Services Provided prior to 31st May 2016 exempt from Krishi Kalyan Cess (KKC)

The Central Government vide Notification No. 35/2016 - ST dated June 23, 2016 has exempted taxable services for which the invoice for the service has been issued on or before the 31st May, 2016, from the whole of Krishi Kalyan Cess provided that provision of service has been completed on or before the 31st May, 2016.

[Notification No. 35/2016 - ST dated June 23, 2016]

It must be noted that this Notification settled the issue of KKC being payable on services provided and invoices issued prior to 1^st June 2016 and payment received after the said date. Now if only payment is received after 31^st May 2016 KKC will not be required to be paid on that account.

New Provision of TCS on Sale of Goods and Service from 1st June 2016

New TCS @ 1%  on Cash Sale will be implemented w.e.f. 1st June, 2016 under Sub Section (1D) of Section 206C.   Being a deductor or collector the following rows of Section 206C should be read before 1st June, 2016.   Mainly this  section effect those businessmen who receive Cash from their Debtors.   The persons who receive cheques, Draft, RTGS, NEFT or E-transfer from their customers will not be effected with this section mentioned below :- 

(1D) Every person, being a seller, who receives any amount in cash as consideration for sale of bullion or jewellery ⁸⁷[or any other goods (other than bullion or jewellery) or providing any service], shall, at the time of receipt of such amount in cash, collect from the buyer, a sum equal to one per cent of sale consideration as income-tax, if such consideration,—

  (i) for bullion, exceeds two hundred thousand rupees; or

 (ii) for jewellery, exceeds five hundred thousand rupees; ⁸⁸[or]

⁸⁸[(iii) for any goods, other than those referred to in clauses (i) and (ii), or any service, exceeds two hundred thousand rupees:

Provided that no tax shall be collected at source under this sub-section on any amount on which tax has been deducted by the payer under Chapter XVII-B.]

⁸⁸[(1E) Nothing contained in sub-section (1D) in relation to sale of any goods (other than bullion or jewellery) or providing any service shall apply to such class of buyers who fulfil such conditions, as may be prescribed.

(1F) Every person, being a seller, who receives any amount as consideration for sale of a motor vehicle of the value exceeding ten lakh rupees, shall, at the time of receipt of such amount, collect from the buyer, a sum equal to one per cent of the sale consideration as income-tax.]

(2) The power to recover tax by collection under sub-section (1) or sub-section (1C) or sub-section (1D) shall be without prejudice to any other mode of recovery.

(3) Any person collecting any amount under sub-section (1) or sub-section (1C) or sub-section (1D) shall pay within ⁸⁹[the prescribed time] the amount so collected to the credit of the Central Government or as the Board directs :

Provided that the person collecting tax on or after the 1st day of April, 2005 in accordance with the foregoing provisions of this section shall, after paying the tax collected to the credit of the Central Government within the prescribed time, prepare such statements for such period as may be prescribed and deliver or cause to be delivered to the prescribed income-tax authority⁹⁰, or the person authorised by such authority, such statement in such form and verified in such manner and setting forth such particulars and within such time as may be prescribed.⁹¹

(3A) In case of an office of the Government, where the amount collected under sub-section (1) or sub-section (1C) or sub-section (1D) has been paid to the credit of the Central Government without the production of a challan, the Pay and Accounts Officer or the Treasury Officer or the Cheque Drawing and Disbursing Officer or any other person, by whatever name called, who is responsible for crediting such tax to the credit of the Central Government, shall deliver or cause to be delivered to the prescribed income-tax authority, or to the person authorised by such authority, a statement in such form, verified in such manner, setting forth such particulars and within such time as may be prescribed.

(3B) The person referred to in the proviso to sub-section (3) may also deliver to the prescribed authority under the said proviso, a correction statement for rectification of any mistake or to add, delete or update the information furnished in the statement delivered under the said proviso in such form and verified in such manner, as may be specified by the authority.

(4) Any amount collected in accordance with the provisions of this section and paid to the credit of the Central Government shall be deemed to be a payment of tax on behalf of the person from whom the amount has been collected and credit shall be given to such person for the amount so collected in a particular assessment year in accordance with the rules⁹² as may be prescribed by the Board from time to time.

