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pardeep

Category : Indirect..,

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February 22, 2016 4:36 pm

Service Tax :Reverse charge mechanism, Concept, calculation, payment, claim and Return

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Ayushi

Normally, its the responsibility of service provider to deposit service tax to government like if he provided service of Rs 100 + service tax of Rs 14.5(100*14.5%) than total invoice is of Rs 114.5 which service receiver has to pay for service received, now service provider will deposit Rs 14.5 to government and Rs 100 is his income

Now in case of reverse charge mechanism service receiver has to pay tax, thats why it is called reverse charge as the liability of payment of service tax has been shifted on service receiver, supsose if services provided by service receiver is of Rs 100 and it is liability of service receiver to pay service tax.so service provider will charge Rs 100 only and it is responsibility of service receiver to deposit rs 14.5 to government.
In most of the cases when service receiver is business entity than liability of service receiver is to pay service tax, for eg insurance agent who are individuals provide service to to insurance company, here insurance co is service receiver and insurance agent is service provider and there are lacks of insurance agent but insurance company is less in no, and it would be problematic for every individual to get registered and pay service tax and also for department, so for efficient and fast tax collection there is reverse charge as for business entity like company its easy to do all this thing, there are some more services when srvice receiver is co and service provider is individual or firm than liability of service tax is of service receiver
under reverse charge service receiver cant use cenvet credit means it has to be paid in cash and also cant opt for small service provider exemption and he can use the service tax paid as input service
Service tax is to be paid through challan GAR 7
and as a service receiver when you are paying tax, you have to file service tax return i.e ST3 , in return there is option that you are service receiver or provider, select the category to which you belong and file the return

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February 28, 2016

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Ayushi

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February 28, 2016

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Anshul

Category : Rectific..,

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February 21, 2016 7:20 pm

How many times the rectificiaton of the Income tax return is possible for a particular A/Y.

Amlan Dutta

Amlan Dutta

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Amlan Dutta

You have to understand the concept of rectification vis a vis revision ...Returns can be revised whereas orders ( intimations or regular assessment etc etc) can be rectified ....In case of rectification , therefore you are rectifying a department order ...unlike revision ,where you are revising your...

February 21, 2016

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Anshul

Sir, is there any time limit for doing rectifications of return of a year.

March 11, 2016

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Amlan Dutta

usually 2 years from the end of the assessment year....

March 12, 2016

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Amlan Dutta

February 21, 2016

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AMIT SINGH

Category : HOW TO F..,

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February 21, 2016 4:06 pm

I want knowledge of Expat return so can you help me and guide me for that

Amlan Dutta

Amlan Dutta

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Amlan Dutta

Here is a video for you
https://youtu.be/3H1gpDfYFPw

An expat is also a individual ...so returns that apply to individual (ITR 1 ,2,2A3,4,4S) shall apply to expat individual also

Likewise the process of selection of a return by individual will also remain same because expat is a individual only and s...

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63 How to file tax return for expat of Indian origin? (Amit Singh) - YouTube

Case AQ - How to file tax return for expats? I want knowledge of Expat return so can you help me and guide me for that Project - Make Knowledge free Posted b...

February 21, 2016

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Amlan Dutta

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63 How to file tax return for expat of Indian origin? (Amit Singh) - YouTube

Case AQ - How to file tax return for expats? I want knowledge of Expat return so can you help me and guide me for that Project - Make Knowledge free Posted b...

February 21, 2016

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Soham Ghatak

Category : Taxabili..,

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February 20, 2016 4:44 pm

Hi Amlan,

Thank you for the video you posted on youtube regarding Form 15G.

I although have a few questions.
I was working in a firm from August 2010 to July 2014. Then I left the firm.
Presently I am employed in a different firm since September 2014.

However I would like to withdraw the PF amoun...

Amlan Dutta

Amlan Dutta

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Amlan Dutta

Here is a video for you https://youtu.be/Ou_4GHkOJi8

Understand what is lower TDS requisition certificate (form 15 G /H )...It is simply a request to the deductor that since your taxable income falls below threshold , so no TDS must be deducted ...Now , we both understand that in your case PF withdrawal is taxable since it is over 30000 Rs and since it is being withdrawn before 5 years .....so clearly , it will be in your scope of taxable income ...Now lets assume that you have no other taxable income for AY 2016 17 or , even if you have any , the sum total of such taxable total income is below threshold levels of 2.5 lakhs ....

