Cash Credit : Overviews

Cash Credit : Overviews

Cash Credit is also known as Working Capital .Cash Credit is a facility to withdraw the amount from the business account even though the account may not have enough credit balance. The limit of the amount that can be withdrawn is sanctioned by the bank based on the business cycle of the client and the working capital gap and the drawing power of the client. This drawing power is determined, based on the stock and book debts statements submitted by the borrower at monthly intervals against the security by hypothecating of stock of commodities and/ or book debts.

The excess withdrawal of cash is made generally on demand from the customer and the customer has to pay interest on the excess amount he/she has withdrawn. The Cash Credit facility is quite useful to those businesses where cash payment like wages, transportation,cash purchases are to be made and the receivables are not realized in time.

Extension of time to file ITR-V for AY 2010-11 and 2011-12

Extension of time to file ITR-V for AY 2010-11 and 2011-12

CBDT has extended the time limit for filing ITR-V form relating to returns filed electronically without digital signatures for the AY 2010-11 and AY 2011-12 filed on or after 1st April, 2011 upto 31st December, 2012 or within a period of 120 days from the date of uploading return, whichever is later.

PRESS RELEASE

INCOME TAX DEPARTMENT

The Director General of Income Tax (System) as per powers assigned to it under clause (ii) of Para 14 read with clause (7) of Para 4 of the 'Centralized Processing of Returns Scheme, 2011′, issued as per C B D T Notification No. SO 16(E) dated 4.1.2012, has decided to extend the time limit for filing ITR-V forms relating to Income Tax Returns filed electronically (without digital signature Certificate) for A.Y. 2010-11 (filed during F.Y. 2011-12) and for A.Y. 2011-12 (filed on or after 1st April, 2011). These ITR-V forms can now be filed upto 31st December, 2012 or within a period of 120 days from the date of uploading of the electronic return data, whichever is later.

2. The Relaxation has been made since there are still a large number of electronic returns relating to A.Y. 2011-12 which had been filed on or before due date but for which the ITR-V forms have not yet been received at the Centralized Processing Centre (CPC), Bengaluru. These taxpayers are being given an opportunity to send ITR-V forms to the CPC, Bengaluru by the date mentioned in para 1 above.

3. Taxpayers can also verify their status of receipt of ITR-V at e-filing website https://incometaxindiaefiling.gov.in. They can also download the ITR-V from the same website from sub-menu My Return under main-menu of My account after login into above mentioned website.

4. The ITR-V forms should be sent by ordinary post or speed post addressed to CPC,

Post Bag No.1, Electronic City Post Office, Bengaluru-560100.

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Related notification is as follows :-

F.No. DIT(S)-III/ITR-V Extension/ 2012-13
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
Directorate General of Income Tax (Systems), New Delhi.

Notification NO. 01/2012 under CPR Scheme 2011

Dated 23^rd October, 2012

Subject: Extension of time limit for filing ITR-V forms for A.Y. 10-11 and A.Y. 2011-12

In exercise of its powers under clause (ii) of Para 14 read with clause (7) of Para 4 of the 'Centralized Processing of Returns Scheme, 2011′, issued vide CBDT Notification No. SO 16(E) dated 4.1.2012, the Director General of Income Tax (System) hereby extends the time limit for filing ITR-V forms relating to Income Tax Returns filed electronically (without digital signature Certificate) for A.Y. 2010-11 (filed during F.Y. 2011-12) and for A.Y. 2011-12 (filed on or after 1^st April, 2011). These ITR-V forms can now be filed upto 31^st December, 2012 or within a period of 120 days from the date of uploading of the electronic return data, whichever is later. This direction is issued to mitigate the hardship and grievance of the tax payers who have been prevented by reasonable causes to file the ITR-V in time.

