Aug 132014
 

WHO ARE LIABLE TO DEDUCT

For the purposes of Works Contract TDS, a person who is liable INCLUDES :-

(i)                 Central/State Government,

(ii)               A local authority,

(iii)             A corporation or body established by or under a Central or State act

(iv)             A company incorporated under Companies Act,1956 including Central or state Government undertaking;

(v)               A society

(vi)             An educational institution ; or

(vii)           A Trust

 

WHEN TAX NEEDS TO BE DEDUCTED

Every person , as above, who are paying ay sum to any dealer for execution of works contract shall, AT THE TIME OF PAYMENT of such sum, deduct TDS at the rates as mentioned below :-

 

Type of Contract % of WCT-TDS
Civil Works Contract 2% of the total amount payable to such dealer
Civil Maintenance Works Contract 2% of the total amount payable to such dealer
All other works contracts 5% of the total amount payable to such dealer

 

EXCEPTIONS

No deduction of tax shall be made in the following circumstances :-

(i)                 no transfer of property in goods is involved in the execution of such works contract , or

(ii)               transfer of property in goods is involved in the execution of works contract in the course of inter-state trade or commerce or in the course of import ; or

(iii)             the dealer produces a Certificate in Form “S” from the assessing authority that he has no liability to pay or has paid the tax.

(iv)             When the total payment does not exceed Rs. 1 Lakh per annum.

 

TIME LIMIT FOR DEDUCTION

The person making payment of WCT TDS shall deposit the sum so deducted to the assessing authority having jurisdiction over the person or to any other authority authorized (In Chennai :- TDS Circle, Greams Road) on or before 20th day of the succeeding month in which the deduction was made.

 

RELEVANT FORMS

 

Sl No Nature of Form Form No
1 Statement of Tax Deduction (to be filed by the person deducting tax) Form R
2 Certificate (to be obtained by the dealer) for no deduction of WCT TDS Form S
3 Certificate of TDS (to be provided by the person deducting tax) Form T

TIME LIMIT FOR ISSUE OF TDS CERTIFICATE

 Any person who makes TDS and Depositing the same , shall within 15 days of such deposit, issue the dealer, a Certificate in Form T, for each deduction separately.

LATE PAYMENT

In case the amount of paid late, the person who is responsible for deduction of tax shall pay, in addition to the sum deducted, Interest @ 2% per month on TDS or the entire period of default.

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Jun 092014
 

The Tamilnadu Government has issued a Notification GO (Ms) No 41 dtd 02/06/2014 amending the Annexure III to Form I monthly return.

In the amended Annexure III , a specific line item for “ITC Reversal for CST Sales against C Form” has been added and the same is w.e.f 02/06/2014.

In view of the above, details of ITC Reversal on account of CST Sales Against C Form shall be given seperately from May 2014 monthly return onwards.

The relevant notification is reproduced below :-

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Mar 282014
 

The Government of Tamilnadu has issued a new notification dtd 25th March 2014.

As per this new notification, every registered dealer , who is liable to pay tax under TNVAT Act & whose turnover exceeds Rs. 2 Crores during the previous year, shall pay the tax due only by means of electronic payment only through the website of the TNVAT Department. This is effective from 1st April 2014.

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Feb 032014
 
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The Tamilnadu Commercial Tax Department has issued a new Circular No 2/2014 prescribing the revised guideline and procedures to be adopted for Registration and Issue of Registration Certificate to dealers.

The salient features of this circular are as follows :-

1) Previously, application for new registration of a business in respect of six evasion prone commodities (viz., Electrical goods, Iron & Steel, Tiles & Marbles, Timber, Edible oil and Granite) were subject to enforcement Scrutiny and after completion of this scrutiny only registration formalities was completed by the respective jurisdictional officers. Now the pre-inspection of places of business in respect of all commodities have been made mandatory.

2) New Applicants shall be given acknowledgement slip on receipt of the application.

3) The documents shall be completely scrutinized for correctness and a date for the pre-inspection (within a week) shall be fixed.

4) The officer , at the time of pre-inspection , shall check the genuineness of the ownership of the building, suitability of the building for storing the goods, and also shall ensure the validity of various address & identity proofs provided by the applicant.

5) With regard to Security deposit, the existing procedure as per Rule 5 shall be followed.

The relevant circular is reproduced below :-

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Dec 042013
 

The Government of Tamilnadu had amended the Form I by introducing Annexure – V in respect of ITC Claimed and carried forward. In view of the various representations received from various trade & industries, the Commissioner of Commercial Taxes has issued certain clarifications with regard to filing of Form I along with Form I.

The clarifications provided by the Circular No 12/2013 dtd 3/12/2013 are as follows :-

1) Annexure-V needs to be filed only in cases where Input Tax Credit (ITC) is carried forwarded.

2) Since the amendment is effective from 1st November 2013, Annexure V shall be filed only in respect of monthly returns for November 2013.  The return in respect of October 2013 need not be filed along with Annexure V

3) Where in some business concerns, many number of goods are being traded, it is not necessary to provide details of all the goods. Those goods shall be grouped code wise and the relevant particulars shall be provided.  Hence there will be only one value for one rate of tax.

