Contact us

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Simply Indian tax

Address : 

Plot No.21,

Kharadi

Pune - 411 014

Maharashtra-India

Email :

simplyindiantax@gmail.com

Ph :  020 - 2701 9233

M :-+91  82750 32825 

About Us

Dear all the website http://www.simplyindiantax.com/ is a site maintained by group of professionals.

V.A.T./ Profession Tax Matters

o Survey, Search & Seizure matters. o Preparation & Filing of return under respective Acts o Compliance & Tax Planning o Representation to Appropriates authorities. o Advising on Complex issues under respective Act. o Setting up system of deduction & deposition of TDS.

Wealth Tax Matters

o Survey, Search & Seizure matters. o Preparation & Filing of Income Tax Return of Corporate, Trust, Societies, Partnership Firms , Individuals, HUF, NRI o Income Tax Compliance & Income Tax Planning o Representation to Statutory bodies like CIT (A)\ Tribunal \ Settlement Court. o Advising on Complex issues under Income tax matters/Wealth Tax Matters. o Preparation & Filing of Wealth Tax Return.

Other Services

We also undertake host of other activities for the benefit of our clients. The highlight of the nature of services is: - o Employee’s Payroll Accounting & Compliances to TDS, PF & ESI. o Back Office Operations for Billing, Collections & Cheque Processing & Reconciliation, and Facilitators for vendor development programs. o Income Tax Clearance Certificate (NOC from Tax Department) o Works Contract Act o Legal Services & Drafting of Documents o Liaisoning with Government Departments like, Electricity Boards and Municipal Corporation and Advisory Services related to Land and Real Estate.

Transfer Pricing Matters

We also advise on Transfer Pricing Matters. Internationally there are a number of matters, issues and conflicts on transactions. It is an outcome businesses rapidly growing ever before past across all the countries in the world with transactions enumerated. o Advising on transfer pricing matters including the preparation of TP reports o Preparation of transfer pricing reports for tax structuring projects o Valuation of trademarks, intangibles and ongoing businesses.

Service Tax Matters

o Making Application for Service Tax Number o Consultation for Service Tax matters o Preparing & Filling of Service Tax Returns (Half-Yearly)

Management Consultancy Services

o Setting up of new units; - Style, Pattern, Investment etc. o Setting up, Review & Monitor of Accounting system, Internal control system, Payroll, Internal Audit System, Branch Set Up. o MIS Reporting, o Incorporation to Winding up of Trust, Partnership, Firm, Society, HUF, o Documentation & Registration of Import & Export Code No.

Income Tax Matters

o Consultation in Income Tax matters o Preparing & Filling of Income Tax Returns o Appearing before the Authorities for Scrutiny Assessment Cases o Appearing before the Appellate Authority o Preparing & Filling of e-TDS and e-TCS Returns (Quarterly) o Preparing & Filling of Various Forms under the Income Tax Act 

LLP Matters

o Convert to LLP o Complete Business Set-up o Protect Your Brand Name o Drafting & Vetting of LLP Agreement o Procure DPIN & Digital Signature Audit Services o Foreign Office Establishment o Tax Advisory o Tax Number Registration o Trademark Registration o Accounting Services

Finance Management Services

We provide investment manager services to develop a customized investment portfolio consistent with your investment goals and risk tolerance. We also provide unbiased advice and clear, comprehensive reports detailing the structure and value of your portfolio. We align our efforts with your interests. We are compensated on a fee basis exclusively and do not receive commissions from transactions, nor is there any direct compensation derived from the use of any recommended investment product, broker or mutual fund.

