Service tax

Service tax payment Due date 

Category	Frequency	Due Dates
In case of Individuals, proprietary Firms & Partnership Firms	Quarterly as mentioned below -	(6th for internet payment)
	( i ) For Q.E. 30th June	- by 5th July
	(ii ) For Q.E. 30th Sept.	- by 5th Oct
	( iii ) For Q.E. 31St Dec.	- by 5th Jan.
	( iv ) For Q.E. 31st March	- by 31st March
Others (e.g. Companies,Societies, Trusts etc.)	Monthly	By 5th of the month immediately following the month .However, in case of March, the payment should be made by 31st March.

6.Interest on late payment of service Tax 

The new rate of interest of 18% will be applicable from 1st April, 2011.However interest rate is reduced by 3 % for turnover up to 60 Lacs

“Provided that in the case of a service provider, whose value of taxable services provided in a financial year does not exceed sixty lakh rupees during any of the financial years covered by the notice issued under sub-section (3) of section 73A or during the last preceding financial year, as the case may be, such rate of interest shall be reduced by three percent per annum.”

So the reduced interest rate of 15% (18%-3%) will be applicable in case where the value of taxable services provided in a financial year is not more that Rs. 60 lakh. But this provision will have a limited application as only to the small service providers but no relief to the large tax payers has been provided.


7.Abatement Rates on various services

Sr No.	Description of taxable service	% Abatement	% taxable	Conditions
1	2	3	4	5
1	Services in relation to financial leasing including hire purchase	90	10	Nil.
2	Transport of goods by rail	70	30	Nil.
3	Transport of passengers, with  or without accompanied belongings by rail	70	30	Nil.
4	Bundled service by way of supply of food or any other article of human consumption or any drink, in a premises (   including hotel, convention center, club, pandal,shamiana or any other place, specially arranged for organizing a function) together with renting of such premises	30	70	(i) CENVAT credit on any goods classifiable under Chapters 1 to 22 of the Central Excise Tariff Act, 1985 (5 of 1986) used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004.
5	Transport of passengers by air, with or without accompanied belongings	60	40	CENVAT credit on inputs and capital goods, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004.
6	Renting of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes.	40	60	Same as above.
7	Services of goods transport agency in relation to transportation of goods.	75	25	CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004.
8	Services provided in relation to chit	30	70	Same as above.
9	Renting of any motor vehicle designed to carry passengers	60	40	Same as above.
10	Transport of goods in a vessel	50	50	Same as above.
11	Services  by a tour operator in relation to,- (i)  a package tour	75	25	(i) CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004.
				(ii) The bill issued for this purpose indicates that it is inclusive of charges for such a tour.
	(ii)  a tour, if the tour operator is providing services solely of arranging or booking accommodation for any person in relation to a tour	90	10	(i) CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004.
				(ii) The invoice, bill or challan issued indicates that it is towards the charges for such accommodation.
				(iii) This exemption shall not apply in such cases where the invoice, bill or challanissued by the tour operator, in relation to a tour, only includes the service charges for arranging or booking accommodation for any person and does not include the cost of such accommodation.
	(iii) any services other than specified at (i) and (ii) above.	60	40	(i) CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004.
				(ii)The bill issued indicates that the amount charged in the bill is the gross amount charged for such a tour.
12	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 competent authority	75	25	(i) CENVAT credit on inputs used for providing the taxable service has not been taken under the provisions of the CENVAT Credit Rules, 2004.
				(ii)The value of land is included in the   amount charged from the service receiver.
	a. Residential properties having a carpet area above 2000 sq ft and where amount charged is equal to or more than Rs. 1 crore, b. Commercial properties.	70	30	same two conditions above
				(Notification No. 02/2013-ST dated 1st March, 2013 applicable wef 01.03.13)

                          Regards
                Sachin Kumar Mishra
             Mob:- +918130319600

SAD Refund cannot be denied on sales made to non registered buyer despite no endorsement on invoice - See more at: http://taxguru.in/custom-duty/sad-refund-denied-sales-registered-buyer-endorsement-invoice.html#sthash.ykT8D14e.dpuf

