Significance of business codes in ITR forms

 Significance of business codes in ITR forms  Uncategorized
Aug 162018
 

Significance of business codes in ITR forms

CBDT has changed nature of business codes for income tax return forms from A.Y. 18-19. Before filing of Income tax return, correct business sector along with correct business code has to be selected.

Most of us select business codes recklessly without considering our actual nature and do’s of business. Here is an article mentioning the significance of business codes in self assessment process:

  1. For considering eligibility for presumptive computation: The benefit of presumptive computation of income is available only in case of specified nature of business. In case the selected business codes does not fall in the specified business codes an intimation u/s 143 will sent to wrong computation of income. The only remedy available to you is to file revised return or apply to rectification of return,
  2. The facility of special computation of income is eligible for following class of business:
    1. Special provision for deduction in the case of trade, professional or similar association
    2. Special provision for computing profits or gains of business on presumptive basis
    3. Special provision for computing profits or gains of profession on presumptive basis
    4. Special provision for computing profits and gains of business of plying, hiring or leasing goods carriages
    5. Special provisions for computing profits and gains of retail business (Not applicable from 01.04.2011)
    6. Special provision for computing profits and gains of shipping business in the case of non-residents
    7. Special provision for computing profits and gains in connection with the business of exploration, etc., of mineral oils
    8. Special provision for computing profits and gains of the business of operation of aircraft in the case of non-residents
    9. Special provision for computing profits and gains of foreign companies engaged in the business of civil construction, etc., in certain turnkey power projects… and so on
  3. Few deductions are available only in case of assessee if he is engaged in specified nature of business. The eligibility for these deduction shall be considered based on business coders entered by assessee. For example: Section 35ABA and 35ABB: Expenditure for obtaining right to use spectrum for telecommunication service and Expenditure for obtaining licence to operate telecommunication services. Relevant business code 12006
  4. Allowance for tea development account, coffee development account and rubber development account etc are available if along with other conditions correct relevant business codes are mentioned in ITR forms. 01001 etc

This is worth to mention here that one assessee might be engaged in two or more nature of business with single PAN, business registration and GST registration. Thus, allowance / benefit of more than one business codes under income might be available to single PAN holder and single premises registration.

Further, simply change in business code does not imply a change in nature of business or profession. However, it may be an indication of change in nature of business. Change in nature of business is a wide term and would imply a change in nature, timing and extent of doing business. Change in nature of business would have a direct impact on profitability of business but change in business code have impact on eligibility of an allowance.

Place of supply for E way bills

 Place of supply for E way bills  Uncategorized
Aug 122018
 

Place of supply for E way bills

Inter-State movement or inter-State supply are two distinct terms to be recognized. By the fiction in section 7 of IGST Act, several transactions are imputed to be inter-State supplies, as for example, mentioned below:

  1. Supply of goods imported into the territory of India, till they cross the customs frontiers of India, shall be treated to be a supply of goods in the course of inter-State trade or commerce.
  2. When the supplier is located in India and the place of supply is outside India;
  3. To or by a Special Economic Zone developer or a Special Economic Zone unit;
  4. In the taxable territory, not being an intra-State supply and not covered elsewhere in this section,

Movements for the purposes of E-way bills:

For the limited purposes of EWB, the actual movement alone determines whether it is inter-State movement (attracting Central EWB) or intra-State movement (attracting State/UT EWB).

EWB is required whether the movement of goods is pursuant to supply or not and pursuant to supply of goods or of services or inward supply from an unregistered person.

Case studies:

Case 1: Goods imported from China arrive at Mumbai port.

These goods are transported from Mumbai port (situated in Maharashtra state) to factory in Pune (situated in Maharashtra state).

This is an inter-State supply from China to Pune, but it is an intra-State movement from Mumbai to Pune. State-EWB will BE REQUIRED for this movement.

Case 2: Goods are sold from Lucknow (situated in UP state) by Supplier to Customer in Delhi with instructions for these goods to be delivered to job-worker in Noida (situated in UP state).

This is an inter-State supply from Lucknow to Delhi for the purposes of taxation but an intra-State movement within UP. State-EWB will BE REQUIRED for this movement.

