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ComplianceHandBook PDF
ComplianceHandBook PDF
HANDBOOK
Salient Features
P
Income Tax
P
Companies Act
P
LLP
P
Service Tax
P
Excise
P
Other Compliances
F.Y. 2015-16
A.Y. 2016-17
NJP
COMPLIANCE
HANDBOOK
F.Y. 2015-16
A.Y. 2016-17 Income Tax
P
P
Companies Act
P
Service Tax
P
LLP
P
Excise
P
Other Compliances
NJP
www.njpadvisors.com
:
:
:
:
Jun 2012 :
May 2013 :
Aug 2014 :
May 2015 :
2,000 copies
5,000 copies
5,000 copies
5,000 copies
Published by
NJP Advisors Private Limited
804, Mauryansh Elanza,
B/s. Parekhs Hospital, Shyamal Cross Roads,
Ahmedabad 380 015, Gujarat, India.
Phone: (+91) 79 - 2675 2544/45
PREFACE
India is a land of laws. We have to comply with various Acts, Laws, Rules
and Regulations in a normal course of business such as Income Tax,
Companies Act 2013, Service Tax, Limited liability Partnership Regulations,
Partnership Act, Wealth Tax, Value Added Tax (VAT), XBRL etc.
While carrying out day to day business operations, it is difficult to refer
different books for various laws, which makes compliance more
complicated. Hence, there is a need to have all important rules and
regulations at one place, in easily readable form.
This booklet aims to provide practical aid to the compliance challenges
faced by professionals in practice and industry and summarises all
important provisions of various laws by using different charts, schedules,
tables and useful notes.
ACKNOWLEDGEMENT
We are thankful to our senior advisor CA. Naresh Patel and Advocate
Ashok Bhatt for their contribution to Income Tax. We are also thankful to
CA. Jigar Patel, CA. Chintan Patel, CA. Reecha Patel and CA. Palak
Patel for their technical contribution in other areas of the booklet.
We are also thankful to CA. Romit Shethwala, Anil Somani and Sunny
Keshvani for their contributions in compilation and printing of this booklet.
We are thankful to our Technology Partner Sensys Technologies Pvt. Ltd.
for its support in publication of this booklet.
We hope that this booklet will be useful to our valuable readers, also we
solicit and appreciate your views, suggestions and feedbacks for
improvement of future editions.
INDEX
1
Income Tax
1.1
1.2
1.3
1.4
1.5
1.6
1.7
1.8
1.9
1.10
1.11
1.12
1.13
1.14
1.15
1.16
1.17
1.18
3
4
5
5
6
6
7
7
8
8
9
9
11
12
13
14
14
15
Companies Act
2.1
2.2
2.3
2.4
2.5
16
16
17
18
18
19
19
19
Service Tax
4.1
4.2
4.3
4.4
4.5
4.6
20
20
20
21
21
21
22
22
22
Excise
5.1
5.2
5.3
Other Compliance
6.1
6.2
PF ESIC Compliance......................................................
XBRL...............................................................................
23
23
24
25
1. INCOME TAX
1.1
Tax Rates:
1.1.1 For Individuals & HUF
A.Y.
Rate*
General/NRI
2015-16 /
2016-17
Nil
10%
20%
30%
Up to 2.5
2.5 to 5 #
5 to 10
Above 10
(` In Lacs)
Super senior
Senior citizen**
citizen***
Up to 3
Up to 5
#
3 to 5
5 to 10
5 to 10
Above 10
Above 10
Amount
Rate of Tax*
Up to ` 10,000
From ` 10,001 to ` 20,000
More than ` 20,000
10%
20%
30%
Member is a Company
AOP/BOI will
AOP/BOI will
be taxed at the be taxed at the
Maximum
slab rates
Marginal Rate
specified in
of 34.61%*
1.1.1
Where income of
AOP/BOI is taxable at
rate higher than the
MMR then,the Total
Income of AOP/BOI
will be taxed at such
higher rate.
(i.e. in case of Foreign
Companies)
Income
Tax Rate
30%
40%
30%
Note-1
Particulars
Applicable to Companies
< ` 1 cr
Surcharge
Total
Income
` 1 cr to ` 10 cr
> ` 10 cr
Education Cess
All
Domestic
Foreign
Domestic
Foreign
A.Y.
2015-16 2016-17
NIL
NIL
5%
7%
2%
2%
10%
12%
5%
5%
3%
3%
Company
Non- Company
Up to 15%
Up to 45%
Up to75%
100%
Up to 30%
Up to 60%
100%
Notes:
1. Advance Tax is not Applicable if Liability to pay Advance Tax is less than
` 10,000.
