Thursday, July 6, 2017

What is FORM 26QC ?

What is FORM  26QC ?

The active payment challan format not yet  launched. 

What is FORM 26QC ?


What is FORM  26QC ?

From 1st June, 2017 individuals & HUF’s who are not under Tax audit(under section 44AB) while paying the rent of Rs. 50,000 or more (for a month) needs to deduct 5% TDS from the rent as per section 194IB.

TDS shall be paid to the credit of Central Government and be deposited in the authorized bank within 30 days from the end of month when tax was deducted.

This deposit has to be accompanied by the newly introduced challan-cum-statement of deduction of tax in Form No. 26QC.

This payment needs to be made in electronic mode. The active payment challan format not yet  launched.
What is  Form 16C ?

Form 16C is the newly introduced TDS certificate to be issued by rent payer (deductor) i.e. individuals & HUF’s who are not under Tax audit (under section 44AB), paying a rent of Rs. 50,000/- or above per month, to the rent receiver (deductee) as per section 194IB.
Form 16C contains the following details of the deductor and deductee i.e. name, address and PAN and other details like certificate number, financial year of deduction, unique acknowledgement number, amount paid, date, amount of tax deducted and deposited and challan details.

-          tax deducted is to be deposited accompanied by a challan-cum-statement in Form No.26QC electronically within thirty days from the end of the month in which the deduction is made.”
-          certificate of deduction of tax at source in Form No.16C within fifteen days from the due date for furnishing the challan, rule 31A after generating and downloading the same from the web portal










SECTION 194IB – TDS ON RENT (FOR INDIVIDUALS & HUF)


What is FORM  26QC ?

From 1st June, 2017 individuals & HUF’s who are not under Tax audit(under section 44AB) while paying the rent of Rs. 50,000 or more (for a month) needs to deduct 5% TDS from the rent as per section 194IB.

TDS shall be paid to the credit of Central Government and be deposited in the authorized bank within 30 days from the end of month when tax was deducted.

This deposit has to be accompanied by the newly introduced challan-cum-statement of deduction of tax in Form No. 26QC.

This payment needs to be made in electronic mode. The active payment challan format not yet  launched.
What is  Form 16C ?

Form 16C is the newly introduced TDS certificate to be issued by rent payer (deductor) i.e. individuals & HUF’s who are not under Tax audit (under section 44AB), paying a rent of Rs. 50,000/- or above per month, to the rent receiver (deductee) as per section 194IB.
Form 16C contains the following details of the deductor and deductee i.e. name, address and PAN and other details like certificate number, financial year of deduction, unique acknowledgement number, amount paid, date, amount of tax deducted and deposited and challan details.

-          tax deducted is to be deposited accompanied by a challan-cum-statement in Form No.26QC electronically within thirty days from the end of the month in which the deduction is made.”

-          certificate of deduction of tax at source in Form No.16C within fifteen days from the due date for furnishing the challan, rule 31A after generating and downloading the same from the web portal










Thursday, June 22, 2017

How is 'Services' defined in GST?

Services is defined in GST as anything other than goods.
Money and securities have specifically been excluded from the definition of services. However specified transactions in money have been included – activity relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination to another form, currency or denomination for which a separate consideration is charged.
Thus the meaning of service is much enlarged from the existing meaning in service tax law. There was  a view that real estate can now be termed as service as it is not “goods”. However,in the final CGST Act sale of land and buildings has been listed as one of the transactions that will be treated as neither a supply of goods or of service under Schedule III of the CGST Act.

What is the meaning of supply under GST?

Supply is defined to include all forms of supply of goods and/or services such as sale, transfer, barter, exchange, license, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business. It also includes importation of services for a consideration whether or not in the course or furtherance of business.
Normally a supply will involve two independent persons. However, GST makes transactions between two branches of the same legal entity in different States/ countries or two different registrations within the same State also taxable under GST.
Transactions of supply of goods between principals and agents which are not subject to tax in present regime are taxable supplies under GST as these have been treated as supplies under Schedule I of the CGST Act.
The definition of supply is inclusive and thus of the widest possible connotation.

What is the charging event for levy of GST?

The charging event of levy is the event which determines whether an activity attracts the charge. However tax may be collected before or after the event for the sake of administrative certainty or convenience.
GST is leviable on-
•   Supply of
•   Goods /or services
•   By a taxable person
•   At value determined and at such rate as may be notified by Central/State    Government on recommendation of the GST Council
•   And collected in the manner as prescribed.

What are the unique features of Indian GST?

GST will be a dual levy in India and the eligible transactions will be subject to levy of both Central Tax and State Tax. There shall be Integrated Tax by Centre in the case of inter-State supplies and imports/ exports. Certain goods and services will be subject to a further levy of GST Compensation Cess. Supplies to or from Union Territories will also be treated as inter-State supplies. Supplies within a Union Territory without legislature will be charged to UT Tax. Certain products are out of the ambit of GST e.g. petroleum products, tobacco and tobacco products etc.
There will be a single common market with goods and services moving seamlessly in the entire country. Tax credits would be available even on inter-State supplies