Sd/-

(RANI SINGH NAIR)

Director General of Income Tax (Systems)

http://taxguru.in/income-tax/extension-time-file-itrv-ay-201011-201112.html

TDS RATE CHART FOR FY 2012-13

Sl. No.	Section Of Act	Nature of Payment in brief	Cut Off Amount		Rate %
			01.04.2012	01.07.2012	HUF/IND	Others
1	192	Salaries	Salary income must be more then exemption limit after deductions.		Average Rate
2	193	Interest on debentures	2500	5000	10	10
3	194	Deemed dividend	-	-	10	10
4	194A	Interest other than Int. on securities (by Bank)	10000	10000	10	10
4A	194A	Interest other than Int. on securities (By others)	5000	5000	10	10
5	194B	Lottery / Cross Word Puzzle	10000	10000	30	30
6	194BB	Winnings from Horse Race	5000	5000	30	30
7	194C(1)	Contracts	30000	30000	1	2
8	194C(2)	Sub-contracts/ Advertisements	30000	30000	1	2
9	194D	Insurance Commission	20000	20000	10	10
10	194EE	Payments out of deposits under NSS	2500	2500	20	-
11	194F	Repurchase of units by MF/UTI	1000	1000	20	20
12	194G	Commission on sale of lottery tickets	1000	1000	10	10
13	194H	Commission or Brokerage	5000	5000	10	10
14	194I	Rent (Land & building)	180000	180000	10	10
		Rent (P & M , Equipment, furniture & fittings)	180000	180000	2	2
15	194J	Professional/Technical charges/Royalty & Non-compete fees	30000	30000	10	10
16	194J(1)(ba)	Any remuneration or commission paid to director of the company(Effective from 1 July 2012)	NA	NIL	10	10
17	194LA	Compensation on acquisition of immovable property	100000	200000	10	10
18	194LLA	Payment on transfer of certain immovable property other than agricultural land (Effective from 1 October 2012)	(a) INR 50 lakhs in case such property is situated in a specified urban agglomeration; or(b) INR 20 lakhs in case such property is situated in any other area) (Effective from 1 October 2012)		1	1

Note:

1. Yearly Limit u/s 194C:Also where the aggregate of the amounts paid/credited or likely to be paid/credited to Contactor or Sub-contractor exceeds Rs.75,000 during the financial year, TDS has to be made u/s 194C.
2. TDS at higher rate ie., 20% has to be made if the deductee does not provide PAN to the deductor.(read detail u/s 206AA)
3. No TDS on Goods Transport  :No deduction shall be made from any sum credited or paid or likely to be credited or paid during the previous year to the account of a contractor during the course of business of plying, hiring or leasing goods carriages on furnishing of his Permanent Account Number, to the person paying or crediting such sum.(read details here No TDS on Goods Transport )
4. Surcharge on Income-tax is not deductible/collectible at source in case of  individual/ HUF /Firm/ AOP / BOI/Domestic Company in respect of payment of income other than salary.
5.  In the case of Company other than Domestic Company, the rate of surcharge is @ 2.5% of Income-tax, where the income or the aggregate of such income paid or likely to be paid exceeds Rs.1,00,00,000. 
6. NoCess on payment made to resident:Education Cess is not deductible/collectible at source in case of resident Individual/HUF/Firm/ AOP/ BOI/ Domestic Company in respect of payment of income other than salary.Education Cess @ 2% plus secondary & Higher Education Cess @ 1% is deductible at source in case of non-residents and foreign company

http://www.simpletaxindia.net/2012/04/tds-rate-chart-fy-2012-13-tcs-rates.html

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Filing of ST-3 only for the period 1st April to 30th June 2012(due date 25th Nov.12)

F. No. 137/22/2012-Service Tax

Government of India

Ministry of Finance

Department of Revenue

Central Board of Excise & Customs

(Service Tax Wing)

 

Room No 263A  North Block,

New Delhi, 28^th September, 2012

To

Chief Commissioner of Customs and Central Excise / Central Excise & Service Tax (All)

Directors General of Service Tax /Central Excise Intelligence /Audit/Systems;

Commissioner of Customs and Central Excise/ Central Excise and Service Tax/ Service Tax (All)

 

Madam/Sir,

 

Subject:  Filing of ST-3 only for the period  1^st April to 30^th June 2012

 

            In terms of sub-rules (1) and (2) of Rule 7 of the Service Tax Rules, 1994, the half yearly return for the period 1^st April to 30^th September 2012, is to be filed by 25^th October, 2012. In the current financial year , an assessee would have had to give data with respect to specific services  and the corresponding legal provisions for the period 1-4-2012 to 30-6-2012. The data for the period   1-7-2012 to 30-9-2012, would have been with respect to  different services  and the corresponding legal provisions. Combination of  all these provisions into one return would have made the return complex for   the assessees . 