Case 3: Goods installed in basement of building being sold to Landlord on termination of lease agreement.

EWB will NOT BE REQUIRED as there is ‘no movement’ in this supply.

Case 4: Contractor carrying portable crane to customer site, both located in same State, is intra-State movement.

EWB will NOT BE REQUIRED for this movement.

Case 5: Laptop carried by employee from Delhi to Bangalore for company work, this movement is not supply but is incidental to ‘services of employee to employer’ under schedule III.

EWB will NOT BE REQUIRED for this movement.

However, contract-staff carrying company-laptop not excluded from EWB requirement. Thus, if same laptop is being carried by contractual staff E-way bill would have been required.

Case 6: LPG cylinders transported from dealership to bottling plant of Oil Company, is ‘excluded’ from requirement.

EWB will NOT BE REQUIRED for this movement.

However, EWB will be required for movement of cylinders supplied by fabricator to Oil Company.

Effects of amendment in section 138 of negotiable instrument act

 Effects of amendment in section 138 of negotiable instrument act  Uncategorized
Aug 112018
 

Effects of amendment in section 138 of negotiable instrument act

Roadmap of amendment till date:

Year Bill No Short Title Date of introduction Passed in LS Passed in Rs Referred to / Report presented by committee Notification no Synopsis
2017 28 The Negotiable Instruments (Amendment) Bill, 2017

 

 2nd Jan 20118 23rd July 2018    

XXX

 Yet to come  

Use of negotiable instruments i.e. cheques:

A   negotiable instrument like most commonly used, cheque is acceptable mode of payment in lieu of payment in money and it is negotiable. However, by the fall of moral standards these cheque started losing their credibility by not being honoured. And an action in the court for collection of the proceeds of cheque is defeating its very purpose.

Before amendment situations:

Central government is receiving representation from public that delay tactics are being adopted by drawer of cheque because as of now there is ease in filing appeal and then obtaining stay on proceedings. This cause injustice to the payee who have to spent lot of money, time and resources for realizing his money back

Objects of amendment:

It is proposed to amend the said act with a view of address:

  • The issue of undue delay in final resolution of cheque dishonour of cases
  • To relief to payees of dishonoured cheques
  • To discourage frivolous and unnecessary litigation which would save time and money.
  • Strengthen the credibility of cheque.

Effect of amendments:

Section 138 of instrument act – “where any cheque drawn by a person on an account maintained by him with a banker for payment of any amount of money to another person from out of that account for the discharge, in whole or in part, of any debt or other liability, is returned by the bank unpaid, either because of the amount of money standing to the credit of that account is insufficient to honour the cheque or that it exceeds the amount arranged to be paid from that account by an agreement made with that bank, such person shall be deemed to have committed an offence and shall, without prejudice to any other provision of this Act, be punished with imprisonment for a term which may be extended to two years, or with fine which may extend to twice the amount of the cheque, or with both.”

Now after insertion of section 143A and 148 provisions are made for interim relief to the payee as explained below:

  1. Payment by the drawer of the dishonoured cheque to the payee thereof of interim compensation of an amount not exceeding 20% of the value of the instrument, during the pendency of proceedings for the offence of dishonour under Section 138 of the Act-
    1. in a summary trial or a summons case, where the drawer pleads not guilty to the accusation made in the complaint; and
    2. in any other case, upon framing of charge
  2. The said interim compensation has to be paid within a period of 60 days from the date on which the order to that effect is made.
  3. The interim compensation so paid by drawer shall be deductible upon final conviction.
  4. The so called interim compensation is recoverable by way of attachment and sale of any immovable property or as an arrears of land revenue from movable or immovable property.
  5. However, if drawer is freed the payee is liable to pay back compensation so received with interest @ bank rate prevailing at the beginning of financial year.
  6. In case of appeal against the conviction under section 138 the appellate court may order to deposit a minimum of 20% of the fine or compensation so awarded by the trail
  7. During the pendency of appeal the appellate court may direct the release the amount so deposited to the complainant.

