TDS Applicability on Custom House Agent & Principal Payment.

TDS applicable under Head of Custom House Agent Bill on Status of Agent, which are as under:

U/s. 194C - Shipping Line Charges, Stamp Duty, Insurance etc.,
U/s. 194J - Survey and
U/s. 194C - CFS Charges, Cargo Transportation, Uploading Charges etc.

Condition 1 : If CHA Service Charges & Reimbursement Charges Bill Are Separate.

If Bill is Separate then TDS is not applicable to CHA but if we lift the veil because of "CHA is agent only" then expense addressed to Principal Company, then This Principal Co. is liable to deduct TDS on these expenses and Co. should book expense on respective head. However Mode of deduction is not prescribed because all payment are routing through agent,  but Co. should advise to agent to pay them ( respective exp ) net amount which is after deduction amount  and claim only net amount for using his cash flow on behalf of Co,  and Co. should transfer to CHA after tds deduction on that part the same net amount.

Condition 2 : If CHA Service Charges & Reimbursement Charges Bill Are Not Separate and it is Consolidated Bill

If Bill is not Separate then TDS is applicable on whole amount including this reimbursement amount irrespective of this, that he is agent. However expense head Co. should book expense head, as per their nature.  Applicability of section will be 194C however department is asking some time it u/s 194J. Company can go ahead with 194C also based on judgement of time

TDS applicable under Head of Custom House Agent Bill on Status of Principal, which are as under:

U/s. 194C - Handling Charges, Service Charges etc.

Condition 1 : If CHA Service Charges & Reimbursement Charges Bill Are Separate.

TDS is applicable on this part in all case. As a Industry Practice they are deducting u/s 194C, but department is asking in many survey u/s 194J. Principal Co. can go ahead with 194C also based on judgement of time

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No TDS from distribution of rental income earned by a society on behalf of its member.

No TDS from distribution of rental income earned by a society among its members.

Tax deducted at source (TDS) and Tax collection at source (TCS), as the very names imply aim at collection of revenue at the very source of income. It is essentially an indirect method of collecting tax which combines the concepts of “pay as you earn” and “collect as it is being earned.” Its significance to the government lies in the fact that it prepones the collection of tax, ensures a regular source of revenue, provides for a greater reach and wider base for tax. At the same time, to the tax payer, it distributes the incidence of tax and provides for a simple and convenient mode of payment.

This are the most commonly credited accounts in profit & loss account of any Co-operative Housing Society. They are credited under different heads namely Maintenance charges Municipal Taxes, Electricity Charges, Lift Maintenances Charges, Water Charges, vehicle rents on behalf of its member owning those vehicles etc.

It may be emphasized that the society merely acts as an agent who collects this charges on behalf of members & spends the same to meet the various joint expenses of the society. Any surplus generated due to these types of income is not chargeable to tax as it is exempt based on the ‘concept of Mutuality’. The basic principle of Mutuality is a mutual association arises when persons forming a group; associate together for a common object and contribute money for achieving that object and divide the surplus amongst them in the character. The cardinal requirement in case of mutual association is that “All the contributors to the common fund must be entitled to participate in the surplus & all the participators to the surplus must be contributors to the common trade. In other words there should be complete identity between the contributors and the participators.

Where assessee co-operative society having collected jeep rentals on behalf of its members owning those jeeps, remitted said amount to members, it being a welfare activity and there was no element of work contract involved, assessee was not required to deduct tax at source while making remittance in question.

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TDS on Income from Pension for Asstt. Year 2014-15.

In the case of pensioners who receive their pension from a nationalized bank, the instructions contained in this circular shall apply in the same manner as they apply to salaryincome.  The deductions from the amount of pension under section 80C on account of contribution to Life Insurance, Provident Fund, NSC etc., if the pensioner furnishes the relevant details to the banks, may be allowed.

Necessary instructions in this regard were issued by the Reserve Bank of India to the State Bank of India and other nationalized Banks vide RBI's Pension Circular(Central Series) No.7/C.D.R./1992 (Ref. CO: DGBA: GA (NBS) No.60/GA.64 (11CVL)-/92) dated the 27th April 1992, and, these instructions should be followed by all the branches of the Banks, which have been entrusted with the task of payment of pensions.

Further all branches of the banks are bound u/s 203 to issue certificate of tax deducted in Form 16 to the pensioners also vide CBDT circular no. 761 dated 13.1.98.

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Clarification on Benefits of Bunching increments.

FAX/Speed Post

OFFICE OF THE PRINCIPAL CONTROLLER OF ACCOUNTS (FYS)

10-A. S.K.BOSE ROAD. KOLKATA- 700001

No, Pay/Tech-II/04/2013/11

Date: 21/03/2013

To
All Csof F&A(Fys.)/All Br. A.Os.