2. An assessee who gets his books audited u/s 44 AD is also not liable for
Advance Tax.
3. Sr. Citizen who does not have Income from Business and Profession is
not required to pay Advance Tax.
Sec.
194C
194D
194H
194I
194J
194LA
194IA
Threshold
Amount
Rate
%
` 10,000
Interest by bank/co op society/ post office
10%
Interest by others
` 5,000
10%
Payment to contractor / Single Transaction
` 30,000
2%*
sub contractor/
Aggregate During FY
` 75,000
2%*
Advertisement /
Transporter owning ten or less
Transporter with PAN TDS not applicable
than ten goods carriage with PAN
Transporter
Insurance commission
` 20,000
10%
Commission/ brokerage
` 5,000
10%
Plant & Machinery, Equipment
2%
RENT
` 1,80,000
Land & Build., Furniture & Fixture
10%
Professional fees
` 30,000
10%
Royalties
` 30,000
10%
Technical Fees
` 30,000
10%
Directors Remuneration.
Nil
10%
Compensation on acquisition of immovable
` 2,00,000 10%
property (other than agricultural land)
Purchase of Immovable Properties
` 50,00,000
(other than agriculture land)
(from 1.6.13) 1%
Nature of Goods
Scrap, Alcoholic liquor for human Consumption
Tendu leaves
Forest Products incl. Timber but excl. Tendu leaves
Parking lot, Toll Plaza, Mining
Jewellery (If amount > ` 5 Lacs)
Bullion (If amount > ` 2 Lacs)
Rate (%)
1%
5%
2.5%
2%
1%*
1%*
Index
100
109
116
125
133
140
150
161
172
182
199
223
Financial Year
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
Index
244
259
281
305
331
351
389
406
426
447
463
480
Financial Year
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
Index
497
519
551
582
632
711
785
852
939
1024
Assets
Sold
Assets
Purchased
Time Limit
Amount of Exemption
54.
Residential Residential
Indi. /
House
House
Property
Property
HUF
54F.
Indi./
HUF
54B.
Ind./
HUF
54EC
Any
Asse
sses
Purchase
Actual amount
1 year
invested in new asset or
before or 2 capital gain whichever is less
years after
sale
Long Term
Capital
Investment in
Asset
Residential Construction
X
gain
New Asset
Completed
(other than
House
within 3
Residential Property
Net Sale Consideration
years from
property)
sale
Purchased
Investment in agriculture
within 2
land or capital gain,
Agriculture Agriculture
years of
whichever is less
Land
Land
sale
Max. Investment in the year
Invested
of transfer of original asset
Long Term
NHAI or
within 6
and in subsequent financial
Capital
REC
months of
year should not exceed
Asset
Bonds
sale
` 50 Lacs
Note:
Exemption u/s 54/54F will be available only if investment is made in only one
residential house situated in India.
Amount deductable
Maximum ` 1,50,000
` 1,50,000 or 90% of book profit, whichever is more
90% of 3,00,000 and 60% of balance book profit
Sec.
234A
234B
234C
Failure to deduct
201(1A)
Failure to deposit
in time
201(1A)
Rate (per
month or
part of it)
Period
1%
1%
1%
1%
1%
1.5%
CIT(A)
u/s 249
Particulars
Profession
Audit Not
Audit
Required Required
44AB
Turnover
` 1 Crore or
more
44AD
Net Profit is 8% of
Turnover or more
44AE
More than
10 vehicles
Gross
Receipt
less than
` 25Lacs
Gross
Receipt
` 25 lacs
or more
N.A.
N.A.
* Income Chargeable to Tax : ` 7,500 per month or part of a month for each
goods carriage or the amount claimed to be actually earned by assessee,
whichever is higher.
Note : 1. Failure to maintain Books u/s 44AA will attract penalty of ` 25,000.
2. Failure to get accounts audited or furnish Tax Audit Report as required
u/s 44AB will attract penalty of 0.5% of total Sales/Turnover/Gross
Receipt or ` 1,50,000 whichever is less.
3. TDS to be deducted by an Individual/HUF in respect of payments
made if the books are Audited last year u/s 44AB.
1.12 Penalty:
Nature of Default
Penalty
` 5,000
As per sub sec-2, ` 100/per day and as per sub
sec-5, ` 200/- per day, till
failure continues.
10
No.
