PFA
Transfer Pricing: Identification of the Tested Party, whether assessee or the associated enterpriseby CA Sandeep Kanoi |
Navneet Singal Transfer pricing is the concept where a controlled transaction between two associated enterprises is compared with an uncontrolled transaction under the similar circumstances in respect of price or margin. The process of transfer pricing is consist of two analysis i.e. Financial analysis and Economic analysis.
CA certificate in case of exemption or deduction claim by the assesseeby CA Sandeep Kanoi |
CBDT Should make it mandatory to obtain the CA certificate in case of exemption or deduction claim by the assessees is in excess of certain amount for other than audit and salaried assessees for verifying the correctness and genuineness of claim.
CA certificate in case of exemption or deduction claim by the assessee
Anilkumar Prajapati
CBDT Should make it mandatory to obtain the CA certificate in case of exemption or deduction claim by the assessees is in excess of certain amount for other than audit and salaried assessees for verifying the correctness and genuineness of claim.
Due to large numbers of taxpayer and relaxation given by CBDT not to scrutinize the cases of small taxpayer unless valuable information is available with department, it is not possible for department to assess the correctness and genuineness of exemptions or deductions claimed by the small tax payer in each & every cases. This leads to increases the chances of claiming bogus & wrong deductions or exemptions in income tax returnresulting in huge amount of loss of taxes of the department.
To stop this leakage of taxes, CBDT should it mandate for other than audit and salaried assesses to obtain the certificate from the Chartered Accountants and uploading the same certificate with income tax return that the claim is correct and genuine by clearly showing the section and the amount of deduction or exemption under that section. CBDT should fixed the certain limit and prescribe the format in which certificate should be issued by the CA.
This will help the -
- Department in savings the leakage of taxes as well as,
- Also taxpayer those who are unaware about conditions mention under that respective section for claiming the exemptions or deductions and claimed the deduction or exemption on the advice of wrong person which result in huge amount of penalty in case of scrutiny of cases if it is found that assessee has claimed the wrong deduction or exemption.
This certificate should be mandate only for non audit and non salaried assessees because in case of audit correctness and genuineness is checked by auditor and in case of salaried assessees it is the responsibility of the employer.
If the return is filed without certificate by the assessee then deduction or exemption claimed in the return should be allow subject to compulsory scrutiny by the assessing officer.
Everyone is in haste due to March end financial and tax planning. Krishna, Please explain what all should a Taxpayer do before 31st March, so that he will not become an 'April Fool'? Arjuna, the month of March is very important for all Taxpayers. In our Country, the Financial Year April to March is applicable for all Tax Laws. |
Taxpayer's follow March end "Rule" Otherwise you may be an April "Fool"
CA Umesh Sharma
Arjuna (Fictional Character): Krishna, the last month of Financial Year 2014-15 March is here. Everyone is in haste due to March end financial and tax planning. Krishna, Please explain what all should a Taxpayer do before 31st March, so that he will not become an "April Fool"? Krishna (Fictional Character): Ha Ha Ha Arjuna, the month of March is very important for all Taxpayers. In our Country, the Financial Year April to March is applicable for all Tax Laws. That's why Books of Accounts are made for the period of April to March. Taxpayer has to follow all the Tax laws at year end and has to maintain all books of Accounts. Tax planning in advance will be more beneficial; if it is delayed then taxpayer may get trapped in them.
Arjuna: Krishna, What all should the Income Taxpayer do before 31st March?
Krishna: Arjuna, some of the provisions of Income tax are applicable to all the Taxpayers and proper decision have to be taken before 31st March. Some of these provisions are as follows:
- If in income tax deduction u/s 80 have to be claimed then every taxpayer should verify the limits of income tax and their tax liability and should invest, donate, etc. before 31st
- Taxpayer can also avail deduction u/s 80C in current year by making Investment in the "Sukanya Samruddhi Scheme" as mentioned in Financial Budget. (Maximum Deduction under section 80 C, 80 CCC, 80CCD is Rs.1.5 lakhs).
