How to ensure correct credit of TDS to dedcutee & generation of TDS certificate
As the due date for filing quarterly TDS statement for 4th quarter is approaching close,TDS deductors musttake note of following important information before submitting TDS statements to ensure that the deductees are able to correctly claim TDS Credits and for generating correct TDS Certificates.
Payment of Taxes deducted/ collected:
- In accordance with Central Government Account (Receipts and Payments) Rules, 1983, Government dues are deemed to have been paid on the date on which the cheque or draft tendered to the bank, was cleared and entered in the receipt scroll.
- Rule 125 of Income Tax Rules, 1962 provisions for Electronic Payment of Tax by way ofinternet banking facility, for a Company and a Person to whom provisions of section 44AB of the Act are applicable.
Timely Filing:
- The due date to file TDS statements for Q4, FY 2013-14 is 15th May, 2014.
- Please submit the statement within due date to avoid Late filing fee, which, being statutory in nature, cannot be waived.
Correct Reporting:
- Please use your correct contact details, including Contact Number and email IDs in TDS Statements.
- It is very important to report correct and valid particulars in respect to deductor and deductees. Please report the TAN of the deductor, Category (Government / Non-Government) of the deductor, PAN of the deductees and other particulars of deduction of tax correctly in the quarterly TDS statement.
- Please make use of TAN-PAN Master from TRACES to Validate PAN and name of deductees before quoting it in TDS statement. Please note that there are restrictions for correction of PAN.
- Quote correct and valid lower rate TDS certificate in TDS statement wherever the TDS has been deducted at Lower/Nil rate on the basis of certificate issued by the Assessing Officer. Please raise Flag "A"/ "B", as appropriate, and quote valid and correct Certificate Numbers.
- TDS statement must be filed by quoting challan(s) validated by CSI (Challan Status Inquiry) File and using correct Challan Identification Number (CIN)/ Book-entry Identification Number(BIN).
- Please maintain your correct Contact details in your Registration profile at TRACES.
Complete Reporting:
- Please ensure completeness of your TDS statement by including all your deductees. Please note that the obligation to report each transaction correctly in the relevant quarter is on the deductor and non-compliance amounts to incorrect verification of completeness of TDS statement.
- Completeness of statement will ensure that a C5, C3 or C9 correction can be avoided. It may be noted that CPC (TDS) does not encourage C9 corrections by addition of a new challan and underlying deductees.
- Please also complete Annexure II (in case of 24Q) for all deductees employed for any period of time during the current financial year, including Annexure I for TDS details.
Downloading TDS Certificates from TRACES:
- On the basis of information submitted by the deductor, CPC(TDS) will issue TDS Certificates that can be correct depending on correct and complete reporting by deductors.
- Your attention is invited to CBDT circulars 04/2013 dated 17.04.2013, No. 03/2011 dated 13.05.2011 and No. 01/2012 dated 09.04.2012 on the Issuance of certificate for Tax Deducted at Source in Form 16/16A as per IT Rules 1962. It is now mandatory for all deductors to issue TDS certificates after generating and downloading the same from TRACES.
- Please note that under the provisions of section 203 of the Income Tax Act, 1961 read with rule 31A, Certificate of tax deducted at source is to be furnished within fifteen (15) days from the due date for furnishing the statement of tax deducted at source.
Regards,
Pawan Singla , LLB
M. No. 9825829075
To It_law_reported@yahoogroups.com
Today at 8:40 AM
How to ensure correct credit of TDS to dedcutee & generation of TDS certificate
As the due date for filing quarterly TDS statement for 4th quarter is approaching close,TDS deductors musttake note of following important information before submitting TDS statements to ensure that the deductees are able to correctly claim TDS Credits and for generating correct TDS Certificates.
Payment of Taxes deducted/ collected:
- In accordance with Central Government Account (Receipts and Payments) Rules, 1983, Government dues are deemed to have been paid on the date on which the cheque or draft tendered to the bank, was cleared and entered in the receipt scroll.
- Rule 125 of Income Tax Rules, 1962 provisions for Electronic Payment of Tax by way ofinternet banking facility, for a Company and a Person to whom provisions of section 44AB of the Act are applicable.
Timely Filing:
- The due date to file TDS statements for Q4, FY 2013-14 is 15th May, 2014.
- Please submit the statement within due date to avoid Late filing fee, which, being statutory in nature, cannot be waived.
Correct Reporting:
- Please use your correct contact details, including Contact Number and email IDs in TDS Statements.
- It is very important to report correct and valid particulars in respect to deductor and deductees. Please report the TAN of the deductor, Category (Government / Non-Government) of the deductor, PAN of the deductees and other particulars of deduction of tax correctly in the quarterly TDS statement.
- Please make use of TAN-PAN Master from TRACES to Validate PAN and name of deductees before quoting it in TDS statement. Please note that there are restrictions for correction of PAN.
- Quote correct and valid lower rate TDS certificate in TDS statement wherever the TDS has been deducted at Lower/Nil rate on the basis of certificate issued by the Assessing Officer. Please raise Flag "A"/ "B", as appropriate, and quote valid and correct Certificate Numbers.
- TDS statement must be filed by quoting challan(s) validated by CSI (Challan Status Inquiry) File and using correct Challan Identification Number (CIN)/ Book-entry Identification Number(BIN).
- Please maintain your correct Contact details in your Registration profile at TRACES.
Complete Reporting:
- Please ensure completeness of your TDS statement by including all your deductees. Please note that the obligation to report each transaction correctly in the relevant quarter is on the deductor and non-compliance amounts to incorrect verification of completeness of TDS statement.
- Completeness of statement will ensure that a C5, C3 or C9 correction can be avoided. It may be noted that CPC (TDS) does not encourage C9 corrections by addition of a new challan and underlying deductees.
- Please also complete Annexure II (in case of 24Q) for all deductees employed for any period of time during the current financial year, including Annexure I for TDS details.
Downloading TDS Certificates from TRACES:
- On the basis of information submitted by the deductor, CPC(TDS) will issue TDS Certificates that can be correct depending on correct and complete reporting by deductors.
- Your attention is invited to CBDT circulars 04/2013 dated 17.04.2013, No. 03/2011 dated 13.05.2011 and No. 01/2012 dated 09.04.2012 on the Issuance of certificate for Tax Deducted at Source in Form 16/16A as per IT Rules 1962. It is now mandatory for all deductors to issue TDS certificates after generating and downloading the same from TRACES.
- Please note that under the provisions of section 203 of the Income Tax Act, 1961 read with rule 31A, Certificate of tax deducted at source is to be furnished within fifteen (15) days from the due date for furnishing the statement of tax deducted at source.
One such exemption mentioned under section 54B is that the assessee can invest the long term capital gain earned by him during the previous year can be invested in a agricultural rural land i.e. the assessee can purchase an agricultural rural land from the amount of capital gain earned by him within a period of 2 years or if he is unable to do so he can also deposit the amount in Capital GainsAccount Scheme (CGAS) within six months of the end of the previous year. The amount so deposited has to be used for the aforesaid purpose within the stipulated time period otherwise it would be treated as long term capital gain and will be taxed accordingly. The other condition to be satisfied to avail this exemption is that the land so purchased from the capital gains must be retained at least for a period of 3 years and if it is sold by the assessee before that the capital gain arising from the sale of the asset will be calculated by considering the cost of acquisition of such asset as nil or the other treatment is that the new asset is taxed in a normal manner and the previously exempt capital gain is taxed subsequently in the current previous year.
The above provisions are well planned to encourage investment in agricultural land in rural areas so as to enable and smoothen the process of economic growth but the fact that capital gains arising from the sale of agricultural land is exempt if the new land so purchased is situated in the areas specified in the section 2(14)(iii). This gives the assessee the leverage to purchase agricultural land from the taxable capital gains but not hold it for the intended period of time. Rather, the assessee can very well sell the property in a few days without bothering about the tax liability as the new capital gain is exempt under the act
Regards,
Pawan Singla , LLB
M. No. 9825829075Kushalbhai Ratanbhai Rohit vs. State of Gujarat (Supreme Court)
Despite pronouncement of verdict in open court & signing of draft judgement, Judge entitled to alter verdict until judgement is signed & sealed
Up to the moment the judgment is delivered Judges have the right to change their mind. There is a sort of 'locus paenitentiae' and indeed last minute alterations often do occur. Therefore, however much a draft judgment may have been signed beforehand, it is nothing but a draft till formally delivered as the judgment of the Court. Only then does it crystallise into a full fledged judgment and become operative. It follows that the Judge who "delivers" the judgment, or causes it to be delivered by a brother Judge, must be in existence as a member of the Court at the moment of delivery so that he can, if necessary, stop delivery and say that he has changed his mind. There is no need for him to be physically present in court but he must be in existence as a member of the Court and be in a position to stop delivery and effect an alteration should there be any last minute change of mind on his part. If he hands in a draft and signs it and indicates that he intends that to be the final expository of his views it can be assumed that those are still his views at the moment of delivery if he is alive and in a position to change his mind but takes no steps to arrest delivery. But one cannot assume that he would not have changed his mind if he is no longer in a position to do so.
Kone Elevator India Pvt. Ltd vs. State of T. N (Supreme Court – 5 Judge Bench)
Important principles on distinction between "contract for sale of goods" and "works contract" explained
(ii) Four concepts have clearly emerged from the numerous judgements of the Supreme Court on the point. They are (a) the works contract is an indivisible contract but, by legal fiction, is divided into two parts, one for sale of goods, and the other for supply of labour and services; (b) the concept of "dominant nature test" or, for that matter, the "degree of intention test" or "overwhelming component test" for treating a contract as a works contract is not applicable; (c) the term "works contract" as used in Clause (29A) of Article 366 of the Constitution takes in its sweep all genre of works contract and is not to be narrowly construed to cover one species of contract to provide for labour and service alone; and (d) once the characteristics of works contract are met with in a contract entered into between the parties, any additional obligation incorporated in the contract would not change the nature of the contract;
Whether even after a judgement is pronounced and dictated in open court, it can be recalled or reviewed - YES, says SC Larger Bench
By TIOL News Service
NEW DELHI, MAY 14, 2014: THE issues before the Bench are - Whether even after a judgement is pronounced and dictated in open court, it can be recalled or reviewed; Whether Section 362 of Cr PC puts any embargo to recall any order passed in a criminal case once it is signed and Whether a pronouncement is required to be signed and sealed in order to qualify as a judgement in strict legal sense. And the verdict goes against the appellant.
Facts of the case
An FIR was registered at Amraiwadi Police Station, Ahmedabad against one Mahalingam alias Shiva for the offence punishable under the provisions of Narcotic Drugs and Psychotropic Substances Act, 1985. Pursuant to the said FIR, case commenced which was committed to the Sessions Court, Bhadra, Ahmedabad and the trial commenced. On 4.8.2003, Shiva, accused who was detained at Vadodara Central Jail, was required to be taken to the Sessions Court at Bhadra, Ahmedabad and for that purpose an escort was arranged, however, the case was adjourned and the accused while going back was taken for a cup of tea to the Tea stall outside the court compound. Subsequently, he expressed the desire to see his ailing mother and the escort persons tried to find the auto-rickshaw but the escort persons started nauseating and vomiting as some substance was allegedly had been mixed up with tea by the relatives of the accused and it was at that time Shiva, accused absconded from the custody of these persons although in handcuffs. Thus, a complaint was lodged in this respect by the seniormost person of the said escort party. In this regard, Ist C.R. No.442 of 2003 was recorded for the offence punishable.
After the investigation, chargesheet was filed against the escort personnel including the petitioners and the petitioners were found guilty for the offence punishable under Section 222 IPC vide judgment and order dated 9.11.2006 and the petitioner no.1 was awarded 3 years' RI and a fine of Rs.5,000/- and in default thereto, to undergo simple imprisonment for one year. Petitioner nos.2 and 3 were convicted under Section 222 IPC but they had been awarded the sentence for a period of two years each and a fine of Rs.2,000/-each, and in default thereto, to undergo simple imprisonment for six months.
Aggrieved, the petitioners preferred Criminal Appeal before the High Court of Gujarat and during the pendency of the appeal, the petitioners had been enlarged on bail. The appeal was finally heard on 11.12.2013 and the court took a view that sanction of the State Government under Section 197 of the Code of Criminal Procedure, 1973 was necessarily required, and in view thereof, the order was dictated in open court allowing the appeal on technical issue. However, the order dictated in open court and acquitting the petitioners was recalled by the court suo moto vide order dated 27.12.2013 and directed the appeal to be reheard. The order had been recalled on the ground that the court wanted to examine the issue further as to whether in the facts and circumstances of the case where the accused had been police constables, the offence could not be attributed to have been committed under the commission of their duty where sanction under Section 197 Cr.P.C. would be attracted.
On appeal, the SC held that,
++ we do not find any forcible submission advanced on behalf of the petitioners that once the order had been dictated in open court, the order to review or recall is not permissible in view of the provisions of Section 362 Cr.P.C. for the simple reason that Section 362 Cr.P.C. puts an embargo to call, recall or review any judgment or order passed in criminal case once it has been pronounced and signed. In the instant case, admittedly, the order was dictated in the court, but had not been signed;
++ in Mohan Singh v. King-Emperor 1943 ILR (Pat) 28, a similar issue was examined wherein the facts had been that the judgment was delivered by the High Court holding that the trial was without jurisdiction and a direction was issued to release the appellant therein. However, before the judgment could be typed and signed the court discovered that the copy of the notification which had been relied upon was an accurate copy and that the Special Judge had jurisdiction in respect of the offence under which the appellant therein had been convicted. Thereupon, the order directing the release of the accused was recalled and the appeal was directed to be heard de novo. When the matter came up for re-hearing, the objection that the court did not have a power to recall the order and hear the appeal de novo, was rejected;
++ in view of the provisions of Section 362 Cr.P.C. while deciding the case, the Patna High Court relied upon the judgment of Calcutta High Court in Amodini Dasee v. Darsan Ghose, 1911 ILR (Cal) 828 and the judgment of Allahabad High Court in Emperor v. Pragmadho Singh, 1932 ILR (All.) 132. A similar view has been reiterated by the Division Bench of the Bombay High Court in State of Bombay v. Geoffrey Manners & Co., AIR 1951 Bom. 49. The Bombay High Court had taken the view that unless the judgment is signed and sealed, it is not a judgment in strict legal sense and therefore, in exceptional circumstances, the order can be recalled and altered to a certain extent;
++ in Sangam Lal v. Rent Control and Eviction Officer, Allahabad & Ors., AIR 1966 All. 221, while dealing with the rent control matter, the court came to the conclusion that until a judgment is signed and sealed after delivering in court, it is not a judgment and it can be changed or altered at any time before it is signed and sealed;
++ a Judge's responsibility is very heavy, particularly, in a case where a man's life and liberty hang upon his decision nothing can be left to chance or doubt or conjecture. Therefore, one cannot assume, that the Judge would not have changed his mind before the judgment become final;
++ in Iqbal Ismail Sodawala v. The State of Maharashtra& Ors., AIR 1974 SC 1880, the judgment in Surendra Singh was considered in this case. In that case, criminal appeal was heard by the Division Bench of the High Court, the judgment was signed by both of them but it was delivered in court by one of them after the death of the other. It was held that there was no valid judgment and the case should be re-heard. This Court took the view that the judgment is the final decision of the court intimated to the parties and the world at large;
++ in view of the above, we are of the considered opinion that no exception can be taken to the procedure adopted by the High Court in the instant case.