Recommendation of 28th Meeting of GST council

 Recommendation of 28th Meeting of GST council  Uncategorized
Aug 102018
 

Recommendation of 28th Meeting of GST council

As you are aware that GST council is a group of sate and central finance ministry recommending major amendments is GST laws and all amendments in GST laws are have to be in line with these recommendations. On 21st July 2018 it held its 28th meeting and recommended as detailed below:

Composition suppliers:

  1. Upper limit of turnover for opting for composition scheme to be raised from Rs. 1 crore to Rs. 1.5 crore. Henceforth, supplies having turnover upto 1.5 crore can apply for composition scheme and existing suppliers can opt for composition scheme from next financial year.
  2. Composition dealers to be allowed to supply services (other than restaurant services), for upto a value not exceeding 10% of turnover in the preceding financial year, or Rs. 5 lakhs, whichever is higher. Thus, supplies of any service upto Rs 5 lakh or 10% of turnover is allowed from the day notification to come.

Levy of GST on reverse charge mechanism:

Levy of GST on reverse charge mechanism on receipt of supplies from unregistered suppliers, to be applicable to:

  • only specified goods
  • in case of certain notified classes of registered persons,
  • on the recommendations of the GST Council.

Thus, universal application of section 9(4) is now removed.

No tax is payable on following supplies:

  1. Supply of goods from a place in the non-taxable territory to another place in the non-taxable territory without such goods entering into India;
  2. Supply of warehoused goods to any person before clearance for home consumption; and
  3. Supply of goods in case of high sea sales.

Now Input Tax Credit (ITC) is made available in case of following supplies:

  1. Most of the activities or transactions specified in Schedule III;
  2. Motor vehicles for transportation of persons having seating capacity of more than thirteen (including driver), vessels and aircraft;
  3. Motor vehicles for transportation of money for or by a banking company or financial institution;
  4. Services of general insurance, repair and maintenance in respect of motor vehicles, vessels and aircraft on which credit is available; and
  5. Goods or services which are obligatory for an employer to provide to its employees, under any law for the time being in force.

Reversal of ITC in case supplier fails  to pay amount due within 180 days:

The input tax credit availed by the recipient will be reversed, but liability to pay interest is being done away with.

Consolidated credit / debit notes:

Registered persons may issue consolidated credit/debit notes in respect of multiple invoices issued in a Financial Year

Export of services:

Supply of services to qualify as exports, even if payment is received in Indian Rupees, where permitted by the RBI.

GST rates reduction on items:

  1. 28% to 18%
  • Paints and varnishes (including enamels and lacquers)
  • Glaziers’ putty, grafting putty, resin cements
  • Refrigerators, freezers and other refrigerating or freezing equipment including water cooler, milk coolers, refrigerating equipment for leather industry, ice cream freezer etc.
  • Washing machines.
  • Lithium-ion batteries
  • Vacuum cleaners
  • Domestic electrical appliances such as food grinders and mixers & food or vegetable juice extractor, shaver, hair clippers etc
  • Storage water heaters and immersion heaters, hair dryers,  hand dryers, electric smoothing irons etc
  • Televisions upto the size of 68 cm
  • Special purpose motor vehicles. e.g., crane lorries, fire fighting vehicle, concrete mixer lorries, spraying lorries
  • Works trucks [self-propelled, not fitted with lifting or handling equipment] of the type used in factories, warehouses, dock areas or airports for short transport of goods.
  • Trailers and semi-trailers.
  • Miscellaneous articles such as scent sprays and similar toilet sprays, powder-puffs and pads for the application of cosmetics or toilet preparations.
  1. 28% to 12%
  • Fuel Cell Vehicle. Further, Compensation cess shall also be exempted on fuel cell vehicle.
  1. Refund of accumulated credit on account of inverted duty structure to fabric manufacturers:

Fabrics attract GST at the rate of 5% subject to the condition that refund of accumulated ITC on account of inversion will not be allowed. However, considering the difficulty faced by the Fabric sector on account of this condition, the GST Council has recommended for allowing refund to fabrics on account of inverted duty structure. The refund of accumulated ITC shall be allowed only with the prospective effect on the purchases made after the notification is issued.

