The Finance Minister while announcing the Union Budget 2016 has introduced new cess called "Krishi Kalyan Cess". It would be levied @ 0.50% on the value of all taxable services. It would be applicable with effect from 1st June, 2016. The Accounting codes are given here under.
The Finance Ministry on Tuesday 1st March, 2016, issued an 11-point clarification on the changes made in the Budget 2016-17 on tax treatment for provident fund and NPS (National Pension Scheme). "There seems to be some amount of lack of understanding about the changes made in the General Budget 2016-17 in the tax treatment for recognised Provident Fund & NPS," the Finance Ministry said in a statement. The detailed press release is given below.
The detailed FAQs issued by CBEC can be downloaded from the link given below.
Government of Punjab, Department of Excise & Taxation has vide its notification dated 17th November, 2015 reduced the rate of VAT on Automobiles to 12% and also vide its notifications dated 2nd December, 2015 reduced the rate of VAT on dry fruit to 4.95% and on LED light to 6.05% and rate of CST on paper board to 1%. The copy of the said notifications are given below for viewing and downloading.
Ministry of finance, Government of India vide its Service Tax notifications, numbering 21/2015 & 22/2015 has imposed 0.5% Swachh bharat Cess on services with effect from 15th November, 2015. The copy of both the above said notifications are given below for viewing as well downloading.
No Service tax on free Pick-up or Home delivery of food as it is being in the nature of "Sales" – Chandigarh Commissionerate.This has been clarified by the Chandigarh Commissionerate vide its letter C.No. ST-20/STD/Misc./Sevottam/62/12/4693 dated August 13, 2015 (“the Clarification”). The copy of the said letter is given below.
Service tax rate has been increased to 14% with effect from 01.Jun.2015. Please note that Education Cess (2%) Secondary & Higher education cess (1%) is not applicable wef 01.06.2015. List of service on which Swach Bahart Cess applicable and effective date of Swach Bahart Cess is not notified Yet.
However many services have abatements under valuation/composition schemes, so applicable effective rate is different for many services. However there may be some conditions along with these abatements/composition schemes. The service tax rate chart after abatement is given below.
The Hon’ble President of India has given assent to the Finance Bill, 2015 on Thursday, May 14, 2015. After that The Ministry of Finance, Department of Revenue has issued Notification No. 14/2015-ST dated May 19, 2015 thereby increasing the rate of Service tax from 12.36% to flat 14% (Subsuming Education Cess and Secondary & Higher Secondary Education Cess) to be effective from June 1, 2015. The copy of the notification along with TRU letter D.O.F.No.334/5/2015-TRU dated May 19, 2015 is attached below for viewing and downloading.
Direct Tax proposals in Budget 2015-16 which benefits the middle class individual tax payers are as follows:-
Punjab Excise & Taxation Department has issued public notice dated 03.02.2015 clarifying that the hike in the rate of VAT on iron and steel has only been announced. It will come into effect only once it is duly notified. Further, no change in rate of VAT on any other item has been announced or notified. The said public notice is enclosed below.
In a notification issued on October 1, Punjab Excise and Taxation department has increased VAT rate on diesel (other than premium diesel), cold drinks (including aerated drinks, soda) and Cigarette and Cigar by 1 per cent, 5 per cent and 9.5 per cent respectively. The copy of the notification is attached below.
Income tax - Whether interest obligation arises for the Revenue in every case where excess tax paid by assessee has been retained by the State for its own enjoyment - YES: Supreme Court
THE issues before the Apex Court are - Whether the statutory obligation to refund carries with it the right to interest also; Whether when the assessee deposits tax as per an order passed u/s 195(2), the Revenue is under obligation to pay interest on refund processed as per the appellate order and Whether interest obligation arises for the Revenue in every case where excess tax paid has been retained by the State for its own enjoyment. And the verdict goes against the Revenue.
Changes In Service tax
The CBDT has issued Circular No. 6 of 2014 dated 11.02.2014 in which the issue as to whether mutual funds/specified companies are required to pay additional income-tax under sub-section(2) to section 115R of the Act not only on income distributed by way of dividend but also on payments made at the time of redemption/repurchase of units as well as at the time of allotment of bonus units to existing investors has been considered in great detail
CBEC has issued Circular No.173/8/2013 – ST clarifying certain doubts regarding Service Tax on Restaurant service. The said Circular No.173/8/2013 – ST is reproduced below.
Income Tax Refund - Section 237 of the Income-Tax Act, specifies that if any person satisfies the Assessing Officer that the amount of tax paid by him or on his behalf, or treated as paid by him or no his behalf for any assessment year exceeds the amount with which he is properly chargeable under this Act for that year, he shall be entitled to a refund of the excess amount paid.
Construction of a complex, building, civil structure or a part thereof, intended for a sale to a buyer, wholly or partly (except where entire consideration is received after issuance of completion certificate by the completion certificate by the competent authority) [hereinafter referred as “developer’s services] was subject to service tax @3.09% (i.e. 12.36% minus 75% abatement).
THE following is a Question raised by the Member of Parliament Sugumar K in the Lok Sabha -
6123. SHRISUGUMAR K.:
Will the Minister of FINANCE be pleased to state:
(a) Whether the Government has brought/proposes to bring takeaway eating joints and the restaurants rendering home services under the tax net;
(b) If so, the details thereof;
(c) Whether various associations of restaurants and hotels have requested the Government not to bring the takeaway eating joints and restaurants rendering home services under the tax ambit; and
(d) if so, the details thereof and action taken thereon?
tax 'N' accounts people
Tarun Kumar Gupta
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