PPF ( Providend Fund)

What is the Public Provident Fund?
PPF is a long-term, government-backed small savings scheme of the Central government started with the objective of providing old age income security to the workers in the unorganised sector and self-employed individuals.

What is the interest rate offered through PPF?

Currently, the interest rate offered through PPF is around 8 per cent, which is compounded annually. Interest is calculated on the lowest balance between the fifth day and last day of the calendar month and is credited to the account on March 31 every year. So to derive the maximum, the deposits should be made between 1st and 5th day of the month.


What is duration of the investment?
People who are interested in liquidity or small-term gains would not be very keen about PPF because the duration for the investment is 15 years.
However, the effective period works out to 16 years i.e., the year of opening the account and adding 15 years to it. The contribution made in the 16th financial year will not earn any interest but one can take advantage of the tax rebate.
The account holder has an option to extend the PPF account for any period in a block of five years after the minimum duration elapses. The account holder can retain the account after maturity for any period without making any further deposits.
The balance in the account will continue to earn interest at normal rate as admissible on PPF account till the account is closed.


What is the minimum and maximum amount of deposit?
The minimum deposit that you can make into a PPF account in a year is Rs 500. The maximum is Rs 70,000.


Who can open a PPF account and where?
A PPF account can be opened by an individual (salaried or non-salaried) on his own behalf or on behalf of a minor of whom he is the guardian or on behalf of a Hindu Undivided Family (HUF) of which he is a member or on behalf of an association of persons or a body of individuals. An individual can open only one account for himself.
A PPF account can be opened with a minimum deposit of Rs 100 at any branch of the State Bank of India  or branches of its associated banks like the State Bank of Mysore or Hyderabad. The account can also be opened at the branches of a few nationalized banks, like the Bank of India, Central Bank of India and Bank of Baroda , and at any head post office or general post office.


What are the tax benefits from PPF?
The amount you invest is eligible for deduction under the Rs 100,000 limit of Section 80C. On maturity, the entire amount including the interest is non-taxable.


Is it possible to withdraw the amount deposited at any time during the tenure?
Yes. You can take a loan on the PPF from the third year of opening your account to the sixth year. So, if the account is opened during the financial year 2009-10, the first loan can be taken during financial year 2011-12 (the financial year is from April 1 to March 31).
The loan amount will be up to a maximum of 25 per cent of the balance in your account at the end of the first financial year. You can make withdrawals during any one year from the sixth year.
You are allowed to withdraw 50 per cent of the balance at the end of the fourth year, preceding the year in which the amount is withdrawn or the end of the preceding year whichever is lower. For e.g., if the account was opened in 2000-01, and the first withdrawal was made during 2006-07, the amount you can withdraw is limited to 50 per cent of the balance as on March 31, 2003, or March 31, 2006, whichever is lower.


What are the differences and similarities between the National Savings Certificate (NSC) and PPF?

National Savings Certificate (NSC)	Public Provident Fund (PPF)
Interest Paid: 8%, compounded half-yearly	Interest Paid: 8%, compounded annually
No monthly/yearly payments	No monthly/yearly payments
Minimum investment: Rs 100 Maximum investment: No Limit	Minimum investment: Rs 500 (required annually) Maximum investment: Rs 70,000
Duration of investment: 6 years	Duration of investment: 15 years
Can be used as a security for mortgage and other purposes	Cannot be used for such purposes
Tax benefit under Section 80 'C' available. Maximum limit: Rs 100,000	Tax benefit under Section 80 'C' available. Maximum limit: Rs 70,000 (limit of the investment in PPF)
Good medium-term investment option	Good long-term investment option

Procedure for e-Payment of Excise & Service Tax

1. To pay Excise Duty and Service Tax online, the assessee has to enter the 15 digit Assessee Code allotted by the department under erstwhile SACER/SAPS or the current application ACES.


2. There will be an online check on the validity of the Assessee Code entered. 

3. If the Assessee code is valid, then corresponding assessee details like name, address, Commissionerate Code etc. as present in the Assessee Code Master will be displayed. 


4. Based on the Assessee Code, the duty / tax i.e. Central Excise duty or Service Tax to be paid will be automatically selected


5.The assessee is required to select the type of duty / tax to be paid by clicking on Select Accounting Codes for Excise or Select Accounting Codes for Service Tax, depending on the type of duty / tax to be paid.

6. At a time the assessee can select up to six Accounting Codes.

7. The assessee should also select the bank through which payment is to be made.
 
8. On submission of data entered, a confirmation screen will be displayed. If the taxpayer confirms the data entered in the screen, it will be directed to the net-banking site of the bank selected.

9 . The taxpayer will login to the net-banking site with the user id/ password, provided by the bank for net-banking purpose, and will enter payment details at the bank site.

 10.On successful payment, a challan counterfoil will be displayed containing CIN, payment details and bank name through which e-payment has been made. This counterfoil is proof of payment made.

ACES- Central excise & Service Tax challans

eFiling Offline Utilities/Schema

Assessees can file their Central Excise and Service Tax Returns using following offline Excel Utilities/XML Schema by downloading the same from this page.
It is advised that the latest Excel Utility may be used every time, for filing Returns, by downloading it from the link given below
Click on the respective Excel Utility/XML Schema hyperlink to download. Please refer the detailed Instructions Sheet embedded within the utility before using the same.