III. GST rates have been recommended to be brought down from,-

  1. 18%12%/5% to Nil:
  • Stone/Marble/Wood Deities
  • Rakhi [other than that of precious or semi-precious material of chapter 71]
  • Sanitary Napkins,
  • Coir pith compost
  • Sal Leaves siali leaves and their products and Sabai Rope
  • PhoolBhariJhadoo [Raw material for Jhadoo]
  • Khali dona.
  • Circulation and commemorative coins, sold by Security Printing and Minting Corporation of India Ltd [SPMCIL] to Ministry of Finance.
  1. 12% to 5%:
  • Chenille fabrics and other fabrics under heading 5801
  • Handloom dari
  • Phosphoric acid (fertilizer grade only).
  • Knitted cap/topi having retail sale value not exceeding Rs 1000
  1. 18% to 12%:
  • Bamboo flooring
  • Brass Kerosene Pressure Stove.
  • Hand Operated Rubber Roller
  • Zip and Slide Fasteners
  1. 18% to 5%:
  • Ethanol for sale to Oil Marketing Companies for blending with fuel
  • Solid bio fuel pellets
  1. Rate change made in respect of footwear
  • 5% GST is being extended to footwear having a retail sale price up to Rs. 1000 per pair
  • Footwear having a retail sale price exceeding Rs. 1000 per pair will continue to attract 18%

 

Whether complete balance sheet as given in ITR 4 is required to shown while filing ITR 4

 Whether complete balance sheet as given in ITR 4 is required to shown while filing ITR 4  Uncategorized
Aug 092018
 

Section 44AD on presumptive income:

Section 44AD. (1) Notwithstanding anything to the contrary contained in sections 28 to 43C, in the case of an eligible assessee engaged in an eligible business, a sum equal to eight per cent of the total turnover or gross receipts of the assessee in the previous year on account of such business or, as the case may be, a sum higher than the aforesaid sum claimed to have been earned by the eligible assessee, shall be deemed to be the profits and gains of such business chargeable to tax under the head “Profits and gains of business or profession” :

(4) Where an eligible assessee declares profit for any previous year in accordance with the provisions of this section and he declares profit for any of the five assessment years relevant to the previous year succeeding such previous year not in accordance with the provisions of sub-section (1), he shall not be eligible to claim the benefit of the provisions of this section for five assessment years subsequent to the assessment year relevant to the previous year in which the profit has not been declared in accordance with the provisions of sub-section (1).

(5) Notwithstanding anything contained in the foregoing provisions of this section, an eligible assessee to whom the provisions of sub-section (4) are applicable and whose total income exceeds the maximum amount which is not chargeable to income-tax, shall be required to keep and maintain such books of account and other documents as required under sub-section (2) of section 44AA and get them audited and furnish a report of such audit as required under section 44AB.

Thus, as per the above provision in case for person having eligible business and having turnover upto two crore rupees declaring profit @ 8% shall be liable to keep books of accounts.

Disclosures in ITR 4:

As regards financial particulars of the business, ITR 4 for A.Y.2017-18 sought only information relating to amount of a) total sundry debtors, (b) total sundry creditors, (c) total stock-in-trade and (d) cash balance.

The new ITR 4 for A.Y.2018-19, in addition to sundry creditors, seeks details of partners/ members own capital, secured and unsecured loans, advances and other liabilities. The total capital and liabilities would be the sum of the figures of the above assets.

Likewise, in addition to the three items of assets which are required to be disclosed in ITR 4 for A.Y.2017-18, ITR 4 for A.Y.2018-19 seeks details of balance with banks, loans and advances and other assets. The total assets would be the sum of the figures of the above assets.