(See 2014-TIOL-59-SC-NDPS-LB)
INCOME TAX REPORTS (ITR) HIGHLIGHTS
F Notifications :
F Income-tax Act, 1961 :
Notification under section 35AC Expln., clause (b) :
Eligible projects or schemes . . . 148
F Notification under section 90 :
Agreement between the Government of the Republic of India and the Romania for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income . . . 122
F No direct evidence of unaccounted sales outside books of account : Estimate of profit element at thirty-five per cent. of extra consumption reasonable : CIT v. Leo Formulations P. Ltd. (7-4-2014) (Guj) p. 322
F Hotel : Earnings in convertible foreign exchange : Computation of benefit cannot be given separately to each hotel : Hotel and Allied Trades P. Ltd. (7-3-2014) (Ker) p. 328
F Rejection of stay application and passing of garnishee order on the same day : Legal but not in consonance with principles of fair play : Sony India P. Ltd. v. Addl. CIT (24-2-2014) (Delhi) p. 330
F Appellate authorities accepting reliability and authenticity of organisation and its publication of rate list submitted by assessee : TPO not justified in objecting that rate quoted not based in Malaysia and that it was an independent organisation : CIT v. Adani Wilmar Ltd. (7-4-2014) (Guj) p. 338
F Notice of reassessment after four years : Sanction of Commissioner : Merely stating "yes" : No inference that Commissioner did not apply his mind while granting sanction : Lalita Ashwin Jain v. ITO (25-3-2014) (Guj) p. 343
F AO, while allowing deduction, factually not satisfied with material available and recording that he attempted to collect material but failed : Order prejudicial to interests of Revenue : CIT v. Abad Constructions P. Ltd. (4-3-2014) (Ker) p. 372
F Long-term capital gains : Agreement for sale of land to developer : Part of consideration paid and buyer in possession of land in April 2003 : Buyer given power of attorney to sell portions of land : Transfer took place in April 2003 : CIT v. Cochin Stock Exchanges Ltd. (1-1-2014) (Ker) p. 382
F Issues gone into during assessment proceedings and first reassessment proceedings : Cannot be revisited a third time : Vodafone South Ltd. v. Union of India (11-3-2014) (Delhi) p. 388
F Assessee purchasing transformer oil from market and centrifuging by centrifuging machine to make it usable in transformer : Not entitled to deduction under section 80-IA(2)(iv)(c) : CIT v. S. K. Transformer P. Ltd. (26-3-2014) (All) p. 394
F Block assessment only on basis of evidence discovered during search : CIT v. B. Nagendra Baliga (4-2-2014) (Karn) p. 410
F Block assessment : Levy of surcharge whether valid : CIT v. B. Nagendra Baliga (4-2-2014) (Karn) p. 410
F Block assessment : Delay due to failure of Income-tax Department to furnish necessary seized documents in time : Interest could not be levied :CIT v. B. Nagendra Baliga (4-2-2014) (Karn) p. 410
F Rejection of books justified where non-maintenance of sales vouchers : CIT v. Ram Singh (21-1-2014) (Raj) p. 417
F Change in estimate by Tribunal without giving reasons : Matter remanded : CIT v. Ram Singh (21-1-2014) (Raj) p. 417
F Transfer of proceedings to another AO : Assessee participating in such proceedings : Order of transfer valid : Sahara Hospitality Ltd. v. CIT (26-9-2013) (Bom) p. 435
F Aspect whether assessee has accounted for accrued interest in earlier years and offered it for taxation : Matter remanded : Peninsular Plantations Ltd. v. Asst. CIT (20-3-2014) (Ker) p. 441
F Purchase of property : No evidence that witness give false evidence : Addition on account of undisclosed investment justified : CIT v. P. M. Aboobacker (20-3-2014) (Ker) p. 447
F Payments in relation to services relating to securities : Disallowance under section 40(a)(ia) not warranted : CIT v. Tandon and Mahendra (13-3-2014) (All) p. 454
F Scrutiny assessment based on material submitted by assessee : Notice after four years to recompute income : Notice not valid : Ferromatik Milacron India P. Ltd. v. Assistant CIT (8-4-2013) (Guj) p. 461
F Industrial undertaking : Commission to agent : Not to be reduced from export turnover : CIT v. Koncherry Coir Factories (24-1-2014) (Ker) p. 463
F Rejection of accounts : Flat rate assessment on the basis of evidence justified : Rajmoti Industries v. Joint CIT (3-2-2014) (Guj) p. 467
F No evidence of expenditure to earn non-taxable income : Disallowance under section 14A not justified : CIT v. Torrent Power Ltd. (4-2-2014) (Guj) p. 474
F High Court reaction to a summary non-speaking orders-T. N. Pandey, Retd. Chairman, CBDT . . . 35
F Principles of natural justice and speaking orders-Narayan Jain and Deepak Jain, Advocates . . . 25
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On Wednesday, 14 May 2014 5:07 PM, IAASB <IAASBCommunications@iaasb.org> wrote:
FOR IMMEDIATE RELEASE
The IAASB invites all stakeholders to comment on the IAASB Exposure Draft of proposed changes to the ISAs to address disclosures in an audit. To access the Exposure Draft or submit a comment, visit the IAASB's website at www.iaasb.org. Comments are requested by September 11, 2014.About the IAASB
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