GST Matters

The Government of India is looking forward to replace multiple indirect taxes under existing regime with a single unified Goods and Service Tax (GST). The major existing indirect taxes are Excise duty, Service Tax, Central Sales Tax/VAT, out of which excise duty, service taxes, and Central sales taxes are governed by the Central Government and VAT (a tax on intra-state sale of goods) is governed by the respective State Governments. Apart from this, State Governments levy many other taxes like octroi/purchase tax/entertainment tax, etc. We handle all types of GST matters. This includes CGST and SGST registrations and the preparation and lodgment of returns. (Expected Applicable from April 2014)

Excise Duty Matters

The services offered include: o Rendering advice on a wide range of issues relating to excise duty implications. o Providing the right guidance to enable clients to make the most of excise duty concessions and relief.

FEMA Matters

The FEMA act is one such act governing regulations concerning Foreign Exchange. The violation or noncompliance, either deliberate or due to ignorance, can entail heavy punishment or penalties of different forms. To help our clients grow with confidence across the national boundaries, our team of experts having profound knowledge of rules applicable within our country and/or in foreign country, are always available. We make you aware of various compliance requirements and ensure your unhindered growth, by helping you abide by them. The following list details out such activities: - o Certification for purposes of Submission to Reserve Bank of India concerning repatriation etc. out of India. o Representation before Reserve Bank of India for any approvals etc. o Ensuring FEMA Compliances.

Corporate Finance Advisory

o Project Finance from Banks & Institution. o Syndication of Working Capital Loan. o Buyers Credits. o External Commercial Borrowings o Debt Securitization \ Assets Securitization o L.C. & Bill Discounting o Restructuring of Debt Structure o Consulting , Advising on public, Right , & Bonus Issue & Splitting of Shares.

Company Law Matters

The growing spate of liberalization and globalization has unleashed Indian Industry from an era of controls and constraints. At every stage of operation; from incorporation to AGMs, from company meetings to filing documents with the registrar etc. involves complex set of procedures to be followed. Failures or even deviations from meeting the set procedures can entail heavy penalty for companies. Our highly specialized team of professionals, with their profound understanding of the nuances of these sophisticated procedures, assists our clients in meeting the compliance requirements without any hassle. We had been helping our clients business to grow by effectively tackling the maze of company law matters.

Charitable Trusts Matters

The areas of services covered are as under: o Drafting of memorandum and articles for societies and trust deed for charitable trust. o Registration of new societies and charitable trust and changes therein with the registrar of societies and charity commissioner. o Annual Compliances relating to societies and charitable trust.

Audit and Other Assignments

To integrate harmoniously with the rapidly changing external environment, the companies need to be intrinsically strong. They must make their internal operations sound enough to meet any threat from outside. Our audit team takes care of our clients in investigating the affairs of their business. Our tailor made services as per the needs of our clients enables them to manage risk at both external and internal levels. Our internal audit team can undertake an assessment of your in-house vulnerability to the malfunctioning of operations and other misconduct, and its potential impact on your business and financial statements. We help companies investigate the causes hindering smooth functioning of their business. We scrutinize unusual financial activity with the sensitivity and trust you place in us.

Assurance Services

At present the firm renders auditing services to Corporate & Large Industrial House, Partnership Firms, Proprietorship, Trusts, Societies etc. in the following areas :- o Statutory Audit under Companies Act , Trust & Society Act. o Various Tax Audits under I.T. Act o Internal Audits o Management Audits o Special Audits o Branch Audits o Bank Audit , Inspection Audit, Revenue Audit o Information System audit o Business Review Audit o Compliance Audits o Investigation These audits are done periodically like monthly, quarterly, half yearly and annually as per requirements of client or as per the statutorily requirements. The audit program is being drawn with regards to nature of client industry norms & law applicable. Our Audit Program helps organizations and individuals achieve their objectives and succeed in the new economy through measuring performance, managing risks, and leveraging.