(5) Every person collecting tax in accordance with the provisions of this section shall within such period as may be prescribed⁹³ from the time of debit or receipt of the amount furnish to the buyer or licensee or lessee to whose account such amount is debited or from whom such payment is received, a certificate to the effect that tax has been collected, and specifying the sum so collected, the rate at which the tax has been collected and such other particulars as may be prescribed⁹⁴ :

Provided that the prescribed income-tax authority or the person authorised by such authority referred to in sub-section (3) shall, within the prescribed time after the end of each financial year beginning on or after the 1st day of April, 2008, prepare and deliver to the buyer referred to in sub-section (1) or, as the case may be, to the licensee or lessee referred to in sub-section (1C), a statement in the prescribed form⁹⁵ specifying the amount of tax collected and such other particulars as may be prescribed.

(5A) Every person collecting tax before the 1st day of April, 2005 in accordance with the provisions of this section shall prepare within the prescribed time after the end of each financial year, and deliver or cause to be delivered to the prescribed income-tax authority⁹⁶ or such other authority or agency as may be prescribed such returns in such form and verified in such manner and setting forth such particulars and within such time as may be prescribed :

Provided that the Board may, if it considers necessary or expedient so to do, frame a scheme for the purposes of filing such returns with such other authority or agency referred to in this sub-section.

(5B) Without prejudice to the provisions of sub-section (5A), any person collecting tax, other than in a case where the seller is a company, the Central Government or a State Government, may at his option, deliver or cause to be delivered such return to the prescribed income-tax authority⁹⁷ in accordance with such scheme as may be specified by the Board in this behalf, by notification in the Official Gazette, and subject to such conditions as may be specified therein, on or before the prescribed time after the end of each financial year, on a floppy, diskette, magnetic cartridge tape, CD-ROM or any other computer readable media (hereinafter referred to as the computer media) and in the manner as may be specified in that scheme:

Provided that where the person collecting tax is a company or the Central Government or a State Government, such person shall, in accordance with the provisions of this section, deliver or cause to be delivered, within the prescribed time after the end of each financial year, such returns on computer media under the said scheme.

(5C)Notwithstanding anything contained in any other law for the time being in force, a return filed on computer media shall be deemed to be a return for the purposes of sub-section (5A) and the rules made thereunder and shall be admissible in any proceedings made thereunder, without further proof of production of the original, as evidence of any contents of the original or of any facts stated therein.

(5D)Where the Assessing Officer considers that the return delivered or caused to be delivered under sub-section (5B) is defective, he may intimate the defect to the person collecting tax and give him an opportunity of rectifying the defect within a period of fifteen days from the date of such intimation or within such further period which, on an application made in this behalf, the Assessing Officer may, in his discretion, allow; and if the defect is not rectified within the said period of fifteen days or, as the case may be, the further period so allowed, then, notwithstanding anything contained in any other provision of this Act, such return shall be treated as an invalid return and the provisions of this Act shall apply as if such person had failed to deliver the return.

(6) Any person responsible for collecting the tax who fails to collect the tax in accordance with the provisions of this section, shall, notwithstanding such failure, be liable to pay the tax to the credit of the Central Government in accordance with the provisions of sub-section (3).

(6A) If any person responsible for collecting tax in accordance with the provisions of this section does not collect the whole or any part of the tax or after collecting, fails to pay the tax as required by or under this Act, he shall, without prejudice to any other consequences which he may incur, be deemed to be an assessee in default in respect of the tax:

Provided that any person, other than a person referred to in sub-section (1D), responsible for collecting tax in accordance with the provisions of this section, who fails to collect the whole or any part of the tax on the amount received from a buyer or licensee or lessee or on the amount debited to the account of the buyer or licensee or lessee shall not be deemed to be an assessee in default in respect of such tax if such buyer or licensee or lessee—

  (i) has furnished his return of income under section 139;

 (ii) has taken into account such amount for computing income in such return of income; and

(iii) has paid the tax due on the income declared by him in such return of income,

and the person furnishes a certificate to this effect from an accountant in such form as may be prescribed⁹⁸:]

Provided further that no penalty shall be charged under section 221 from such person unless the Assessing Officer is satisfied that the person has without good and sufficient reasons failed to collect and pay the tax.

