25 FAQ ON E-PAYMENT OF MVAT

FAQ's on e- payment

1) What is e-payment of Sales tax?
Ans: This is the facility provided to the dealer to make sales tax payments on line using net- banking facility.

2) which category of the dealers are required to make e- payment compulsorily? Is it mandatory to pay sales tax on line?
Ans: The Commissioner Of Sales Tax will notify the class of dealer eligible for e – payment.

3) How can I use this facility to pay sales tax?
Ans:You can use the facility if-
(a) You have a bank account with net- banking facility, and
(b) Your bank is provided with e- payment facility link on MSTD website.
(c) Alternatively, you can directly go to authorized Bank's website for making e-payments of Sales Tax.

(4)How do I know whether my bank is authorized to provide this facility?
Ans: A list of banks providing facility of e – payment is available on the MSTD website i.e on  www.Mahavat.gov.in.

(5) What should I do if my bank does not have an on line payment facility or is not authorized bank for e-payment?
Ans: In case your bank doesn't have an on line payment facility or is not authorized bank ,then you can make e-payment from the account of any other person who has an account with the authorized bank having on line
facility. However, the challan for making such payment must clearly indicate your TIN number & name of the business.

(6)What are the Acts under which I can make e-payment?
Ans: Presently you can make e-payments under two acts only I.e.Maharashtra Value Added Tax , Central Sales Tax Act. The other Acts will be notifed by the commissioner Of Sales Tax.

(7)Can I make e-payment under MVAT for the dues of period before 1/04/2005?
Ans: No

(8) Can I make e-payment under CST ACT for the dues of period before 1/04/2005?
Ans: Yes

(9)How does the new system benefit tax payer?
Ans: * Easy, convenient & fast .
* Facility is available on 24 * 7 basis.
* One can pay on behalf of the firm, company & others.
* No more queues & waiting.
* On line filling of single challan form replacing the three copy challan.
* Instant online receipts for payment made.

(10) What is the procedure for using e-payment facility on MSTD website?
Ans:
e-payment Demo
Pre-requisite :
1)Adobe air software(DOWNLOAD FROM LINK) is to be pre-installed in the client machine.
2) All fields in MTR Form No.6 (except any one field of Amount column) challan are required to be filled in mandatorily.
Step1: Download e-payment application from HERE
Step2: Install the said application. After that a shortcut shall be created on the Desktop.
Step3:Open the application. Enter TIN as Login ID. Click on “Sign in “button.
Step4: A challan in MTR Form No.6 shall be displayed. It shall contain TIN and name of the dealer by default.
Step5: Select type of ACT for which you are making the e-payment. Account Head Field shall automatically get populated in the 'Account Head'
Window. Similarly current date shall get populated automatically in 'Date'Window.Then select,
a) Period.
b) Amount
c) Location i. e. Name of Sales Tax Office Location. e. g. Mazgaon, Pune etc. under which the dealer is registered.
d) Remark. 'Remark' Window is linked with 'Form Id' Window. Once appropriate field is selected from the 'Remark' Window , its corresponding field shall automatically get populated in the 'Form Id'Window and vice- versa.
Step6: Select the Bank from the drop down list provided at the bottom of the challan for making e-payment.
Step7: Use password of e-services for entering into e-payment gateway.
Step8: Ensure correctness of the details filled by clicking on 'Validate' button.After validation, 'pay' button will get activated.
Step9: Once 'pay' button is clicked, GRN( Government Reference Number) will be generated.
Step10:Payment summary will be displayed. Check it and if found correct, again click on 'pay' button, which will direct you to the Bank's website.
Step11: Use login ID & password provided by the Bank to enable you to make e- payment.
Step12:On Bank site, give instructions to the Bank to debit your account & credit the sales tax account.
Step13: After successful e- payment, cyber receipt inter-alia showing details as Bank/ Branch Name,Period, TIN,CIN, date & time of payment,Amount of payment, GRN will be generated on the Bank's website.
Step14: Dealer may download , save or print the cyber receipt from Bank's website as a proof of payment made.
Note:- Step1 and Step2 are one time activities.