 

2.         I am directed to inform you that  it has been decided that assessees have to provide data only for the period 1-4-2012 to 30-6-2012 in the first half yearly return which is due on 25-10-2012. (The data for the period from 1-7-2012 to 30-9-2012 should not be filed . Modifications will be made in the ACES so that any data filed for this period is rejected. Till such time as the modifications are made, ACES will not be accepting returns) Accordingly notification 47/2012 dated 28-9-2012 has been issued today.

 

3.        Data for the period 1-7-2012 to 30-9-2012 will have to be furnished in a return in a revised format. The revised format of the return and the last date for filing it will be indicated separately.

 

4.         The above information may be communicated to departmental officers and assessees. Hindi version to follow.

 

 

Yours faithfully,

 

 

(S.M. Tata)

Commissioner( Service Tax)

Tel/Fax: 011-23092275

Cenvat Credit cannot be denied if invoice number was handwritten or rubber stamped

We are sharing with you an important  judgment  of  Hon'ble  CESTAT-Mumbai in the case of  Pepsico India Holding Pvt. Ltd. Vs. Commissioner of Central Excise, Mumbai-II [2012-TIOL-787-CESTAT-MUM] on the following issue:-

Issue: Whether the Cenvat credit can be denied on the ground that the invoice number was handwritten or rubber stamped but not printed on invoice?

Facts: The appellants are in appeal against the impugned orders wherein input credit taken by them on duty paid invoice was denied only on the basis that the invoice number was handwritten or rubber stamped but not printed. A show-cause notice was issued and demands were confirmed by both the lower authorities. Aggrieved from the said orders, an appeal was filed before the CESTAT-Mumbai.

The appellant submitted that there is no requirement in the CENVAT Credit Rules that the invoicenumber should be printed and the only requirement is that the invoice should be serially numbered.

Held: The CESTAT observed that Rule 9of the Cenvat Credit Rules,2004 provides that the CENVAT credit shall be taken by the manufacturer on the basis of the invoice issued by the manufacturer for clearance of inputs/capital goods from the factory. Further, Rule 9(2) of Cenvat Credit Rules, 2004 provides that:

"No CENVAT credit under sub-rule (1) shall be taken unless all the particulars as prescribed under the Central Excise Rules, 2002 or the Service Tax Rules, 1994, as the case may be, are contained in the said document."

Rule 11 of Central Excise Rules, 2002 provides that:

"The invoice shall be serially numbered and shall contain the registration number, address of the concerned Central Excise division,name of the consignee, description, classification, time and date of removal, mode of transport and vehicle registration number, rate of duty, quantity and value, of goods and the duty payable thereon."

And Rule 4A of the Service Tax Rules, 1994 provides that:

"Taxable service to be provided or credit to be distributed on invoice, bill or challan.-

 (1) Every person providing taxable service shall not later than thirty days {fourteen days prior to 1-4-2012} from the date of completion of such taxable service or receipt of any payment towards the value of such taxable service, whichever is earlier, issue an invoice, a bill or, as the case may be, a challan signed by such person or a person authorized by him in respect of such taxable service provided or agreed to be provided and such invoice, bill or, as the case may be, challan shall be serially numbered and shall contain the following, namely:-

(i) the name, address and the registration number of such person;

(ii) the name and address of the person receiving taxable service;

(iii) description and value of taxable service provided or agreed to be provided; and{Substituted vide Notification No.  36/2012- Service Tax, Dated 20/06/2012, before it was read as:- "(iii) description, classification and value of taxable service provided or to be provided;}

(iv) the service tax payable thereon.

……………………………………………………………………….."

Therefore, in accordance with the above provisions, it was held that there is no requirement that theinvoice number should be printed on the invoice. The only requirement is that invoice should be serially numbered. Henceforth, it was decided that the appellant had fulfilled the requirement of CENVAT Credit Rules, 2004. Accordingly, they were entitled to avail input credit on the strength of the invoices in question.

Bimal Jain
FCA, ACS, LLB, B.Com (Hons)

http://taxguru.in/excise-duty/cenvat-credit-denied-invoice-number-handwritten-rubber-stamped.html