SAD Refund cannot be denied when no endorsement to the effect that ‘No Cenvat credit of SAD is admissible’ is made on an invoice issued to the non-registered buyer as no credit is available to the buyer on account of non-registration Vijay Steel Industries Vs. Commissioner of Customs (EP), Mumbai [2014-TIOL-2240-CESTAT-Mum] Vijay Steel Industries (the Appellant) is a small trader who, imported stainless steel industrial raw material (the goods) on payment of proper customs duty and 4%Special Additional Duty of Customs (SAD) under Section 3(5) of the Customs Tariff Act, 1975 and subsequently domestically sold such goods on payment of CST/ VAT. They were issuing invoice to the buyers making an endorsement that the credit of SAD will not be available. However, in respect of one buyer,who is not registered with the Central Excise Department, the Appellant did not make endorsement on the invoice with regard to the fact that Cenvat credit is not available to the buyer being non-registered assessee. Thereafter, the Appellant filed refund of SAD under Notification No. 102/2007-Customs dated September 14, 2007 (“the Notification”) which was rejected by the Department on the ground that the endorsement to the effect that ‘No Cenvat credit of the SAD is admissible’ in respect of the goods covered therein, as required in terms of the Notification was not made on the invoice issued for sale of the goods.Being aggrieved, the Appellant preferred an appeal before the Hon’ble CESTAT, Mumbai. The Hon’ble CESTAT, Mumbaiheld that although there is no endorsement on the invoice, the buyer is also not able to take Cenvat credit as the buyer is not registered with the Central Excise Department and as the buyer is not able to take Cenvat credit of SAD, the condition of the Notification is fulfilled to entitlement of the refund of SAD. Accordingly, the Hon’ble Tribunal allowed the appeal and held that the Appellant is entitled for refund of SAD - See more at: http://taxguru.in/custom-duty/sad-refund-denied-sales-registered-buyer-endorsement-invoice.html#sthash.ykT8D14e.dpuf

BUDGET CIRCULAR

BUDGET CIRCULAR 2014-2015 

Deduction

Section 80C

This section has been introduced by the Finance Act 2005. Broadly speaking, this section provides deduction from total income in respect of various investments / expenditures / payments.

                

Section 80D: Deduction in respect of Medical Insurance

Deduction is available up to Rs. 20,000/- for senior citizens and upto Rs. 15,000/ in other cases for insurance of self, spouse and dependent children. Additionally, a deduction for insurance of parents (father or mother or both) is available to the extent of Rs. 20,000/- if parents are senior Citizen and Rs. 15,000/- in other cases. Therefore, the maximum deduction available under this section is to the extent of Rs. 40,000/-. From AY 2013-14, within the existing limit a deduction of upto Rs. 5,000 for preventive health check-up is available.

  Remember: The limit for maximum deduction available under Sections 80C, 80CCC and 80CCD     (combined together) is Rs. 1,00,000/- (Rs. one lac only).

                                

                          

Section 80CCC: Deduction in respect of Premium Paid for Annuity Plan of LIC or Other Insurer

Payment of premium for annuity plan of LIC or any other insurer Deduction is available upto a maximum of Rs. 100,000/-. (This limit has been increased from Rs. 10,000/- to Rs. 1,00,000/- w.e.f. 01.04.2007).

The premium must be deposited to keep in force a contract for an annuity plan of the LIC or any other insurer for receiving pension from the fund.

                

                                                          

Section 80CCD: Deduction in respect of Contribution to Pension Account

Deductions to the extent of 10% of one's salary are available on deposits made by a Central government servant in one's pension account. If the Central Government makes any contribution to the pension account, deduction of such contribution to the extent of 10% of salary shall be allowed. Further, in any year where any amount is received from the pension account such amount shall be charged to tax as income of that previous year.

                                                       

Section 80GG: Deduction in respect of House Rent Paid

    Deduction available is the least of

1.     Rent paid minus 10% of total income

2.     Rs. 2000/- per month

3.     25% of total income, provided

o    Assessee or his spouse or minor child should not own residential accommodation at the place of employment.

o    He should not be in receipt of house rent allowance.

o    He should not have self occupied residential premises in any other place.

                                       

Section 80CCG: Rajiv Gandhi Equity Saving Scheme (RGESS)

The Rajiv Gandhi Equity Saving Scheme (RGESS) was launched after the 2012 Budget. Investors whose annual income is less than Rs. 10 lakhs can invest in this scheme (up to Rs. 50,000) and get a deduction of 50% of the investment.