11)What is the use of Remark column in the challan MTR Form No.6?
Ans: 'Remark' Window is linked with 'Form Id' Window. Once appropriate field is selected from the Remark' Window , its corresponding field shall automatically get populated in the 'Form Id' Window and vice- versa.

(12) Can I make a single e-payment for more than one Acts administered by the sales tax department at a time?
Ans: No. You have to make separate e-payment for each Act that you are required to make e-payments.

(13)Are there any geographical restrictions on Banks for e-payment?
Ans: No. customer can effect e-payment from anywhere, provided that particular Bank is designated and authorized to collect Sales tax.

14) What is Government Reference Number (GRN) & what is its relevance?
Ans: This is the unique identification number generated on sales tax website after ensuring the details filled in the challan & pressing “PAY” button .This GRN is used to correlate the payment made by the dealer with the
Banks scroll

(15) How can I know that I have completed sales tax payment using e-payment facility?
Ans: Apart from Banks Cyber receipt given to you, you can check your online bank statement at the Bank's site to verify the sales tax payment.

(16)What is the timing for making payment through internet?
Ans: Any payment made on or before 8:00 pm will be considered to be payment on the same date.

17) If I encounter any problem while making e-payment through internet, whom should I contact?
Ans: a) "HELP DESK " numbers
022-23735601
022-23760773
022-23760766
022-23760763
022-23760903
and e-mail ID is=> epayment@mahavat.gov.in
b) In case of dealers out of Mumbai, please contact office of the concerned JC (Adm) for help on e-payment issues.
c)In case of any problem encountered at your Bank site, you should contact your Bank for assistance.

(18) whom should I contact if the challan containing the GRN & CIN is not displayed on completion of transaction & if I want duplicate challan?
Ans: Your Bank may provide facility for re – generation of electronic challan. Kindly check the Bank's site. If not you should contact your bank to request them for duplicate challan. You can get the same challan copy from the “History profile” on the Bank's website.

(19)If I misplace my challan whom should I contact?
Ans: You can get the challan copy from your “History profile”on the Bank's website.

(20) If after entering challan details on MSTD website,Bank name is not being displayed, what should I do?
Ans: If user is using Internet Explorer browser, then temporary internet files should be deleted by following the below mentioned steps--
(a) Open Internet Explorer Window.
(b) Go to “Tools” menu.
(c) Select “Internet Option”
(d) Delete cookies & delete temporary Internet files on your computer
(e) Close the current Internet Explorer Window.
(f) Go to www.Mahavat.gov.in for making e-payment.

(21) What is the procedure I need to follow to avoid my account getting debited more than once for the same e-transaction?
Ans: If during the transaction or after completing the transaction at the Bank site you encounter an error (e.g. You get disconnected or are not sure whether your account has really been debited etc.), then instead of doing the same transaction again, check your Bank Account. If the account is already been debited, then contact your Bank for the re- generation of challan. Please note that in above case do not make the same transaction again which result in account debited more than once.

(22) After depositing my tax at the Bank I have noticed that I have mentioned the year/ period incorrectly in my challan to whom I should approach for correction in the challan?
Ans: You should approach your “Liaison Officer” in the return branch/LTU Branch with an application giving full details of payment wrongly made & mention correct details of the year/period & your GRN,CIN and request him to carry necessary corrections.

(23)What is the relevance of CIN in e-payment?
Ans: CIN is generated after the e-payment is successfully completed. This CIN is required to be mentioned in payment details while up-loading e- return.

(24) How to make e – payment if I am registered under VAT/CST Acts but not registered under Other Acts administered by the sales tax Department?
Ans: You are required to obtain Registration under Other Acts administered by the sales tax Department to make e-payment under said Act. Presently you can make e-payments under two acts only I.e.Maharashtra Value Added Tax , Central Sales Tax Act. The other Acts will be notified by the commissioner Of Sales Tax.

(25) Can I make e- payment if I am not registered under any of the Acts administered by the sales tax department? Or Can unregistered dealer make e – payment?
Ans: NO.

