TaxOnline24

TaxOnline24

Complete solution at a single window

News

Post Top Ad

Post Top Ad

Friday, 15 March 2019

Compulsory Acquisition Of Urban Land Eligible For Tax Benefit

Friday, March 15, 2019 0

Compulsory Acquisition of Urban Land Eligible for Tax Benefit; Sri Harimurali Sreedharapanickar Vs. ITAT Cochin case no. – 207/coch/2017 date -5.02.2019

Fact of the Case:-

  1. In the instant case the assessee is the beneficiary of Capital Gain Tax from sale of agricultural land under compulsory acquisition of urban land.
  2. The Assessing Officer reopened the assessment against the assessee for the reason that the assessee had not disclosed capital gains tax for land sold to Vizhinjam International Seaport Limited.
  3. The assessee claimed that the land was compulsorily acquired and the same being an agricultural land, coming within the notified area, was entitled to the benefit u/s 10(37) of the I.T Act.
  4. The contention of the assessee was rejected by the Assessing Officer, solely for the reason that the land in question was not compulsorily acquired but was transferred by executing a sale deed. Therefore, it was concluded by the Assessing Officer that the assessee was not entitled to the benefit of section 10(37) of the I.T Act.
  5. The assessee appeared before Tribunal contesting the decision of A.O

Decision of the Case

  1. The Tribunal noted that the solitary reason for not granting of the benefit of section 10(37) of the Income Tax Act in respect of the acquisition of urban agricultural land was that it was not a
  2. compulsory acquisition, but only executed through a negotiated sale deed.
  3. In the instant case, the entire procedure prescribed under the Land Acquisition Act was followed.
  4. The only price was fixed upon a negotiated settlement.
  5. The Income Tax Appellate Tribunal (ITAT), Cochin bench has held that the compulsory acquisition of urban land is eligible for tax deduction under the Income Tax Act, 1961.

Read More

Thursday, 14 March 2019

Rent Paid In Cash Can’t Be Allowed As Business Expenses

Thursday, March 14, 2019 0

Rent paid in cash can’t be allowed as business expenses without details
Shri Santilal B. Parekh vs. ITAT Mumbai
case no. – 4262/mum/2017 date -4.02.2019

Fact of the Case

  1. In the present case the assessee is a person who is engaged in business.
  2. The assessee claimed deduction of Rs.54000 p.m as rent expenses of his business. But the A.O denied to allow the deduction.
  3. The assessee then appealed to the ITAT against the decision of A.O

Decision of the Case

The Income Tax Appellate Tribunal observed the 
followings:-
  1. The assess paid rent in cash.
  2. The rent paid in cash of Rs.54000 p.m without any proper supporting document in respect of rent payment i.e no lease rent agreement.
  3. Even there is no proper evidence that the premise has been used wholly for the running of the said business.
  4. Only the assessee has submitted selfsupporting vouchers with respect to the payment of rent in cash.
  5. Under this situation, the amount of rent paid in cash cannot be allowed as business expenses.
Read More

Wednesday, 13 March 2019

ITC not admissible on ambulances purchased for employees benefit: AAR

Wednesday, March 13, 2019 0

ITC not admissible on ambulances purchased for employees benefit: AAR
Nipha Exports Pvt Ltd Vs. West Bengal AAR
case no. - 43/wbaar/2018-19  date - 26/02/2019


Fact of the Case

  1. Nipha Exports Pvt. Ltd. Is the applicant and engaged in manufacturing of agricultural machinery, seeks a Ruling on whether input tax credit is admissible on ambulances purchased for the benefit of the employees under legal requirement of the Factories Act, 1948. 
  2. The concerned officer from the revenue has raised no objection to the admission of the application and admitted the said application. 

