Relaxation of the due date for the uploading of e-returns for the period ending September 2009

TRADE CIRCULAR

 

 

Date: 30.10.2009

No. VAT/VAT Ret/ 

Trade Cir. No. 29 T of 2009

 

Sub : Relaxation of the due date for the uploading of e-returns for the period ending September 2009

Ref : Trade Circular No. 16T of 2008 dated 23-4-2008.

 

 

 

Gentleman/Sir/ Madam,

 

The due date for filing of returns for the period ending September 2009 is 21st October 2009, as provided in Rule 17 under the Maharashtra Value Added Tax Rules, 2005.

 

2. After the introduction of the e returns, the dealers were required to make the payment of tax within the prescribed date, but were permitted to upload the e returns within 10 days from the due date prescribed in the said Rule 17 (Please refer Trade Circular No 16T of 2008) Thus the dealers, who paid the tax within the due date and upload the e return within the aforesaid period shall not be treated as late filers.

 

3. Large number of representations have been received requesting to extent the date for uploading e-return for the period ending September 2009. It has been further stated that many dealers could not upload their e-return till date. These requests have been considered favorably and now it is decided to allow to upload the e-return for period ending September 2009 till 09/11/2009.

 

4. Needless to state that, the extension of date is only for uploading the e-return. The due date for payment of tax remains unchanged.

 

5. This circular cannot be made use of for legal interpretation of provisions of law as it is clarificatory in nature. If any member of the trade has any doubt, he may refer the matter to this office for further clarification.

 

6. You are requested to bring the contents of this circular to the notice of the members of your association.

 

 

 

 

 

Yours faithfully, 

 

sd/- 

 

(SANJAY BHATIA)

Commissioner of Sales Tax,

Maharashtra State, Mumbai.

TV Serials Accounting and Capital Gain on forfeiture of shares

Query:

We are producers of television serials. How should we do accounting and offer income for taxation?

 

Reply:

For the purposes of Income Tax Act, 1961 the income of a television serial producer should be recognised on episode basis.

 

In general, income of a television serial producer is to be recognised for the purposes of Income Tax Act, 1961 when the episode gets telecast. The income will be consideration for each episode from the broadcasting company on whose channel the programme gets telecast. That is the time when invoice is generally raised by the serial producer.

 

In respect of mega serials, in the initial periods costs are high and TRP may pick up after some episodes with the result that income in respect of later episodes will be higher than that in earlier ones.

 

The episodes which are in the making will be treated as work-in-progress. Episodes produced but not yet telecast would be a part of finished stock. On telecast income accrues. In a case wherein the channel sells time to the serial producer, income of the producer will be out of advertisements. Generally IPR of the serials is retained by the broadcasting company. Broadcasting company may have in-house production or may outsource the same. Rule 9A of the Income Tax Rules, 1962 applies only to a producer of feature film and it does not apply to a television programme producer.

 

 

Query:

I had applied for shares. After paying application and allotment money I had received shares pending call money. Then I got adverse reports about the company and therefore did not pay call money and my shares got forfeited. Whether I will get set off of this loss against my salary income?

 

Reply:

On forfeiture of your shares for whatsoever reasons, your rights in the shares got extinguished. Your partly paid shares were capital asset in your hands. Extinguishment of rights in a capital asset is one of the modes of transfer visualized in section 2(47) of the Income Tax Act, 1961. Thus, forfeiture and cancellation of shares amounted to transfer of capital asset and in all probability it was a case of short term capital loss. A short term capital loss can be adjusted only against any other capital gains whether short term or long term. If the same cannot be adjusted against capital gains of the current year, then to the extent it cannot be set off, the same can be carried forward and set off against capital gains of subsequent year(s). Carry forward is possible for a maximum period of subsequent eight assessment years.

Adapted from  -
Properties, Laws & Taxes" in DNA Newspaper dated 03 10 2009 written by Ghia Tarun Jamnadas.

Reproduced here just as a compilation for the convenience of the readers.

Tax Audit Date Extended

The Central Board of Direct Taxes ( CBDT ) has granted a one month
extension for filing returns to all tax payers in Pune, Kolhapur and Sangli.

Notification in this regard will be issued by the CBDT on Tuesday.

Merger of Firms - Seniority Issue Resolved by ICAI

ANNOUNCEMENT

MERGER OF FIRMS – SENIORITY/ FIRM NAME ISSUES

To give boost to the capacity building of the Chartered Accountants firms, the Council in its 250^th meeting held in April 2005 had approved a scheme envisaging merger of two or more firms of Chartered Accountants into one firm so that larger firms could come into existence. 

 

The Council in its 280^th meeting held in August, 2008 while considering issues relating to seniority of firm and name of the merged firm as a consequence to the merger of firms restated that as and when two or more firms of Chartered Accountants merge, the seniority of the oldest firm amongst the merging firms will be given to the merged firm and the merging firms will have flexibility to choose a name of the merged firm provided the provisions of the Regulation 190 are duly met and the seniority will be reflected as deemed seniority in the firm constitution certificate. 

 

While considering a specific question as to whether such a decision will also apply to previous merger cases (i.e. prior to August 2008), the Council in its 288^th meeting clarified that the decision already taken by it in its 250^th meeting held in April 2005 will apply to all merger cases which had taken place effective from April 2005 onwards i.e. the decision be given effect retrospectively.