Central Excise
Excel Utilities	Last Updated	XML Schema	Last Updat
Download ER1 Return Excel Utility	01-10-2011	Download XML Schema for ER1 Return	01-10-2011
Download ER2 Return Excel Utilit	01-10-2011	Download XML Schema for ER2 Return	01-10-2011
Download ER3 Return Excel Utility	01-10-2011
Download ER4 Return Excel Utility	01-10-2011
Download ER5 Return Excel Utility	01-10-2011
Download ER6 Return Excel Utility	01-10-2011
Download ER8 Return Excel Utility	01-10-2011
Download Dealer Return Excel Utility	01-10-2011	Download XML Schema for Dealer Return	01-10-2011

Service Tax
Excel Utilities	Last Update
Download ST3 Return Excel Utility	01-10-2011

Learning Management Software (LMS)
Click on the respective hyperlink to down-load Learning Management Software (LMS) for Assessees, a self learning training software.
- Central Excise

- Service Tax

 

GAR7 Challans
Click on the respective hyperlink to down-load GAR7 Challans.
- Central Excise ( Front || Reverse )
- Service Tax ( Front || Reverse )

GAR7 Challans

GAR7 Challans Click on the respective hyperlink to down-load GAR7 Challans. - Central Excise ( Front || Reverse ) - Service Tax ( Front || Reverse )										- Central Excise ( Front || Reverse ) - Service Tax ( Front || Reverse )

The Vlookup function on Excel

• The Vlookup function (finding an exact match):

Building the function step by step:
1. Type the following code: =vlookup(
2. Type the address of the cell containing the value that you wish to look for in the table.
3. Type the range of the table to look inside, (or better: Name the table before starting with the function, and type now its name). Remember: don’t include the table’s heading row.
4. Type the column number from which you want to retrieve the result.
5. Type the word FALSE which means: “Please find me exactly the value of the cell mentioned in step 2. (Don’t round it down to the closest match)”.
6. Close the bracket and hit the [Enter] key.

Note: The function will always look for the value mentioned on step 2 only on the first column (the utmost left column) of the table.

Vlookup Examples:
Let’s assume you are using the following Excel worksheet: (You can download it here)

=vlookup(C10,A2:E7,2,FALSE)

In words: Look for the value in cell C10 inside table located at A2:E7, and retrieve me the value on the 2’nd column. Please find me exactly what’s in cell C10.

The value of the above formula will be: 99 (on Dan’s row, the second column).

Copying and replicating the function
If you plan on copying the vlookup function, either by “copy” and “paste” or by dragging it with the fill handle, make sure to set the table’s address with fixed reference (e.g. $A$2:$E$7), but it would be better instead to name the table, as in the following example.

You can name the range A2:E7 by selecting it, and typing the name in the name box.
Let’s assume you named it studentsTable (spaces are not allowed, but you may use underscores).

=vlookup(c10,studentsTable,3,false)

In words: Look for the value in cell C10 inside studentsTable, and retrieve the value from the table’s 3’rd column. Please find me exactly what’s in cell C10.

The value of the above function will be: 45 (on Dan’s row, the value in the third column of the table).

Troubleshoot (advanced usage with more functions)
If the vlookup doesn’t find a match, it will write the following code: #N/A.
You can overcome this code, and set what do display in case it doesn’t find a value by using the IF function with the ISNA() function. Look at the following example:

=if(isna(vlookup(c10,studentsTable,3,false)),”didn’t find any match”, vlookup(c10,studentsTable,3,false))

In words: if the vlookup function gives us the #N/A code, then write “didn’t find any match”, else compute the vlookup function.

Explanation:
The 3 parts of the above IF function are:
1. isna(vlookup(c10,studentsTable,3,false))
2. “didn’t find any match”
3. vlookup(c10,studentsTable,3,false)

The first part is a condition, which says: Does the vlookup function gives us the #N/A code?
If it does, write “didn’t find any match”, otherwise compute the vlookup function.

Tip:
Instead of the part “didn’t find any match”, you can put only double quotation marks “” which will leave the cell empty in case no match is found:

=if(isna(vlookup(c10,studentsTable,3,false)),””, vlookup(c10, studentsTable,3,false))

or let it retrieve the value 0 in case of no match:

=if(isna(vlookup(c10,studentsTable,3,false)),0, vlookup(c10, studentsTable,3,false))

• The Vlookup function - closest match

Building the function step by step:
This is exactly the same process as building the vlookup with exact match, but with the following difference: Instead of writing FALSE at the end of the function, write TRUE.

Example:
Let’s assume you have the following worksheet, and the table is named “sales_table”:

=vlookup(B10,sales_table,2,true)

In words: find me the value of cell B10 inside the first column of sales_table, and retrieve me the value next to it from the table’s second column. If you don’t find the value, relate to the closest smaller value you can find.

Hence, the value 14 doesn’t appear on the first column of the table, so the function will relate to the value 10 which is the closest smaller value, and retrieve the word “medium” from the second column.

If the value of cell B10 was changed to 90, the vlookup would return us the word “Great” (the closest smaller match it finds would be 50).

• Getting Rid of the Vlookup #N/A Error Code

 

When the vlookup function doesn’t find the value inside the range specified, it will write the #N/A code, meaning “Not Available”.

To get rid of this error code, you can put the vlookup inside an IF function together with the ISNA function in the following format:

=If (isna (vlookup(blabla)) , “”, vlookup(blabla))

In words:
If the vlookup function is N/A, then leave the cell blank, otherwise perform the vlookup function.

(It is recommended that you be familiar with the If Statement before you proceed.)


An Example (taken from the related video):

=If(isna(vlookup(D9,oldList,2,false)),””,vlookup(D9,oldList,2,false))

(Note the double parenthesis after the word “false” in both of its occurrences)

Let’s cut the above function into three parts, and examine them one by one:

First part:

=If(isna(vlookup(D9,oldList,2,false)),

In words:
If the function vlookup(D9,oldList,2,false) gives N/A - (this will happen if it didn’t find the value of cell D9 inside oldList),


Second part:

“”,

In words:
Then leave the cell blank (double quotation marks mean “blank”)

Third part:

vlookup(D9,oldList,2,false))

In words:
Otherwise perform the vlookup as usual.

