Kallam & Associates

29/06/2016

What is VAT Registration ?
Whenever company want to start it's business in any part of any state of India, they need to register place of business in sales tax. After registration, company get TIN no for particular state.

2) What is the specification of the Registration ?
It is location specific.

3) What needs to be done if company is starting a new place of business in state where we already have TIN no ?
We have to apply for Additional Place of Business ("APOB") for new place. Company can be registered under local sales tax only once, then APOB needs to be done for additional places.

4) What all documents need to be submitted to Sales Tax Dept ?
Certified copy of MOA, AOA and CIN
Certified copy of PAN
Certified copy of board resolution for authorised signatory
List of Directors, DIR 12 ( in case of appointment of additional director) and self attested copy of KYC documents.
Agreement with premise owner, his Pan and NOC
Rent proof and address proof.

5) Once we get TIN no, is there any amendment to be made periodically in VAT registration ?

Yes, whenever there is any addition in category of commodities, in which company deals.
Yes, whenever there is any addition/deletion of Directors from BOD.

Whenever company deals in more products then what are listed in Registration, company have to apply for addition of commodity in Registration.

Whenever new Director is appointed, intimation needs to be given to Sales Tax office about the same.

6) Contact information of Company:

When ever company apply for VAT registration, consultant give their own contact details like e-mail I'd and Mobile number for quick procedure of registration. Once we get the TIN no successfully, better to make an application to Sales Tax Office for changes in contact information of company.

This is required because whenever you change the password of online website, One Time Password will be sent to designated contact information which may or may not be assessable in future, better to amend same with permanent details of company.

7) When Registered Office of Company shift with same ROC limit ?

Always advisable to first apply for APOB for new office, second surrender for old office and then apply for principal place of business for new office of the company.

8) Periodical Returns under state VAT act

23/08/2015

Income-Tax Act 1961 Amended Through Finance Act 2015 to Provide Certain Tax Benefits to Notified Backward Areas in Specified States Including State of Bihar to Give

These Areas an Opportunity to Grow Faster;21 Districts of Bihar Notified as Backward Areas; Any Manufacturing Undertaking or Enterprise Set-Up During the Period From 01.04.2015 to 31.03.2020 in the Aforesaid Backward Areas of Bihar will be Eligible for 15% Additional Depreciation and 15% Investment Allowance Under the Income-Tax Act, on the Cost of Plant and Machinery Acquired and Installed by it During the Said Period

The provisions of the Income-tax Act 1961 have been amended through Finance Act 2015 to provide certain tax benefits to notified backward areas in specified States including State of Bihar to give these areas an opportunity to grow faster. To give effect to the amendment, the following 21 districts of Bihar have been notified as Backward Areas vide Notification No. S.O. 2241(E) dated 17.08.2015:

1. Patna
2. Nalanda
3. Bhojpur
4. Rohtas
5. Kaimur
6. Gaya
7. Jehanabad
8. Aurangabad
9. Nawada
10. Vaishali
11. Sheohar
12. Samastipur
13. Darbhanga
14. Madhubani
15. Purnea
16. Katihar
17. Araria
18. Jamui
19. Lakhisarai
20. Supaul
21. Muzaffarpur

Any manufacturing undertaking or enterprise set-up during the period from 01.04.2015 to 31.03.2020 in the aforesaid backward areas of Bihar will be eligible for 15% additional depreciation under Section 32(1)(iia) and 15% investment allowance under Section 32AD of the Income-tax Act, on the cost of plant and machinery acquired and installed by it during the said period. The aforesaid incentives are in addition to other tax benefits available under the Income-tax Act. Thus a manufacturing undertaking/enterprise set up in any of these areas during the aforesaid period will be eligible for 35% (instead of 20%) of additional depreciation. This would be over and above the normal depreciation of 15%. Besides, a company engaged in manufacturing will also be eligible for 30% (instead of 15%) of investment allowance if its investment in new plant and machinery during the period 1.4.2015 to 31.3.2017 exceeds Rs.25 crore

18/07/2015

the government has notified the rules for Indian Accounting Standards (Ind AS) which will be mandatory for companies from April 1, 2016.