Decision of the Case

The Authority observed the followings:-
  1. Eligibility for claiming input tax credit under section 16(1) is subject to the provisions of law at the time of occurrence of the taxable event, irrespective of when the claim is made.
  2. Second proviso to section 1 7(5)(b) of the GST Act, as it stands post amendment effective from 01/02/2019, is not applicable to a transaction made in November 2018.
  3. It is evident from above that input tax credit on inward supply of ambulance, being a motor vehicle, is not admissible under Section 1 7(5)(a) of the GST Act.
  4. The exception carved out under Section 17(5)(b)(iii)(A) of the GST Act for services which are obligatory for an employer to provide to its employees under any law for the time being in force is limited only to rent-a-cab, life insurance and health insurance.
  5. Therefore, Input tax credit is not admissible on the ambulance purchased in November 2018, as Section 17(5) of the GST Act, as it stood in the relevant period, blocks any such enjoyment, even
  6. if provisioning of ambulance service to the employees is obligatory under the Factories Act, 1948.
Input tax credit is not admissible on the ambulance purchased in November 2018, as Section 17(5) of the GST Act, as it stood in the relevant period, blocks any such enjoyment, even if provisioning of ambulance service to the employees is obligatory under the Factories Act, 1948.

This Ruling is valid subject to the provisions under Section 103(2) until and unless declared void under Section 104(1) of the GST Act.
Read More

Tuesday, 5 March 2019

Important Due date Compliance Calendar for March 2019

Tuesday, March 05, 2019 0

Tax compliance calendar at a glance

Important Due date Compliance Calendar for March 2019
Important Due date Compliance Calendar for March 2019

GST CALENDAR


           Date
                          Return Type
10th  March, 2019
GSTR-8. Monthly - E-commerce operators who are required to deduct TCS (Tax collected at source) under GST.

11th  March, 2019
GSTR-1. Monthly - Summary of outward taxable supplies where Turnover exceeds Rs. 1.5 Crore.

13th  March, 2019
GSTR-6. Monthly – Details of ITC received and distributed by ISD.

20th  March, 2019
GSTR 3B for the Month of February, 2018

20th  March, 2019
GSTR-5. Monthly - Summary of outward taxable supplies and tax payable by Non Resident Taxable person.

20th  March, 2019
GSTR 5A. Monthly - Summary of outward taxable supplies and tax payable by OIDAR

20th  March, 2019
GSTR 3B for the Month of February, 2018

20th  March, 2019
GSTR-5. Monthly - Summary of outward taxable supplies and tax payable by Non Resident Taxable person.

20th  March, 2019
GSTR 5A. Monthly - Summary of outward taxable supplies and tax payable by OIDAR

31st  March, 2019
Due date of TRAN-1 is extended for certain taxpayers who could not complete filing due to tech glitch.

31st  April, 2019
Due date of TRAN-2 is extended for certain taxpayers who could not complete filing due to tech glitch.

Statutory compliance calendar



DIRECT TAX CALENDAR - MARCH, 2019

Date
                            Particulars
02nd March, 2019
Due date for furnishing of challan-cum-statement in respect of tax deducted under section 194- IA & section 194-IB in the month of January, 2019

07th  March, 2019
Due date for deposit of Tax deducted/collected for the month of February, 2019. However, all sum deducted/collected by an office of the government shall be paid to the credit of the Central Government on the same day where tax is paid without production of an Income-tax Challan

15th March, 2019
  ·        Due date for furnishing of Form 24G by an office of the Government where
  TDS/TCS for the month of February, 2019 has been paid without the           
  production of a Challan.
  ·         Fourth instalment of advance tax for the assessment year 2019-20.
  ·         Due date for payment of whole amount of advance tax in respect of
         assessment year 2019-20 for assessee covered under presumptive scheme of
         section 44AD/ 44ADA

17th March, 2019
Due date for issue of TDS Certificate for tax deducted under section 194-IA & section 194-IBin the month of January, 2019

30th March, 2019
Due date for furnishing of challan-cum-statement in respect of tax deducted under section 194- IA & section 194-IB in the month of February, 2019

31th March, 2019
  ·         Due date for linking of Aadhaar number with PAN.
  ·        Country-By-Country Report in Form No. 3CEAD for the previous year
         2017-18 by a parent entity or the alternate reporting entity, resident in India, 
         in respect of the international group of which it is a constituent of such
         group.
 ·         Country-By-Country Report in Form No. 3CEAD for a reporting accounting 
        year (assuming reporting accounting year is April 1, 2017 to March 31,
        2018)  by a constituent entity, resident in India, in respect of the international
        group of which it is a constituent if the parent entity is not obliged to file
        report u/s 286(2) or the parent entity is resident of a country with which India
        does not have an agreement for exchange of the report etc.