 

E-filing of Service Tax Returns (ST-3)

E-filing of Service Tax Returns (ST-3) made mandatory for All Assessees wef 01.10.2011 vide Notification No. 43/2011 - Service Tax, dated 25.08.2011 (click here for Notification)

E-filing of Central Excise Returns

E-filing of Central Excise Returns (ER1,ER-2,ER-3,ER-4,ER-5,ER-6, ER-7 & ER-8) made mandatory for All Assessees wef 01.10.2011 vide Notification No. 21/2011 and No. 22/2011 - Central Excise, both dated 14.09.2011 (click here for Notification No. 21/2011)    (click here for Notification No. 22/2011)



here is the link for downloading(ER1,ER-2,ER-3,ER-4,ER-5,ER-6, ER-7 & ER-8) files
(http://www.aces.gov.in/download.jsp)

GAR7 Challans Click on the respective hyperlink to down-load GAR7 Challans. - Central Excise ( Front || Reverse ) - Service Tax ( Front || Reverse )

Central Excise Bangalore Contact information

Office of the Commissioner of Central Excise
Zone	ADDRESS	Phone No.	Fax No.	Email ID
Bangalore - I	P.B. No. 5400, Central Revenue Building, Queens Road, Bangalore - 560001.	+91-80-2286 4073	+91-80-2286 4170	cexbang@excise.nic.in
Bangalore - II	P.B. No. 5400, Central Revenue Building, Queens Road, Bangalore - 560001.	+91-80-2286 5331	+91-80-2286 4426	cexbang2@excise.nic.in
Bangalore - III	P.B. No. 5400, Central Revenue Building, Queens Road, Bangalore - 560001.	+91-80-2286 7733	+91-80-2286 0354	cexbang3@excise.nic.in

ELECTRONIC ACCOUNTING SYSTEM IN EXCISE AND SERVICE TAX

Introduction

Central Board of Excise and Customs (CBEC) initiate to receive information and maintain records of tax paid through banks through online upload of challan details is named as EASIEST ( Electronic Accounting System in Excise and Service Tax ).

Data uploaded by banks

CBEC has devised the file formats for uploading data regarding tax payment. Banks are expected to generate and upload tax data as per these formats.

Once the file has been prepared as per the file format, it can be verified for correctness of its structure using the File Validation Utility (FVU) provided by NSDL.

Single copy challan for excise and service tax

From April 2007 onwards assessees should pay tax using the single copy challan, GAR-7 instead of earlier four copies.

• GAR-7 - Proforma for Central Excise Tax Payments is to be used for payment of Excise and
• GAR-7 - Proforma for Service Tax Payments is to be used for payment of Service Tax.

Challan status enquiry

Assessees can track online the status of their challans deposited in banks. The status can be tracked on the basis of the Challan Identification Number (CIN) which is stamped on the challan counterfoil by the bank. CIN comprises of seven-digit BSR code of collecting bank branch, challan serial number (upto five digits) and date of tender.

Assessee Code based search

This facility enables the assessee view its details (name, address, location code) as present in the Assessee Master provided by CBEC. Details of assessee codes allotted for service tax and excise can be viewed using this facility.

VAT Refund In SEZ (Karnataka)

Normally there would be zero rating or exemption provided for supplies to SEZ. IN case they have paid the VAT for some reason the same would certainly be refundable.

Retention Amount

Friends, treatment of retention money in both of scenraios will depend upon the underlying agreement. Typically renetntion money is 10 percent (which can be less or more than it) of the contract value and is dedcuted from all the payments to be made to the contractors against the certified work. Retention money is a credit balance payable to contractor upon finalization of satisfied completion and performance of work. It is normally paid to contractor after one year of completion of contract work. However, this will again depend upon agreed terms.

If the contractor does not complete the work or the work performed by him is not satisfactory, the retention money may not be paid to him depending upon agreed terms. In such case, it can be kept as a liability in some "sundry liabilities" account and added back to profit and loss account as other income. Normally people keep the liability for 3 years and then add it back as income. This is done so that no issue arises in taxation as tax laws require adding back after 3 years. Other recoveries, damages or legal proceedings, or arbitration etc, everything will also depend upon the agreement and then legal rights under the specific circumstances.

If the work done is satisfactory, as per requirement, is certified and completed, the amount retained as retention money will keep on standing as liability in the books of account until the payment date AS PER AGREED TERM arrives. On which date the liability will be paid to the contractor. Remember, amount to be retained, retention period, payment methodologies, all dependd upon agreement with contractor.

ITC Company Finance interview questions with answers

majorly they ll ask all abt statutory compliences like sales tax , entry tax, central excixe returns, service tax, TDS and Customs duty,,,,,,,for those statutory compliences i have clearly written on my blog, You please refer my previous posts on my blog....

Difference between net present value and internal rate of return:

• NPV is calculated in terms of currency while IRR is expressed in terms of the percentage return a firm expects the capital project to return;

• Academic evidence suggests that the NPV Method is preferred over other methods since it calculates additional wealth and the IRR Method does not;

• The IRR Method cannot be used to evaluate projects where there are changing cash flows (e.g., an initial outflow followed by in-flows and a later out-flow, such as may be required in the case of land reclamation by a mining firm);

• However, the IRR Method does have one significant advantage -- managers tend to better understand the concept of returns stated in percentages and find it easy to compare to the required cost of capital; and, finally,

• While both the NPV Method and the IRR Method are both DCF models and can even reach similar conclusions about a single project, the use of the IRR Method can lead to the belief that a smaller project with a shorter life and earlier cash inflows, is preferable to a larger project that will generate more cash.