Ind AS norms, which are converged with global standards IFRS, can be followed by corporates on a voluntary basis from April 1 this year.

For companies having networth of Rs 500 crore or more, the new norms would be mandatory from April 1, 2016.

In a notification, the Corporate Affairs Ministry said the 'Companies (Ind AS) Rules 2015' would come into force from April 1, 2015.



Last month, the ministry had announced the Ind AS roadmap. Banking, insurance and non-banking finance companies are exempted from the roadmap.

Ind AS would be mandatory for "companies whose equity and/or debt securities are listed or are in the process of listing on any stock exchange in India or outside India and having net worth of Rs 500 crore or more," from April 1, 2016.

The deadline would be applicable for other entities having networth of Rs 500 crore or more. It would also apply for holding, subsidiary, joint venture or associate companies of these two class of entities.

Ind AS would be mandatory from April 1, 2017, for companies -- whose equity and/or debt securities are listed or are in the process of being listed within India or outside -- having a networth of less than Rs 500 crore.

Other companies, that are unlisted having a networth of Rs 250 crore or more but less than Rs 500 crore, also would have to start implementing Ind AS from April 1, 2017.

Holding, subsidiary, joint venture or associate companies of these entities would have to comply with this deadline.

Companies whose securities are listed or in the process of listing on SME exchanges would not be required to apply Ind AS. Such companies shall continue to comply with the existing accounting standards unless they choose otherwise.


"Any company opting to apply the Ind AS voluntarily... for its financial statements shall prepare its financial statements as per the Ind AS consistently," the Ministry's notification, dated February 16, said.

Once the Ind AS are applied voluntarily, "it shall be irrevocable," it added.

11/07/2015

India and the US on Thursday signed a tax information sharing agreement under a new US law, Foreign Account Tax Compliance Act (FATCA), that will bolster efforts towards automatic exchange of financial information between the two nations about tax evaders.

The agreement will cover automatic sharing of information on bank accounts as well as financial products like equities, mutual funds and insurance and is aimed at fighting the menace of black money stashed abroad. Coming within months of India becoming a signatory to the OECD pact on automatic information sharing, the government's efforts at getting names of those with illicit wealth stashed abroad will get a leg up.

With the agreement in palace, from September 30, banks, mutual funds, insurance, pension and stock-broking firms will report their Indian client details to the United States which will be shared with authorities here. It was delayed due to observations made by the Supreme Court earlier as in absence of the pact, all remittances to India would have faced a 30% withholding tax, impacting inflows to exporters as well as households.

"We as a country see it as a great breakthrough and significant development in India-US cooperation in handling offshore tax evasion which also impacts money laundering and other aspects which we call in India the problem of black money," revenue secretary Shaktikanta Das said. US has so far signed pacts with 110 tax jurisdictions to implement FATCA.

FATCA, along with the Automatic Exchange of Information (AEOI) agreement, which will come into play from 2017, "will ensure that all the tax related information, all the financial information are available with us from 2017," he said.

Tax experts said that the agreements may result in more burden on financial entities and may result in some modifications to the KYC requirements. "FATCA creates a new compliance burden on the Indian financial institutions. With FATCA and common reporting standards (under OECD pact), they will be required to be geared up to exchange tax information of more than 60 countries. This calls for changes to customer on-boarding documents, systems, processes and reporting compliances. Fresh Capital Flows into equity and debt markets, with most countries now sharing information and subject to other commercial factors, may depend upon the tax exemptions given in source country and the total tax outflow for the investor," said Bahroze Kamdin, partner at consulting firm Deloitte Haskins & Sells.

"We are expecting detailed guidelines to be issued soon by the finance ministry... it will have an impact on KYC requirements for financial institutions and also require them to provide additional reports," added Basant Shroff, partner at EY India.

11/07/2015

...Manual Scrutiny of Service Tax return wef 01.08.2015 guidelines Issued...

