Interplay of TDS 194Q and TCS 206(1H) — 100% Clarity

Attention is drawn to this line  in last para of 206(1H)

hence, TCS is SUBORDINATE to TDS

RBI portal for Udhgam – Portal to search for your Missing Fixed Deposits and Bank accounts

On 17th August 2023, the Governor of the Reserve Bank of India (RBI), introduced a Centralised Web Portal named UDGAM (Unclaimed Deposits – Gateway to Access information).

This initiative, created by the RBI, aims to assist the general public in conveniently searching for their unclaimed deposits in various banks through a single platform.

The creation of a centralized web portal to locate unclaimed deposits was declared by the Reserve Bank of India in its Statement on Developmental and Regulatory Policies on April 06, 2023. With the continuous rise in the volume of unclaimed deposits, the RBI has been conducting public awareness initiatives regularly to raise awareness about this issue.

Moreover, these efforts by the RBI aim to motivate the general public to identify and contact their respective banks to reclaim their unclaimed deposits. The introduction of this web portal will assist individuals in recognizing their unclaimed deposits or accounts and empower them to either retrieve the deposited amount or reactivate their deposit accounts at the banks they are associated with.

The creation of the portal has been a collaborative effort involving Reserve Bank Information Technology Pvt Ltd (ReBIT), Indian Financial Technology & Allied Services (IFTAS), and the banks participating in the initiative. Initially, the users will have the capability to retrieve information about their unclaimed deposits for seven banks that are currently accessible on the portal.

The search feature for the remaining banks will be progressively integrated into the portal, with full availability expected by October 15, 2023.

List of banks available in Centralised Portal State Bank of India Punjab National Bank Central Bank of India Dhanlaxmi Bank Ltd. South Indian Bank Ltd. DBS Bank India Ltd. Citibank N.A.

Read More: https://www.taxscan.in/rbi-launches-udgam-a-central-portal-web-portal-for-searching-unclaimed-deposits/312130/

TDS Not Applicable on Payments Made to HUDA on Behalf of State Government: ITAT

This was a big problem for businessmen in Haryana.

The HUDA is like a Government, in itself. It is an extension of Government for  planning, allotment, and management of Industrial land

Entrepreneurs usually mistakenly take the HUDA as Government itself. ( … it almost is , and ITAT has agreed that it is so )

Extract : 

The Delhi Income Tax Appellate Tribunal (ITAT) has ruled that TDS is not applicable to payments made to the Haryana Urban Development Authority (HUDA) on behalf of the State Government and the tribunal argued that HUDA is an executing agency, and funds for development works are released after Finance Department sanction, so TDS is not required.

The assessee, Santur Builders Pvt.Ltd, a real estate developer made payments to the Haryana Urban Development Authority (HUDA) for External Development Charges, which were deemed liable to Tax Deductions (TDS) under Section 194C of the Income Tax Act, 1961.

The assessee appealed to the Commissioner of Income Tax (Appeals), which upheld the AO’s order,

The assessee then appealed to the Income Tax Appellate Tribunal (ITAT). The assessee argued that the payments made to HUDA were not liable to TDS under Section 194C of the Act because HUDA is an executing agency for and on behalf of the State Government.

The assessee also argued that the Directorate of Town and Country Planning, Haryana had issued a clarification stating that no TDS is required to be deducted on payments made to HSVP (Haryana Shahari Vikas Pradhikaran), which is the same entity as HUDA.

The Revenue argued that the payments made to HUDA were liable to TDS under Section 194C of the Act because HUDA is a statutory body and not a government department.

The Revenue also argued that the Directorate of Town and Country Planning, Haryana’s clarification was not binding on the ITAT.

The Tribunal observed that HUDA is an executing agency for the State Government, released funds for development works after the Finance Department sanction.

Payments made to HUDA are considered payments to the State Government, and TDS is not required. The Directorate of Town and Country Planning, Haryana’s clarification is binding on the ITAT, issued by a competent authority in line with the Act’s provisions.