• Applying NPV using different discount rates will result in different recommendations. The IRR method always gives the same recomendation.


Before going to interview have a look at working capital management nad Ratio analysis,,,,ensure that all ratio's should be covered with formula's

Finding Value of Closing Stock from Sales

We may be able to ascertain what is left out if we know what has been sold. This logic may be applied in finding the value of closing stock. However, to know this, we need to ascertain the value of cost of goods sold.
1.Gross Profit = Sales − Cost of Goods Sold

2.Cost of Goods Sold = Opening Stock + Purchases + Direct Expenses − Closing Stock

3.Gross Profit = Sales − (Opening Stock + Purchases + Direct Expenses − Closing Stock) [From (i) and (ii)]
= Sales − Opening Stock − Purchases − Direct Expenses + Closing Stock

4.Closing Stock = Opening Stock + Purchases + Direct Expenses + Gross Profit − Sales [From (iii)]
To use this relation to obtain the value of closing stock, we need the information relating to Gross Profit. All other information in this relation is readily available from the accounting records.

Purchases and Sales journal entries:

Purchases:

Purchase:
To Party/Vendor Cr
By Raw materials Purchases Dr
By Vat(Input) Dr
Purchase Returns:
By Party Dr
To Raw materials Purchases Cr
To vat

Sales:

By Customer Dr
To Local/Interstate sales Cr
TOCentarl Excise(Output)10% cr
TO Edu Cess (Output) 2% cr
To Sec.Edu cess( Output) 1% cr
To Vat/ Entry Tax cr

Sales Returns:To Customer Cr
By Local/Interstate sales Dr
By Centarl Excise(Output)10% Dr
By Edu Cess (Output) 2% Dr
By Sec.Edu cess( Output) 1% Dr
By Vat/ Entry Tax Dr


Accounts Receivables and Payables differences:

Accounts recevables:

Accounts receivable are amounts a company has a right to collect because it sold goods or services on credit to a customer. (Sundry Debtors).
Accounts receivable are assets.

Accounts payable :

Accounts payable are amounts a company owes because it purchased goods or services on credit from a supplier or vendor.(Sundry Creditor).
Accounts payable are liabilities

Due Dates for Statutory Compliances Filing:

CENTRAL EXCISE PLA DEPOSITE- 31st of everymonth

Central Excise ER1 Returns- 10 th of everymonth

Serveice Tax Monthly Returns- 5th of every month

TDS ( Tax Deduction at Source)- 7th of everymonth

TDS -Quartly Returns----
1st Q-Apr to June- Due date-15th of July
2nd Q- July to Sept- Due Date- 15 Th of Oct
3rd Q- Oct to Dec- Due Date- 15th of Jan
4th Q- Jan to Mar- Due Date 15 Th June


ESI-21ST of everymonth

Sales Tax(VAT)- 20 of everymonth
Entry Tax- 20th F EVERYMONTH

Professional Tax- 20th of everymonth


Providend Fund- 14th of everymonth

Service tax - Budget 11

► No change in the effective service tax rate of 10.3%.

► Service tax extended to services by air conditioned
restaurants having liquor license and to short term
accommodation in hotels.

► Scope of seven existing service categories expanded,
including life insurance service, legal service, health
service and commercial training and coaching service.

► Interest for delayed payment of service tax increased to
18% a year and penalty provisions amended.

► Restrictions on Cenvat credit on input services prescribed
in the case of works contractors (availing composition
scheme).

► Outright service tax exemption for input services “wholly
consumed” in a SEZ, linked with Export Rules.

► Point of Taxation Rules, 2011 introduced, deeming the
time of provision of service to be the date of provision of
service or date of invoice or date of payment, whichever
is earlier.

► Performance based criteria for determining export of
“credit rating agency services”, “market research agency
services”, “technical testing and analysis services” and
“transport of goods by air/ road/ rail services” changed
to “location of recipient of service”.

► Definition of “input service” for Cenvat credit purposes
substituted. Services provided for construction of
building or civil structure, outdoor catering, life/ health
insurance services not to be considered as input service.

► “Exempted services” to include trading. For the purposes
of availment of pro rata Cenvat credit, value of trading
will be the difference between sale price and purchase
price of the goods traded.

► Banking companies or financial institutions obligated to
pay an amount equal to 50% of Cenvat credit availed. For services related to life insurance or management of ULIP,such amount to be equal to 20% of credit availed.

► Provision relating to availability of full Cenvat credit on
specified services under Rule 6(5) of Cenvat Credit Rules
deleted.

Excise duty - Budget-11

► Peak rate of duty maintained at 10%. Basic duty rate
increased from 4% to 5% to align with state VAT rates.

► AED under AED (GSI) removed on sugar, textile and
textile products to enable states to levy VAT.

► Duty of 1% (without input Cenvat) imposed on 130 items,
which were earlier exempted. For specified items, option
provided to avail credit and discharge duty at 5%.

► Exemption to packaged or canned software (from value
that represents transfer of right to use) provided to cover
supplies made other than under MRP assessment.

► Interest rate for delayed payment of duty increased from
13% to 18% with effect from 1 April 2011 and penalty
provisions amended.

► Input and input services redefined to exclude specified
goods and services. Exempted services to include trading
“trading” for the purposes of computing credit reversal.

► Definition of capital goods amended to include goods
used outside the factory for generation of electricity for
captive use.