(7) Without prejudice to the provisions of sub-section (6), if the person responsible for collecting tax does not collect the tax or after collecting the tax fails to pay it as required under this section, he shall be liable to pay simple interest at the rate of one per cent per month or part thereof on the amount of such tax from the date on which such tax was collectible to the date on which the tax was actually paid and such interest shall be paid before furnishing the quarterly statement for each quarter in accordance with the provisions of sub-section (3):

Provided that in case any person, other than a person referred to in sub-section (1D), responsible for collecting tax in accordance with the provisions of this section, fails to collect the whole or any part of the tax on the amount received from a buyer or licensee or lessee or on the amount debited to the account of the buyer or licensee or lessee but is not deemed to be an assessee in default under the first proviso of sub-section (6A), the interest shall be payable from the date on which such tax was collectible to the date of furnishing of return of income by such buyer or licensee or lessee.

(8) Where the tax has not been paid as aforesaid, after it is collected, the amount of the tax together with the amount of simple interest thereon referred to in sub-section (7) shall be a charge upon all the assets of the person responsible for collecting tax.

(9) Where the Assessing Officer is satisfied that the total income of the buyer or licensee or lessee justifies the collection of the tax at any lower rate than the relevant rate specified in sub-section (1) or sub-section (1C) or sub-section (1D), the Assessing Officer shall, on an application⁹⁹ made by the buyer or licensee or lessee in this behalf, give to him a certificate for collection of tax at such lower rate than the relevant rate specified in sub-section (1) or sub-section (1C) or sub-section (1D).

(10) Where a certificate under sub-section (9) is given, the person responsible for collecting the tax shall, until such certificate is cancelled by the Assessing Officer, collect the tax at the rates specified in such certificate.

(11) The Board may, having regard to the convenience of assessees and the interests of revenue, by notification in the Official Gazette, make rules specifying the cases in which, and the circumstances under which, an application may be made for the grant of a certificate under sub-section (9) and the conditions subject to which such certificate may be granted and providing for all other matters connected therewith.

Explanation.—For the purposes of this section,—

(a) "accountant" shall have the meaning assigned to it in the Explanation to sub-section (2) of section 288;

(aa) "buyer" with respect to—

  (i) sub-section (1) means a person who obtains in any sale, by way of auction, tender or any other mode, goods of the nature specified in the Table in sub-section (1) or the right to receive any such goods but does not include,—

(A) a public sector company, the Central Government, a State Government, and an embassy, a High Commission, legation, commission, consulate and the trade representation, of a foreign State and a club; or

(B) a buyer in the retail sale of such goods purchased by him for personal consumption;

 (ii) sub-section (1D) ¹[or sub-section (1F)] means a person who obtains in any sale, goods of the nature specified in the said sub-section;

 (ab) "jewellery" shall have the meaning assigned to it in the Explanation to sub-clause (ii) of clause (14) of section 2;

(b) "scrap" means waste and scrap from the manufacture or mechanical working of materials which is definitely not usable as such because of breakage, cutting up, wear and other reasons;

(c) "seller" means the Central Government, a State Government or any local authority or corporation or authority established by or under a Central, State or Provincial Act, or any company or firm or co-operative society and also includes an individual or a Hindu undivided family whose total sales, gross receipts or turnover from the business or profession carried on by him exceed the monetary limits specified under clause (a) or clause (b) of section 44AB during the financial year immediately preceding the financial year in which the goods of the nature specified in the Table in sub-section (1) or sub-section (1D) are sold ²[or services referred to in sub-section (1D) are provided].

Change in Service Tax Rates From 1st June 2016 - Krishi Kalyan Cess

he Finance Act, 2016 under Chapter VI has introduced a new cess named ‘Krishi Kalyan Cess’ (KKC) on all taxable services at the rate of 0.5% of the value of such services for the purposes of financing and promoting initiatives to improve agriculture or any other purpose. This cess would come into force from 01.06.2016 and would be levied and collected ‘as service tax’ on the value of all taxable services. This cess would be in addition to any cess or service tax leviable on such taxable services. 

• KKC will have to be paid on
  • outstanding balance as on 31st May, 2016 for which payment is to be received after 01st June, 2016;
  • payments received before 01st June, 2016 but invoice for the same is raised after 14th June, 2016
    

• Under reverse charge KKC will have to be paid along with ST @ 14% and SBC @ 0.5% as and when payment is made to the party.