2
3
4
5
6
7
1st
October,
2009
1st
June,
2010
Recipient
Individual /
HUF*
Company /
Firm**
Nature of Receipt
Taxable Amt.
Entire Amount
Received
Stamp Value
FMV
Excess
Amount
FMV
Excess
Amount
11
1.14 Deductions:
Section
80C
80CCC
80CCD
Particulars
LIC*/NSC/PPF/ULIP/
ELSS MF/ Bank FDR
(5 yrs)/ Home Loan
Repayment/EPF/
School Fees/Sukanya
Samriddhi Scheme
Pension Fund
Contribution to
Pension Scheme***
Amount
Persons
Covered
Individual*/ HUF*
` 1,50,000
Individual
Employed / Self
employed
80D#
Mediclaim (payment
` 25,000**(Gen) &
Individual^/
mode other than cash) ` 30,000**(Sr.Citizen)
HUF^
Preventive Health
` 5,000
Individual / HUF
Check-up (AY 2013-14)
80E
Individual
80EE
Deduction of Interest
of Housing Loan
Up to ` 1,00,000
(Note 1)
Individual
80G
Donation
100%/50% of donation
or 10% of adjusted
GTI w.e. is less
All
80GGB/
80GGC
Contribution given to
political parties
80TTA
Interest on Deposits in
Savings Account
Individual/ HUF
Very Senior citizens above the age of 80 years, who are not covered
by health insurance, to be allowed deduction of ` 30,000 towards
medical expenditures.
Notes:
* Deduction of LIC Premium paid is available to Individual only if it is paid for
Individual himself, spouse, or any child of such individual and in case of
HUF, any member thereof.
^ Deduction of Mediclaim paid is available to individual only if it is paid for
Individual himself, spouse, dependent children of such individual or
parents of such individual and in case of HUF, any member thereof.
** Additional deduction for any payment of Mediclaim for parents ` 25,000
(` 30,000 if parents are senior citizen).
*** Subject to maximum 10% of Salary of Employee.
12
FY 2013-14 only
Type of Loss
House Property
Speculation
Unabsorbed Depreciation /
Cap Exp on Scientific
Research / Family Plan
Carried
Forward for
8 Years
4 Years
No Limit
* For Loss to be carried forward for future periods, Return of loss must be
filed in time.
The only thing that hurts more than paying an income tax is
not having to pay an income tax.
- Thomas R Dewar
13
2.
All companies
l
Regulations
l
As per
Sr. No.
Method
Abbreviation
CUPM
RPM
CPM
PSM
TNMM
Note:
The threshold limit for specified domestic transactions of Rs.5 crore u/s 92BA
has been extended to Rs.20 crore from the A.Y. 2016-17.
14
Sr. No.
Particulars
Penalty
Concealment of Income
2% of the value of
International Transaction
Failure to Furnish
Accountant's Report
` 100,000
195(i)
Nature of Payment
Tax Rate
Salary
As per Slab Rate
Dividend (provided DDT is paid)
Exempt
Payment in respect of Deposits under NSS
20 %
Interest on Rupee Dominated Bond
5%
Interest on Loans given in foreign Currency to
20 %
Indian Concern or Govt. of India
Interest from Bank (NRO Saving or FD Account)
Interest from Others
30 %
Rent House Property or Other Rent
Commission/Brokerage or any other income
Capital Gains
Exempt
15 %
Listed 20 %*
Unlisted 10 %**
30 %
15
2. COMPANIES ACT
2.1
Form No.
Public & Private
Companies
OPC
Application for DIN
DIR-3
DIR-3
Application for Reservation of Name
INC-1
INC.1
Application for Incorporation of Company
INC-7
INC.2
Nominee consent form
INC-3
Memorandum of Association & Articles of Association
GNL-2
GNL-2
Notice of Situation or Change of Situation of
INC-22
INC-22
Registered Office
Appointment of Directors and key managerial
DIR-12
DIR-12
personnel and changes among them
Purpose
2.2
No.
A.
1
2
3
4
5
6
B.
1
2
3
C.
1
2
3
4
5
6
Due Date
Any Time
30 Days
30 Days
60 Days
30 Days
Any time
15 Days
30 Days
30 Days
60 Days
60 Days
30 Days
30 Days
60 Days
30 Days
16
2.2
No.
D.
1
2
Events
Form No.