►Rule 6(5) of Credit Rules which specified input services
for full Cenvat credit availability (unless used exclusively
for exempted operations), deleted.

Income-tax - Budget-2011

► Basic exemption limit for individuals increased to
INR 180,000 (for resident women below the age of 60
years exemption limit retained at INR 190,000).

► Age limit for qualifying as senior citizen reduced from 65
years to 60 years and basic exemption limit increased to
INR 250,000.

► Basic exemption limit of INR 500,000 applicable for
senior citizens of the age of 80 years or more.

► Surcharge on domestic companies reduced from 7.5% to
5%.

► Surcharge on foreign companies reduced from 2.5% to
2%.

► Basic rates of corporate tax remain unchanged for both
domestic and foreign companies.

► Activities in the nature of trade, commerce or business or
any related activities, pursued for advancement of object
of general public utility is “charitable purpose”, if annual
receipts from such activities do not exceed
INR 2.5 million (previous limit INR 1 million).

► Specified allowances and perquisites of Chairman and
Members of the UPSC are exempted.

► Exemption provided to specified income of a notified
body or authority or trust or board or commission set up
for regulating or administering an activity for the benefit
of general public, provided it is not engaged in any
commercial activity.

► Weighted deduction for contributions made to national
laboratory or a university or IIT or a specified person for
scientific research, increased to 200%.

► Investment linked tax deduction extended to taxpayers
engaged in developing and building affordable housing
projects under a scheme framed by the Central
Government or a State Government or in production of
fertilizers in India.

► Contribution made by an employer towards a notified
pension scheme allowed as a deduction (restricted to 10%
of the salary of employees).

► Tax holiday sunset clause for power sector extended to
31 March 2012.

► Tax holiday for undertakings engaged in commercial
production of mineral oil will not be available for blocks
licensed under a contract awarded after 31 March 2011.

► Deduction in addition to limit of INR 100,000 specified
under section 80CCE available to employees in respect of
contributions (upto 10% of salary) made to notified
pension scheme by the Government or any other
employer.

► MAT rate increased from 18% to 18.5% of book profit
(plus applicable surcharge and education cess).

► Income of SEZ developers and units will be subject to
MAT.

► Dividends declared by SEZ developers will be subject to
DDT.

► Introduction of AMT for LLPs at 18.5% (plus education
cess) of the adjusted total income. AMT credit allowed to
be carried forward and set off against future income-tax
liability for a period of ten years.

► Due date for filing the return of income by a company
which is required to report its international transactions
in Form 3CEB is extended to 30 November.

► Notified class or classes of persons exempted from filing
the return of income.

► Time limit prescribed for completion of assessment and
reassessments (including search assessments) to exclude
time taken for obtaining information from foreign tax
authorities under agreement for exchange of information
or six months, whichever is less.

► For determining ALP of international transactions,
instead of a 5% variation, the allowable variation will now
be such percentage as may be notified by the
Government.

► TPOs granted power of conducting a survey.

► Transactions with persons located in a NJA brought
within the purview of TP provisions.

► Transactions with a person located in a NJA subject to
certain disallowance/ taxability and higher withholding
tax under certain circumstances.

► The limit for making application before Settlement
Commission is reduced from INR 5 million to INR 1 million
in certain cases.

► Settlement Commission empowered to rectify its order
passed pursuant to the application before it, within a
period of six months from the date of the order.

► Non residents having LOs in India required to file a
statement, giving details of the activities carried out by
the LO, within 60 days from the end of the financial year.

► Revenue authorities empowered to make enquiries and
investigate for collection of information on requests
received from the Revenue authorities outside India,
pursuant to a double taxation avoidance agreement
entered into between India and the respective country.

► Income from infrastructure debt funds notified by the
Central Government will be exempt.

► Interest received by non residents from notified
infrastructure debt funds taxable at 5% (plus applicable
surcharge and education cess).

► Rate of tax on income distributed by mutual funds (other
than equity oriented funds) to a person other than
individual or HUF, increased to 30% (plus applicable
surcharge and cess).

► Dividend received by an Indian company from subsidiary
foreign company will be taxed at the rate of 15% (plus
applicable surcharge and cess), on gross basis.

► Deletion of scheme of DIN for correspondence with tax
authorities.

New Income Tax Return Forms

http://www.incometaxindia.gov.in/download_all.asp

Clarifications regarding Form 24Q

1) Whether the particulars of the whole year or of the relevant quarter are to be filled in Annexures I, II and III of Form No. 24Q?

(i) In Annexure I, only the actual figures for the relevant quarter are to be reported.

(ii) In Annexures II & III, estimated/actual particulars for the whole financial year are to be given. However, Annexures II & III are optional in the return for the 1st, 2nd and 3rd quarters but in the quarterly statement for the last quarter, it is mandatory to file Annexures II & III giving actual particulars for the whole financial year.

2) In Form No. 24Q, should the particulars of even those employees be given whose income is below the threshold limit or in whose case, the income after giving deductions for savings etc. is below the threshold limit?

(i) Particulars of only those employees are to be reported from the 1st quarter onwards in Form No. 24Q in whose case the estimated income for the whole year is above the threshold limit.

(ii) In case the estimated income for the whole year of an employee after allowing deduction for various savings like PPF, GPF, NSC etc. comes below the taxable limit, his particulars need not be included in Form No. 24Q.

(iii) In case, due to some reason, estimated annual income of an employee exceeds the exemption limit during the course of the year, tax should be deducted in that quarter and his particulars reported in Form No. 24Q from that quarter onwards.


3)How are the particulars of those employees who are with the employer for a part of the year to be shown in Form No. 24Q?