• Accounting Code for payment of KKC is as under:
  

Sr. No.	KrishiKalyanCess (Minor Head)	Tax Collection	Other Receipts (Interest)	Deduct Refunds	Penalties
1	0044-00-507	00441509	00441510	00441511	00441512

Twitter Seva for Entrepreneurs #mociseva

Now one more reason to Tweet

Modi government launchers Twitter Seva for assistance of Entrepreneurs.

Tweet with #mociseva with your queries and Ministry of commerce will try to resolve it within 48 to 72 hours.

Bharat Mata Ki Jai.

CA Anand Mutha

Real Estate (Regulation and Development) Act, 2016 FAQ

FREQUENTLY ASKED QUESTIONS ON

THE REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016

(Coverage – Sections 1 to 8)

1.      What are objects of Real Estate (Regulation and Development) Act, 2016?

• To establish Real Estate Regulatory Authority for regulation and promotion of real estate sector
• To ensure sale of plot, apartment or building, or sale of real estate project, in an efficient and transparent manner
• To protect interest of consumers in real estate sector
• To establish an adjudicating mechanism for speedy dispute redressal
• To establish Appellate Tribunal to hear appeals from decisions, directions or orders of Real Estate Regulatory Authority and adjudicating officer

2.      When was the Act notified in e-Gazette?

The Act was notified in e-Gazette on 26^th March 2016. The Act is applicable to whole of India except Jammu & Kashmir.

3.      List some of the key terms that have been defined in the Act?

Advertisement, Agreement for Sale, Allottee, Apartment, Architect, Building, Carpet Area, Commencement Certificate, Common Areas, Completion Certificate, Development, Development Works, Engineer, Estimated Cost of Real Estate Project, External Development Works, Family, Garage, Immovable Property, Interest, Internal Development Works, Local Authority, Occupancy Certificate, Person, planning area, Project, Promoter, Prospectus, Real Estate Agent, Real Estate Project, Sanctioned Plan

4.      Is prior registration of real estate project with Real Estate Regulatory Authority mandatory?

Yes, no promoter shall advertise, market, book, sell or offer for sale, or invite persons to purchase any plot, apartment or building, in any real estate project or part of it, in any planning area, without registering Real Estate Project (REP)  with Real Estate Regulatory Authority (RERA).

5.      I am a promoter and I have an existing project on date of commencement of this Act but completion certificate has not been issued. Is registration still mandatory?

Yes, the promoter shall make an application to RERA within 3 months from date of commencement of Act.

6.      List the situations in which registration of Real Estate Project is not required?

No registration of real estate project shall be required -

ü  Where area of land proposed to be developed does not exceed 500 sq m  or  number of apartments proposed to be developed does not exceed 8 inclusive of all phases

ü  Where promoter has received completion certificate for Real Estate Project prior to commencement of Act

ü  For purpose of renovation or repair or re-development which does not involve marketing, advertising, selling or new allotment of any apartment, plot or building, under real estate project

7.      I am a promoter and I have a real estate project that will be developed in phases? Should I get a single registration or multiple registrations?

Where real estate project is to be developed in phases, every such phase shall be considered a standalone real estate project, and promoter shall obtain registration under this Act for each phase separately.

8.      List some of the information to be enclosed by the promoter while making an application to RERA.

(a)    Details of enterprise

(b)   Detail of projects launched by him in the past five years whether already completed or being developed, including current status of said projects, any delay in its completion, details of cases pending, details of type of land and payments pending

(c)    Authenticated copy of approvals and commencement certificate from competent authority for real estate project mentioned in application

(d)   Sanctioned plan, layout plan and specifications of proposed project or phase, and whole project as sanctioned by competent authority

(e)    Plan of development works to be executed in proposed project and proposed facilities to be provided including fire fighting facilities, drinking water facilities, emergency evacuation services, use of renewable energy

(f)    Location details of project, with clear demarcation of land dedicated for project along with its boundaries including latitude and longitude of end points of project

(g)    Proforma of allotment letter, agreement for sale, and conveyance deed proposed to be signed with allottees

(h)   Number, type and carpet area of apartments for sale in project along with area of exclusive balcony or verandah areas and exclusive open terrace areas apartment with apartment

