Accounts Forum

A: Scope of Taxability on Non resident companies in India In India, companies are taxed on their income according to their residential status. A company with residential status in India will be taxed on its global income whether earned in India or outside India whereas a non resident company will be taxed only on income received, accrued or arise in India. As per Section 6(3), Residential Status and scope of total income, A company is said to be resident in…

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Finance Bill, 2020 proposed to Insert sec 194-O, where Ecommerce Operator (“Operator”)  liable to deduct TDS from payment made to Ecommerce participant (“Participant”) in respect of sale of goods or services or both facilitated by operator through its digital or electronic platform, at rate of 1%, at time of credit or payment w. e. earlier. If PAN or Aadhaar not furnished TDS to be deducted at rate of 5%. TDS not required to be deducted where participant is Individual or…

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1. Before 2016, the turnover limit for sec 44AB and Sec 44AD were identical. Thereafter, in Budget 2016, the turnover limit for Sec 44AD has been raised to INR 2 Cr from INR 1 Cr, while no such change has been made in Sec 44AB(a) in this regard. Hence, they intact the turnover limit of INR 1 Cr for the assesses, other than eligible assesses for sec 44AD. This situation creates inconsistency. 2. Further, in Budget 2020, Govt introduces one…

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If you are planning a International Tour this year, you can do that before April 1 to avoid paying an additional 5%/10% as TCS as Budget 2020 proposed by Finance Minister Ms. Nirmala Sitharaman can make your dream to study overseas or enjoy an exotic holiday abroad more costlier. The reason being new provisions to collect TCS (Tax Collected at Source) shall be introduced from 01st April, 2020. This article deals with the various issues emerging out of the said…

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TCS on foreign travel, tours packages, remittance rules 2020 INTRODUCTION The government imposed a tax collection at source akin to TDS on remittances — after an internal survey by the income tax department, it showed that a large number of those sending out money had not filed income tax returns. The finance bill 2020 has proposed an amendment to section 206C to levy 5% TCS on overseas remittance and for sale of overseas tour package This TCS can be adjusted…

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After ‘Sabka Vishwas Scheme’ presented in Budget 2019 for settling disputes of Service Tax and Central Excise, similarly in Budget 2020, FM announced a dispute resolution scheme related to direct taxes named as ‘The Direct Tax Vivad se Vishwas Bill, 2020’ which will be separate act after assent of President. It has been seen that pendency of appeals before the appellate forum i.e. CIT(A), ITAT, High Court and Supreme Court (later known as Appellate Forum) has increased as a result…

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Section 179 of Income Tax Act, 1961, provides that, where any tax due from a private company in respect of any income of any previous year or from any other company in respect of any other income of any previous year during which such other company was a private company cannot be recovered, then every person, who was a director of private company at any time during the relevant previous year shall be jointly and severally liable for the payment…

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