Advising on Drafting of Deeds / Agreements

o Advising on Loan Agreements/Bridge Loan Documents o Advising on Debenture Subscription Agreement o Advising and Drafting Debenture Trust Deeds o Advising and Drafting of Share Pledge Agreements o Escrow Agreements o Due Diligence o Inter Creditor Agreements o Drafting of Concession Agreements

Advisory on IT Services

As other area in company needs to be effective, well-managed IT system is also one of the most valuable business advantages an organization can secure. The right technology, if implemented properly, appropriately managed and monitored, can lead to significant wonders for an organization in growth and efficiency. It is essential to get sound business advice to ensure technology risks are managed. IT is challenging to get right and expensive to get wrong — not only in monetary expenditure terms, but also in lost efficiency and potential infringements.

Accounting and Related Services

Maintenance of books of accounts as prescribed under the statutes for all enterprises and companies, preparation of financial statements for submission to the statutory authorities, compliance with the Accounting standards issued by the Institute of Chartered Accountants of India. Setting up of internal control systems and procedures for newly set up as well as existing small and medium sized enterprises.

Accounting Advisory Services

Timely and accurate financial reporting that complies with a myriad of industry standards and changing local, state and international requirements is vital for growing business. We provide a range of accounting services that deliver reliable records to facilitate more informed financial decision making, without the distraction of day-to-day number crunching. Whether you are looking for a full range of services to help your small business thrive or just a team to supplement your accounting department, we tailor a solution to fit your needs and schedules. Bookkeeping, report generation, and filing services we offer include: o Reviewing or compiling income and other financial statements o Filing local, state, and international tax returns o Preparation of Sales/Vat tax returns o Furnishing balance sheets, cash balance and sales review reports, and general ledger analysis o Providing billing and accounts receivable management o Designing and implementing accounting systems

SERVICE TAX - POINT OF TAXATION RULES 2011

A very interesting legal point has arisen after the introduction of the Point of Taxation Rules, 2011 (POT) which is thought provoking and requires deliberation. In the prelude to POT vide Notification No. 18/2011-ST dated 1 st March 2011 it is stated that POT has been made for the purpose of collection of service tax and determination of rate of service tax. However, Rule 2(e) of the POTR states that the “point of taxation” means the point in time when a service shall be deemed to have been provided. This means that the taxable event is determined by the POT.

We all know that the charging section determines the taxable event. We all along understood that Section 66 of the Finance Act, 1994 (Act) is the charging section which determines the taxable event. As per Section 66 of the Act there shall be levied a tax (hereinafter referred to as the service tax) at the rate of twelve percent of the value of taxable services referred to in section 65(105)(a)…(zzzzu) and collected in such manner as may be prescribed .

    The charging Section 66 of the Act levies a tax of 12% on the value of taxable service and specified that the collection should be in the manner as prescribed. Accordingly collection of service tax is prescribed in Rule 6 of the Service Tax Rules, 1994 (STR) which specified that the service tax is to be paid on the 6 th day of the month immediately following the calendar month in which the service is deemed to be provided as per the rules framed in this regard by the service provider.

In view of the above, it may be submitted that the taxable event is continued to be the provision of service which determines the levy of tax under charging section 66 of the Act. The method of collection of the tax is prescribed under Rule 6 of the STR read with POT. Hence it may be contended that POT prescribes only the manner of collection of tax and does not determine the taxable event i.e., the provision of service which triggers the levy of tax. Accordingly the definition of point of taxation under Rule 2(e) of the POT to mean the point of time when the service is deemed to have been provided is not legally correct. As per the object and purpose of the POT the definition under Rule 2(e) of the POTwould be the point in time to determine the manner of collection of service tax .

POT in conjunction with Rule 6 of the STR determines the manner of collection of service tax, in the same line as Rule 4 & 8 of the Central Excise Rules, 2002 (CER) determines the manner of collection of excise duty on clearance of the goods. It is not obvious from Rule 4 & 8 of the CER as to what rate should be applicable for payment of excise duty. Hence Rule 5 of the CER has been introduced to clarify that the rate of duty should be the rate as prevailing on the date of clearance from the factory.