Read more >>

E PAYMENT OF MVAT STARTED -CHECK SLIDE SHOW HOW TO PAY

E Payment Demo Mvat

View more presentations from RAJ GUPTA.

Gentlemen / Sir/ Madam,
The Sales Tax Department has implemented the scheme of filing electronic return successfully. In a step further to automation, it is now decided to provide facility for electronic payment. The Government has amended the rules relating to the payment vide notification cited at Ref-3. A new rule 45A is inserted. Now, amended rule provides that a State Government may issue notification and specify the class or classes of dealers required to make mandatory payment of tax interest or penalty, if any, or any amount payable by or under the Act electronically. This rule further provides that such e-payment shall be applicable for such period as may be specified in the said notification.
2. However, so as to acquaint all members of the trade and Associations to the procedure to be adopted for e-payment and to make the necessary preparations, it is hereby informed that all the dealers liable to pay tax or any amount due under the MVAT Act or Central Sales Tax Act, may make their payment electronically through the net-banking. At present this scheme is optional. The dealer who desires to make payment electronically may avail this facility. However, the Government plans to implement this scheme in a phased manner and may issue notification and make e-payment mandatory to certain class or classes of dealers. The instructions in this behalf will be issued separately.
3. The gateway for the purpose ore-payPnent has been provided on the web-site of the Sales Tax Department, for the banks which are integrated with the Sales Tax Department’s website i.e. www.mahavat.gov.in (MSTD website). Template of Chalan-MTR-6 has also been provided on the MSTD web-site.
4. An option is also provided thereby the dealer may make e-payment directly from website of Bank. (In which the dealer holds the net banking account). Dealers who have enrolled for the purpose of availing e-services may directly use the facility provided at the MSTD web-site.
5. At present the Scheme of ‘electronic payment is optional. All the trade is, therefore, requested to make use of this facility.
Presently following banks are authorised for epayment of Mvat

Sr. No Bank Name Link of the banks providing e-payment
1 State Bank of India http://www.onlinesbi.com/tax_retail.html
2 State bank of Hyderabad http://www.onlinesbh.com/sbijava/sbh/tax_retail.html
3 IDBI Bank http://idbi.com
4 Union Bank of India https://eremit.unionbankofindia.co.in/mstonline/challanvat.asp
5 Corporation Bank http://www.corpbank.com
6 Bank of India http://www.bankofindia.com/taxpay.aspx

Read more >>

TAX CALCULATION FY 09-10 FORMULA SHORT CUTS EXCEL(+NUMBER TO TEXT

Tax Calculation now made easy by Simple Tax India,Tax calculation is difficult Job for normal persons but it is difficult for Professionals persons Like me also ,its difficult to write the lengthy formula again and again.or even if we are coping the same from some other Excel sheet then also we have to find out the old file and required cell in the file.So I thought there should be excel command in one go to calculate Tax on woman ,sr citizen and for other also.so with the help from CA Yogesh Gupta ,I have developed a Excel Add-in which will create short cuts to calculate Tax in one command ,no need to copy or type lengthy Formula again and again.


Features of the utility

1. To calculate tax on resident Woman with command "Ctrl+shift+W" and following formula fill be shown in the selected excel Cell

=ROUND(IF(E10>500000,ROUND(E10-500000,-1)*0.3+51000,IF(E10>300000,ROUND(E10-300000,-1)*0.2+11000,IF(E10>190000,ROUND(E10-190000,-1)*0.1,0))),0)

2. To calculate tax on Resident Sr Citizen with command "Ctrl+shift+S" and following formula fill be shown in the selected excel Cell.

=ROUND(IF(E11>500000,ROUND(E11-500000,-1)*0.3+46000,IF(E11>300000,ROUND(E11-300000,-1)*0.2+6000,IF(E11>240000,ROUND(E11-240000,-1)*0.1,0))),0)

3. To calculate tax on Sr Citizen with command "Ctrl+shift+M" and following formula fill be shown in the selected excel Cell.

