Clarifications regarding Pradhan Mantri Garib Kalyan Yojna 2016

The Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojna (PMGKY), 2016 has commenced on 17.12.2016 and is open for declarations up to 31.03.2017. As per this scheme, any person who intends to declare his undisclosed income shall deposit under this scheme.

Vide CBDT Circular No. 2 of 2017 dated 18^th January 2017, certain clarifications were issued on the Scheme.

CBDT received representations from various stakeholders for seeking clarifications as to whether the deposits made in Bank Account or cash in hand which are eligible for being declared under the Scheme should exist on the date of filing of declaration under the Scheme.

In this frame of reference, it has been clarified in such circular that where the undisclosed income is stated in the form of deposits in an account maintained with a specified entity, it is not necessary that the said deposits should exist on the date of making payments under the Scheme or furnishing the declaration under the Scheme. However, where the undisclosed income is represented in the form of cash, it has been clarified that such cash should exist on the date of making payment of tax, surcharge and penalty under the Scheme or on the date of making deposit under the PMGK Deposit Scheme, 2016, whichever is earlier.

Do not miss our next update on Latest Amendments.

You may drop in your queries at team@clicknfile.in or directly get in touch with our finance/tax experts @ 8872032114, 8872032116, 8872013116

Some recent updates that you would not like to miss –

1.      PMGKY 2016 to declare Black Money will be ending on 31.03.2017. Assessee shall have to Pay Tax @ 49% under this scheme or @ 77% along with penalty, prosecution and enforcement actions AFTER this Scheme.

2.     Due dates for e-payment of service tax, excise duty, balance advance income tax and filing of ITR for Financial Year 2015-16 without penalty & Financial Year 2014-15 with penalty of Rs. 5,000 is 31.03.2017.

3.     If taxable person does not affect interstate supplies, then he cannot avail composition scheme under GST.

Have a great day ahead!

Union Govt. Introduced Taxation Laws (Second Amendment) Bill, 2016

The Union Government has introduced the Taxation Laws (Second Amendment) Bill, 2016 in the Parliament.

It proposes an anti – poverty scheme namely Pradhan Mantri Garib Kalyan Yojana, 2016 (PMGKY), which mainly aims at disclosing unaccounted cash and use that for the welfare of people living in rural areas. Higher tax rates and penalty have been imposed in respect of undisclosed incomes as per amendment in existing tax laws of the bill.

Black money holders and tax defaulting assessees are subjected to a higher rate of tax and stringent penalty provision as per this scheme.

Key features of Bill

♦ It has been made mandatory for all black money declarants to deposit 25% of such amount disclosed in PMGKY 2016 for a lock-in-period of 4 years without interest.

♦ Those who choose to declare their questionable wealth hoarded till now in banned Rs. 1,000 and Rs. 500 currency notes under the PMGKY scheme shall have to pay a tax at a flat rate of 30% of such undisclosed income.

♦ 10% penalty shall be levied on such undisclosed income and PMGK Cess (surcharge) at the rate of 33% of tax (33% of 30%) in addition to flat rate of 30%.

♦ Further, the declarants will have to deposit 25% of the undisclosed income in a scheme to be announced by the government in discourse with the Reserve Bank of India (RBI).

♦ The money from PMGK will be used for projects in irrigation, infrastructure, primary education, primary health, housing, toilets and livelihood so that there is justice and equality.

♦ Those who choose not to declare such cash shall be levied with flat rate of 60% tax plus 25% of tax as surcharge (i.e. 75% tax shall be levied) if caught by assessing officer.

♦ Besides, the assessing officer can charge a penalty of 10% in addition to the 75% rate of tax.

Why it is necessary?

Generally, tax evasion prevents the nation of critical resources which could enable Government to shoulder development and anti-poverty programmes. Honest taxpayers are greatly affected and they shall have to bear a disproportionate burden of higher rates of taxes to make up for the revenue leakage. Existing expendable provisions of the Income Tax Act, 1961 which can possibly be used for hoarding black money shall now be removed in The Taxation Laws (Second Amendment) Bill, 2016.

Do not miss our next update on Latest Amendments.

You may drop in your queries at team@clicknfile.in or directly get in touch with our finance/tax experts @ 8872032114, 8872032116, 8872013116

Some recent updates that you would not like to miss –

1.  Central Government or State Government, on the recommendation of GST Council, can notify a transaction to be supply of goods & services.

2.   Parliament shall likely to pass CGST, IGST, UTGST and Compensation Bills which has already been approved by GST Council in Budget Session.