Sub:- Benefits of Bunching increments to Master Craftsman

In continuation to this office earlier important circular of even no. dated 26/08/2011( Point No.E) it is intimated that pay of the Master Craftsman who were drawing pay between 4500 to 5375 (5th CPC) as on 01/01/2006 may be fixed by allowing bunching benefit in terms of 1st Proviso under Rule 7A(ii) of CDS(RP) Rules 2008 as per the table given below:

Pre-revised Basic Pay	Pay in the Pay Band (Revised Scale)	Grade Pay (Rs.)
4500	9300	4200
4625	9300	4200
4750	9580	4200
4875	9580	4200
5000	9870	4200
5125	9870	4200
5250	10170	4200
5375	10170	4200

sd/-

Asst. controller of Accounts (Fys)

Source: www.pcafys.nic.in

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Check Your Tax Arrear Demand.

As a Taxpayer friendly initiative, a facility to view details of Arrear Demand of taxpayers as communicated by their Jurisdictional Assessing Officers (A.O.) to the Central Processing Centre (CPC) is now enabled on the e-filing website i.e. https://incometaxindiaefiling.gov.in/portal/index.do. Taxpayers can now log in to ‘My Account’ window and view their Arrear Demand.

In case of any discrepancy please contact Nodal Officer of concerned CCIT charge designated for Demand Management Fortnight which has been extended for the period 24-09-2012 to 05-10-2012.

A list of Nodal Officers with contact details is also available on this website.

Read More to view about Arrear Demand Click Here
 
Click Here to view your Nodal Officer

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Clarification on TDS deduction on arrears of Salary paid to Employee by Government / State Government.

Most of employee enjoying 6th Pay and its arrears also paid by the Central Government & State Government also to employee's. Apart from this till today some employee will not got 6th Pay Arrears such Teacher of U.G. & P.G. Colleges as prescribed by the UGC. Now a days the employee got arrears and thus major part of deduction of Tax at source thus the Clarification are as follows:

Clarification regarding tax deduction at source on arrears of salary paid to Government servants on account of implementation of the recommendations of Sixth Central Pay Commission

Press Release No. 402/92/2006-MC (46 of 2008), dated 30-9-2008

The Implementation Cell of the Department of Expenditure, Ministry of Finance vide its Office Order F. No. 1/1/2008-IC, dated 30th August, 2008 has stated at Para 2(v) :

“Bills may be drawn separately in respect of the arrears of pay and allowances for the period from January 1, 2006 to August 31, 2008. The aggregate arrears, computed after deduction of subscription at enhanced rates of GPF and NPS with reference to the revised pay, may be paid in two instalments, the first instalment being restricted to 40 per cent of the aggregate arrears. DDOs/POs will ensure that action is taken simultaneously in regard to Government’s contribution towards enhanced subscription. Orders in regard to the payment of the second instalment of arrears will be issued separately.”

2. A number of representations have been received by Central Board of Direct Taxes (CBDT) seeking clarification as to whether TDS need to be deducted on 40 per cent of arrear to be paid during 2008-09 or on the entire arrear payable to the Government servant. The matter has been examined by the CBDT and the issue is clarified as under:—

Salary is as defined under section 15 of Income-tax Act, 1961:—

(a) any salary due from an employer or a former employer to an assessee in the previous year, whether paid or not;

(b) any salary paid or allowed to him in the previous year by or on behalf of an employer or a former employer though not due or before it became due to him;

(c) any arrears of salary paid or allowed to him in the previous year by or on behalf of an employer or a former employer, if not charged to income-tax for any earlier previous year.

3. It is clear from the Office Memorandum issued by the Department of Expenditure that 60 per cent of the pay arrears neither fall in the category of due nor are allowed. Moreover, section 192 of Income-tax Act, 1961, inter alia, requires any person responsible for paying any income chargeable under the head “Salaries” to deduct income-tax on the amount payable at the stipulated rate at the time of payment. Therefore it is clarified that Income-tax at source would be deducted under section 192 only from the arrears of salary actually paid during financial year 2008-09. On the balance, tax would be deducted during the financial year in which these pay arrears are actually paid.

4. The above clarification has been issued by the CBDT vide Circular No. 9/2008. [F.No. 275/192/2008-IT(B)] dated 29th September, 2008.

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Free Download, TDS Calculator For Calculations of TDS Deductions Monthly for A.Y. 2013-14

As you know, last time we published TDS Calculator with Current D.A. & other Allowance, but This TDS Calculator is based on features D.A. Rates and Current D.A. of current Financial Year 2012-13. It is a simple and most useful TDS Deductions Calculator for Assessment Year 2013-14 Excel Utility (software) with Free Download Facility. This software calculate TDS Deductions monthly for A.Y. 2013-14 with all qualifying Deductions and other eligible Deductions.

Key Features of this the Software:

• Calculate Gross Income as per current D.A. Rates
• Calculate Gross TDS Tax Liability
• Display Monthwise Salary Statement
• Davide TDS Liability Monthly.

How to Use this Calculator?

• Enter Date as required by Software in only "White Field".
• Press Button to Calculate Tax Liability and Monthly Salary Statement.

Picture of Calculator.

Free Download Facility only for Registered Members
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