Blacklisting of Taxable Person under GST
Black Listing of Taxable Person under GST The supposed to be revolutionary Goods and Services Tax law will introduce a system of compliance rating mechanism. Every taxable person will be awarded a score based on their prompt filing, timely payment, other discrepancies and parameters as prescribed. Bad compliance scores can trigger blacklisting of the assessee and blocking of their respective tax credits. This new concept demands every taxable entity to be vigilant and aware of [...]
Go Cashless Save Tax
As a part strategy on pushing India towards cashless economy, the Govt. of India notified about the lower rate of tax for business opting for digital transactions. According to section 44AD of Income Tax Act 1961, business with turnover of less than two crores and maintaining no books of accounts have an option to opt for presumptive taxation scheme where in their income would be presumed to be 8% of the turnover. Now, as per the notification business having digital [...]
Difference between TDS and TCS
TDS- Tax Deducted at Source Tax Deducted at Source (TDS) is a tax mechanism introduced by Income Tax Department, where a payer responsible for the payments such as salary, commission, professional fees, interest, rent, etc. is liable to deduct a certain percentage of tax before making payment in full to the receiver of the payment. As the name suggests, TDS is a Tax that is deducted from its source. Tax Deducted at Source is a measure initiated by The [...]
Taxation on conversion of a Private Limited Company to a Limited Liability Partnership
The Income tax on conversion of a Private Limited Company to a Limited Liability Partnership shall be exempted on satisfying the following conditions : All the assets & liabilities of the company as on the date of conversion become the assets and liability of the LLP All the shareholders of the company as on the date of conversion become partners of the LLP. The capital contribution and profit sharing ratio shall be same that of the capital contribution of the company [...]
All you need to know about Equilisation Levy
Equalisation Levy The Google Tax/Equalisation levy Person residing in India carrying on Business/Profession Or Non Resident having a Permanent Establishment in India while making payment towards specified services to a Non Resident who doesn’t have a Permanent establishment in India exceeding in aggregate of INR 1 Lakh in a Year shall withhold a tax at 6% of the gross amount paid or payable as equalisation levy. The equalisation levy under section 162(1) shall [...]
Effective TDS Rates For Financial Assessment Year 2016-17
TDS RATES After the budget 2016-17 proposals the following TDS rates shall be applicable for financial year 2016-17 with effect from 01/06/2016 Nature of Payment Under Section Payment Exceeding TDS Rate Salary 192 As per IT Slab as per slab 30% (No PAN) Premature withdrawal of EPF 192A 50,000 INR 20% (No PAN) Interest on Securities Interest on Debentures 193 10,000 INR 5,000 INR 10% 10% Dividend (Unlisted Companies) 194 NA 10% Interest other then securities by Bank/PO [...]
