We are sharing with you the Amendments notes of Taxation by MK Gupta sir for November 2016 Exams. These tax amendments notes are published by MK Gupta sir and we are passing these notes to the IPCC students.
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The tax amendment notes which we are sharing with you contains the Service Tax and Income Tax amendments at a glance. Cover all the amendments in only 2 pages. There are no amendments in VAT and other Indirect Taxes for IPCC November 2016 Exams.
MK Gupta sir have always been helpful when it comes to pass important notes to CA students and here again he has shared the Tax amendments notes for IPCC for free. And here at CA Clues we are giving you the platform to download the tax amendment notes easily.
Have a look at the amendment notes which we are sharing with you from below.
TAX AMENDMENTS APPLICABLE FOR
SERVICE TAX Amendments
- Rate of Service tax applicable shall be 14.50% (14% plus 0.5% for swachh bharat cess). Tax credit shall not be allowed for swachh bharat cess i.e. tax credit shall be allowed only for the remaining part of the Service tax.
2. Service tax for the following cases has also been changed.
A. In case of air travel agent [Rule 6(7)]
An air travel agent shall have the option to pay service tax on the amount of the commission received by him or service tax can be paid as 0.725% of basic fare in case of domestic booking and 1.45% of basic fare in case of international bookings. Such option can be changed from the beginning of subsequent year.
B. Insurer carrying on life insurance business [Rule 6(7A)]
A person engaged in life insurance business shall have the option to pay service tax @ 14.5% of risk premium or he has the option to pay service tax on the amount of gross premium in the manner given below:
First year at the rate of 3.625% of gross premium.
Subsequent year at the rate of 1.8125% of the gross premium.
C. Sale/purchase of foreign currency including money changing [Rule 6 (7B)]
A foreign exchange broker has the option to pay service tax on the amount of commission computed as per rule 2B of service tax (determination value) rules 2006 OR service tax can be paid on the exchange value in the manner given below:
S. No. For an amount Service tax shall be calculated on the exchange value at the rate of
1. Upto Rs. 100,000 0.145%
2. Next Rs. 9,00,000 0.0725%
3. Balance amount 0.0145%
If the total amount of service tax collected from any person is less than Rs. 36.25 in that case service tax payable shall be Rs. 36.25 and if amount so computed is more than Rs. 7,250 service tax payable shall be Rs. 7,250.
D. Service of promotion, marketing or organizing/assisting in organizing lottery [Rule 6(7C)]
An optional mode of payment of service tax has been provided for the taxable service of promotion, marketing or organizing/assisting in organizing lottery in the following manner instead of paying service tax at the rate of 14.5%:-
Where the guaranteed lottery prize payout is > 80% – Rs. 8,493/- on every Rs. 10 Lakh (or part of Rs.10 Lakh) of aggregate face value of lottery tickets printed by the organizing State for a draw.
Where the guaranteed lottery prize payout is < 80% – Rs. 13,257/- on every Rs. 10 Lakh (or part of Rs. 10 Lakh) of aggregate face value of lottery tickets printed by the organizing State for a draw.
INCOME TAX Amendments :
Changes in Section 139A- Permanent Account Number
The assessee has to mention permanent account number in the following transaction.
- Sale/Purchase of immovable property exceeding Rs.10 lakhs. Properties valued by Stamp Valuation Authority at amount exceeding Rs.10 lakhs.
- Sale/purchase of shares and securities exceeding Rs.1 lakh.
- Sale/purchase of motor vehicles.
- Opening any account (other than Basic Savings Bank Deposit Account) in a bank (including co-operative bank) not being a time deposit account.
- Opening time deposit account in a Bank, Co-op Bank, Post office, Nidhi, NBFC companies for an amount aggregating to more than Rs.5,00,000 during the year.
- Making a Cash payment of hotel or restaurant bill exceeding Rs. 50,000.
- Deposit in cash exceeding Rs.50,000 with a banking company in one day.
- Payment in cash for purchase of a bank draft or a pay order or banker’s cheque for an amount exceeding Rs. 50,000 on any one day.
- Payment in cash in connection with travel to any foreign country or purchase of foreign currency of an amount exceeding Rs. 50,000 at any one time.
- Making an application to any banking company (including co-operative banks) or to any other company or institution, for issue of a credit card/debit card
- Payment of an amount exceeding Rs.50,000 to a Mutual Fund for purchase of its units.
- Purchase or sales of shares of an unlisted company for an amount exceeding Rs.1,00,000 per transaction.
- Opening a DEMAT account.
- Payment of an amount exceeding Rs.50,000 to a company or an institution for acquiring debentures or bonds issued by it.
- Payment of an amount exceeding Rs.50,000 to the Reserve Bank of India, for acquiring bonds issued by it.
- Payment of an amount exceeding Rs.50,000 in a year as life insurance premium to an insurer.
- Purchase/sale of any goods or services exceeding Rs.2,00,000 per transaction.
- Cash Payment aggregating to more than Rs.50,000 in a year for cash cards/prepaid instruments issued under Payment and settlement Act.