FINANCIAL PARTICULARS OF THE BUSINESS AS REQUIRED TO BE SHOWN IN ITR 4:

E11 Partners/ Members own capital E11  
E12 Secured loans E12  
E13 Unsecured loans E13  
E14 Advances E14  
E15 Sundry creditors E15  
E16 Other liabilities E16  
E17 Total capital and liabilities (E11+E12+E13+E14+E15+E16) E17  
E18 Fixed assets E18  
E19 Inventories E19  
E20 Sundry debtors E20  
E21 Balance with banks E21  
E22 Cash-in-hand E22  
E23 Loans and advances E23  
E24 Other assets E24  
E25 Total assets (E18+E19+E20+E21+E22+E23+E24) E25  
NOTE ► Please refer to instructions for filling out this schedule    
(E15, E19, E20, E22 are mandatory and others if available)    

Explanation F to section 139(9):

However Explanation (f) to section 139(9) mandates reporting of only turnover/ gross receipts, gross profit, expenses, net profit, total debtors, creditors, stock in trade and cash balance as at the end of financial year, for the return to treated as valid return of income. The same is reproduced as below:

For the purposes of this sub-section, a return of income shall be regarded as defective unless all the following conditions are fulfilled, namely :—

(f)  where regular books of account are not maintained by the assessee, the return is accompanied by a statement indicating the amounts of turnover or, as the case may be, gross receipts, gross profit, expenses and net profit of the business or profession and the basis on which such amounts have been computed, and also disclosing the amounts of total sundry debtors, sundry creditors, stock-in-trade and cash balance as at the end of the previous year.

Thus, a return shall not be regarded as defective in case complete balance sheet is not given in the return but amounts of turnover / gross receipts, gross profits, expense and net profit, sundry debtors, sundry creditors and cash balance is provided for as explained above.

Conclusion:

Thus , in case assessee is filing ITR 4 it is not necessary to disclosed particulars of balance sheet.

Applicability of ITR forms for AY 2018-19

 Applicability of ITR forms for AY 2018-19  Uncategorized
Jul 262018
 

Applicability of ITR forms for AY 2018-19

With the 31st July, 2018 is approaching nearby you are rushing behind your consultant for completing self-assessment process and filling your ITR. As you are aware that forms you submit to the department plays an important role in the assessment procedure and correct filing of forms saves you from needless penalties action. Under section 139(4) a return filed in wrong ITR can be treated as defective and you would returned to the consequences as if you have not filed the return. Hence, here we are trying to explain applicability of ITR in very simple manner.

Applicability of income tax return (ITRs’) forms based on nature of income:

  ITR 1        
NATURE OF INCOME (only ITR 2 ITR-3 ITR-4  
Resident  
  IND)        
Income from salary/pension (for ordinarily resident person) YES YES YES YES  
Income from salary/pension (for RNOR & NR person) – YES YES YES  
Income or loss from one house property (excluding brought forward & carried forward losses) YES YES YES YES  
Income or loss from more than one house Property – YES YES –  
Agricultural income exceeding Rs. 5,000 – YES YES –  
Total income exceeding Rs. 50 lakhs – YES YES YES  
Income from other sources (other than winnings from lottery and race horses or losses under this head) YES YES YES YES  
Income from other sources (including winnings from lottery and race horses or losses under this head) – YES YES –  
Capital gains/loss on sale of Capital assets – YES YES –  
Interest, salary, share of profit, etc. received by a partner from a partnership firm. – – YES –  
Income from business or profession (Non Speculative) – – YES –  
Income from presumptive business – – YES YES  
Income from Speculative Business and other special incomes – – YES –  
Income from an agency business or  income in the nature of commission or brokerage – – YES –  
Income from foreign sources/assets/any account outside India – YES YES    
Claim of relief of tax under sections 90, 90A or 91 – YES YES    
Dividend income exceeding Rs. 10 lakhs taxable under Section 115BBDA – YES YES    
Voluntary offer of income under Sections 68, 69, 69A, etc. [taxable at 60% u/s 115BBE) – YES YES    
Income to be apportioned under Section 5A (Relating to clubbing of Income for Portuguese Citizens) – YES YES YES  
Adjustments of Brought Forward Losses of earlier years – YES YES    

 

Case study on anti profiteering measure

 Case study on anti profiteering measure  Uncategorized
Jul 042018
 

Case study on anti profiteering measure

What is anti – profiteering measure:

As per section 171 of CGST act :- (1) Any reduction in rate of tax on any supply of goods or services or the benefit of input tax credit shall be passed on to the recipient by way of commensurate reduction in prices. (2) The Central Government may, on recommendations of the Council, by notification, constitute an Authority, or empower an existing Authority constituted under any law for the time being in force, to examine whether input tax credits availed by any registered person or the reduction in the tax rate have actually resulted in a commensurate reduction in the price of the goods or services or both supplied by him. (3) The Authority referred to in sub-section (2) shall exercise such powers and discharge such functions as may be prescribed.