Primarily, service tax department is bifurcated into anti-evasion and audit wings so as to keep an eye on service tax defaulters. In order to additionally curb the small assessees, who usually don't fall in the ambit of service tax audits, CBEC has issued circular 185/4/2015- ST wherein check-list & revised guidelines for carrying out detailed manual scrutiny of service tax returns have been prescribed. The gist of the same has been produced here under:

1) To be made effective from 1st Aug'15 onwards;

2) Focus on small assessees whose total tax paid(Cash + CENVAT) during FY 14-15 is less than INR 50 Lacs, though on the direction of Chief Commissioner, scrutiny of returns can be made for assessee whose monetary limit exceeds even INR 50 Lacs but in no case such assessee can be subjected to both Audit & manual scrutiny;

3) Preliminary online scrutiny to be done by range officers;

4) Prior intimation of 15 days to be given to assessee in the prescribed format.

5) Reconciliation of ST-3 with ITR returns & Form 26AS and Sales Tax returns etc.

6) Scrutiny process of an assessee should be completed within 3 months;

27/06/2015

How to Self E-file Your Income Tax Return :------

If complex tax forms and tax terms bewilder you, let's break down your return filing process in segments. By taking these small careful steps and you will be on a roll with your return filing this year.

Step 1: Get hold of your Form 16
Form 16 is a certificate your employer gives you when the TDS deducted on your salary is certified. Form 16 has most of the information you need to fill in your return. PAN and TAN details of your employer, name and address of your employer and similar details for you are mentioned which have to be filled in the return. You will see a number which is your 'total taxable salary' and that is the number you will have to pick to submit under the head salary in your return. Several tax filers allow you to upload your Form 16 and with that all this information gets picked up automatically in your return.

Step 2: Find out your income other than salary
Most of us earn a savings bank account interest or have some fixed deposits put away. This interest earned has to be added to your return under income from other sources. Get hold of your bank statement or look up online for credits to your account by the bank towards interest in your savings account. Most online banks also show a fixed deposit statement, where you can see the interest earned during the year. If you have any other bonds you subscribed to, where interest is accumulated, add this interest to your return. As a thumb rule, offer interest income on deposits and bonds when it is accrued each year, rather than when it is paid on maturity.

If you have taken a home loan to own a house and you live in that house, you get a deduction for the interest for the financial year. The interest amount is your loss, which will get adjusted against your salary and other income. If you have rented out your house, the rental income is offered for tax. You can deduct property taxes paid by you and a standard 30 per cent from the net amount (rental income less property taxes) is also allowed. For a rented property the entire interest on home loan is deductible. You'll also need to provide details of the property, address, date of construction, information about co-owners etc.
Step 3: Make sure you have included all the deductions
Deductions are allowed from your gross income under sections 80C to 80U. With the help of these deductions, you will be able to reduce your gross income and consequently pay lower tax. You will find these in your form 16. However, if you are eligible to claim certain deductions and you have not disclosed them to your employer, you can claim them at the time of filing your return. Say, if you deposited Rs 40,000 in PPF and could not share this with your employer or paid life insurance premium about which you could not intimate your employer; claim them in your return. Medical insurance premium payments are eligible to be claimed under section 80D and 80G; provided you meet the conditions listed in the relevant sections.

Step 4: From the total tax payable adjust your TDS details
Whatever TDS has been deducted from your various incomes by employer, banks or anyone can be reduced from your total tax liability. After all, this is the tax which has already been deducted from your income and deposited against your PAN. Goes without saying, including the income in your return on which TDS is deducted is essential. You can find out details of all the TDS deducted in your Form 26AS. If you have yourself deposited some tax to the government, you'll be able to find that information in it too.
Step 5: Make sure all your personal details are accurate
Your PAN, email address, bank account details (mention the account where you want to receive refund, whether or not any refund is due), and all the other information must be accurately provided by you in your income tax return. Allocate some time to review it properly.

Step 6: Review and e-file
Once you have done the above, now review your entire income tax return form. Remember if there is tax due, you have to first pay that tax and only then you can e-file successfully. Make the payment of any tax that is due. Review incomes, deductions, TDS and other information. You are now ready to e-file your return.
Step 7: Do remember to send your ITR-V
Sending your ITR-V is a critical and important step to conclude successful e-filing. It has to be printed out, signed and sent to CPC, Bangalore via speed post. The income tax department is working on a process to verify it via 'Aadhaar', details are awaited shortly. Don't miss this very important step.