(i)     Number and areas of garage for sale in project

(j)     Names and addresses of his real estate agents for proposed project

(k)   Names and addresses of contractors, architect, structural engineer and other persons concerned with development of proposed project

(l)     Declaration, supported by an affidavit, which shall be signed by promoter or any person authorised by promoter

9.      List the contents of the declaration to be provided by the promoter in his affidavit.

(a)    THAT he has a legal title to land on which development is proposed along with legally valid documents with authentication of such title, if such land is owned by another person

(b)   THAT land is free from all encumbrances, or details of encumbrances on such land including any rights, title, interest or name of any party in or over such land along with details

(c)    Time period within which he undertakes to complete project or phase

(d)   THAT 70% of amounts realised for real estate project from allottees, shall be deposited in a separate account to be maintained in a scheduled bank to cover cost of construction and land cost and shall be used only for that purpose

(e)    THAT he shall take all pending approvals on time from competent authorities

(f)    THAT he has furnished such other documents as may be prescribed

10.  What percentage of amounts for real estate project from allottees should be deposited in a separate account?

The promoter shall deposit 70% of amounts realised for real estate project from allottees, in a separate account to be maintained in a scheduled bank to cover cost of construction and land cost and shall be used only for that purpose.

11.  What are the rules for withdrawal by promoter from such account?

The promoter shall withdraw amounts from separate account, to cover cost of project, in proportion to percentage of completion of project

12.  I am a promoter and I wish to withdraw some amounts from separate account but who decides percentage of completion of project?

The amounts from separate account shall be withdrawn by promoter after it is certified by an engineer, an architect and a chartered accountant in practice that withdrawal is in proportion to percentage of completion of project.

13.  Is there a time limit imposed under the Act for getting the accounts of promoter audited?

Yes, the promoter shall get his accounts audited within 6 months after end of every financial year by a chartered accountant in practice, and shall produce a statement of accounts duly certified and signed by such chartered accountant and it shall be verified during audit that amounts collected for a particular project have been utilised for project and withdrawal has been in compliance with proportion to percentage of completion of project.

14.  How does a promoter make an application – manual or electronic form?

It is stated that RERA shall operationalize a web based online system for submitting applications for registration of projects within a period of 1 year from date of its establishment. RERA is yet to be established. Until a web based online system is established, all applications shall be made in paper format.

15.  What is the time limit for grant of registration by RERA?

Registration by RERA shall be granted within 30 days from date of application. RERA shall also provide registration number, Login ID and password to applicant for accessing website of Authority and to create his web page and to fill details of proposed project.

16.  What is the time limit for rejection of application by RERA?

RERA shall communicate in writing the reasons for rejection of application within 30 days from date of application.

17.  What if RERA fails to grant registration or reject application?

If RERA fails to grant registration or reject application, project shall be deemed to have been registered. RERA shall also within 7 days (from expiry of 30 days) provide registration number, Login ID and password to applicant for accessing website of Authority and to create his web page and to fill details of proposed project.

18.  What is the validity of the registration granted by RERA?

Registration shall be valid for a period declared by promoter for completion of project or phase.

19.  What if the promoter is unable to complete the project as stipulated in the affidavit. Does the promoter have to file a fresh application for registration?

Registration granted may be extended by RERA on an application made by promoter due to force majeure. Also, RERA may in reasonable circumstances, without default on part of promoter, based on facts of each case, extend registration granted to a project for such time as it considers necessary, which shall, in aggregate, not exceed a period of 1 year.

20.  What is force majeure?

Force majeure means a case of war, flood, drought, fire, cyclone, earthquake or any other calamity caused by nature affecting the regular development of the real estate project.

21.  Does the Act impose restriction on period of extension to be granted by RERA?

Yes, RERA may in reasonable circumstances, without default on part of promoter, based on facts of each case, extend registration granted to a project for such time as it considers necessary, which shall, in aggregate, not exceed a period of 1 year.

22.  Can the registration once granted by RERA be revoked?

Yes, RERA can revoke registration on receipt of a complaint or suo motu or on recommendation of competent authority.