=ROUND(IF(E9>500000,ROUND(E9-500000,-1)*0.3+54000,IF(E9>300000,ROUND(E9-300000,-1)*0.2+14000,IF(E9>160000,ROUND(E9-160000,-1)*0.1,0))),0)

E10 here means cell immediate top cell in same column ,one row above

4. Spell Figures into words in Indian as well as in other styles( excel function)

How to Install

1. Download a Small File of just 40KB(Download short cuts for tax calculation 09-10 FY)  ,unzip the file and save it in your hard disk at any place permanently (do not change location there after, otherwise all the formula results for spell will be lost )
2. Now Open any excel file 
3. Go to tools >Add-ins>Browse
4. Browse the location ,where you have placed the Downloaded File,select the file(if file is not shown at the location ,then browser window select Type of File "All Files"
5. After selection ,click ok .
6. A new add-in will be shown in Excel Add-ins List named as Taxcal0910
7. Thats all ,this is one time process ,no need to do it again and again ,No macro problem ,activate macro or deactivate macro etc.

How it works 

1. Install Add-ins first ,as shown above.
2. type your total taxable Income.
3. In Next row under same column ,Type command 
1. Ctrl+shift+M for male /other person tax calculation
2. Ctrl+shift+W for woman tax calculation
3. Ctrt +Shift+S for Resident Senior citizen.
4. Tax value will be shown.(in this calculator taxable income has been rounded Off to multiple of  10 and Tax has been R.off in rupees.
5. To use Spell word type" =spell(cell number or any figure)",figure will be converted in to words.suppose you have typed "=spell(100) " then it will be shown as Rupee One hindered Only "

Benefits

• Short Cut for tax calculation for Individual
• Convert Figures Into Word

Hope you will found all things in order ,if not then kindly left your comment below.

Read more >>

HOUSE SALE WITH IN 5 YEARS-REVERSE SECTION 80C BENEFIT

I had purchased a house in an under construction building in the March 2006. Had taken a loan from HDFC for the same. Got the possession of the house in November 2006.Having paid all the respective dues to the builder we starting paying the emi to HDFC from April 2006 onwards to hdfc bank.

I have sold this property in the month of January 2010.

Qtn 1. please advised if this comes under short term capital gains or long term capital gains

Qtn: 2, In 2009 August we bought a house taking a fresh loan from HDFC bank.can I use the money from the above sale to pay of this loan and waive of the tax.

Qtn:3 I already have one property in my name, can I buy a second property to waive of the tax

Qtn 4 : alternative, i can buy land in my home town.

Diana

Point wise answer to your queries is given here under.

Ans1:You have given followings facts.

1. Under construction house Purchased in March,2006
2. Possession of the House has been taken in November,2006
3. Loan Repayment to HDFC has been started in April ,2006
4. Due to Seller /Builder has been Given By April 2006

From this facts ,I can conclude that the Property has been transferred in March 2006 it self , as the Bank provides Loan only after registration on your Name .So purchase date I assume that in March 2006.Now you have sold the House in January ,2010 so total holding period is more than 3years(Jan,2010-March ,06) ,so the Capital gain is Covered under Long Term Capital Gain.Even if Date of purchased is considered as November 2006(Jan,2010-November,2010) ,then also it is covered under Long term capital Gain.

Ans:2 Long term capital gain on House transfer ,can be saved by Individual under section  54,the detail of the section are

Capital gain arising from sale of above said property will be saved up to the amount used in

to purchase a residential house within year before the date of transfer of old house or

Purchase a residential House within two year after the date of transfer of old house.

or construct a house with in three year from date of transfer of old house property.

Capital gain is saved up to the amount which is used in to buy /construct new house,if amount used for house purchased/construction is less than the amount of capital gain than the balance amount will be taxed as long term capital gain.In Simple words ,the requirement under this section is to Invest only amount up to Capital gain and not Total Net Sale proceed Collected from house sold .
Read Complete Details about section 54 from Here
As given above as per section 54 ,New house can be purchased within one year before the transfer of new House.In your case you have sold House in Jan,2010,so House purchased in August ,2009 is eligible for Exemption under section 54.Further if you repays the HDFC bank loan taken on new house then the same amount will be eligible for exemption under section 54.