One Person Company Related Forms
Nominee consent form
INC-3
Change in Member/
INC-4
Nominee One Person Company
One Person Company- Intimation
INC-5
of exceeding threshold
Other Forms
Notice of Situation or Change of situation
INC-22
of registered office
Application to Regional Director for approval to
shift the Registered Office from one state to
another state or from jurisdiction of one Registrar INC-23
to another Registrar within the same State
Notice to Registrar of any alteration of share capital
SH-7
Application for registration of creation, modification CHG-1
of charge (other than those related to debentures)
Particulars for satisfaction of charge thereof
CHG-4
Filing of Resolutions and agreements to the
MGT-14
Registrar
Declaration prior to the commencement of
INC-21
business or exercising borrowing powers
3
E.
1
2
3
4
5
6
7
2.3
Due Date
30 Days
30 Days
60 Days
15 Days
<1 Month
30 Days
30 Days
30 Days
30 Days
180 Days
I am thankful for the taxes I pay because it means that I'm employed.
~Nancie J. Carmody
17
2.4
Period of Delays
Upto 15 days
> 15 days and
upto 30 days
> 30 days and
upto 60 days
> 60 days and
upto 90 days
> 90 days and
upto 180 days
> 180 days and
upto 270 days
> 270 Days
1
2
3
(> 30 days)
10
12
12
20
Ref. to Second
provision of
section 403(1)
30
Delay
% p.m. on the
fees payable*
Upto
6 months
2.5%
> 6 months
3%
2.5
No.
1
2
2
3
4
5
6
Depreciation Chart
Block of Assets
Factory building - Non Residential
Other Building:(a) Building RCC frame structure
(b) Building other than RCC frame structure
Furniture & Fixture (General)
Plant & Machinery, Office Machinery (General)
Motor Cycles, scooters & other mopeds
Motor buses, motor lorries and motor cars
other than those used on hire
Computer and data processing units:(a) Servers and networks
(b) End user devices such as
(b) desktops, laptops, printers etc.
10
Companies Act
Useful life
(Years)
30
10
10
10
15
15
60
30
10
15
10
30
60
60
I. Tax
WDV%
1. In case of double shift depreciation will be increased by 50% and in case of triple shift
depreciation will be increased by 100% for that period for the single shift asset.
2. For Amortisation of Intangible Assets as per Companies Act 2013, the provisions of
accounting standards shall apply except in case of BOOT and BOT projects.
18
Purpose
Application for DPIN
Reservation of Name
Incorporation Document
LLP Agreement
Consent of all Partners
3.2
Form No.
Fee
DIR-3
1
2
3
4
` 500
` 200
Refer 3.3 (A)
Refer 3.3 (B)
Refer 3.3 (B)
Due date
Fee
Change in LLP
Agreement
Events
30 days
Change in name/address/
designation of designated
Partner/ Partner and
consent to become a
partner /designated partner
30 days
` 50/-
11
12
30 Days
Change of
place of registered office
15
30 Days
3.3
Filing Fees:
Amount
of Contribution
(` in Lacs)
Upto ` 100,000
` 100,000 to ` 500,000
` 500,000 to ` 1,000,000
More than ` 1,000,000
Registration
Fee (A)
` 500/` 2000/` 4000/` 5000/-
19
4. SERVICE TAX
4.1
14%*
4.2
Form
Description
Time Period
ST-1
Service Tax
Registration
Application
To be
Submitted By
Assesses
ST-2
Service Tax
Registration
Certificate
Issued By
Service Tax
Dept.
4.3
S.N.
Assessee
(i)
Individual/
Partnership firms/
LLP/ Proprietorship
Assesses other than
Individual/
Partnership firms/
LLP/ Proprietorship
(ii)
Frequency
Quarterly
Monthly
Due Date
Manual
E-payment*
5th of
6th of
succeeding
succeeding
month
month
5th of
succeeding
month
6th of
succeeding
month
*Note : 1. For the period ended March, due date is 31st March
2. E-Payment of the Service Tax is mandatory for ALL assesses
w.e.f. 01-10-2014.
3. E-Payment will be considered valid up to 8:00 pm of the
respective day.
4. If the Assistant Commissioner or the deputy commissioner of
central excise, as the case may be, having jurisdiction, may for
reasons to be recorded in writing, allow the assesses to deposit
the ST by any mode other than internet banking.
20
4.4
Rate of Interest
18% p.a.
24% p.a.
Beyond 1 year
30% p.a.
4.5
4.6
Due Date
25th October
25th April
Penalties:
Nature of Default
Amount of Penalty
` 500
` 1,000
` 1,000 + ` 100 for each day
but not exceeding ` 20,000
(i) Penalty 100% of Service Tax
(ii) Penalty Nil, if tax and interest paid
within 30 days of service of SCN
(iii) Penalty 25% of penalty imposed
under an order u/s. 73(2), if the
service tax, interest and such
reduced penalty is paid within 30
days of receipt of the order*.