Statutory due dates chart




Due dates for Compliances under ESI, PF Acts

Date
                           Particulars
15th March, 2019
PF Payment for the month of February 2019
15th March, 2019
ESIC Payment for the month of February 2019
25th March, 2019
PF Return filling for the month of February (including pension & Insurance scheme forms)


Read More 




Note:- All dates are may be subject to change as per respective notification.



Read More

Thursday, 28 February 2019

No Online Refund if bank account is not linked Link with your PAN

Thursday, February 28, 2019 0

No Online Refund if bank account is not linked Link with your PAN

Income Tax Department clearly said "we will Issue only Online Refunds from 01.03.2019. Online Refunds will be given only to bank accounts (savings/current/cash/OD) which are linked with PAN.

How to check your bank account is linked with pan or not for getting online refund

login to e-filing portal,
go to Profile setting,
Pre-validate your bank account,
and till up the details.
No Online Refund if bank account is  not linked Link with your PAN
No Online Refund if bank account is  not linked Link with your PAN

If pre-validations is successful then your back account is link with pan and you are eligible to get online refund of income tax.

Get your online refund directly and securely in your bank account.

If you bank account not yet linked with PAN, contact your bank branch and provide your PAN details to them.

After submission of your pan details to bank, again try the above mention procedure of pre-validation
→ If your bank is integrated with the e-filing portal, pre-validation will be done directly through EVC and net banking route.
→ If your bank is not so integrated, then Income Tax Department will validate the bank account from the details filled up by you.
Read More

GST Impact on Real Estate, 33rd GST Council Meeting - Highlights & Updates

Thursday, February 28, 2019 0

GST Impact on Real Estate

Meeting held on 20.02.2019

Recommendation of GST rate:-
  1. On under-construction properties-5% GST from 12% GST 
  2. On affordable housing category-3% or lower rate of GST from 8% 
  3. GST However, in both cases, input tax credit (ITC) cannot be claimed. 
  4. No rate cuts were discussed for Cement, which is currently being charged a GST at the rate of 28%
  5. On Lottery-18% to 28% GST

Meeting held on 24.02.2019

Proposed GST impact on real state (GST Rate on Residence)

Type of Residence
Existing GST Rate
Proposed GST Rate
ITC Availability
Residential properties outside affordable segment
12%
5%
Without ITC
Affordable housing properties
8%
1%

Affordable housing properties 
Residential property of
  1. carpet area of up-to 90 sqm in non-metropolitan cities /towns 
  2. 60 sqm in metropolitan cities
priced at Rs 45 lakh or below will be considered ‘affordable

Metropolitan Cities are – Bengaluru, Chennai, Delhi NCR (limited to Delhi, Noida, Greater Noida, Ghaziabad, Gurgaon, Faridabad), Hyderabad, Kolkata and Mumbai (whole of MMR)

The new GST rate shall be applicable from 1st April 2019.

GST exemption has also been proposed on Transfer Development Rights (TDR) / Joint Development Agreement (JDA), long term lease (premium), Floor Space Index (FSI)

GST Council has specified that an Intermediate tax on these development rights such as TDR, JDA, lease (premium), FSI will be exempt from GST for such residential properties on which GST is payable. 

The new GST rate shall be applicable from 1st April 2019.

Benefits of the above recommendation made by the GST Council (GST Impact on real state)

  1. The buyer of house will get a fair price and affordable housing gets very attractive with GST @ 1%.
  2. Interest of the buyer/consumer will be protected; ITC benefits not being passed to them shall become a non-issue.
  3. Cash flow problem for the sector is addressed by exemption of GST on development rights, long term lease (premium), FSI etc.
  4. Unutilized ITC, which used to become cost at the end of the project gets removed and should lead to better pricing.
  5. Tax structure and tax compliance becomes simpler for builders.
Read More

Saturday, 23 February 2019

How to Become a CA in First Attempt?

