the time appeal orders confirming such demands are passed.

Now at the time of response to the under section 245 for non- adjustment of demands against any other refund due to the assessee this term of Stay of Demand Application has got a significant importance.

Points to remember while drafting Stay Application:

There is no format given or prescribed by the department and it can be drafting as per facts and circumstances of the case but following points can be considered :

ü  The Assessment history of the assesse to prove that assesse is not in default regularly

ü  Willing ness and Good conduct of the assesse for discharging tax liability Cooperation of the assessee with the Income Tax Department in the past

ü  Appeal filed with CIT (A) and brief of grounds of appeal and even copy of appeal filed can be enclosed along with receipt of the same.

ü  Financial position and hardships  for payment of demand immediately

ü  Facts and merits of the case and brief of justification or judgments considered framing of such opinion that there was no tax liability on disputed matter.

ü  That assesse has to prove the basis on which he is not agreeing to the demand and his willingness and good conduct in discharge of tax liabilities in past. Even if there are no financial difficulties, stay can be granted if a strong prima facie merits of the case.

ü  It is important to include in case in past the demand on similar issues have been cancelled and case has been decided in favor of the assessee.

ü  Even if the earlier decision of the appellate authority or court has been decided on similar facts on same issue in favor of any other aseessee the stay can be granted on that basis also. And in case the assessee’s relies on a judgement in similar case in other courts the assessee should give comparison that how he has the similar facts and can include the extracts of the judgement which establishes that his case is sound for the stay of demand.

ü  In case assessee finds any mistake in calculation and the mistake is apparent on record and assessee has filed rectification request under Section 154 then such fact should also be included in stay application.

ü  Lastly assessee should pray in the stay application to the effect that no coercive recovery measures may be taken till the disposal of the rectification application

ü  A prayer requesting an opportunity of being heard must be made in the end.

Procedure to fill up the Casual Vacancy in the Office of Auditor

Sub section 8 of Section 139 of Companies Act 2013, provides provision for casual vacancy in the office of the auditor. Casual vacancy of Auditor may arise due to following two reasons:

ü  Casual vacancy due to reason other than resignation of Auditor.

ü  Casual vacancy arise due Resignation of Auditor.

Casual vacancy due to reason other than resignation of Auditor:

If the casual vacancy arises due to any reason other than resignation of the auditor than following procedure & Provisions are required to follow:

1)      Board of Directors of the Company is required to appoint a Statutory Auditor in place of previous Auditor within 30 days from the date of Casual vacancy.

2)      The Auditor so appointed by the Board, shall be the auditor of the company up to ensuing Annual General Meeting from the date he is appointed and he shall be liable to retire or may be re-appointed in the ensuing Annual General Meeting.

3)      It must be noted that casual vacancy of the auditor arisen due to reason other than resignation may be merely filled by passing Circular Resolution and it is not compulsory to hold Board meeting for appointment of auditor in order fill the casual vacancy.

4)      The Board of Directors of the Company is required to File Form ADT-1 with the ROC within in a period of 15 days from the date of appointment of auditor.  

5)      It should be noted that Form ADT-3 is not required to be filled with ROC in the case of casual vacancy due to reason other than resignation of the Auditor.

Casual vacancy arises due to Resignation of Auditor:

If the casual vacancy arises due to Resignation of the auditor than following procedure & Provisions are required to follow:

1)      Board of Directors of the Company is required to appoint a Statutory Auditor in place of previous Auditor within 30 days from the date of Casual vacancy.

2)      It must be noted that casual vacancy of the auditor arisen due to Resignation of the auditor may be merely filled by passing Circular Resolution and it is not compulsory to hold Board meeting for appointment of auditor in order fill the casual vacancy.

3)      Such appointment shall be approved only by the Share Holders in their Extra-Ordinary General Meeting.  Therefore the company is required to hold an Extra-Ordinary General Meeting within 90 days from date of appointment of such auditor by the Board of Directors, for getting the consent of the members by passing ordinary resolution.

4)      The Auditor so appointed, shall be the auditor of the company up to ensuing Annual General Meeting from the date he is appointed and he shall be liable to retire or may be re-appointed in the ensuing Annual General Meeting.

5)      The auditor resigning from his office before the expiry of his term of          his term, needs to file Form ADT-3 along with his resignation letter, with the ROC within 30 days from the date of his resignation.

6)      The Board of Directors of the Company is required to File Form ADT-1with the ROC within in a period of 15 days from the date of appointment of auditor In the Extra-Ordinary General Meeting.

It must be noted that Non-ratification of Auditor by Shareholders in Annual General Meeting also considered as Casual Vacancy other than resignation of Auditor. There is no Need to file MGT-14 in such case for appointment of Auditor

In case of a company whose accounts are subject to audit by an auditor appointed by the Comptroller and Auditor General of India, the power to fill any casual vacancy is vested with the CAG. In case of a failure by the CAG to fill the casual vacancy within a period of 30 days, the Board of Directors is required to fill the same with within the next 30 days.