(i) Where an employee has worked with a deductor for part of the financial year only, the deductor should deduct tax at source from his salary and report the same in the quarterly Form No. 24Q of the respective quarter(s) up to the date of employment with him. Further, while submitting Form No. 24Q for the last quarter, the deductor should include particulars of that employee in Annexures II & III irrespective of the fact that the employee was not under his employment on the last day of the year.

(ii) Similarly, where an employee joins employment with the deductor during the course of the financial year, his TDS particulars should be reported by the current deductor in Form No. 24Q of the relevant quarter. Further, while submitting Form No. 24Q for the last quarter, the deductor should include particulars of TDS of such employee for the actual period of employment under him in Annexures II & III.

4) The manner of computing total income has been changed in the budget for the current year by allowing deduction under section 80C. However, the present Form No. 24Q shows a column for rebate under section 88, 88B, 88C and 88D. How should Form No. 24Q be filled up in absence of a column for section 80C?

While filling up Form No. 24Q, the columns pertaining to sections 88, 88B, 88C and 88D may be left blank. As regards deduction under section 80C, the same can be shown in the column 342 pertaining to 'Amount deductible under any other provision of Chapter VI-A'.

5) Form No. 24Q shows a column which requires explanation for lower deduction of tax. How can a DDO assess it? Please clarify.

Certificate for lower deduction or no deduction of tax from salary is given by the Assessing Officer on the basis of an application made by the deductee. In cases where the Assessing Officer has issued such a certificate to an employee, deductor has to only mention whether no tax has been deducted or tax has been deducted at lower rate on the basis of such a certificate.

Rules and Forms for TDS/TCS returns

http://www.incometaxindia.gov.in/AmendmentRule.ASP


Return preparation software we can download from bellow link :)

http://www.tin-nsdl.com/eTDSRPU.asp

All forms

Hey guys here is the link for all govt forms....


http://www.incometaxindia.gov.in/allforms.asp

Central Excise Duty

Registration:

Every person who produces or manufactures excisable goods, is required to get registered, unless exempted. If there is any change in information supplied in Form A-1, the same should be supplied in Form A-1.

Daily Stock Account/ RG 1 Register

Manufacturer is required to maintain Daily Stock Account (DSA) of goods manufactured, cleared and in stock.

Clearance of goods under Invoice

Goods must be cleared under Invoice of assessee. In case of cigarettes, invoice should be countersigned by Excise officer

Payment of excise duty

Duty is payable on monthly basis through GAR-7 challan / Cenvat credit by 5th/6th of following month, except in March. SSI units have to pay duty on quarterly basis by 5th/6th of month following the quarter. Assessee paying duty through PLA more than Rs 10 lakhs per annum is required to make e-payment only

Returns of production, clearances and payment of excise duty

Monthly return in form ER-1 should be filed by 10th of following month. SSI units have to file quarterly return in form ER-3. EOU/STP units to file monthly return in form ER-2 – see rule 17(3) of CE Rules E-return is mandatory where duty paid in previous year (by cash and/or through Cenvat credit) exceeded Rs 10 lakhs in previous year.

Annual Financial Information

Assessees paying duty of Rs one crore or more per annum through PLA are required to submit Annual Financial Information Statement for each financial year by 30th November of succeeding year in prescribed form ER-4

Loss on sale of Fixed Asset

Let’s take a practical example to see how to pass journal entry for sale of fixed assets--

Mady bros. who is into the business of Manucturing electrical goods, sold Machine for Rs. 1,50,000.00 which was bought 3 months ago for Rs. 1,80,000.00 .

Now the entry can be made as under :

• Cash Rs. 1,50,000 Dr
  

Machinery Rs. 1,50,000 Cr

(Being sale of furniture)

• Accu. depreciation account Rs. 4,500 Dr
  

Machinery Rs. 4,500 Cr

(Being 10% dep. for 3 months )

• loss on sale of assets Rs. 25,500 Dr
  

(Under indirect expenses)

Machinry A/c Rs. 25,500 Cr

(Being loss suffered on sale of fixed assets)

In the above example, you will see that Machinery account is squared off

Now final entry will be the:-

Cash A/c - 1,50,000 Dr
Acc. Depreciation A/c- 4,500 Dr
Loss on sale of Fixed Asset - 25,500 Dr

Machinery A/c 1,80,000 Cr

(Being loss on sale of fixed asset ) ;)

KARNATAKA PROFESSION TAX

Rates of professional Tax:-

Up to 10,000 --Nil
10,000 To 15,000--150 Rs
15,000 and above--200 Rs

1. Profession tax is levied under the Karnataka Tax on Professions,
Trades, Callings and Employments Act, 1976:

Profession Tax shall be paid by every person exercising any
Profession or calling or is engaged in any trade or holds any appointment,
public or private as specified in the Schedule to the Act.
[However no tax is payable by persons who have attained age of sixty
five years. Also no tax is payable for holding any Profession for less than
120 days in that year.]

2. A person is defined under the Act to mean, any person who is engaged
in any Profession, trade, callings or employment in the State of Karnataka
and includes :-

· Hindu undivided family (HUF)
· Firm
· Company
· Corporations
· Other Corporate bodies
· Any Society
· Any Club or Association.

[Every branch of a firm, company, corporation or other corporate body, any
society, club or association is treated as separate person for the purpose of
tax liability.]

3. REGISTRATION:

In case of salary or wage earners whose salary or wage for a month is
not less than Rs.10,000/-, the employer is liable to deduct Profession Tax
payable under this Act. It is the responsibility of the employer to deduct tax
and pay on behalf of all such employees within 20 days of expiry of the
month. If the amount of tax deducted in a month is less than Rs.5,000/-, the
employer could opt for payment of such tax within 20 days of expiry of a
Quarter. [Quarter means period ending 31st May, 31st August, 30th
November and 28thor 29th February ].