In the case of Central Excise, the taxable event is the manufacture of the goods but the excise duty is paid at the time of clearance of the goods. Charging section under the Central Excise is Section 3 of the Central Excise Act, 1944 (CEA). Levy means the imposition of duty and that can only be done in the charging section wherein the charge has been created.Hence as per my understanding the levy cannot be in the manner prescribed. Hon'ble Supreme Court in the case of CCE, Hyderabad Vs Vazir Sultan Tobacco Ltd - 2002-TIOL-215-SC-CX in the context of central excise has held that the words ‘in such manner as may be prescribed' qualify the word "collected" and not the word "levied". While the levy is created by Section 3 itself, the collection of the duty is left to be regulated by the Rules made under the Act.

In the case of service tax the taxable event is providing the service. The charging section for service tax is Section 66 of the Act which levies a tax of 12% on the value of taxable service and specified that the collection should be in the manner as prescribed. This is similar to Section 3 of the CEA as explained above applicable for excise duty.

In order to determine the manner of collection of service tax and the applicable rate of service tax POT has been introduced which can be equated with the Rule 4, 5 & 8 of CER for determination of manner of payment of excise duty. Hence, the definition of point of taxation under Rule 2(e) of the POTR to mean the point of time when the service is deemed to have been provided is not legally correct. POTR only determines the point in time for collection of service tax.

Now, in the backdrop of the above explanation, let us examine the purport of Rule 5 of the POTR which is reproduced below:

Rule 5 of the (POT): Payment of tax in cases of new services:

Where a service, not being a service covered by rule 6, is taxed for the first time, then, -

(a) No tax shall be payable to the extent the invoice has been issued and the payment received against such invoice before such service becomes taxable;

(b) No tax shall be payable if the payment has been received before the service becomes taxable and invoice has been issued within the period referred to in rule 4A of the Service Tax Rules, 1994.

As is evident from Rule 5(a) above, if the invoice is issued and the payment is received against such invoice before the service becomes taxable, no tax is payable. However, this is obvious because if the service is not taxable the question of liability to pay tax does not arise as there is no levy of the tax under section 66 of the Act.

Now in the case of Rule 5(b) above, it is stated that if the payment is received before the service becomes taxable and the invoice is issued within 14 days from the date of completion of service, then no tax is payable. As per my understanding, such a provision is not legally valid. Here it speaks of a situation where the service is provided during the period when such service is taxable and hence the issuing of invoice as per Rule 4A of STR is mentioned . If the service is provided during the period when such service is taxable, then charging section 66 of the Act applies and there should be a levy of service tax on such provision of service. Hence even if the payment is received before the provision of taxable service, since the service is provided during the period when such service is taxable, it is not correct to state that no tax is payable if the invoice is issued within 14 days from the completion of taxable service. The provision of POTR cannot override the charging section 66 of the Act which determines the levy of tax.

Moreover, the second proviso to Rule 6(1) of the STR has been deleted. Prior to its deletion it reads as under:

“Provided further, that notwithstanding the time of receipt of payment towards the value of the services, no service tax shall be payable for the part or whole of the value of services, which is attributable to services provided during the period when such services were not taxable.”

The above deleted provision explicitly mentions that if the service is not taxable at any point of time then mere collection of the consideration for that provision of service is not liable to service tax for the simple reason that there has to be a levy at the first place which happens when the taxable event has taken place. It is consistent with the provision of section 66 of the Act. Perhaps the deleted portion is taken care of in Rule 5(a) of POT.

Similarly in a contrary situation like in Rule 5(b) of POT where the collection of the consideration takes place before the provision of taxable service and the invoice is issued within 14 days of the provision of taxable service, there should be a liability to pay service tax on the amount collected in advance for provision of service when the same has become taxable. However, Rule 5(b) of POT states that no tax is to be paid in such a circumstances. As per my understanding such provision of law is legally not correct and ultra vires section 66 of the Act

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