The Two Bench Members comprising Kul Bharat (Judicial Member) and Pradip Kumar Kedia (Accountant Member) have ruled that TDS is not applicable to payments made to HUDA on behalf of the State Government, in line with the Directorate of Town and Country Planning, Haryana’s clarification that HSVP is an executing agency for the State Government for carrying out External Development Works (EDW), and therefore, no TDS is required.

for additional details, see : https://taxguru.in/income-tax/tds-edc-payments-huda-deductible-section-271c-penalty-sustainable.html

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What to do when you are leaving India for Job overseas ?

Are you Resident ? Non Resident ? Not Ordinary Resident ?

Query in your mind ? What to do ?

You have been living in india, since your birth. Going for Job Abroad ? What are you now ? Resident or not Resident

What does the bank Say ? what does the Chartered Accountants recommend ? What is the ICAI guidelines ? What are the Income tax Law and Rules ?

Relax. First of all, Relax, You are safe in both Conditions, Nothing to worry

See Rule 1 : 182 days or more outside India ?

If you are leaving for “employment” outside India, then …….  you get the wonderful benefit….. you become a pure “non resident”…. as soon as you do 182 days or more outside India in that year .

Means : if you leave Indian airport / Seaport etc in any month from April to August… to even upto 30th Sept , then you surely cannot do 182 days in India

and in that situation == you are validly a PURE NON RESIDENT FOR THAT YEAR

What if I leave India on 15th OCTOBER ?

or anytime between October to March of the year ? then am I a resident or non resident ?

In that case .. yes, you do not get the benefit of that “exemption” . and detailed calculation to be seen

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Very Imp Decisions taken in 50th GST council meeting today. 11-7-2023

Brief given below

1. Transporters will not be required to file declaration for paying GST under forward charge every year

MLG Comment = Yes, ok for transporters who want to give ITC credit to us. Good step

2. No RCM on services supplied by a director of a company to the company in his private or personal capacity such as supplying services by way of renting of immovable property to the company

MLG Comment = Yes, Good Relief. Good step

3. Relief for taxpayer, Govt extended the special procedure regarding mismatch in ITC availed in GSTR-3B and 2A for two more years i.e 2019-20 and 2020-21

MLG Comment = Yes, Good for all in the Industry

4. Amnesty schemes notified vide notifications dated 31.03.2023 regarding non-filers of FORM GSTR-4, FORM GSTR-9 & FORM GSTR-10 returns, revocation of cancellation of registration extended till 31.08.2023

MLG Comment = Yes, Very Good. Please file immediately, if not yet done. Else your penalties may go into lakhs of Rupees 

5. To do away with the requirement that the physical verification of business premises is to be conducted in the presence of the applicant

MLG Comment = Yes, Good. Especially if u are taking registration in a second state that is not your home state  

6. Relaxations provided in FY 2021-22 in respect of various tables of FORM GSTR-9 and FORM GSTR-9C be continued for FY 2022-23

MLG Comment = Yes, Good. ok. as long it is so, good.  

other points ( lower importance )

7. System-based intimation to the taxpayers in respect of the excess availment of ITC in FORM GSTR-3B vis a vis that made available in FORM GSTR-2B

8. Supply of food and beverages in cinema halls is taxable at 5%

( interesting News for Movie Goers )

9. If the sale of cinema ticket and supply of food and beverages clubbed together then gst rate of cinema ticket will apply

10. 28% GST on the value of the chips purchased in casinos

11. 28% GST on the full value of the bets placed in Online Gaming

12. GST Appellate tribunal will be started in a phased manner

13. To provide for physical verification in high risk cases even where Aadhaar has been authenticated.

14. No GSTR-9 for turnover upto 2 crores

15. Input Services Distributor (ISD) mechanism is not mandatory for distribution of input tax credit of common input services procured from third parties to the distinct persons as per the present provisions of GST law. Amendment may be made in GST law to make ISD mechanism mandatory prospectively

16. Detailed Circular to be issued to provide clarity on liability to reverse input tax credit in cases involving warranty replacement of parts and repair services during warranty period

17. Refund of accumulated input tax credit (ITC) to be restricted to ITC appearing in FORM GSTR-2B

18. Only Name of state on tax invoice, not the name and full address of the recipient, in cases of supply of taxable services by or through an ECO