23.  What acts lead to revocation of registration by RERA?

(a)    Promoter makes default in doing anything under Act / Rules / Regulations

(b)   Promoter violates any terms or conditions of approval given by competent authority

(c)    Promoter is involved in any kind of unfair practice or irregularities

(d)   Promoter indulges in any fraudulent practices

24.  What do you mean by unfair practice?

"Unfair Practice” means a practice which, for purpose of promoting sale or development of any real estate project adopts any unfair method or unfair or deceptive practice including any of following practices, namely:

(A)  practice of making any statement, whether in writing or by visible representation which,

(i)                 falsely represents that services are of a particular standard or grade;

(ii)                represents that promoter has approval or affiliation which such promoter does not have

(iii)             makes a false or misleading representation concerning the services

(B)  promoter permits publication of any advertisement or prospectus whether in any  newspaper or otherwise of services that are not intended to be offered

25.  If the registration is revoked, it is the allottees who will suffer? How does RERA tackle such a situation?

RERA may, instead of revoking registration, permit registration to remain in force subject to such further terms and conditions as it thinks fit to impose in interest of allottees and any such terms and conditions so imposed shall be binding upon promoter.

26.  What is the role of RERA after revocation of registration?

(a)    RERA shall debar promoter from accessing its website in relation to that project and specify his name in list of defaulters and display his photograph on its website and also inform other Real Estate Regulatory Authority in other States and Union territories about such revocation or registration

(b)   RERA shall facilitate remaining development works to be carried out in accordance with provisions of section 8

(c)    RERA shall direct the bank holding the project back account, to freeze account, and take necessary actions, including consequent de-freezing of said account, towards facilitating remaining development works in accordance with provisions of section 8

(d)   RERA may, to protect interest of allottees or in public interest, issue such directions as it may deem necessary

27.  What is the obligation of RERA consequent upon lapse of or on revocation of registration?

Upon lapse of or on revocation of registration, RERA may consult Appropriate Government to carry out remaining development works by competent authority or by association of allottees or in any other manner, as may be determined by RERA

28.  In case of revocation of registration of a project, who shall have the first right of refusal for carrying out of remaining development works?

In case of revocation of registration of a project, association of allottees shall have first right of refusal for carrying out of remaining development works

Services provided by Government - New Governments gives Clear Guidelines

Government has today issued notification no. 22/2016 dated 13th April  2016 amending Mega Exemption Notification 25/2016 Dated 20th June 2016 exempting wide range of services provided by the Government or Local Authority. 

CBDT has also issued a detailed circular No. 192/02/2016 ST (F.no.334/8/2016 TRU) Dated 13th April 2016 explaining whole gamut of the issues concerning the levy of service tax on Govenment Services and the exemptions granted. The circular runs in 13 pages, worded in crystal clear language and is one of the most outstanding circular ever issued by CBEC. Click here to see the circular

Notification No. 22/2016-Service Tax

New Delhi, the 13^th April, 2016

G.S.R.….(E).-In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No.25/2012-Service Tax, dated the 20^th June, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 467 (E), dated the 20^th June, 2012, namely:-

In the said notification, in the first paragraph,-

(i)         in entry 39, after the words “Services by”, the words “Government, a local authority or” shall be inserted;

(ii)        after entry 53, the following entries shall be inserted, namely:-

"54.  Services provided by Government or a local authority to another Government or local authority:

Provided that nothing contained in this entry shall apply to services specified in sub-clauses (i),(ii) and (iii) of clause (a) of section 66D of the Finance Act, 1994;

                      55. Services provided by Government or a local authority by way of issuance of passport, visa, driving licence, birth certificate or death certificate;

                       56. Services provided by Government or a local authority where the gross amount charged for such services does not exceed Rs. 5000/- :

Provided that nothing contained in this entry shall apply to services specified in sub-clauses (i), (ii) and (iii) of clause (a) of section 66D of the Finance Act, 1994:

Provided further that in case where continuous supply of service, as defined in clause (c) of rule 2 of the Point of Taxation Rules, 2011, is provided by the Government or a local authority, the exemption shall apply only where the gross amount charged for such service does not exceed Rs. 5000/- in a financial year;

                   57.  Services provided by Government or a local authority by way of tolerating non-performance of a contract  for which consideration in the form of fines or liquidated damages is payable to the Government or the local authority under such contract;

                 58.   Services provided by Government or a local authority by way of-

         (a)         registration required under any law for the time being in force;