- Taxpayer can avail deduction u/s 80G by giving donation to "Swacch Bharat Kosh" or "Clean Ganga Fund" in current year also.
- Salaried Employee should give the details of Investments and deductions to Employer so that less TDS will be deducted in March month.
- If Taxpayers have not paid Advance Tax before 15th March then it should be paid before the 31st March so that less interest will be levied.
- Every Taxpayer should download Form 26 AS and verify TDS deducted. Similarly, taxpayer should also verify Income as mentioned in 26 AS with Books of Accounts. If there are differences then they need to be rectified.
Arjuna: Krishna, What should be done by VAT, Service Tax, Professional tax, Taxpayer before 31st March?
Krishna: Arjuna, while doing business, taxpayer has to follow all the Tax laws. Taxpayer has to follow following tax laws before 31st March:
- Sales tax department has made available Dealer Information System on the website of mahavat.gov.in. Every Taxpayer should verify his information in that such as miss match report, Return Filed, tax paid etc. and if differences arise in the same then it should be rectified. Herein the mis match report is the most important. In this report the differences between purchases made by the taxpayer and Sales shown by the Supplier in mentioned. There may be many reasons for the Miss Match. Taxpayer should reconcile this otherwise he has to pay extra taxes to Sales Tax Department.
- If the taxpayer has deducted the Profession tax of the employees employed by him and professions tax of the year does not exceed Rs. 50,000/- then he has to pay and file return of Profession Tax for the period of March to February before 31st
- The last date for depositing Service Tax to a Company Assessee for the Month of March and other Taxpayers for the period from January to March is 31st So all the Taxpayers should reconcile the Services and RCM along with the Bills provided by them and should pay Service tax before 31st March.
Arjuna: Krishna, What should be done by Taxpayer in Business and profession before 31st March?
Krishna: Arjuna, to have transparency in the books of Accounts, to understand the turnover of the year, profit and loss, etc. following things should be done:
- Closing Stock: In Business world Profit and Loss account has great importance. Closing Stock is the base of this Profit and Loss account. Every Businessman has to count his stock at the year end and should verify stock counting with the stock as shown in the Books of account. If differences occur in the same then he should rectify the Books of Account. After this Stock Valuation should be done applying the proper methods. This value helps in calculating Profit or Loss but is also helpful for Cash credit with Banks, for Insurance and many more.
- Taxpayer should reconcile the Debtors and Creditors. That means Taxpayer should verify his books of Accounts with Balance Confirmation Statement provided by them.
- Bank and Loan Statement Reconciliation: Taxpayer to reconcile Bank and Loan Statement with Books of Accounts at the year end.
- After doing all the above mentioned things taxpayer should prepare projected and Comparative Balance Sheet and Profit and Loss Account so that taxpayer can compare previous Year's Turnover, Profit or Loss with current year. By considering figures of previous year and current year decisions in respect of increasing income and reducing expenditure can be taken. Further financial planning for next year can be done.
Arjuna: Krishna, What one can learn from March end planning?
Krishna: Arjuna, There should be checklist of March end; every taxpayer should follow it. In this busy life one has to do many things in business in a short span of time of March end. The mistake in the accounting of previous year creates troubles in the next year. Similar to construction work, if there is a mistake in the first floor then it becomes problematic for 2nd floor also. Taxpayer should settle the transactions on time otherwise it may become difficult for the taxpayer. Taxpayer should properly handle March end Tax Planning "Tool" which should be as per Tax "Rule" otherwise he may become a "Fool" in the in April i.e., in next financial year.
PFA.
As all are aware, the service tax is here for the past 21 years from Sept, 1994.The original provisions of the law contained in the Finance Act, 1994 have been subjected to various changes almost every year. In the proposed changes to Finance Act, 1994 pertaining to service tax, As per the Finance Bill, 2015, |
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