How the reduction in rate of tax is calculated:

Reduction in rate of tax is considered to have exist when and only when total tax rate from manufacturing point to point of consumption is reduced, i.e., gross effective rate of tax on all stages of sale is actually reduced. This can be understood with an example:

Suppose we consider here the case of car to identify whether there is, in actual, reduction of rate of tax and if so, how much. For the this we need to compare tax expenditure in pre GST and post GST scenario in the below table:

Particulars of taxes applicable

Pre GST

Post GST

Benefit to pass on

Excise Duty

12.5

–
NCCD

1

–
Auto cess

.125

–
Infra cess

1

–
CST (.05% on 14.625%)

.0073125

–
VAT/GST

16.622

29
Total

31.254

29

2.2543 or Say 2%

Thus, in case there in 2% reduction in prices of cars is sufficient in compliance with the provisions of this act.

How the benefit of input tax credit is passed on to recipient:

Now, a question arise here is – how the benefit of ITC availed on account of excise duty, NCCD etc on the transition period is passed on the customer which in post GST scenario is not available to dealer.

Here, it is worth of noting that the entire scheme of GST is ITC based i.e. the recipient of the goods and services takes credit of GST paid by him on purchase of goods and services and uses such ITC while discharging GST output tax liability on supply of goods and services. Thus, in any case purchaser is going to purchase the car with ITC benefit and thus no extra benefit needs to be passed on the buyer.

Concluding remarks:

Though the anti-profiteering provision is in the law to curb mal-practices and is intended to operate against the supplier of goods / services. However, supplier shall not be harassed by using the cannons of section 171 of the GST law and if factual matrix proves that there is no unjust enrichment availed by the supplier. To be more precise, adjudication under section 171 is more on facts rather than law. The statutory provision is only an enabling provision to step in, if there is a case of anti-profiteering. Once it is admitted, the facts shall be deciding factor keeping the principles of legislative intention in mind. The Authority shall have to do so based on facts without going into much of legal interpretation.

Chennai New Profession Tax Slab 2018

 Chennai New Profession Tax Slab 2018  Uncategorized
Jul 022018
 

Chennai New Profession tax slab 2018

The Profession Tax assessment and collection is coming under the provision of tax on professions, trades, calling & employments, under the Tamil nadu Municipal Laws (Second Amendment) Act 1998 Profession Tax is higher source of income next to Property Tax. The Profession Tax assessment is calculated based of the Half Yearly gross income for the following categories.

  • Individuals
  • Private Establishment
  • Salaried People (Central and State Govt.)
  • Company

Every Company transacts business and every person who is engaged actively or otherwise in any Profession, Trade, Calling and Employment with the Greater Chennai Corporation city limits has to pay half-yearly Profession Tax, as per section 138 C of Tamil nadu Municipal Laws Second Amendment Act 59 of 1998. The tax rates are given below in the table in Form-2. for assessment of Profession Tax has to make an application for registration.