All such employers other than Government shall obtain a Certificate
of Registration from the Profession Tax Officer of the jurisdiction.

4. ENROLLMENT:

Class of persons enumerated in Sl. No.2 to 74 of the Schedule
(Annexure 1) shall obtain a Certificate of Enrollment from the Profession
Tax Officer of the jurisdiction. Such persons with Enrollment Certificate
shall pay tax every year before 30th of April at the rates specified in Column
3 of the Schedule.


5. EXEMPTION:

The following class of persons are exempted from payment of
Profession Tax.

a. All charitable and philanthropic hospitals or nursing homes
situated in places below the taluk level in all districts of the State
except Bangalore and Bangalore Rural District.

b. Directors of Companies registered in Karnataka and nominated by
the financing agencies owned or controlled by the State
Government or by other statutory bodies.

c. Foreign technicians employed in the State provided their
appointments are approved by the Government of India for the
purpose of exemption from payment of income tax for the said
period( exemption is for a period of 2 years from the date of their
joining duty).

d. Combatant and civilian non combatant members of the Armed
Forces who are governed by the Army Act, the Navy Act and the
Air Force Act.

e. Salaried or wage earning blind persons.

f. Salaried or wage earning deaf and dumb persons

g. Holders of permits of single taxi or single three wheeler goods
vehicle.

h. Institutes teaching Kannada or English Shorthand or Typewriting.

i. A Physically handicapped person not less than 40% of permanent
disability (subject to production of certificate from the HOD of
Government Civil Hospital).

j. An ex-serviceman not falling under Sl No.1 of the Schedule.

k. A person having single child and who has undergone sterilization
operation, subject to production of a certificate from the District
Surgeon, Government Civil Hospital, for having undergone such
operation.

l. Central Para Military Force (CPMF) Personnel.

m. Persons running educational institutions in respect of their
branches teaching classes upto twelfth standard or pre-University
Education.


6. PENALTIES UNDER PROFESSION TAX ACT, 1976.


i) Penalty for non-registration in case of employer – Rs.1,000/-
In case of other persons Rs.500/-.

ii) Penalty for non filing of Returns for an employer Rs.250/-.

iii) Penalty for non-payment of tax by enrolled person and
registered employer with interest at rate of 1.25% per month
and Penalty not exceeding 50% of the tax amount due.

From 01-04-2011 provision has been made for the Registration /
Enrollment, payment and filing of Returns under Profession Tax Act
online through website commercial taxes department..

Tax Deduction At Sourse -TDS

TDS:

Due Date for monthly TDS rETURN : 7TH of everymonth

TDS on Salaries-192B
TDS on Contractors-194C
TDS ON Rent- 194I
TDS on Professional Fees- 194 J

TDS Querterly Returns:

1st Q-Apr to June- Due date-15th of July
2nd Q- July to Sept- Due Date- 15 Th of Oct
3rd Q- Oct to Dec- Due Date- 15th of Jan
4th Q- Jan to Mar- Due Date 15 Th June

Quartly Returns:
24Q for salaries
27Q for other than salaries

Tds on Salaries: 192B
if u wanna reduse u r tax burden thn u can minimize ur tax amt max up to 20,000 INR by showing ur investments like insurance etc...

New Income Tax Slabs for FY 11-12 Others & Men (FY 2011-12)
1. Up to Rs 1,80,000/No tax / exempt
2. 1,80,001 to 5,00,000-10%
3. 5,00,001 to 8,00,000-20%
4. Above 8,00,000-30%

Income Tax Slabs for ay 11-12 for Resident Women (below 65 years) (FY 2011-12)
1. Up to Rs 1,90,000-No tax / exempt
2. 1,90,001 to 5,00,000-10%
3. 5,00,001 to 8,00,00-20%
4. Above 8,00,000-30%


New Income Tax Slabs for FY 11-12 for Resident Senior Citizens (FY 2011-12)
1. Up to Rs 2,40,000--No tax / exempt
2. 2,40,001 to 5,00,000--10%
3. 5,00,001 to 8,00,000--20%
4. Above 8,00,000--30%


New Income Tax Slabs for FY 11-12 Very Senior Citizen (FY 2011-12)
1. Up to Rs 5,00,000--No tax / exempt
2. 5,00,001 to 8,00,000--20%
3. Above 8,00,000--30%

U can show ur ur investments by deducting u r income unser sce 80C

Contracts (including work land labour contract) - 194 c The tax has to be deducted @ 2% on contract payments and 1% for subcontract and advertisement contract payments. The tax is required to be deducted if a single payment exceeds Rs. 20000/- or if the aggregate payments exceed Rs. 50000/- per annum.


Rent- 194 i Any amount paid as rent above Rs. 120000/- per year will attract TDS provisions @ 10% for Individual & HUF and 20% for others.


Fees for professional or technical services/royalty/Income on units of mutual funds: 194 j
The tax has to be deducted @10% with some basic exemption limits.


Interest on securities/Dividends/Interest/Insurance commission-:193, 194, 194A& 194D The tax has to be deducted @ 20% for domestic companies and 10% for others with some basic exemption limits, in the case of interest if the amount of interest is up to Rs. 5000/- during a financial year. however, in the case of interest paid by a banking company, Co-operative society engaged in the business of banking and a public company engaged in the financing or construction of residential houses in India, this limit is Rs. 10000/-.

Insurance commission-: Any person responsible for paying to a resident any remuneration or reward whether by way of commission or otherwise, for procuring insurance business is required to deduct tax @ 20% for companies and 10% for other person if the amount credited or paid is more than Rs. 5000/- in a financial year.