3.    All existing indirect tax assessees shall be migrated to GST in next 4 days as 31.03.2017 is the last date for GST enrolment.

Have a great day ahead!

Get your Business ISO Certified

Certain international standards has been issued by The International Organization for Standardisation i.e. ISO (which is an independent & non-governmental organization comprising of 150+ national standard bodies) which certifies the safety, reliability & quality of goods & services. Getting your business ISO certified is now prudent for the overall goodwill of entities. Such norms / standards prove to be a powerful tool which benefits businesses by cost reduction and subsequently increasing overall productivity of such business. It can be taken by any kind of organization regardless of its size.

Some of the very common ISO Certification standards are illustrated below-

1.      ISO 9001:2015 – It basically certifies Quality management systems and practices. It is based on various quality management principles which focuses mainly on customer, leadership, involvement of people, continual improvement, decision making purely based on facts, mutually beneficial supplier relationship etc.

2.     ISO 27001:2005 – This standard deals in information security management systems and certifies security of various assets which are entrusted to you by third parties.

3.   ISO 22001:2005 – Business entities dealing in foods and beverages need to get ISO 22001:2005 certified which exclusively deals in commitment to food safety. It is a means of prevention that addresses chemical, physical or biological hazards to ensure complete safety of such food products.

4.     ISO 14001:2004 – It certifies that a particular product is environment friendly and complies with laws & regulations which conferred commitment to environmental policy, conservation of water, energy, fuel etc. and prevention of pollution to ensure socio-economic balance.

All the above stated standards' Certificates have the validity period of 3 years subject to annual audit which shall have to be conducted at the end of 1st and 2nd year respectively.

ISO usually does not perform certification rather it has appointed various national standard external bodies which certifies a particular product or service and issue ISO certificates.

Do not miss our next update on Latest Amendments.

You may drop in your queries at team@clicknfile.in or directly get in touch with our finance/tax experts @ 8872032114, 8872032116, 8872013116

Some recent updates that you would not like to miss –

1.   Threshold limit for prohibiting cash payments has been reduced from Rs.3 lakhs to Rs.2 lakhs with equivalent penalty.

2.    Quoting Aadhaar Number has been made mandatory for filing Income Tax Return and application of PAN w.e.f. 01.07.2017.

3.      GST is set to be enforced from July 2017.

4.    Composition, Valuation, Input Tax Credit & Trasnsition Rules are likely to get approved by GST Council in Council Meeting on 31.03.2017. Other rules have already been approved by the Council.

  Have a great day ahead!

Registering for Service Tax Number?

Here are some key points you should know –

‘Service Tax’ is one of the very important indirect taxes that is imposed by our Central Government on a ‘Service Provider’ (i.e. a person providing taxable services). In certain cases, it is the service receiver who is liable to pay such tax to the Government. Every person liable to pay service tax has to mandatorily apply for getting Service Tax Registration Number.

Getting Service Tax Registration Number is compulsory for every person/ firm/ company if aggregate amount of taxable services provided, whether from a single or multiple premises, in the previous financial years exceeds Rupees Nine Lakhs. It is a unique 15-digit number which is allotted at the time of filing an application for registration for Service Tax to the assessee. Such compliance of obtaining ‘Service Tax Registration’ is statutorily required to be completed within 30 days from exceeding the above threshold limit of Rupees Nine Lakhs.

On the basis of Service Tax number obtained by the assessee, such assessee can easily check all the details such as name of the entity, registered address of the entity, range code, division code, location code etc.

Service Tax Return filing is mandatory for all those assessees who have obtained service tax number irrespective of their annual turnover. If an assessee is possessing Service Tax Number but his tax liability is NIL, in that case also he shall be required to file NIL service tax return. If assessee wants to surrender his service tax number then such assessee shall have to file an online application for the same.

Some recent updates that you would not like to miss – 20.03.2017

1.      Income tax penalty cannot be levied for Bonafide mistakes in making wrong claim.

2.    GST Council has approved two crucial bills (i.e. State GST and Union Territory GST) that will pave the way for tabling of the GST Bills in the Current Session of the Parliament and respective State Assemblies. Consequently, new Indirect Taxation System shall likely to be introduced from July 2017.

3.     In GST law, supplier shall have to issue credit/debit note if there is any deficiency in supplies, return of goods or incorrect amount of supplies or GST has been entered.

4.      Due Date for filing of DVAT Return in Form 16,17, and 48 for Quarter 3 of Financial Year 2016-17 has been extended up to 31.03.2017.

5.    Under GST, credit of tax paid on capital goods also is permitted to be availed in one instalment.

Have a great day ahead!