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Latest Amendments in TDS & compliance of notices issued regarding TDS

CA.MANOJ LAMBA BCOM ,FCA 09355371639

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

15th

Latest Amendments
 

Procedural Amendments E TDS Filling Amendments

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November,2010

ANURAG MANOJ & ASSOCIATES CHARTERED ACCOUNTANTS

. Dates for Payment of TDS


Rule 30 - W.E.F 1.04.10 Sixth Amendment Rules 2010 dated 31.05.10

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November,2010

ANURAG MANOJ & ASSOCIATES CHARTERED ACCOUNTANTS

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
 

Deduction is made Income tax is due u/s 192(1A)

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November,2010

ANURAG MANOJ & ASSOCIATES CHARTERED ACCOUNTANTS

Relaxation in certain cases


Assessing officer with the approval of the Joint commissioner may permit payment on a quarterly basis in special cases. (Salaries, interest, insurance commission, brokerage & commission). Due dates would be 7th July, Oct, Jan and 30th April.

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November,2010

ANURAG MANOJ & ASSOCIATES CHARTERED ACCOUNTANTS

Certificate of TDS
Rule 31 - W.E.F 1.04.10 Sixth Amendment Rules 2010 dated 31.05.10

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November,2010

ANURAG MANOJ & ASSOCIATES CHARTERED ACCOUNTANTS

Forms:


Form 16 deduction/ payment u/s 192 Form 16A other provisions

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November,2010

ANURAG MANOJ & ASSOCIATES CHARTERED ACCOUNTANTS

Certificate to specify:
  

Valid PAN of deductee Valid TAN of deductor Receipt numbers of quarterly returns filed by deductor

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November,2010

ANURAG MANOJ & ASSOCIATES CHARTERED ACCOUNTANTS

Periodicity and time limit:




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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November,2010

ANURAG MANOJ & ASSOCIATES CHARTERED ACCOUNTANTS

Quarterly statement of deduction of TDS




Rule 31A - W.E.F 1.04.10 Sixth Amendment Rules 2010 dated 31.05.10

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November,2010

ANURAG MANOJ & ASSOCIATES CHARTERED ACCOUNTANTS

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:


electronically to DGIT-Systems/ person authorized

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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November,2010

ANURAG MANOJ & ASSOCIATES CHARTERED ACCOUNTANTS

Due dates
   

15th July 15th Oct 15th Jan 15th May of the following FY

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November,2010

ANURAG MANOJ & ASSOCIATES CHARTERED ACCOUNTANTS

Deductor to quote

  

His PAN and TAN PAN of all deductees Particulars of tax paid

15th

November,2010

ANURAG MANOJ & ASSOCIATES CHARTERED ACCOUNTANTS

Payment to contractors and subcontractors:


a.

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

15th

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

15th

November,2010

Tax deduction shall be as under:




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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November,2010

ANURAG MANOJ & ASSOCIATES CHARTERED ACCOUNTANTS

Challenge
For assessees to identify such cases and ensure the invoices reflect the value of materials given by the assessee to the vendor.

15th

November,2010

ANURAG MANOJ & ASSOCIATES CHARTERED ACCOUNTANTS

Rent
 

Sec 194I Rates of tax deduction have been amended w.e.f. 1.10.09

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November,2010

ANURAG MANOJ & ASSOCIATES CHARTERED ACCOUNTANTS

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)


Land & buildings - Distinction between individuals and others removed

15th

November,2010

ANURAG MANOJ & ASSOCIATES CHARTERED ACCOUNTANTS

Payments to Non residents


Sec 195 a. Furnishing of information u/s 195(6) Rule 37BB Inserted by Income-tax (Seventh Amendment) Rules, 2009, we.f. 01.0 7.09

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November,2010

ANURAG MANOJ & ASSOCIATES CHARTERED ACCOUNTANTS

Payment to non resident (not being a company) and a foreign company


Information shall be furnished in Form 15CA by assessees  Chartered Accountants certificate shall be in Form 15CB  15CA to be electronically filed and thereafter a signed printout of the same to be submitted prior to remitting the payment


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November,2010

ANURAG MANOJ & ASSOCIATES CHARTERED ACCOUNTANTS

Requirement to furnish permanent account number


 

Sec 206 AA Inserted w.e.f. 1.04.2010.