So, if you invest Rs. 50,000 (maximum amount eligible for income tax rebate is Rs. 50,000), you can claim a tax deduction of Rs. 25,000 (50% of Rs. 50,000).

                          

Section 80 TTA: Deduction from gross total income in respect of any Income by way of Interest on Savings account

Deduction from gross total income of an individual or HUF, upto a maximum of Rs. 10,000/-, in respect of interest on deposits in savings account ( not time deposits ) with a bank, co-operative society or post office, is allowable w.e.f. 1st April 2012 (Assessment Year 2013-14).

Deduction of Rs. 50,000/- is available on:

1.     expenditure incurred on medical treatment, (including nursing), training and rehabilitation of handicapped dependent relative.

2.     Payment or deposit to specified scheme for maintenance of dependent handicapped relative.

Further, if the dependant is a person with severe disability, a deduction of Rs. 100,000/- is also available under this section. The handicapped dependent should be a dependent relative suffering from a permanent disability (including blindness) or mentally retarded, as certified by a specified physician or psychiatrist.

Note: A person with 'severe disability' means a person with 80% or more of one or more disabilities as outlined in section 56(4) of the 'Persons with disabilities (Equal opportunities, protection of rights and full participation)' Act.

                                         

Section 80DDB: Deduction in respect of Medical Expenditure on Self or Dependent Relative

A deduction to the extent of Rs. 40,000/- or the amount actually paid, whichever is less is available for expenditure actually incurred by resident assessee on himself or dependent relative for medical treatment of specified disease or ailment. The diseases have been specified in Rule 11DD. A certificate in form 10 I is to be furnished by the assessee from any Registered Doctor.

                                                       

              

Section 80G: Deduction for donations towards Social Causes

The various donations specified in Sec. 80G are eligible for deduction upto either 100% or 50% with or without restriction as provided in Sec. 80G. 80G deduction not applicable in case donation is done in form of cash for amount over Rs 10,000.

Donations with 100% deduction without any qualifying limit:

·         Prime Minister’s National Relief Fund

·         National Defence Fund

·         Prime Minister’s Armenia Earthquake Relief Fund

·         The Africa (Public Contribution - India) Fund

·         The National Foundation for Communal Harmony

·         Approved university or educational institution of national eminence

·         The Chief Minister’s Earthquake Relief Fund, Maharashtra

·         Donations made to Zila Saksharta Samitis.

·         The National Blood Transfusion Council or a State Blood Transfusion Council.

·         The Army Central Welfare Fund or the Indian Naval Benevolent Fund or The Air Force Central Welfare Fund.

Donations with 50% deduction without any qualifying limit.

·         Jawaharlal Nehru Memorial Fund

·         Prime Minister’s Drought Relief Fund

·         National Children’s Fund

·         Indira Gandhi Memorial Trust

·         The Rajiv Gandhi Foundation

Donations to the following are eligible for 100% deduction subject to 10% of adjusted gross total income

Donations to the Government or a local authority for the purpose of promoting family planning.

Donations to the following are eligible for 50% deduction subject to 10% of adjusted gross total income

Donation to the Government or any local authority to be utilized by them for any charitable purposes other than the purpose of promoting family planning.

                                                      

Section 80U: Deduction in respect of Person suffering from Physical Disability

Deduction of Rs. 50,000/- to an individual who suffers from a physical disability (including blindness) or mental retardation. Further, if the individual is a person with severe disability, deduction of Rs. 100,000/- shall be available u/s 80U. Certificate should be obtained from a Govt. Doctor. The relevant rule is Rule 11D.

                                                    

Section 80RRB: Deduction in respect of any Income by way of Royalty of a Patent

Deduction in respect of any income by way of royalty is respect of a patent registered on or after 01.04.2003 under the Patents Act 1970 shall be available unto Rs. 3 lacs or the income received, whichever is less. The assessee must be an individual resident of India who is a patentee. The assessee must furnish a certificate in the prescribed form duly signed by the prescribed authority.

                                               

Section 80 TTA: Deduction from gross total income in respect of any Income by way of Interest on Savings account

Deduction from gross total income of an individual or HUF, upto a maximum of Rs. 10,000/-, in respect of interest on deposits in savings account ( not time deposits ) with a bank, co-operative society or post office, is allowable w.e.f. 1st April 2012 (Assessment Year 2013-14).

                                                                       

                                                               Regards                                                           sachin kumar mishra