Ans 3: The section 54 is applicable where you have sold a house and after that invested the Long term capital gain in New house.Under section 54 there is no bar on number of houses you have or on houses purchased in future.The restriction on number of houses is placed under section 54F.Even in section 54F ,you can purchase new house ,if you already have another house on your name(read 54 F from here).This section(54F) is applicable where the Asset sold is other than House . (read Section 54F Vs 54EC from here).The only restriction under 54 is that if you will sell the New house before 3 years of purchase then the cost of that house will be reduced by the capital gain exempted on sale of original(OLD) house.

Ans-4:Yes you can also Invest amount in Land but condition is that you will construct a house on that land with three years from the date of sale of old house .So in your case construction should be completed by Jan ,2013 on that land.Further if amount invested in land is less than the capital gain amount on sale of House (sold in Jan ,2010) then to claim exemption in this year ,you have to deposit Balance amount in Capital gain account scheme ,1988 before the due date of Return .In case of individual due date in non audit cases is 31st July .

Example: Suppose you have Long term capital gain on your house sold in Jan,2010 is 20 Lacs.And Land proposed to be purchased is Just of 12 Lacs then to save complete Capital gain you have to deposit 8 Lakhs in capital gain account scheme by 31st  July ,2010.Further You have to use amount deposited in capital gain scheme by Jan , 2013.Otherwise unused amount will be taxable in Fy 2012-2013. (read section 54 Details here)

Reverse Of section 80C benefits

One more point ,I would like to point out here that  as Per section 80C ,if a person is claiming House loan repayment benefit under section 80C and have sold the House within 5 years from purchase of the house then all the benefit availed under this section (80C) will be reversed and included in the taxable income of the year in which house has been sold.
In you case you have purchased house in March ,2006 and sold the same in Jan,2010 means before the expiry of the five years from the purchase of the house , so tax benefit  (if any ) on repayment of house loan)availed by you under section 80C ,In Financial year 2006-07,2006-08,2006-08 will be revered in Financial year 2009-10 and no benefit in Financial year 2009-10 in respect of old house .So keep this point in Mind .
(lock in year period for schemes defined under section 80C is available here)

Read more >>

EMPLOYER CAN ADJ LOSS ON LET OUT HOUSE ALSO WHILE CALCULATING TDS ON SALARY

I have a query related to tax deducted at source from Salary (Sec 192 of Income Tax).

While deducting income tax from the salary of an employee, Employer is required to adjustment losses on House property only. My query is related to adjustment of house property losses in Salary income and maximum amount of house property losses to be considered, if any.

Query 1:- For House property losses, is employer require to take maximum loss as Rs 1.5 Lacs, being the maximum expense claim allowed on account of Interest paid on borrowed capital,   (in case employee has let out the property and computation of loss is showing loss of more than Rs 1.5 Lacs).

Query 2:- Whether employer is require to adjust loss for only one house property (being the self occupied one) or losses on more than one house property could be considered ( One Self occupied and one let out or both properties let out)

Pls further suggest, what are the relevant documents required to be taken from employee as a house property loss computation along with Interest Certificate from Bank, Computation of House property loss, particulars of other income by employee in Form 12C/ simple statement.

Sandeep Garg

ANS:It is pertinent to note that Section 192(2B) which permits Loss under House Property to be set off against Salary Income, for the purpose of determining the TDS on Salaries, does not distinguish between Loss under Self occupied House and Loss under Let out House. The implication is that, if it is Loss under self occupied property the Loss should be restricted to Rs.1,50,000/-and if it is Loss under let out House there is no such restriction. CBDT Circular No: 1/2010 dated 11-01-2010 explains the procedure in this regrd in paragraphs 3.6 and 3.7.

Does it mean that DDOs shall take into account only the Loss under Self occupied property for the purpose of determining the TDS on Salaries? I do not think so as neither Section 191(2B) nor paragraph 3.6 place any such restriction. Therefore the answer to your Queries are:

1. As section 192(2B)does not make any distinction between Self Occupied House and Let out house, if the property is Self occupied the Loss should be restricted to Rs.1,50,000/- and in case of let out House there is no restriction.