Now think logically , if you were to pay taxes how much would it be

Clearly as slabs , it would be nil because your taxable income falls below threshold level and this is why you are requesting to the deductor that " hey , man , please don't deduct TDS because my income slabs don't require me to pay tax and in case you do deduct taxes (TDS) on my behalf , i will have to file refund return and claim back those deducted TDS as refund
It is therefore that one submits lower TDS requisition certificates ( be it form 15 G/H or whatever crap they call it )

As such , even if you have taxable PF withdrawals --say 40000 Rs , considering that your scope of taxable total income including such PF withdrawal is below threshold i.e say 1.8 lakhs , you are therefore logically required to submit form 15 G so that no TDS is deducted ....

However , in case you have taxable income exceeding threshold say 2.5 lakhs ( say PF withdrawal is 40000 and FD interest is 4 lakhs and no savings i.e total scope of taxable income is 4.4 lakhs which is greater than threshold levels i.e 2.5 lakhs for AY 2016 17 , then you will strike of form 15 G as not applicable while submitting it and you can add a remark that your taxable income is above threshold levels and so form 15 G is not applicable to you

So , deductor will now understand that it has to deduct TDS on your PF proceeds as per TDS provisions i.e at the rate of 10 % under TDS section 192 A ( provided your PAN has been submitted )

so clearly , you will have to see whether you qualify for 15 G or not and then decide ...
(In any event , submit PAN card else , not only will TDS be deducted then at higher rates , but you wont be able to take credit also of deducted TDS because it won't be mapped to your PAN and thereby your credit statement )

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Here is a video for you https://youtu.be/Ou_4GHkOJi8<br /><br />Understand what is lower TDS requisition certificate (form 15 G /H )...It is simply a request to the deductor that since your taxable income falls below threshold , so no TDS must be deducted ...Now , we both understand that in your case PF withdrawal is taxable since it is over 30000 Rs and since it is being withdrawn before 5 years .....so clearly , it will be in your scope of taxable income ...Now lets assume that you have no other taxable income for AY 2016 17 or , even if you have any , the sum total of such taxable total income is below threshold levels of 2.5 lakhs ....<br /><br />Now think logically , if you were to pay taxes how much would it be <br /><br />Clearly as slabs , it would be nil because your taxable income falls below threshold level and this is why you are requesting to the deductor that " hey , man , please don't deduct TDS because my income slabs don't require me to pay tax and in case you do deduct taxes (TDS) on my behalf , i will have to file refund return and claim back those deducted TDS as refund<br />It is therefore that one submits lower TDS requisition certificates ( be it form 15 G/H or whatever crap they call it )<br /><br />As such , even if you have taxable PF withdrawals --say 40000 Rs , considering that your scope of taxable total income including such PF withdrawal is below threshold i.e say 1.8 lakhs , you are therefore logically required to submit form 15 G so that no TDS is deducted ....<br /><br />However , in case you have taxable income exceeding threshold say 2.5 lakhs ( say PF withdrawal is 40000 and FD interest is 4 lakhs and no savings i.e total scope of taxable income is 4.4 lakhs which is greater than threshold levels i.e 2.5 lakhs for AY 2016 17 , then you will strike of form 15 G as not applicable while submitting it and you can add a remark that your taxable income is above threshold levels and so form 15 G is not applicable to you<br /><br />So , deductor will now understand that it has to deduct TDS on your PF proceeds as per TDS provisions i.e at the rate of 10 % under TDS section 192 A ( provided your PAN has been submitted )<br /><br />so clearly , you will have to see whether you qualify for 15 G or not and then decide ...<br />(In any event , submit PAN card else , not only will TDS be deducted then at higher rates , but you wont be able to take credit also of deducted TDS because it won't be mapped to your PAN and thereby your credit statement )

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63 Does taxpayer have to submit form 15 G even if his PF withdrawal is taxable? (Soham Ghatak) - YouTube

63 Why is company accountant demanding me form 15 G for PF withdrawal when it is actually taxable? (Soham Ghatak) Project - Make Knowledge Free Understand wh...

February 21, 2016

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Soham Ghatak

Video was very helpful. Thank you.

February 23, 2016

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Soham Ghatak

Hi Amlan,
I informed my employer that I am not eligible to submit FORM 15G, however my employer is still not convinced and asking me to submit FORM 15G.
Would like to know how to add a self declaration on FORM 15G, informing the IT department that Form 15G is not applicable for me?

I have already submi...

February 25, 2016

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