Based on the gross income declared by the Half Yearly Profession Tax will be calculated as per the Table given below:

After 10 Years the respective act has been amended he new slab is given below
Sl.No. Average Half-Yearly Income Half Yearly Profession tax Old Slab
Rs.		 Half yearly Profession Tax w.e.f. 01.04.2018
Rs.
1 Up to 21,000 — NIL NIL
2 21,001 30,000 100/- 135/-
3 30,001 45,000 235/- 315/-
4. 45,001 60,000 510/- 690/-
5 60,001 75,000 760/- 1025/-
6 75,001 and above 1095/- 1250/-

Courtesy: Prakash Consultancy Services

Due dates for the Month of July 2018

 Due dates for the Month of July 2018  Uncategorized
Jul 022018
 

Due dates for the Month of July 2018
7th
 Income Tax
– TDS Payment for June
10th
 GST
– Details of outward supplies of taxable goods and/or services effected – GST1 for June
– Return for authorities deducting tax at source – GSTR 7 for June
– Details of supplies effected through e-commerce operator and the amount of tax collected –
GSTR 8 for June
13th
 GST
– Return for Input Service Distributor – GSTR 6 for June
15th
 Provident Fund
– PF Payment for June
ESIC
– ESIC Payment for June
15th
 GST
– Details of inward supplies of taxable goods and/or services effected claiming input tax credit – GSTR 2 for June
18th
 GST
– Return for compounding taxable person – GSTR 4 for April to June
20th
 GST
– Monthly return on the basis of finalisation of details of outward supplies and inward supplies along with the payment of amount of tax – GSTR 3 for June
– Return for Non-Resident foreign taxable person – GSTR 5 for June
28th
 GST
– Details of Inward Supplies to be furnished by a person having UIN and claiming refund – GSR 11 for June.
31st
 Profession Tax
– Monthly Return (covering salary paid for the preceding month) (Tax Rs. 50,000 or more)
31st
 Income Tax
– TDS / TCS Quarterly Statements (Other than Government deductor) for April to June
– Return of Income for Non-Corporate assessees
Sensys Technologies Pvt. Ltd.
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Tel.: 022-66278600 | Call: 09769468105 / 09867307971
Email: sales@sensysindia.com | Website: http://www.sensysindia.com
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Reduction of PF Admin Charges from 0.65 % to 0.50%

 Reduction of PF Admin Charges from 0.65 % to 0.50%  Uncategorized
Jun 282018
 

Reduction of PF Admin Charges from 0.65 % to 0.50%

Dear Employer

Good News Reduction of PF Admin Charges from 0.65 % to 0.50%  the said reduction is effective from 1st June 2018 subject to a minimum sum of seventy-five rupees per month for every non-functional establishment having no contributory member and five hundred rupees per month per establishment for other establishments.

Download Notification:- Reduction of PF Admin Charges

Now the total challan amount  will be

Ac No. 1  :-    12+3.67%
Ac No   10 :-  8.33%
Ac No 2 :-       0.5%
Ac No 21:-     0.5%

Ac No 22:-     Nil……..

Total contribution will be 25 %

For your Knowledge purpose & record purpose appended below is the road map of EPF ADMINISTRATIVE CHARGES PAYABLE BY THE EMPLOYERS OF UN-EXEMPTED ESTABLISHMENTS

EPF ADMINISTRATIVE CHARGES PAYABLE BY THE EMPLOYERS OF UN-EXEMPTED ESTABLISHMENTS
Period Rate Reckoned on
01.11.1952 to 31.12.1962 3% Total employers’ and employees’ contributions.
01.01.1963 to 30.09.1964 3% Total employer’s and employees’ contributions payable @ 6.25%.
2.4% Total employer’s and employees’ contributions payable @ 8%.
01.10.1964 to 30.11.1978 0.37% On total pay on which contributions are payable.
01.12.1978 to 30.09.1986 0.37% On total pay on which contributions are payable. Minimum

Administrative charges payable per month per establishment was Rs. 5/-.
01.10.1986 to 31.07.1998 0.65% On total pay on which contributions are payable. Minimum

Administrative charges payable per month per establishment was Rs. 5/-.
01.08.1998 to 31-12-2014 1.10% On total pay on which contributions are payable. Minimum

Administrative charges payable per month per establishment is Rs. 5/-.
01.01.2015 to 31.03.2017 0.85% On total pay on which contributions are payable. Minimum

Administrative charges payable per month per establishment is Rs. 500/-.
01.04.2017 onwards 0.65% On total pay on which contributions are payable. Minimum

Administrative charges payable per month per establishment is Rs. 500/-.

Courtesy: Prakash Consultancy Services

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