LATEST AMENDMENTS
Mandatory to quote valid PAN in case TDS is not at higher rate. Valid PAN to be quoted for Lower/No deduction of TDS. For TDS/TCS deposited by book entry, 7 digit number generated by TIN for accepted Form 24G statement to quoted in BSR code field. This value will be provided by the Accounts Officer to the deductor.
November,2010
ANURAG MANOJ & ASSOCIATES CHARTERED ACCOUNTANTS
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Latest Amendments
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November,2010
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What is amendment ?
Income Paid/ credited in March on or before 30th April In any other case on or before 7 days from the end of the month in which the
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Certificate of TDS
Rule 31 - W.E.F 1.04.10 Sixth Amendment Rules 2010 dated 31.05.10
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Forms:
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Certificate to specify:
Valid PAN of deductee Valid TAN of deductor Receipt numbers of quarterly returns filed by deductor
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Form 16 - Annual 31st May of following FY Form 16A Quarterly 15 days from due date for furnishing the quarterly returns.
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Rule 31A - W.E.F 1.04.10 Sixth Amendment Rules 2010 dated 31.05.10
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Forms:
24Q- sec 192 27Q- other sections deductees being non-residents, resident but not ordinarily resident, foreign companies 26Q other deductees 27A Verification statement Electronic filing 27 EQ TCS (Rule 31AA)
ANURAG MANOJ & ASSOCIATES CHARTERED ACCOUNTANTS
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November,2010
Mode of filing:
Companies Deductors covered by 44AB Where Deductee records are 20 or more in any quarter in a statement. Others paper option is available
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Due dates
15th July 15th Oct 15th Jan 15th May of the following FY
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Deductor to quote
His PAN and TAN PAN of all deductees Particulars of tax paid
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b.
c.
d.
Distinction between contractor and subcontractor removed contract to include subcontract. Concessional rate for advertising contracts removed. Rates to be based on the payee - @ 1% for Individual and HUF and 2% for others Exemption limit amounts not exceeding Rs. 30000 or Rs. 75000 in the aggregate in a year (w.e.f. 1.07.10 Finance Act, 2010)
ANURAG MANOJ & ASSOCIATES CHARTERED ACCOUNTANTS
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November,2010
Work
includes
Explanation IV(e) manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from such customer but does not include manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from a person other than such customer
ANURAG MANOJ & ASSOCIATES CHARTERED ACCOUNTANTS
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November,2010
On invoice value excluding material value if material value is separately stated in the invoice. On the whole of the invoice value if otherwise
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Challenge
For assessees to identify such cases and ensure the invoices reflect the value of materials given by the assessee to the vendor.
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Rent
Sec 194I Rates of tax deduction have been amended w.e.f. 1.10.09
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New rates
2% - for use of machinery, plant or equipment 10% - for use of land etc Limit Rs 180000 pa (W.e.f. 1.07.10)
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Deductee to furnish his PAN to the Deductor (if tax is deductible under Chap XVII B) failing which tax shall be deducted at the higher of the following rates; Rate specified in the relevant provision Rate in force Rate of 20%
ANURAG MANOJ & ASSOCIATES CHARTERED ACCOUNTANTS
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November,2010
Declaration u/s 197A (1)(1A)(1C) shall not be valid unless PAN is furnished therein. if invalid tax to be deducted as detailed above. Certificates u/s 197 will be valid only if applications contain PAN no. The Deductee and the Deductor shall indicate the PAN in all the correspondences, bills, vouchers, and other documents which are sent to each other. If invalid PAN or PAN not belonging to the deductee is furnished deemed that PAN has not been furnished
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for the purpose of section 199 Rule 37BA has been inserted by the Income-tax (Sixth Amendment) Rules, 2009 w.e.f. 1.04.09
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For the year for which such income is assessable Where income is assessable in more than one year credit shall be allowed across those years in the same proportion in which income is assessable
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November,2010
Credit for TDS and paid to the account of the CG shall be granted on the basis of:
Information furnished by the deductor Information in the return of income in respect of the claim for credit. Subject to verification in accordance with the risk management strategy formulated by the board
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November,2010
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November,2010
Latest Amendments
For TDS/TCS deposited by book entry, 5 digit number generated by TIN for DDO record of accepted Form 24G statement will be quoted in Transfer voucher field. This value will be provided by the Accounts Officer to the deductor.
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November,2010
Latest Amendments
Transporter transaction where no deduction has been carried to marked separately as T . Flag T to be mentioned in the field for lower or no deduction at deductee detail. Remarks for lower/no/higher deduction need to be populated irrespective of deductee mode (Add/Update/Delete) in case of correction statement.
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November,2010
Latest Amendments
Field for mobile no. of responsible person has been added. Any one of the contact details of deductor/collector is mandatory:
Deductor/collector telephone no. along with STD code Responsible person telephone no. along with STD code Mobile no. responsible person
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Latest Amendments
Mandatory to quote e-mail id of deductor/collector or responsible person. For records marked with higher rate only below mentioned fields can be updated:
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November,2010
Latest Amendments
PAN compliance validation is discontinued for Form no. 24Q (95%) and 26Q (85%).
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TDS CONTROVERSIES
INTRODUCTION: AGENTS OF THE GOVERNMENT WITHOUT REMUNERATION ONEROUS RESPONSIBILITY NO REWARD FOR ACTION ON BEHALF OF THE GOVERNMENT
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at one per cent for every month or part of a month on the amount of such tax from the date on which such tax was deductible to the date on which such tax is deducted
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at one and one-half per cent for every month or part of a month on the amount of such tax from the date on which such tax was deducted to the date on which such tax is actually paid.
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such interest shall be paid before furnishing the statement in accordance with the provisions of sub-section (3) of section 200.]
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Where the tax has not been paid as aforesaid after it is deducted,[the amount of the tax together with the amount of simple interest thereon referred to in sub-section (1A)] shall be a charge upon all the assets of the person, or the company, as the case may be, referred to in sub-section (1).
November,2010
ANURAG MANOJ & ASSOCIATES CHARTERED ACCOUNTANTS
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No order shall be made under sub-section (1) deeming a person to be an assessee in default for failure to deduct the whole or any part of the tax from a person resident in India, at any time after the expiry of (i) two years from the end of the financial year in which the statement is filed in a case where the statement referred to in section 200 has been filed; (ii) four years from the end of the financial year in which payment is made or credit is given, in any other case : Provided that such order for a financial year commencing on or before the 1st day of April, 2007 may be passed at any time on or before the 31st day of March, 2011.
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Income Tax Department recently started issuing notices u/s 201(1). Each notice give refernece of : -financial Year -quarter -RRR No Form NO
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ANURAG MANOJ & ASSOCIATES CHARTERED ACCOUNTANTS
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