The Auditor so appointed in a casual vacancy shall hold office until conclusion of the next Annual General meeting. 

Contributed by : Mohd Sharjeel Awasi, Company Secretary & CA Finalist from Sandeep Ahuja & Co

DVAT extends the due date of CR-II return form upto 16 May,2016

DVAT on 28th April, 2016 extends the due date of  the returns in Form CR-II for the financial year 2015-16 till 16th May, 2016. 

Registration, filing & view Form 15CB as submitted, consumed and withdrawn

Now as the procedure has changed for filing of 15CA and 15CB. 15CA already covered in another article now here is the procedure on how to file 15CB, which is to be uploaded by CA from his own LOG IN as CA.

Ø  Add CA through Login to e-Filing Portal àMy Account àAdd CA à Membership Number of CA à Select 15CB

These are one time steps and after adding a CA by the Tax Payer, the CA can file Form 15CB on behalf of the Taxpayer.

Steps by CA for Submission of Form 15CB

 CA should be registered in e-Filing as Tax Professional and once Registration process is complete he can follow the following steps for filing of 15CB

Ø  Download FORM 15CB utility and prepare the XML File à Login to e-Filing à e-File à Upload Form, Enter PAN/TAN of assesse, PAN of CA, Select Form 15CB à Select Filing Type as Original à Upload the XML generated earlier à Upload the signature file for 15CB generated through Utility for DSC Management provided by Income Tax.

DSC is Mandatory to file Form 15CB.

View Form 15CB by Taxpayer

After CA uploads Form 15CB, the Tax payer can view FORM 15CB uploaded by CA after logging into portal of Income Tax.

Ø  Log Into you ID à Worklist à For Your Information à View Form

Ø  Click on the link to view the Uploaded Form the status of the form on submission will be Submitted and after filing of Form 15CA-Part C against that Form 15CB, the status of Form 15CB will change into Consumed.

Ø  In case Form15CA is withdrawn against which Form 15CB was consumed, then the status of Form 15CB will be reversed from Consumed to Withdrawn.

One Form 15CB can be consumed for filing one Form 15CA only.

Excise Returns ER4, ER5, ER6 and ER7 are not required but Annual return to be filed by 30th Nov,2016

The Excise returns in ER4, ER5, ER6 and ER-7 are not required to be filed from 01.04.2016 vide Notification No.08/2016dated 01.03.2016, The Govt has notified the Annual return to be filed as per Rule 12(2)(a) read with rule 9Aof Cenvat Credit Rules and annoal return for the year ended on 31.03.2016 is due to be filed on or before 30th November,2016

Due date extended to 29th April for filing of ST-3

Due to difficulty in ACES site the due date for filing of ST-3 i.e Service TaxReturn for the Half Year Ended on 31.03.2016 is extended by four days from 25th April to 29th of April

TDS Notices, Defaults, Penalties, Interest and Online Correction on TRACES for 26QB – TDS on sale of Immoveable Property

TDS is applicable on transfer of Immovable property under section 194IA enacted by Finance Act 2013 where the consideration of property exceeds or is equal to 50 lacs. TDS Provisions for Property Sale/ Purchase above 50 Lacs are as under:

·         WEF 1^st June, 2013 Tax @ 1% should be deducted by the buyer of the property at the time of making payment of sale consideration

·         For furnishing of Information of such transaction a 26QB form is to be filed online containing PAN of seller as well as buyer & Address, Transaction value and date of agreement for such transaction. In case of more than 2 buyers or sellers the Challan and Form 26QB will be filled in by all the buyers for respective sellers for their respective share.

·         Any sum so deducted under section 194 IA shall be required to be paid to the credit of the Central Government within a period of seven days from the end of the month in which the deduction is made either through Net Banking or through Authorized Bank Branches.

·         TDS certificate in Form 16B is required to be issued by the Buyer of property to the Seller, in respect of the taxes deducted and deposited in Govt Account.

·         Challan and Form 26QB will be filled in by all the buyers for respective sellers for their respective share.

·         If the person liable to deduct tax does not file 26QB and deposits the Tax Deducted in time will be treated as Assessee in default and shall be liable to pay Interest under section 201 of Income Tax Act,1961 before furnishing the Form 26QB

Ø  In case of TDS Deducted but Not paid in Time @1.5% for for every month or part of a month on the amount of such TDS from the date on which such TDS was deducted to the date on which such TDS is actually paid.

Ø  In Case TDS is not deducted @1% for every month or part of a month on the amount of such tax from the date on which such TDS was deductible to the date on which such TDS is deducted.