26/06/2015

A TO Z OF INCOME TAX PROVISIONS AT A GLANCE:

1. Detailed information of Income Tax is available on www.incometaxindia.gov.in

2. As per Income Tax Act, Income is taxable under five heads- Salary, House Property, Business or Profession, Capital Gain and Other Sources.

3. Salaried person must obtain Form 16 from his Employer Every Year.

4. Income Tax Return should be filed by considering Form 16 and other Income.

5. Transport Allowance is exempt up to Rs.1,600 per month.

6. 30% Standard deduction is available on Income from House Property.

7. Income to be considered as deemed let out on second House property.

8. For self-occupied house property, deduction of Interest on Housing Loan is allowed up to Rs. 200,000/- and for other house property actual expenditure of Interest on Housing Loan is allowed.

9. Repayment of Principal amount of Housing Loan is deductible u/s 80C up to Rs.150,000/-.

10. Tax Audit is compulsory if sales turnover exceeds Rs.1 crore in case of business.

11. Tax Audit is compulsory if the Gross Receipts of Professionals exceeds Rs.25 lakhs.

12. If sales turnover is below Rs. 1 crore, then net profit of 8% or higher is to be taken as business income otherwise tax audit is required.

13. The Due Date for Tax Audit and income Tax Return is 30th September.

14. Assessee other than Company and those eligible for Tax Audit are required to file Income Tax Return before 31st of July. Extended date is 31st Aug for F.Y. 2014-15.

15. Accurate Stock Valuation should be done on 31st of March.

16. Cash payment should not be made to a person in single day exceeding Rs.20,000.

17. Cash Payment limit for Transporters is Rs.35,000/-.

18. Loans, deposits and Immovable Properties transactions should
not be carried out above Rs.20,000 in cash.

19. Business loss can be carried forward to Next 8 Years.

20. Tax Audit applicable assesses should deduct TDS on particular transactions.

21. TDS should be made on the date of Credit or Payment basis of whichever is earlier.

22. TDS payment should be made on or before 7th day of Next Month.

23. TDS Returns are to be filed Quarterly.

24. TDS returns can be revised any number of times.

25. TDS should be deducted and paid if applicable.

26. If TDS is not deducted then deduction of 30% of Expenditure
is not allowed.

27. Late filling of TDS return attracts late filing fees of Rs.200 per day.

28. Long Term Capital Gain will arise if transfer of specified Capital Assets is made after 3 years.

29. Generally Long Term Capital Gains is taxable @ 20%

30. STT paid Long Term Capital Gain on Shares,etc is exempt from Tax.

31. Short Term Capital Gain is Taxable @ 15% if STT is paid.

32. Capital Gain on Immovable Properties is chargeable at Stamp
Duty Value or Selling Price whichever is higher.

33. Dividend received from domestic company is exempt from Tax.

34. Agricultural Income is exempt from Tax.

35. Gifts received form stranger of an Amount exceeding Rs.50,000 is taxable.

36. Income Tax is not chargeable on Gifts received at the time of Marriage, Will, and in case of Succession and from specified relatives.

37. Maximum deduction limit u/s 80C, 80CCC and 80 CCD is Rs.1,50,000.

38. Deduction of Medical Insurance Premium is available up to Rs. 25,000.

39. Deduction of Medical Insurance Premium paid for Parents is available up to Rs. 20,000.

40. Deduction limit of Interest earned on Saving Accnt is up to Rs.10, 000.

41. Income earned by a Minor child is clubbed in the hands of Parents.

42. Every Taxpayer should verify his Form 26AS.

43. Form 26AS provides the Information regarding the TDS, Advance Tax paid and details of refund.

44. Notice may be sent to the Taxpayer if the Income mentioned in Form 26AS and the Income Tax Return filed is having difference.

45. Basic Exemption Limit for individuals for FY2015-16 is Rs.2,50,000.

46. Basic Exemption Limit for Senior Citizen i.e. above 60 years age is Rs.3,00,000.

47. Basic Exemption Limit for Super Senior Citizen i.e. above 80 years age is Rs.5,00,000.

48. Advance Tax is to be paid if Tax Liability during the year exceeds Rs. 10,000.

49. 12% of Surcharge is applicable if Income Exceeds Rs. 1Crore.