(b)         testing, calibration, safety check or certification relating to protection or safety of workers, consumers or public at large, required under any law for the time being in force;

     59.   Services provided by Government or a local authority by way of assignment of right to use natural resources to an individual farmer for the purposes of agriculture;

    60.   Services by Government, a local authority or a governmental authority by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution;

     61.   Services provided by Government or a local authority by way of assignment of right to use any natural resource where such right to use was assigned by the Government or the local authority before the 1^st April, 2016:

                       Provided that the exemption shall apply only to service tax payable on one time charge payable, in full upfront or in installments, for assignment of right to use such natural resource;

     62.   Services provided by Government or a local authority by way of allowing a business entity to operate as a telecom service provider or use radiofrequency spectrum during the financial year 2015-16 on payment of licence fee or spectrum user charges, as the case may be;

   63. Services provided by Government by way of deputing officers after office hours or on holidays for inspection or container stuffing or such other duties in relation to import export cargo on payment of Merchant Overtime charges (MOT).".

 [F. No. 334 / 8 /2016 -TRU]

(Mohit Tiwari)

Under Secretary to the Government of India

Note:- The principal notification was published in the Gazette of India, Extraordinary, vide notification No. 25/2012 - Service Tax, dated the 20^th  June, 2012, vide number G.S.R. 467 (E), dated the 20^th June, 2012 and was last amended vide notification number 09/2016 - Service Tax, dated the 1^st March, 2016 vide number G.S.R. 257(E), dated the 1^st March, 2016.

Tax Deducted at source - ALL Due date

The due dates for the payment of the deducted TDS are on or before 7th of next month except for the month of March relaxation is given to pay the TDS till 30th April. 

• These due dates are applicable to all non-Government assesses and also to Government assessees who deposit tax with Challan. 
• For government assessees who do not make the payment with challan, the due date for payment of TDS will be the same day on which the amount is deducted.

Month	Due date for payment of TDS
April	7th of May
May	7th of June
June	7th of July
July	7th of August
August	7th of September
September	7th of October
October	7th of November
November	7th of December
December	7th of January
January	7th of February
February	7th of March
March	30th of April

Given below is the table with due dates for different TDS return forms and different quarters

Quarter	Form 24Q and 26Q	Form 27Q	Form 27EQ
April to June	15 July	15 July	15 July
July to September	15 October	15 October	15 October
October to December	15 January	15 January	15 January
January to March	15 May	15 May	15 May

 

• Form 24Q: It is the TDS quarterly return to be filled out by the deductor ( or employer) for all the deductions made in a salaried case.
• Form 26Q: It is the TDS quarterly return to be filled out by the deductor for all the deductions made in the non-salaried case.
• Form 27Q: It is the TDS quarterly return to be filled out by the deductor for all the deductions made in the case of NRIs.
• Form 27EQ: It is the TCS quarterly return to be filled out by the deductor.

Late payment and filing consequences:

Interest for delay in deduction: In the case when the TDS is not deducted on the specific due date ( Deduction due date is 30th of the month and in case of February, the last day of the month), then interest will be applicable at a rate of 1% per month from the date when it should have been deducted. 

• Example: If the TDS amount was to be deducted for the month of November (i.e, on 27th of November), but it was actually deducted on 7th of December then interest will be 2% (for the month of November and December).

Interest for delay in payment of deducted amount: In the case when the TDS deducted on time but is not paid by the specific due date ( payment due date is 7th of next month and in case of March, it is 30th of April), then interest will be applicable at a rate of 1.5% per month from the date when it should have been paid. 

• Example: Continuing with the same example if the TDS amount was to be paid for the month of November (i.e, on or before 7th of December), but it was paid on 10th of December then interest will be 3% (for the month of November and December).

Fees for the delay in furnishing the statements: In such cases where there is a delay in furnishing the eTDS statement, a mandatory fee of Rs. 200 per day is applicable. The total fees will not exceed the total TDS amount of that quarter. The late filing fee should be paid before filing such delayed eTDS statement. 

Failure to file eTDS statement delaying more than a year or furnishing incorrect details in the statement filed like PAN, Challan and TDS Amount etc, will result in a penalty ranging from Rs. 10,000 to one lakh.