2. As per Section 192(2B) there is no restriction that the Loss should be restricted to one House only. It has been held in many cases that the Statutory Provisions will prevail over a Circular in case of contradiction between the two. The most recent case is Incometax Officer (OSD) Vs Data Software Research Company (International) Pvt Ltd (319 ITR 40 (AT) Chennai Tribunal relying on the Supreme Court decision in CCE Vs Ratan Melting and Wire Industries (220 CTR 98)

CA.M.K.Krishnan

Vellore(Tamilnadu)

Relevant Part of Section 192 Is reproduced here under

"192(2B) Where an assessee who receives any income chargeable under the head Salaries has, in addition, any income chargeable under any other head of income (not being a loss under any such head other than the loss under the head Income from house property) for the same financial year, he may send to the person responsible for making the payment referred to in sub-section (1) the particulars of

(a) such other income and of any tax deducted thereon under any other provision of this Chapter;

(b) the loss, if any, under the head Income from house property,in such form and verified in such manner as may be prescribed, and thereupon the person responsible as aforesaid shall take

(i) such other income and tax, if any, deducted thereon; and

(ii) the loss, if any, under the head Income from house property,

also into account for the purposes of making the deduction under sub- section (1) :

Provided that this sub-section shall not in any case have the effect of reducing the tax deductible except where the loss under the head Income from house property has been taken into account, from income under the head Salaries below the amount that would be so deductible if the other income and the tax deducted thereon had not been taken into account."

Further No Form Has been prescribed on which other income is to be submitted , earlier Form 12C was applicable but now it has been abolished .Rule 26B describe how this information is to be submitted ,Rule is reproduced hereunder.So statement should be given on plain paper and should be verified as suggested by Rule 26B

Statement of particulars of income under heads of income other than “Salaries” for deduction of tax at source.83

"26B. (1) The assessee may send to the person responsible for making payment under sub-section (1) of section 192, a statement of any income chargeable under any head of income other than “Salaries” (not being a loss under any such head other than the loss under the head “Income from house property”), received by the assessee for the same financial year, and of any tax deducted on such income.

(2) A verification in the following form shall be annexed to the statement referred to in sub-rule (1),—

FORM OF VERIFICATION

I, .......................(name of the assessee), do declare that what is stated above is true to the best of my information and belief."

The House property Loss adjustment By DDO was started by Finance Act (2)1998,Clause 49 which also suggest that the above relief (adj of loss) is given for let out property also
Clause 49 seeks to amend section 192 of the Income-tax Act relating to deduction of tax at source from salary.
The existing provisions contained in sub-section (2B) of section 192 enables an assessee, having income under the head “salaries”,in addition to income under any other head, not being a loss under any such other head, to furnish in the prescribed manner the details of the total income to the person responsible for making the payment who shall deduct out of salary payment the tax due on total income, subject to the conditions prescribed in that sub-section. Proviso to the said sub-section (2B) provides that taking into account of such other income will not have the effect of reducing the tax deductible from the income under the head “salaries” below the amount that would be so deductible if the other income and the tax deducted thereon had not been taken into account.
It is proposed to substitute the said sub-section (2B) so as to provide that an assessee having an income under the head “salaries” may furnish in the prescribed manner giving the details
of the losses under the head “income from house property” to the person responsible for making the payment who shall take into account such loss for the purpose of computing the tax deductible from salaries, which may be reduced in such a case. This amendment will take effect from 1st August, 1998 and will, accordingly, apply in relation to the assessment year 1999-2000 and subsequent years.

Read more >>

SURCHARGE ON PUNJAB VAT FROM 05.02.2010

Punjab Govt recently increased vat rate From 4% to 5% wef 29.01.2010

Notification on this regard may be downloaded from link given below

Download notification in Pdf format

At that time(on 29.01.2010) surcharge on vat has not been imposed as proposed by two member committee but Now surcharge @10 on all Goods has been imposed .This surcharge is applicable from 05.02.2010.Now effective rate will be 5.50(5 plus 10% surcharge 0.50) and 13.75(12.50 plus 10 % 1.25) .This surcharge is also applicable where special rates are applicable like on petrol, diesel etc..
Public Notice in this regard is given below

