Thursday, 16 February 2017

Some recent updates that you would not like to miss – (16th Feb 2017)

1.   TDS shall be deducted on basic amount & not on GST. TDS certificate will be issued in 5 days of deposit of TDS. Late fee of depositing TDS shall be Rs. 100 per day up to a maximum of Rs. 5,000.

2.   DVAT Filing of online return for 3rd quarter of 2016-17 has been extended up to 28th February 2017.

3.   Certificate for lower TDS is ‘person specific’ and not ‘income specific’. Meaning thereby it cannot be extended to the amounts specified by the recipient of the payment while making an application for grant of certificate u/s 197 - Levy of interest u/s 201(1A) cannot be sustained

4.   Taxpayer cannot pay the tax liabilities for current period without clearing the payment of tax for previous period in full. Section 35(8) prescribes the order of payment where the taxpayer has tax liability beyond the current return period. In such a situation, the order of payment to be followed is: First self -assessed tax and interest for the previous period; thereafter self-assessed tax and interest for the current period; and thereafter any other amounts payable including any confirmed demands under section 51. This sequence has to be mandatorily followed.

5.    Rent cannot be taxed in the hand of co-owner if his name is added merely to avoid succession problems in future.

6.   If the studios would charge the hire charges for using the studios setup on hourly basis and provides their studios room with furniture and equipment on rent to the music directors then the question of TDS deduction u/s 194C does not arise.

Have a great day ahead!

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