Up to ` 10,000
` 10,000
` 10,000
* The maximum penalty imposable u/s. 76 is up to 10% of the tax. Hence the
maximum penalty payable in such cases would be 2.5% of Service Tax i.e.
(25% of 10%)
21
5. EXCISE ACT
5.1
Rate of Excise
5.2
S.N.
(i)
(ii)
12.5%
Frequency
Quarterly
Monthly
Due Date
6th of succeeding month (note)
6th of succeeding month (note)
Note : For the period ended March, due date is 31st March
1 E-Payment of the Tax is mandatory for ALL assessees w.e.f.
01-10-2014.
2. E-Payment will be considered valid up to 8:00 pm of the respective day.
5.3
No.
Due Date
For Filing
30th April of
next year
10th of
next month
22
6. OTHER COMPLIANCES:
6.1
PF & ESIC:
Employee
Contribution
Employer Contribution
Payment
Due Date
PF
12% of Basic + DA +
food concession +
retaining allowance
ESIC
1.75% of Wages
4.75% of wages
-----------
Type
EDLI
6.2
XBRL:
(A) Financial Statements to be filed in XBRL Form for
1. All companies listed in India and their subsidiaries, including
overseas subsidiaries;
2. All companies having a paid up capital of ` 5 Crores and above
or a Turnover of ` 100 crores or more.
(B) Following Companies are exempted from XBRL:
Banking Companies and their subsidiaries
7. USEFUL WEBSITES:
Income Tax :
Official Website
http://www.incometaxindia.gov.in
e-Filling
http://incometaxindiaefilling.gov.in
http://www.incometaxindiapr.gov.in
http://www.tin-nsdl.com
ITAT
http://www.itat.nic.in
Service Tax:
Official Web Site
http://www.servicetax.gov.in
e - Filling
http://www.aces.gov.in
Gujarat VAT
http://www.commercialtax.gujarat.gov.in
http://www.cbec.gov.in
XBRL:
International
http://www.xbrl.org
India
http://www.xbrl.org/in
MCA:
http://www.mca.gov.in
LLP:
http://.llp.gov.in
ICAI:
http://www.icai.org
SEBI:
http://www.sebi.gov.in
C&AG of India:
http://www.cag.gov.in
RBI:
http://www.rbi.org.in/home.aspx
EPF
http://www.epfindia.com
ICSI
http://www.icsi.edu
http://www.njpadvisors.com/blog
http://www.sensystechnologies.com/blog
24
8. COMPLIANCE CALENDER
Payment of
Month
Service
Tax*/
Excise
TDS
PF
April
30
15
May
15
June
15
July
15
Aug
15
Sept
15
Oct
15
Nov
15
Dec
15
Jan
15
Feb
15
5/31
15
March
TDS
Payment of
Advance
ESIC
Payment of Return
(Quarterly)
Income Tax
21
15
15**
Filling of Return
Service
Tax
Income
Tax
25
21
21
15
21
31
21
15
21
15
21
21
15
30
25
30#
21
15
21
21
15/31
21
* For Service Tax, if an entity makes online payment, due date is 6 instead of 5.
** Only for Corporate Assesses
# Submission of Transfer Pricing Report
Just when you think it can't get any worse, it can. And
when you think it can't get any better, it can.
-Nicholas Sparks
25
Income Tax
Financial Reporting
P
Revised Schedule VI
P
IFRS
P
US GAAP
Service Tax
Audit & Assurance
P
Statutory Audit
P
Internal Audit
P
Due Diligence
P
Compliance Review
XBRL Reporting
P
XBRL Filling
P
Extension of Elements
Wealth Management
Project Finance
RBI-FEMA Compliance
Treasury Management
Transfer Pricing
NJP
Corporate Office:
804, Mauryansh Elanza, B/s Parekhs Hospital,
Advisors Private Limited Shyamal Cross Roads, Satellite,
Ahmedabad - 380015, Gujarat, India
+91 79-2675 2544/45; info@njpadvisors.com
www.njpadvisors.com
Technology Partner
www.sensysindia.com
SMS SOFTWARE to
09769468105 / 09867307971
Software Solutions Available on
XBRL
TDS
Service Tax
Web TDS
Payroll
Digital Signature
Web Payroll
PDF Signer
Web HRMS
Fixed Asset
Income Tax
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