GOVERNMENT OF PUNJAB

EXCISE & TAXATION DEPARTMENT, PUNJAB

PUBLIC NOTICE

ATTENTION: DEALERS /LAWYERS/CHARTERED ACCOUNTANTS

LEVY OF SURCHARGE / ADDITIONAL TAX

The Government of Punjab has levied Surcharge / Additional Tax @ 10% on all the goods other than those specified as Declared Goods under section 14 of Central Sales Tax Act, 1956 w.e.f. 05.02.2010. This Surcharge / Additional Tax will be charged on liquor w.e.f. 01.04.2010.

          A. Venu Prasad,

Excise & Taxation Commissioner,

                                                     Punjab.

Download Vat Notification/ordinance 2010 for 10% surcharge
Further Both this notifications are not applicable on Declared Goods covered under section 14 of the CST act 1956 , no State Govt can impose tax more than 4% on these Goods.

• You can know more about declared goods from here (Slide show by CA Vinod Kumar Gupta)
• Complete List of Declared Goods can be downloaded From hereLIST of declared Goods Under section 14 of CST act

Kindly note that the above list is applicable for all the states ,means no state can impose tax more than 4% on these Goods
-----------------------------
Old Post
Punjab Govt Has Increased the Vat rate given in schedule "b" Of Punjab Vat ACT 2005 from 4 % to 5% from 29.01.2010.Notification in this regard is not available on Punjab Govt site.But a public Notice ghas been published in all leading news papers that effective date of new rates is 29.01.2010.
The point to be noted in this regards are

1. The rate is applicable from 29.01.2010
2. Rate given in schedule B of Punjab Vat rate has only been changed.
3. Surcharge on vat @ 10 % has not been imposed yet as proposed by two member committee to Cabinet
4. The 5 % rate is not applicable on items which are given under declared goods category in CST act 1956.
5. The deduction under VAT Act on works contract remain the same @ 4 % .No change.

Section 14

View more presentations from RAJAN GUPTA.

one more good news that MVAT audit form 704 date has also been extended to 31.03.2010.Read complete circular from here

At the End Download Updated(03.02.2010) Calculator for Section 89(1) relief Now (direct Link)
Calculator customised for your 60% and 40 % arrears by 6th CPC.But this can also be used for any other type of arrears if arrears break up is up to Financial year 2005-06 .

Read more >>

Corrigendum to Circular No. 1/2010, dated 11-1-2010(TDS ON SALARY)

Section 192 of the Income-tax Act, 1961 – Deduction of tax at source – Salary – Income-tax deduction from salaries during the financial year 2009-10 – Corrigendum to Circular No. 1/2010, dated 11-1-2010


Notification F. No. 275/192/2009-IT(B), dated 20-1-2010

The undersigned is to draw the attention on the Board’s Circular No. 1/2010 dated 11th Jan. 2010 on the subject cited above. The following errata has been noticed which is rectified are as under :-

(a) Circular No. mentioned in first page of the circular under General Category which is read as Circular No. 08/2007 dated 5-12-2007 may be read as Circualr No. 09/2008 dated 29-09-2008.

(b) Under Section 80DD, the amount specified for a severe disability which is read as an amount of seventy five thousand may be read as one hundred thousand where such dependent is a person with severe disability.

(c) In Example–I, in the case of male employee having Gross Salary Income of Rs. 5,00,000-: The amount under the title of ‘Tax thereon’ may be read as Rs. 44,000 in place of Rs. 41,000 and the amount calculated under the head Education Cess @ 2% & Secondary and Higher Education Cess @ 1% may be read as Rs. 880 & Rs. 440 in place of Rs. 820 & 410 respectively. Accordingly, the total tax payable may be read as Rs. 45,320 in place of Rs. 42,230.

Similarly, In the case of a male employee having Gross Salary Income of Rs. 10,00,000 – The amount under the title of ‘Tax thereon’ may be read as Rs. 1,74,000 in place of Rs. 1,71,000 and the amount calculated under the head Education Cess@1% & Secondary and Higher Education Cess@ 1% may be read as Rs. 3480 and & Rs. 1740 in place of Rs. 3420 & Rs. 1710 respectively. Accordingly, the total Income tax payable may be read as Rs. 1,79,220 in place of Rs. 1,76,310.