4) Quantitative details of the stock need not be provided

5) In certain specific circumstances, ITC would be carried forward without proportionate stock of goods.In such cases, NIL Stock filed by the dealer should be accepted.

The relevant circular is reproduced below :-

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Dec 012013
 

The following are the Various Statutory Obligations for the month of December 2013.

Payment of Advance Tax

The last date for Payment of Advance Tax (3rd Instalment in case of Companies & 2nd Instalment in case of Non Companies) for the A.Y.2014-15 is 15th December 2013.

Click here to make Advance Tax Payment online.

Click here to download Challan for Payment of Advance tax

Payment of Service Tax

The last date for Payment of Service tax pertaining to the month of November 2013 is 5th of December 2013. In case of e-payment, the due date is 6th of December 2013.

In case of payment by Challan GAR 7, click here to download the Challan

In case of e-payment of Service Tax, Click here to make the payment online.

Remittance of Tax Deduction at source

The due date for remitting Tax Deducted at Source (TDS) on Salary & Non-salary payments during the month of November 2013 is 7th of December 2013.

Click here to pay the TDS online.

Monthly Return and Payment of Tax under TNVAT

The monthly returns filing and the payment of TNVAT has to be complied on or before 20th of December for the month of November 2013.

Payment of 50% of the Tax as per Form VCES-2 for assessees who have declared under VCES Scheme :-

The 50% of the tax liability as declared and accepted under the Voluntary Complaince Encouragement Scheme 2013 (Service Tax) has to be paid on or before 31st of December 2013.

Filing of declaration under VCES

The last date for filing declaration in VCES-1 for claiming the immunity from Interest & Penal provisions in respect of Service Tax Voluntary Compliance Encourgement Scheme 2013 is 31st December 2013.

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Nov 292013
 

The Tamilnadu Government has made few important amendments in TNVAT Act with regard to reversal of Input Tax Credits in respect of Inter-state sales and Stock Transfers outside the State.

These amendments were carried out by enacting a Tamilnadu VAT (Fifth Amendment) Act, 2013 (Amendment Act) on 8th November 2013.

The effective date for these amendments is 11th November 2013.

The effect of these amendments are as follows :-

Sl. No
Nature of Transaction
Position upto 11th Nov 2013
Position w.e.f 11th Nov 2013
1Inter-state sales against C Form (Chargeable to tax @ 2% at present)No reversal of ITC RequiredInput Tax Credit allowed in excess of 3% of Tax
2Stock Transfers outside the state (ie) Transfer outside the state otherwise than by sales.ITC allowed in excess of 3%.ITC allowed in excess of 5% of tax.

The relevant Notifications are reproduced below :-

Download (PDF, 367KB)

Download (PDF, 16KB)

 

Nov 032013
 

As per the new TNVAT notification No GO ( MS) 137 dtd 31-10-2013, issued by the Commercial tax Department, w e f 1st Nov 2013, the TNVAT monthly returns shall be appended with new Annexure V wherein details of the closing inventory at the end of every month with Input tax credit there on shall be provided. The details in this annexures are to be provided mandatorily in case Input tax credit is being carried forward to next month.

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The relevant notification is reproduced below :-

Download (PDF, 1.21MB)

 

 

Oct 312013
 

The Tamilnadu Commercial Tax Department has extended the Last date for filing the TNVAT Audit Report for the year ending 31st March 2013 till 31st December 2013.

As per the existing provisions, the TNVAT Audit report in Form WW shall be filed within 7 months from the end of the Financial year. As per the amendment notification GO MS(No 136 dtd 31/10/2013, the said period of 7 months has been changed to 9 months. Thus , effectively the last date for filing the TNVAT Audit report will be 31st of December every year.

The relevant notification in this regard is reproduced below :-

Download (PDF, 1.09MB)

Aug 022013
 

The following are the Various Statutory Obligations for the month of July 2013.

Payment of Service Tax

The last date for Payment of Service tax pertaining to the month of July  2013 is 5th of Aug 2013. In case of e-payment, the due date is 6th of August  2013.

In case of payment by Challan GAR 7, click here to download the Challan

In case of e-payment of Service Tax, Click here to make the payment online.

 

Remittance of Tax Deduction at source

The due date for remitting Tax Deducted at Source (TDS) on Salary & Non-salary payments during the month of July 2013 is 7th of Aug 2013.

Click here to pay the TDS online.

 

Monthly Return and Payment of Tax under TNVAT

The monthly returns filing and the payment of TNVAT has to be complied on or before 20th of Aug  for the month of July 2013.

 

Service Tax Half yearly return for the period from Oct 2012 to Mar 2013

The last date for filing Service Tax returns in respect of the period from Oct 2012 to Mar 2013 is 31st of August 2013.

 

Extended time limit for filing of Income tax return for Salaried / Non Audit Business & Other assessees

The Last date for filing of Income-tax Returns is 5th  Aug 2013 in respect of the following assessees :-

1) Salaried Employees

2) Business Cases where the Turnover does not exceed Rs. 1 Crore and not required to get their accounts audited.

3) Other Assessees.

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