 

In other words, the principles of seniority and choosing the name of merged firm in accordance with the above decision of the Council will be effective in respect of all merger of Chartered Accountants firms which have taken place from April 2005 onwards.

 

17^th September 2009                                                                            Secretary

No Service Tax on construction of canals by Government agencies

Circular No. 116/10/2009-S.T., dated 15-9-2009

On a reference being received by the Board, two following issues were examined for a clear understanding of facts. The first is regarding leviability of service tax on construction of canals for Government projects.

1. As per section 65 (25b) of the Finance Act, 1994 “commercial or industrial construction service” means —

(a) construction of a new building or a civil structure or a part thereof; or

(b) construction of pipeline or conduit; or

(c) completion and finishing services such as glazing, plastering, painting, floor and wall tiling, wall covering and wall papering, wood and metal joinery and carpentry, fencing and railing, construction of swimming pools, acoustic applications or fittings and other similar services, in relation to building or civil structure; or

(d) repair, alteration, renovation or restoration of, or similar services in relation to, building or civil structure, pipeline or conduit, which is —

(i) used, or to be used, primarily for; or

(ii) occupied, or to be occupied, primarily with; or

(iii) engaged, or to be engaged, primarily in, commerce or industry, or work intended for commerce or industry, but does not include such services provided in respect of roads, airports, railways, transport terminals, bridges, tunnels and dams.

2. Thus the essence of the definition is that the “commercial or industrial construction service” is chargeable to service tax if it is used, occupied or engaged either wholly or primarily for the furtherance of commerce or industry. As the canal system built by the Government or under Government projects, is not falling under commercial activity, the canal system built by the Government will not be chargeable to service tax. However, if the canal system is built by private agencies and is developed as a revenue generating measure, then such construction should be charged to service tax.

3. The second issue is about Government taking up construction activity of dams, irrigation projects buildings or infrastructure construction etc. through turnkey or EPC (Engineering Procurement & Construction) mode. The said service is covered under section 65 (105) (zzzza) of Finance Act, 1994. The said section itself excludes works contract in respect of dams, tunnels, canals of irrigation projects, road, airports, railways, transport terminals & bridges executed through such turn-key or EPC mode. Hence works contract in respect of above works even if done through turn-key or EPC mode are exempt from payment of service tax

F. NO. 137/40/2009 – CX. 4

E-TDS Qtrly Returns Structure Changed w.e.f 1/10/2009

From Tax Information Network - NSDL

 

We would like to inform that the data structure of quarterly e-TDS / TCS statements have been modified by the Directorate of Income Tax (Systems).  

 

Key changes:

·   The classification of deductors; Govt. and others as existing now is enhanced to State Govt., Central Govt., Company, Firm, etc. in line with deductor categories in TAN database .

·   In case of Govt. deductors they have to specify Ministry name, PAO / DDO code, PAO / DDO registration no., state name. Necessary fields for the same have been added.

·   Field to specify the software used for preparation of return has also been added.

 

Accordingly, necessary validations have been built in the FVU with a view to improve the data quality.

 

The changes in FVU are as below:

1.   Fields have been added in regular and correction e-TDS / TCS file format.

2.   Validations have been tightened in some existing fields in case of regular and correction e-TDS / TCS file format.

3.   Verification of challan details in e-TDS / TCS returns with challan details uploaded by banks. In case of verification failure, warning file containing details of challan mismatch will be generated.

4.   Statistic report generated by FVU will also contain details of verification of challans and bifurcation of payment by Government deductors as transfer voucher and challan.

 

Quarterly e-TDS / TCS returns filed from October 1, 2009 should be as per the new data structure. If the returns do not conform to the new data structure they will be rejected by TIN. 

 

e-TDS / TCS correction on regular returns filed as per the old data structure (validated with FVU version upto  2.126) should be validated with FVU version 2.126 only.

 

New data structure (changes highlighted) version 4.0 for quarterly e-TDS/TCS statement (Regular and correction) is available at the NSDL TIN website ( www.tin-nsdl.com) under the link Modifications in the e-TDS/TCS data structure and new File Validation Utility applicable from October 1, 2009.

 

FVU for new data structure will be available at NSDL website ( www.tin-nsdl.com) by mid September, 2009.

 

In view of the above, kindly make the necessary changes in your quarterly e-TDS/TCS return preparation software.

Cost Inflation Index for 09-10 is 632

NOTIFICATION NO

67/2009, Dated: September 9, 2009

In exercise of the powers conferred by clause (v) of the Explanation to section 48 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby makes the following amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), Central Board of Direct Taxes, number S.O.709(E), dated the 20th August, 1998, namely :-

In the said notification, in the Table, after serial number 28 and the entries relating thereto, the following serial number and entries shall be inserted, namely:-

“29

2009-10

632”

F.No.142/13/2009-TPL

(Vijay Kumar Jaiswal)
Under Secretary (TPL-IV)

Note :- The principal notification was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section(ii), vide number S.O.709(E), dated the 20th August, 1998 and was last amended vide number S.O. 2037(E), dated the 13th August, 2008.