Saturday, February 23, 2019 0

How to Become a CA in First Attempt?

CA which is an abbreviation of Chartered Accountant is a dream course for every Commerce Student. Almost every student who opts for commerce stream dreams of becoming a CA. It is a highly rated profession in our country and a continuously growing field. This profession offers great opportunities and a good pay scale. But all the opportunities and salary packages depend upon the knowledge you have and the number of attempts you take to clear this exam.

If you are a CA aspirant, are about to make an entry into this course and willing to clear all its level in the first attempt this article is for you. Read this article till the end to know what it takes to become a CA in First Attempt and all the perks associated with it.

What it takes to be a CA

Once you become a CA, you will get ample opportunities knocking at your doorsteps. But you will have to toil really hard to make a way for all those opportunities come and knock your door. This a rewarding but a highly demanding career. You will be required to devote at least four years of your life to the preparation of this course. You will have to work extremely hard to cover the vast syllabus of each of its level. Judge your potential then only go for it.

Different Stages of the CA Course

Chartered Accountancy involves primary three levels.
   1) CA Foundation

   2) CA Intermediate
   3) CA Final
With each stage, the level of this course increases, and it becomes difficult with every subsequent stage. But if you are determined and ready to devote yourself you will be able to clear each of its stage in the first attempt.

Why Clear CA in First Attempt

Though there are no restrictions on the number of attempts you clear this exam. But with every attempt you fail, you lose your chance of becoming a successful CA and diminish the scope of opportunities you were about to get if you had cleared this exam in the first attempt. Companies while recruiting CA’s prefer candidates who have cleared all the levels in a single attempt or those who are rankers. The packages offered also depend upon the number of attempts taken by an individual to clear this exam. So, now you must have realized the importance of clearing this exam in the first attempt.

How to Clear CA in First Attempt.

Starting with CA foundation, which is an entry-level exam of this course. The syllabus of CA Foundation is similar to that of your class 11th and 12th, if you have decided to become a CA while opting for commerce stream it is better to start its preparation in the 11th class itself. As you are starting early and there is no rush, so devote at least an hour of your day for preparation of this exam, make your base strong, analyse past year papers which will give you the idea of the kind of questions that will be asked in the exam and that will make you exam ready. Once you are done with your 12th boards you will get an approximate period of 2 months before appearing in CA Foundation exam, as you started the preparation early, these two months will we more than enough for you to revise the entire course, and hence you can be sure of passing it in the first attempt itself.

Once you have appeared for CA Foundation, without wasting any time you must start your preparation of CA intermediate for which you get approximately 9 months of the study period. This Exam consists of 2 groups, each group consists of 4 papers, you can appear for either 1 group at a time or for both the groups simultaneously. This completely depends upon your level of preparation. If you are not sure of appearing in both the groups simultaneously, appear for one than for other.

Once you qualify either one or both the groups you can register for Practical training under a practicing CA. The practical training is for a period of 3 years. These three years are going to be hectic for you because you will be required to attend regular office and with that, you will have to manage your studies and CA Coaching Institute also (just in case you want to join for CA Final preparation).During your articleship days, any how to try to allot 2 hours for self-study and do not procrastinate & do it religiously.Try to cover your entire course for both the groups of CA Final in your articleship period itself as after approximately 2.5 yrs of your articleship you will be eligible to appear in CA FInal.For which students usually get around 4 months of preparation leave from their office.If you have completed the entire course in your articleship time period these four months of leave will be enough for you to revise your entire course at least 3 times.

In the end, I would like to conclude that clearing CA Exam in the first attempt is no big deal, the only thing is you should be determined and ready for all the hard work it takes to clear this exam, and I am sure you will clear it in first attempt itself.

This article is written by Nisha Singh. The authors can be reached at "connect@quibus.in”

Author Bio

Name: Nisha Singh
Qualification: NA
Company: NA
Location: NA
Read More

Post Top Ad