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November,2010

ANURAG MANOJ & ASSOCIATES CHARTERED ACCOUNTANTS

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

15th

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

15th

November,2010

ANURAG MANOJ & ASSOCIATES CHARTERED ACCOUNTANTS

Credit for TDS


 

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

15th

November,2010

ANURAG MANOJ & ASSOCIATES CHARTERED ACCOUNTANTS

Credit shall be given:


 

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

15th

November,2010

ANURAG MANOJ & ASSOCIATES CHARTERED ACCOUNTANTS

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

15th

November,2010

ANURAG MANOJ & ASSOCIATES CHARTERED ACCOUNTANTS

E TDS FILING AMENDMENTS

15th

November,2010

ANURAG MANOJ & ASSOCIATES CHARTERED ACCOUNTANTS

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.

15th

November,2010

ANURAG MANOJ & ASSOCIATES CHARTERED ACCOUNTANTS

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.

15th

November,2010

ANURAG MANOJ & ASSOCIATES CHARTERED ACCOUNTANTS

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

15th

November,2010

ANURAG MANOJ & ASSOCIATES CHARTERED ACCOUNTANTS

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:
  

PAN Amount of payment Date of payment

15th

November,2010

ANURAG MANOJ & ASSOCIATES CHARTERED ACCOUNTANTS

Latest Amendments


PAN compliance validation is discontinued for Form no. 24Q (95%) and 26Q (85%).

15th

November,2010

ANURAG MANOJ & ASSOCIATES CHARTERED ACCOUNTANTS

TDS CONTROVERSIES
 

 

INTRODUCTION: AGENTS OF THE GOVERNMENT WITHOUT REMUNERATION ONEROUS RESPONSIBILITY NO REWARD FOR ACTION ON BEHALF OF THE GOVERNMENT

15th

November,2010

ANURAG MANOJ & ASSOCIATES CHARTERED ACCOUNTANTS

CONSEQUENCES FOR NON COMPLIANCE


   

INTERESTS PENALTIES PROSECUTIONS DISALLOWANCES OF EXPENSES

15th

November,2010

ANURAG MANOJ & ASSOCIATES CHARTERED ACCOUNTANTS

NOTICE U/S 201(1)


 

SECTION 201 CONSEQUENCE OF FAILURE TO DEDUCT OR PAY DEEMED TO BE ASSESSEE IN DEFAULT

15th

November,2010

ANURAG MANOJ & ASSOCIATES CHARTERED ACCOUNTANTS

Interest for late deduction




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

15th

November,2010

ANURAG MANOJ & ASSOCIATES CHARTERED ACCOUNTANTS

Interest for late payment of TDS




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.

15th

November,2010

ANURAG MANOJ & ASSOCIATES CHARTERED ACCOUNTANTS

TIME LIMIT FOR PAYMENT OF INTEREST




such interest shall be paid before furnishing the statement in accordance with the provisions of sub-section (3) of section 200.]

15th

November,2010

ANURAG MANOJ & ASSOCIATES CHARTERED ACCOUNTANTS

Consequence of non payment of Interest




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

15th

Time limit for completion of Assessment of TDS




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.

15th

November,2010

ANURAG MANOJ & ASSOCIATES CHARTERED ACCOUNTANTS

Reply to Notice u/s 201(1)




    

Income Tax Department recently started issuing notices u/s 201(1). Each notice give refernece of : -financial Year -quarter -RRR No Form NO
November,2010
ANURAG MANOJ & ASSOCIATES CHARTERED ACCOUNTANTS

15th

15th

November,2010

ANURAG MANOJ & ASSOCIATES CHARTERED ACCOUNTANTS