·         No filing or late filing of statement of TDS / TDS returns inForm 26QB the Assessee in Default shall be liable to pay late fees under section 234E .@ Rs 200 per day till the failure to file TDS statement continues with challan within a period of seven days from the end of the month in which the deduction is made.

·          It should be filed with challan within a period of seven days from the end of the month in which the deduction is made. Deductor will be liable to pay by way of fee of Rs 200 per day till the failure to file TDS statement continues.

·         The late filing fees shall be deposited before filing the TDS return in Form 26Q but the total fee cannot exceed the amount of TDS deductible for which statement was required to be filed filing fee.

·         No filing or late filing of statement of TDS / TDS returns in Form 26QB shall invite penalty under section 271H minimum Rs 10,000/- to Rs 1 lakh for not filing the TDS statement within one year from the specified date within which he was supposed to file the statement.

·         As Per section 271H penalty will be levied if the deductor/collector files an incorrect TDS return minimum penalty of Rs. 10,000 and maximum penalty of upto Rs. 1,00,000/-. In Case TDS return is filed without payment of Penalty under section 271H it may be levied on deductor by the assessing officer.

·         TRACES is sending two types of notices: i) Demand of interest payment in case TDS is  paid but interest is payable and ii) Demand of TDS and interest payment in case TDS is deducted or not deducted but not paid to the credit of the Central Government and TDS return in Form 26QB not filed.

Online Correction of 26QB

·         The CPC TDS released Online Correction facility for TDS statements filed in form 26QB, for TDS on transfer of Immovable Property where consideration exceeds Rs. 50 Lacs.

·         The TRACES has given now Online Correction facility for closure of the following TDS Defaults due to incorrect data entry in the 26QB statement.

Steps for online correction in 26QB

·         Register at Traces

·         Register your DSC

·         Make Correction in the following Fields : PAN of Buyer Details, PAN of Seller Details, Amount Paid/Credited, Date of Payment / Credit, Date of Tax Deduction, Financial Year & Details of Property

·         No DSC required for Corrections in the fields of email address, Mobile Number and Address of the Property.

In case a person does not have DSC then Assessing Officers’ Approval is required except for amendment in E Mail ID, Mobile and Address of the property.

MCA UPDATES ON RELAXATION OF FEE AND NOTIFICATION OF NEW FORMS TILL 10TH MAY,16

·         MCA vide General Circular No.03/2016 dated 12/04/2016 has announced Relaxation of additional fees and extension of last date of filing of various e-Forms under the Companies Act. MCA Launched V2R2 on 28^th March, 2016 and due to that many stakeholders suffered so MCA has decided to relax the additional fee payable on e-forms which are due for filing by companies between 25^th March 2016 to 30^th April, 2016 as one time waiver of additional fee and it is also clarified to stakeholders that if such due e-forms are filed after 10.05.2016, no such relaxation shall be allowed.

·         MCA has notified new version of e-forms: DIR-12, INC-22 and MGT-7 with effect from 12th April, 2016

DVAT Composition Scheme for Small Food Dealers (Having Turnover not Exceeding Rs.50,00,000/-)

DVAT has introduced a composition scheme for small dealers whose turnover does not exceed Rs fifty lakh in preceding financial year and expected turnover of current year does not exceed Rs fifty lakh to minimize tax burden provided that the condition of turnover during the preceding year shall not apply to a dealer who commences his business during the current year.

Applicability w.e.f. : 01^st April 2016

Eligibility to pay tax under this Scheme:

·         The dealer must be registered

·         The turnover of preceding financial year as well as current financial year does not exceed 50 lakh.

·         The dealer is not making sales of any goods other than that of ready to eat foods and non alcoholic beverages including cooked food, snacks, sweets, savouries, juices, aerated drinks, tea and coffee etc whether these are provided as indoor service or outdoor service by hotels/ restaurants/ sweet stalls/ sweet shops/ club/ caterers or any other eating houses.

Composition Amount:       5% of entire Turnover

Rate of Tax:

The tax will be paid at the rate specified in section 4 of the Act on the value of opening stock held on first day of financial year from which he opts for the scheme.

He shall furnish the detail of such opening stock in form RH 02 with proof of payment of due tax in form D VAT 20 with his application in form RH 01.

 In Case dealers who opts this Composition Scheme they shall not be entitled for :

a)      Purchasing from or sale to any goods outside Delhi.

b)      For making a purchase from unregistered dealer except in case of goods specified in First schedule.

c)       For Booking tax credit under section 9 of the Act and calculating his tax under section 11 of the Act.

d)      For collecting any amount by way of tax under the Act and for issuing of “Tax invoices”.

Such dealer is liable to Retain all tax invoices and retail invoices of purchase made by him and retail invoices issued by him in respect of sales made by him as required by section 48.

