Sunday 13 December 2015

Class of Companies as per section 139(2) of Companies Act, 2013

For the purpose of point 3 of ADT-1, the company shall mention Whether company is falling under any class of companies as per section 139(2) -- Yes or No.

The class of companies as per section 139(2) shall mean the following classes of companies excluding one person companies and small companies:-

(a) all unlisted public companies having paid up share capital of rupees ten crore or more;
(b) all private limited companies having paid up share capital of rupees twenty crore or more;
(c) all companies having paid up share capital of below threshold limit mentioned in (a) and (b) above, but having public borrowings from financial institutions, banks or public deposits of rupees fifty crores or more.

Tuesday 1 December 2015

Accounting codes for payment of Swachh Bharat Cess (.50% w.e.f. 15-11-2015)

Seachh Bharat Cess @.50% has been levied on all the taxable services (including reverse charge) w.e.f. 15-11-2015. 

Accounting codes for payment of Swachh Bharat Cess are:-

Swachh Bharat Cess
(Minor Head)

Tax Collection

Other Receipts


Deduct Refunds






Reference Circular no 188/7/2015-ST dated 16-11-2015

Monday 16 November 2015

Service Tax Rate Changed to 14.5% w.e.f 15th November, 2015

Service Tax rate has been changed from 14% to 14.5% w.e.f. 15th November, 2015 vide notification no 21/2015 - Service Tax dated 06-11-15

The Government of India has decided to impose  0.5% Swachh Bharat Cess on taxable services which will be used towards cleanliness and sanitation projects of Government of India

The Cenvat Credit of Swachh Bharat Cess would not be admissible as there is no amendments in Cenvat Credit Rules, 2004

Thursday 15 October 2015

Service Tax on Comission Agent located outside India (Intermidatory Services)

After Notification No. 14/2014-ST dated 11th July, 2014 came into effect on 1st October, 2014, services provided by a commission agent (being an intermediary) located outside India is out of the purview of Service Tax as these services are now governed by Rule 9 of the Place of Provision of Service Rules, 2012, as per which the place of provision of this service is the location of service provider, which in this case being out of India, is not chargeable to Service Tax.

TDS on Taxi Hire Charges

TDS under Section 194C - Payment to Contractors

I.           194C(1) - Any person responsible for paying any sum to any resident for carrying out Any Work shall, at the time of credit of such sum to the account of the contractor or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal to—
(i) one per cent where the payment is being made or credit is being given to an individual or a Hindu undivided family;
(ii) two per cent where the payment is being made or credit is being given to a person other than an individual or a Hindu undivided family,
of such sum as income-tax on income comprised therein.

II.      As per Explanation (iv)(c) given under Section 194C defines “Work” to include “carriage of goods and passengers by any mode of transport other than railways”

Therefore, TDS shall be deducted on the Taxi Hire Charges as rate prescribed under section 194C of the Income Tax Act, 1961

Monday 12 October 2015

No TDS on payment made to shipping agents on foreign shipping companies

a) Section 172 deals with shipping business of non-residents and as per section 172(1) the provisions of sections 194C and 195 relating to tax deduction at source are not applicable.

b) Section 194C applies to payments made to any "resident" and section 172 operates in the area of computation of profits from shipping business of “non-resi­dents”. Thus, there is no overlapping in the areas of operation of these sections.

However, no TDS shall be deducted in case of payments made to shipping agents of non-resident ship-owners or charterers for carriage of passengers etc., shipped at a port in India as the agents acts on behalf of the non-resident ship-owner or char­terer and they steps into the shoes of the principal.

Reference Circular no 723 dated 19-09-1995