50. Income Tax Return should be filed if Income exceeds Basic Exemption Limit.

51. 30% of Tax applicable on Income of Partnership Firm, Company, LLP etc.

52. For Companies – Minimum Alternate Tax and for other Assesses
– Alternate Minimum Tax rate is 18.5%.

53. Details of all Bank Accounts have to be given in Income Tax return.

54. Passport number is required to be given in Income Tax return.

55. Detail of Fixed Assets held in Foreign Country is required to be given in Income Tax return.

56. If taxable income of Individual is less than Rs. 5 Lakhs then relief of Rs.2,000/- is available in Tax.

57. Aadhar Card No. is required to be mentioned in Income Tax return.

58. E-filling of return is compulsory if income exceeds Rs. 5 lakhs.

59. In Income Tax, E-filling of return can be done for Previous 2 Years only.

60. PAN Card is essential for Taxpayer and it should not be used as Id Proof.

61. From FY 2014-15 Depreciation is to be calculated as per New Companies Act.

62. Domestic Transfer Pricing is applicable on transaction exceeding an Amount Rs.20 Crores.

21/01/2015

Happy Birthday to our Founder

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12/01/2015

FOLLOWING CONDITIONS MUST BE SATISFIED FOR CLAIMING NEW HOME LOAN TAX DEDUCTION:

1. This deduction is available to first time home buyers.

2. You can claim this deduction only if your loan amount is less than Rs 25 lakh.

3. This benefit can be claimed by those individuals, who obtain a loan between April 1, 2013 and March 31, 2014.

4. The Union Budget 2013-14 has proposed a deduction of Rs 1 lakh on housing loan interest under section 80EE. This would be in addition to the existing tax benefit of Rs 1.5lakh under section 24.

5. The value of the property purchased should not exceed Rs 40 lakh.

12/01/2015

GST law will subsume all indirect levies including entry tax from April, 2016, which will ensure seamless flow of goods and services across the country.

The GST, which was hammered out after series of meetings with the states, is a "win-win" for both Centre and States and will provide for levy of 1 per cent additional tax by states for inter-state transfer of goods for two years.

"GST will ensure seamless transfer of goods and services, absence of Inspector Raj and no tax on tax," Jaitley told reporters soon after tabling the 122nd Constitution Amendment Bill in the Lok Sabha.

The Bill will be considered for passing in the Budget session of Parliament beginning February, the Minister said, adding he did not feel the necessity of the legislation being referred again to a Standing Committee.

Under the provisions of the Bill, petroleum goods will be part of the GST but they will be levied at zero rate, implying that the states will continue to levy VAT while Centre will levy excise duty for initial few years.

Thereafter, it will be fully subsumed in the GST, the date of which will be set by the GST Council, which is made up of two third of states and the remaining of Centre.

The states, however, will continue to levy taxes on alcohol as is the practice now.

Explaining the Bill, Jaitley said that states will be allowed to levy 1 per cent additional tax for two years.

The GST will be a "win-win situation for Centre and states and is the single biggest reform after 1947", he said.

12/01/2015

Tax planning/saving for the salaried employees/assessees can be done under following avenues :

(A) U/s 10(5) - Leave travel allowance ( LTA )

(B) U/s 10(13A) - HRA ( House rent allowance )

(C) U/s 10(14) - Conveyance allowance

(D) U/s 24 (b)/ 80 EE - Repayment of INTEREST on Housing loan.

(E) U/s 80 C / CCC / CCD - Rs 1.50 lakh limit ( PPF , Life insurance premium , ULIP , FD , NSC , Mutual fund , Repayment of Principal on housing Loan , annuity plan , contribution to pension scheme of Central Govt )

(F) U/s 80 D - Rs 15,000 / 20,000 ( Mediclaim , preventive health check up )

(G) 80CCG - Deduction for assessee investing 1st time in equity linked scheme ( 3 years lock-in compulsory )

(H) 80 G - Donation to charitable institution is allowed as deduction.

31/07/2013

Income tax return filing due date has been extended
from 31st July to 5th Aug 2013.