News Flash – Amendments to statutory compliance requirements 02/06/2016,by Anu Jose, Asha

News Flash – Amendments to statutory compliance requirements 02/06/2016,by Anu Jose, Asha

This news flash from JAKS & Associates covers few major amendments which will be effective from 01.06.2016.

1) Equalisation Levy @ 6% on advertisements
2) TCS @ 1% on sale of goods or services in cash above Rs.200,000
3) Income Disclosure Scheme 2016
4) Increase in threshold limit for tds and changes in tds rates
5) Changes in Advance Tax Payment Due Dates
6) Annual Service Tax Return
7) Introduction of Krishi Kalyan Cess
1) Equalisation levy @6% :
Effective from 01.06.2016
Equalisation levy @ 6% on the gross amount shall be applicable on payments to Non-Resident.

Applicable only in cases if the non-resident does not have a permanent establishment in India.

Applicable only if the payments made to a non-resident in a year exceeds Rs. 100,000

Non levy and payment will result in dis allowance of such expenditure

For ex: any payment made to Facebook or Google for online advertisement exceeding Rs.1,00,000 p.a will be subjected to equalisation levy @6%.
2) TCS @ 1% on sale of goods or services in cash above rs.2,00,000 :
Effective from 01.06.2016
TCS @ 1% shall be collected from the customer, if any amount is received in cash against a single invoice of Rs 2,00,000 or more towards sale of goods and services (except in the case of jewellery where the limit is fixed at Rs 5,00,000)
Further in case of sale of car exceeding Rs 10,00,000, either in cash or cheque 1% TCS will be collected
If a payment is liable to TDS, then there will be no TCS applicable on the same
Even a patient making a payment to an hospital, covered under this section
If the seller is state or central government department, any company, firm or individual liable to tax audit, then they are liable to collect TCS. This means that no cash payment to be made even in part against single bill exceeding Rs 2,00,000
3) Pay 45% tax and declare undisclsoed income
Effective from 01.06.2016 till 30.09.2016
The scheme for domestic black money declaration shall remain in force for a period of 4 months from 01.06.2016 till 30.09.2016.

The Central Government has further notified 30th September, 2016 as the last date for making a declaration under the Scheme and 30th November, 2016 as the last date by which the tax, surcharge and penalty shall be paid

Immunity from prosecution under the Income –Tax Act, Wealth –Tax Act and Benami Transaction (Prohibition)Act

4) Increase in threshold limit for TDS and changes in TDS rates
Effective from 01.06.2016
  • Sec 194C – Payment to contractors – Aggregate annual limit amended to Rs 1,00,000
  • Sec 194LA – Payment of Compensation on acquisition of certain Immovable Property – Amended from Rs 2,00,000 to Rs. 2,50,000
  • Sec 194H – Commission or Brokerage – Limit amended from Rs 5,000 to Rs 15,000. TDS rate applicable for sec 194H has been revised from 10% to 5%
5) Changes in advance tax payment due dates
Following are the due dates for the payment of Advance Tax
  • June 15th   – 15%
  • Sept 15th   – 45%
  • Dec 15th    – 75%
  • Mar 15th    – 100%
6) Requirement to file annual return under Service Tax
Effective from 01.04.2016

As per the amendments made by the Central Board of Excise and Customs in Rule 7 of Service Tax Rules,1994 all the assessees are required to file an annual return by 30th November of the succeeding financial year.

7) Krishi Kalyan Cess

a.       Effective from 01.06.2016

b.      Krishi Kalyan Cess @ 0.5% shall be levied on all taxable service. The effective rate of service tax will be thus  increased from 14.5% to 15%

c.       Cenvat credit of KKC can only be utilized for payment of KKC

Please email for any further information regarding this newsflash.

Best regards

JAKS & Associates, Chartered Accountants

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