 Other Major Points for consideration before opting for Composition Scheme:

1.       Once a dealer has opted to pay tax under this scheme, he shall be liable to pay tax under this scheme for the following year also provided he can opt out  from this scheme subject to :    

a)      Condition specified under section 20 of the act and

b)      Furnishing of intimation regarding withdrawl  from this scheme within 30 days from the end of financial year in form RH 03.

Once the dealer opts out from this scheme, he can claim credit of tax paid on opening stock held by him on first day of said following year.

2.       A dealer who apply for a fresh registration can opt for this scheme by filling application in form RH 01 along with his registration application in form D VAT 04

3.       A dealer who is paying tax under section 3 of the Act can also opt for this scheme by filling application in form RH 01 within 30 days from the 1^st day of the year for which he wants to opt for this scheme.

4.       The dealers who are presently covered in general composition scheme as per sub section 1 to 11 of section 16 and they are also covered in the class of dealers prescribed in this scheme has to mandatorily withdraw from existing scheme by filing form DVAT-03 within a period from 1^st April 2016 to 30^th April 2016.These dealers can opt for the new scheme as per above procedure but it is not mandatory, If these classes of dealers are not interested in composition scheme can file returns as per normal procedure

5.       The Tax period will be quarterly unless otherwise prescribed by commissioner for a dealer or class of a dealer.

6.       The tax paid by dealer shall not be adjusted at any stage against the liability of dealers to pay tax under section 3 of the act for a period other than the period for which dealer is liable to pay tax under this scheme.

7.       If turnover exceeds Rs. 50,00,000 at any time during the financial year:

·         He shall be liable to pay tax under section 3 of the Act 

·         He shall be liable to furnish intimation in form RH 03 within 7 days from which turnover exceeds Rs. 50,00,000

·         He shall be entitled to claim credit of Input Tax paid on Opening  Stock held by him in Delhi on such day

8.       A dealer who has defaulted to pay tax under this scheme for two consecutive period,

·         Shall be liable to pay tax under section 3 and cease to pay tax under this scheme immediately from the 1^st day of latter tax period from the period for which he has committed default.

·         He shall be liable to furnish intimation in form RH 03 within 7 days after the end of due dates specified.

·         He shall be entitled to claim credit of Input Tax paid on Opening  Stock held by him in Delhi on such day

9.       All the provision which are not contrary to this scheme shall apply to every dealer who is opting to this scheme.

10.   In case of failure to comply with the condition mentioned in the scheme or at a later stage is found that he was not eligible for the scheme, all the provision of the Act including the liability to pay tax under section 3 along with interest for delay shall apply mutatis mutandi as if he was not covered under the scheme.

Contributed By CA Shalu Gupta from Sandeep Ahuja & Co

Sarees Exempt from DVAT or Taxable at 5%

THE FIFTH SCHEDULE TO DELHI VAT (See section 6)

List of dealers exempted from paying tax on sale of goods

S.No 31 Silk and garments made of silk but not including Sarees made of silk.

·         So the Dealer who Deals in Sarees made of Silk are not Exempt.

·         Dealers of Silk  ( Fabric)  and Garments made of Silk are Exempt

THE FIRST SCHEDULE  List of Exempted Commodities

WEF 21.06.2011

Exempted : Textile as described in the First Schedule to the Additional Duty on Excise (Goods of Special Importance) Act, 1957 before its omission by the Govt. of India to give effect to section 75 of the Finance Bill, 2011 but not including –

(i)  Bed-sheets, pillow covers and other made ups covered by HSN entry nos. 63.01, 63.02, 63.03, 63.04, 63.05 and 63.06. (for HSN Entries – Refer Annexure I at the end of the Schedules)

(ii)  Imported varieties of textiles.

(iii)(a) industrial textiles such as canvass belt, filter cloth etc.

                (b) furnishings having sale price of more than Rs. 100/- per meter or per piece or per set, as the case               may be, other than handloom furnishings.

                (c) Suiting having sale price of more than Rs. 500/- per meter

                 

              So Items covered under (i) to (iii) above are Taxable

WEF  11.05.2005

Exempted : Khadi garments, bags and made-ups.

WEF 31.03.2008

Exempted :   Embriodery and Zari items, that is to say-(i) imi, (ii) zari, (iii) kasab, (iv) salma, (v) dabka, (vi) chumki, (vii) gota, (viii) sitara, (ix) naqsi, (x) kora, (xi) glass bead, (xii) badla and (xiii) gazai

THE THIRD SCHEDULE (See section 4)

List of Goods Taxed at 5%

WEF 11.05.2005

Taxable : Silk fabrics including silk sarees but excluding handloom silk unless covered by Additional Excise Duty.

Contributed By Pawan and Amit ( CA Finalist at Sandeep Ahuja & Co.)