(d) In Example –5. The amount falls under Tax Payable Category may be reads as Rs. 1,67,580 in place of Rs. 1,64,580 and the amount calculated under the head Education Cess@ 2% & Secondary and Higher Education Cess@ 1% may be read as Rs. 3351.6 & Rs. 1675.8 in place of Rs. 3291.6 & Rs. 1645.8 respectively. Accordingly, the total income tax payable may be read as Rs. 1,72,607.4 in place of Rs. 1,60,517.4, rounded off to Rs. 1,72,610 in place of 1,69,520.

Original Complete Circular May be downloaded From here

Read more >>

SET OFF LONG TERM CAPITAL GAIN AGAINST SHARE INCOME

I have some Long Term Capital Gain (LTCG) from sale of a plot.

Kindly advise whether

1. 
   
   Long term capital loss from sale of shares and mutual funds (STT paid) can be adjusted against the LTCG from sale of plot.
2. 
   
   
   Short term and Long term capital loss on sale of shares and mutual funds (STT paid) can be adjusted against income from salary and interest also.
3. 
   
   Short term capital loss from sale of shares and mutual funds (STT paid) can be adjusted against the LTCG from sale of plot

R K Sehgal

Dear Sehgal Ji.

Rules about Adjustment /Set off of Capital Gain Is given Here under

1. Intra(with In) Head Adjustment: Long term capital Gain loss can be adjusted against Long Term capital gain Only.
2. Inter(with other) Head Adjustment:Loss Under capital Gain Head Can not be adjusted against any other head.

From the Above two rules net result comes as that

• Capital loss can not be adjusted against any other head whether salary ,Business & profession,House Property,Income from other source.
• Long term capital gain loss can not be adjusted against Short term capital gain however Short term capital loss can be adjusted against both Long term capital gain and Short term capital gain.

Now point wise Answer To your queries is Given hereunder.

• can Long term capital loss from sale of shares and mutual funds (STT paid) be adjusted against the LTCG from sale of plot???

As per Common rules given above one can easily interpret that It can be done but correct answer is we can not adjust long term capital gain loss from sale of shares(STT paid) with LTCG from sale of plant.The reason is that as the Long term capital Gain from Shares(STT Paid) is exempted from tax so Long term capital Loss from Sale of shares ,Being exempted income u/s 10(38),can not be adjusted against any other Long Term Capital gain.So You can Not adjust Long term capital loss From sale of shares and mutual funds (STT paid) from LTCG from sale of plot.

• Can Short term and Long term capital loss on sale of shares and mutual funds (STT paid) be adjusted against income from salary and interest also??

As per general Principal Capital gain loss can not be adjusted against any other Income .Moreover with head also Long Term capital loss can be adjusted against long Term capital only so

1. Short term capital Loss can not be adjusted (any type, including short term Loss from sale of shares and Mutual funds,stt paid))against any other Income Head i.e salary,Business & profession ,House Property ,Income from other source.
2. Long capital Loss can not be adjusted (any type) against any other Income Head i.e salary,Business & profession ,House Property ,Income from other source.Further Long term Loss from sale of shares (STT paid) ,being exempted Income u/s 10(38),can not be adjusted against Long Term Capital gain from any other source.but If shares are sold without STT paid then Long term Capital loss From shares can be adjusted against the LTCG from any other source.(read Full details)
   

• Can Short term capital loss from sale of shares and mutual funds (STT paid) be adjusted against the LTCG from sale of plot ??
  

As per the general rule the Short Term capital loss can be adjusted against STCG or LTCG .Moreover in act there is no seprate treatment for set off for loss from short term shraes has been given so in my opinion Short Term loss from shares (stt ) paid can be adjusted against Long term Capital Gain from any source or short term capital gain from any other source and in your case it can be set off against the long Term capital gain From Plot.

comments invited.

Download free ebook on capital gain(registration required)

Read more >>