VAT / Sales Tax Returns

Sales /Output Vat Entries:
By Customer Dr XXX
To Local/Interstate sales Cr xxx
TOCentarl Excise(Output)10% cr XXX
TO Edu Cess (Output) 2% cr xxx
To Sec.Edu cess( Output) 1% cr xxx
To Vat/ Entry Tax cr xxx

Sales Returns:
To Customer Cr xxx
By Local/Interstate sales Dr xxx
By Centarl Excise(Output)10% Dr XXX
By Edu Cess (Output) 2% Dr xxx
By Sec.Edu cess( Output) 1% Dr xxx
By Vat/ Entry Tax Dr xxx

Purchase / Input Entries:
To Party/Vendor Cr xxx
By Raw materials Purchases Dr xxx
By Vat(Input) Dr xxx

Purchase Returns:
By Party Dr xxx
To Raw materials Purchases Cr XXX
To vat xxx



VAT = Output Vat – Input Vat

Entry for Vat/sales Tax:
By Output Vat 5% Dr xxx
By Output Vat 13.5% Dr xxx
To Input Vat 5% Cr XXX
TO Input Vat 13.5% Cr xxx
To Input Vat 15% Cr xxx
To VAT Payable xxx

Due Dates for Statutory Compliances (payments)

CENTRAL EXCISE PLA DEPOSITE- 31st of everymonth

Central Excise ER1 Returns- 10 th of everymonth

Serveice Tax Monthly Returns- 5th of every month

TDS ( Tax Deduction at Source)- 7th of everymonth

TDS -Quartly Returns----
1st Q-Apr to June- Due date-15th of July
2nd Q- July to Sept- Due Date- 15 Th of Oct
3rd Q- Oct to Dec- Due Date- 15th of Jan
4th Q- Jan to Mar- Due Date 15 Th June


ESI-21ST of everymonth

Sales Tax(VAT)- 20 of everymonth
Entry Tax- 20th F EVERYMONTH

Professional Tax- 20th of everymonth


Providend Fund- 14th of everymonth

ELECTRONIC TDS RETURN (E-TDS)

192C -Contractors,
194B- Salaries
194I- Rent
194J- Professinal Charges

Quartly Returns
24Q for salaries
27Q for other than salaries

CERTAIN IMPORTANT INFORMATION
I.
Related Websites:
1.
For New TAN: New TAN can be searched on website “incometaxindia.gov.in” by feeding old TAN or Company’s name.
2.
For downloading Form No. 24Q/26Q/27Q and instruction, log on to “tin.nsdl.com.”.
II.
If TAN number is not available, taxes cannot be paid and e-TDS statement will not be accepted.
III.
Fees to be paid as under:
Deductee Records Fees (including Service Tax) Up to 100 records Rs. 30/-101 to 1000 records Rs. 182/-More than 1000 records Rs. 606/-
IV.
Tin facilitation centres in Mumbai for filing e-TDS returns:-List of Facilitation Centres can be downloaded from Website: www.tin.nsdl.com.
V.
Each e-TDS statement file (Form 24Q, 26Q or 27Q) should be furnished in a separate CD/floppy along with duly filled and signed Form 27A in physical form.
VI.
Separate Form 27A in physical form should be furnished for each e-TDS statement.
VII.
Label to be affixed on CD/floppy containing details of deductor like name & address of deductor, PAN, TAN, Form No. and period to which statement pertains.
VIII.
e-TDS return file if compressed, is to be compressed using Winzip 8.1 or Zip It Fast 3.0 compression utility only.
IX.
In case of change in name or change in address, correction application need to be filed to amend record with ITD.
STEPS FOR PREPARING E-TDS RETURN WITH EFFECT FROM FEBRUARY, 2008
The procedure is changed w.e.f. February, 2008
The excel based forms have been discontinued. All the forms are in VB (Visual Basic) based format, which is very user friendly.
Now, all forms are to be filed using RPU —W.E.F. 13/4/2009 Version 1.7 and FVU Version 2.126 (both merged together) for any form — whether original or revised and for any quarter starting from F.Y. 2005-06.
STEPS:
Download the necessary files (RPU/FVU)
JRE version SUN JRE: 1.42_03or 1.4.2_04 or IBM JRE: 1.4.1.0 should be installed in the computer.
Download latest version of VB based files for Forms from the NSDL website –www.tin.nsdl.com
Present version w.e.f. 13/4/2009 is e-TDS RPU Version 1.7. It will be downloaded in zip format and by default it will be downloaded in C: Drive.
But you can download it any folder by giving it the desired path.
Double click and then “RUN” the file so as to make it unzipped.
As a result, a folder named e-TDS RPU 1.7 will be created automatically. In this folder there are 17 files. For practical use, only RPU (S. No. 10 RPU.exe) is to be utilized.
Double click on RPU and VB file be displayed.
Select the necessary Form (No. 24Q/26Q/27Q/27EQ) using the drop–box.
Select the type of statement (Regular/Correction) to be prepared
Complete all sheets- viz. Form, Challan details and Annexures (i.e., deductee details)
After filling up all the data in all the sheets and final saving of the input file, click on “CREATE FILE” option.
The file will be validated automatically and the validation results will be saved by default in the same folder, where the input file is saved.
In case of errors, an Error-Response file will be generated giving the error report.
Once this is done, the screen will display “File Validation Successful”. The valid e-file will be created, which may be copied on a floppy or CD.
Finally, give print command to generate Form No. 27A to be signed by the deductor and which should be submitted to the TIN-FC and then the process is over.