Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: TDS :: articles on VAT and GST in India :: ARTICLES ON INPUT TAX CREDIT IN VAT :: list of goods taxed at 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: Central Excise rule to resale the machines to a new company :: VAT Audit :: VAT RATES :: ACCOUNTING STANDARD :: TAX RATES - GOODS TAXABLE @ 4% :: due date for vat payment :: form 3cd :: empanelment :: cpt :: ACCOUNTING STANDARDS
 
 
« News Headlines »
 Income Tax Department expands list of deposits, transactions under scrutiny
  Income-tax Act, 1961 read with Rule 114E of Income-tax Rules, 1962
 Master Directions on Access Criteria for Payment Systems
 RBI-Scheduled Bank's Statement of Position in India as on Friday, January 06, 2017 (Revised)
 3 Big Mistakes To Avoid This Tax Season
 The Top 5 Tax Stories Of 2017
 Are multiple service tax rates in the offing?
 All you need to know about claiming tax break on HRA
 How much income tax you should pay on investments in gold?
  Best ways to save tax in 2017
 8 unknown stocks that could yield huge returns

Small service providers to come under tax net
April, 04th 2009

A recent notification issued by the Central Board of Direct Taxes (CDBT), the apex body on direct tax matters, is likely to widen the tax base by bringing in even small service providers.

That is because the notification, which will be effective from April 1, says that the TDS form should contain the Permanent Account Number (PAN) of deductees, the person from whom tax is deducted.

This is a departure from the current practice where companies using services of small service providers are not required to furnish PAN of deductees.

The move will bring more small service providers under the tax net but it will increase the bureaucratic hassles for the taxpayers, said Samir Kanabar, partner with Ernst & Young, an audit and consulting firm.

Apart from PAN, the system will generate a Unique Transaction Number (UTN) for all payments. Therefore, these two numbers (PAN and UTN) would mean that payments are tracked and service providers would be able to claim credit on their tax payments. While paying final tax, Indian tax system allows taxpayers to deduct tax that is already paid.

In addition, the use of two numbers would enable tax authorities to catch hold of tax deductors who had deducted tax but have not paid to the government, said Kanabar.

The notification also mandates that all deductors of TDS, irrespective of their size of operations, would now have to make payment through electronic mode. Earlier, small deductors or collectors are excluded.

If there are negative news for small service providers, the new notification also has simplified procedures for large companies, which deduct tax under different heads- salaries, rent or consultancy fees.

Earlier, companies had to specify under which head (whether salaries or rent) the taxes were deducted. The latest notification allows firms to make one combined payment.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Experience

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions