MSME (Micro, Small and Medium Enterprises MSME)

 Micro, Small and Medium Enterprises (MSMEs) play a significant role in the Indian economy by generating employment and contributing to GDP growth. To promote the growth and development of these enterprises, the Government of India has introduced various schemes and initiatives, including MSME registration.

MSME registration is the process of obtaining a certificate of registration from the Ministry of Micro, Small and Medium Enterprises or the District Industries Center, which provides various benefits and incentives to registered MSMEs.

To register as an MSME, an enterprise must fulfill the following eligibility criteria:

1.    Classification: The enterprise should be classified as micro, small, or medium as per the MSME Act, 2006:

·         Micro enterprises: Investment in plant and machinery or equipment should not exceed INR 1 crore and turnover should not exceed INR 5 crores.

·         Small enterprises: Investment in plant and machinery or equipment should not exceed INR 10 crores and turnover should not exceed INR 50 crores.

·         Medium enterprises: Investment in plant and machinery or equipment should not exceed INR 50 crores and turnover should not exceed INR 250 crores.

2.    Entity type: The enterprise should be a sole proprietorship, partnership, LLP, private limited company, or any other type of legal entity recognized under Indian law.

3.    Business activity: The enterprise should be engaged in manufacturing, processing, or preservation of goods, or providing services.

 

 

To register as an MSME, an enterprise needs to follow the below steps:

·         Obtain Udyog Aadhaar: The first step in the MSME registration process is to obtain a Udyog Aadhaar from the government portal. This can be done by providing basic details such as the name of the enterprise, address, type of entity, and bank details.

·         Registration with District Industries Centre: The enterprise can then register with the District Industries Centre by submitting the Udyog Aadhaar and other required documents such as PAN card, GST registration, and bank account details.

·         Certificate of Registration: Once the registration is completed, the enterprise will receive a certificate of registration as an MSME.

Benefits of MSME Registration:

• Easy access to credit: Registered MSMEs can avail of various schemes and initiatives that provide credit at lower interest rates and with reduced collateral requirements.
• Tax benefits: MSMEs can avail of various tax benefits such as exemption from GST registration for businesses with turnover up to INR 40 lakhs, exemption from income tax for up to 3 years, and lower rates of tax under presumptive taxation.
• Incentives and subsidies: Registered MSMEs can avail of various incentives and subsidies under government schemes such as the Credit Guarantee Fund Scheme, the Technology Upgradation Fund Scheme, and the Market Development Assistance Scheme.
• Access to government schemes: MSMEs registered under the Udyog Aadhaar can participate in various government schemes and initiatives such as the Startup India Scheme, the Skill India Mission, and the Stand-Up India Scheme.

 

In conclusion, MSME registration in India is a simple and easy process that provides numerous benefits and incentives to registered enterprises. MSMEs play a crucial role in the Indian economy, and the government is committed to promoting their growth and development through various schemes and initiatives.

If you have any questions or wish to know more about “(Micro, Small and Medium Enterprises MSME)” Kindly Contact us.

 

 

Should You Choose a Tax-Saving FD?

 

Introduction:

In today's challenging economic climate, it is essential to make informed decisions when it comes to managing your finances. One option worth considering is a tax-saving fixed deposit (FD), which can provide both tax benefits and a fixed return on your investment. In this article, we will delve into the benefits and considerations of choosing a tax-saving FD to help you make an informed decision.

Benefits of Tax-Saving FDs:

Tax Benefits: One of the primary advantages of tax-saving FDs is the tax deductions they offer under Section 80C of the Income Tax Act. By investing in these FDs, you can reduce your taxable income by up to Rs. 1.5 lakhs per financial year, potentially leading to significant tax savings.

Fixed Returns: Tax-saving FDs provide a fixed rate of return throughout the investment period. This stability can be appealing, especially in times of market volatility. You can rely on the promised return, unaffected by macroeconomic or microeconomic fluctuations, ensuring a predictable outcome for your investment.

Long-Term Savings: Tax-saving FDs typically come with a lock-in period of five years. This feature promotes long-term savings and can discourage impulsive withdrawals, helping you stay committed to your financial goals.

Considerations for Tax-Saving FDs:

Liquidity: Unlike regular FDs, tax-saving FDs have limited liquidity options. Premature withdrawals are not allowed during the lock-in period, which means you cannot access the funds in case of immediate financial needs. It is crucial to evaluate your liquidity requirements and ensure you have sufficient emergency funds before opting for a tax-saving FD.

Lower Interest Rates: Tax-saving FDs may offer slightly lower interest rates compared to regular FDs or other investment options such as mutual funds. While the returns are stable, they may not be as appealing as those offered by other investment avenues. It is essential to consider the trade-off between stability and potential returns.

Long-Term Commitment: Since tax-saving FD s come with a lock-in period of five years, you need to be prepared for a long-term commitment. If you anticipate needing the funds sooner or have other investment goals with a shorter horizon, a tax-saving FD may not be the most suitable choice.

Diversification: While tax-saving FDs offer tax benefits and stability, it is crucial to diversify your investment portfolio to mitigate risks and explore other avenues for potential higher returns. Consider evaluating different investment options, such as equity mutual funds or Public Provident Fund (PPF), to achieve a balanced approach to your financial planning.

Conclusion:

Choosing a tax-saving fixed deposit (FD) can be a beneficial option for individuals seeking tax benefits and stable returns. However, it is essential to carefully consider the trade-offs, such as limited liquidity and potentially lower interest rates, before making a decision. Diversification is also crucial to optimize your investment portfolio and achieve long-term financial goals. Consulting with a

financial advisor can provide valuable insights and help tailor your investment strategy to align with your specific needs and risk tolerance.

 

 

 

 

 

 

 

 

 

Annual Information System

 

The Annual Information Statement (AIS) is a comprehensive overview of the information required by the taxpayer.

The information is displayed on the Form 26AS. Taxpayers are able to provide feedback on the information presented in the AIS. AIS displays

both the reported value and the modified value (i.e. value after considering taxpayer feedback) under each

section (i.e.TDS section, SFT, TDS details).

Objectives of Annual Information System

Make voluntary compliance easier and the return filling process simple

Make sure taxpayers have exact information, with the option to write online reviews.

Discourage non-compliance

Process to Access Annual Information System

Login to URL https://www.incometax.gov.in/

After successful login Following a successful login, choose "Annual Information Statement (AIS)" from the "Services" option on the electronic filing page.

On the homepage click the AIS tab.

For access to the Annual Information System, choose the appropriate FY, then hit the AIS tile.

Component of AIS:

Part A: General Information

Part B: Other Information

Part A- General Information

The basic details about you are listed in Part-A. It includes your personal identification number, Aadhar masked number name day of birth, date of incorporation or creation, mobile number, email address.

Part B- Other Information

TDS/TCS Info: -This page provides information about tax paid and collected from the point of collection. The table below shows the information code for TDS/TCS, information description, as well as the information value

SFT details information from reporting entities as part of the Statement of Financial Transaction (SFT) is displayed under this section. There is a way to obtain an SFT code, the description of information and the Information value.

Taxpayer The information shown pertains to tax payments under a variety of headings, such as Taxes owed in advance, Tax as well as Self-Assessment Tax.

Refund and Demand You can see the specifics of the requests that were made and the refunds that were initiated during the time of the budget year (AY and the amount).

Additional Information The data taken from GST turnover that is reported under GSTR-3B. GST purchases made under GSTR-1 by the seller is provided here.

The difference between Form 26AS and AIS

The extended version to the form 26AS can be described as AIS. Information about real estate purchases investment of high value, as well as TDS/TCS transactions completed in the course of the fiscal year are outlined within Form 26AS. Furthermore, AIS contains income from savings accounts and dividends, as well as rent paid purchase and sales of real estate and stocks international transfers and deposits that earn interest and GST turnover, among others.

The taxpayer has the opportunity to make comments on the transactions that are reported via AIS and AIS. Additionally, TIS additionally reports the total transactions at the information source level.

If the taxpayer must verify the GST amount based on information in the GSTR-3B form, only Form 26AS is required.

AIS Preparation Steps:

Step 01 - PAN Population:

It is possible that the PAN will be filled by matching Aadhar with other essential factors in the event that the information provided is not an actual PAN.

Step 02 - Information Display:

The information reported is usually displayed next to the PAN holders. The presentation logic for specific information, such as bank accounts, property, Demat account, etc. The goal is to present details to relevant PAN holders to allow for evaluation and feedback.

Step 03 - Information Deduplication:

The information that has the lower value is classified in the form of "Information is duplicate / included in other information" by automatic rules when the exact information is reported under different categories of information (for instance, the reporting of interest/dividends within SFT as well as TDS).

Step 04 - Preparation of the Taxpayer Information Summary (TIS):

The summary of information for the aggregated taxpayer an individual taxpayer is created by the information category following deduplication that is based on established rules. It provides values that have been processed (i.e. value derived after deduplication of data with pre-established processes) and the value derived under each category of information (i.e. value that is derived from the feedback of taxpayers as well as the processed value).

Processing of AIS Feedback:

The Annual Information Statement (AIS) will include a log of the assessor’s comments along with separate displays of the amount reported and for the change in value (i.e. the value following feedback).

A Taxpayer Information Summary's derivable value--the amount that was calculated after accounting for assesses input - will be adjusted using the input of the assessed (TIS)

Automatic rules will be utilized to process and display information from the AIS that is assigned to other PANs and the years of the taxpayer's own AIS.

Feedback will be analysed according to guidelines of risk management if given information is changed or derided, risky feedback being flagged for further investigation.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FAQ ON EQUALISATION LEVY (EQL)

 1.What are you able to mean in terms of EQL?   Equalisation Levy is often referred to in the form of EQL (EQUALISATION LEVIY). It is a test for digital services (mostly advertising) provided within India by non-resident firms.

2. What is the reason for it?

For instance, in India, Non-Resident corporations generally not pay any tax. The government has instituted EQL at 6percent for all non-resident companies who do not have fixed establishments located in India to prevent this.

3. What services are under the jurisdiction of its authority?

EQL is charged for specific services listed in the notice. As of now, only Advertisement is listed as "Specified Services'.

4. What exactly are Specified Services?

Specificities Services are online Advertising or any other digital advertising or any other type of device or service that serves the purpose of advertising online and any other service can be provided to the Central Government may notify in this regard.

5. Who is the person to whom it applies?

This Tax applies to any non-resident company that doesn't have a permanent presence in India. EQL is applicable to organizations such as Google, Yahoo, Facebook and other companies that generate substantial revenue from India through the digital services of advertising.

6. Are the rules of the Equalisation levee apply to me as an individual who wants to market online for my own personal needs?

The payments made for personal use do not fall under Equalisation levies.

7. What rate is applicable?

EQL is evaluated at a 6-percent rate on the list of digital services.

8. Are there any EQL Exemption?

The following is the list:

If the cost of services rendered in the previous year is less than or equal to Rs.1 lakh, then no EQL is calculated.

EQL is only applicable to B2B transactions. B2C operations are not affected by it.

If a business is located on the territory of Jammu or Kashmir, EQL does not apply to that company.

9. I have put up ads on Facebook to promote my bakery business. I have to pay Facebook the amount of Rs. 40000 for FY 2019-20 in exchange for the services that I purchased. Do I have to pay the Equalisation levee be applicable to me?

No, you aren't obliged to deduct the equalisation tax because your annual contribution were not more than Rs.1,00,000 throughout the fiscal year.

 

10. What happens if a business isn't paying an service company's EQL?

It is expected that the EQL responsibility will then be passed to the service recipient should an organisation (service provider) is unable to pay EQL to the recipient of service.

11. What is the deadline for the submission of Equalisation statement of levy?

Annual returns are required to be submitted electronically on Form No.1 prior to June 30th, the day after the conclusion in the financial year according to Section 167 of Finance Act 2016 rules 5 and 6.

12. What has been the impact of Finance Act of 2020 expanded the extent of Equalisation Levy?

Equalization Levy was charged solely on the value payable or received by non-residents who provide online advertising services or similar service in the case of individuals who are Indian resident or any person who has PE in India in accordance with Section 161 of the Finance Act, 2016 ("FA 2016," in short).

As a result of the Finance Act, 2020, the new section 165A was added in the FA 2016, which aims to expand the coverage of the Equalisation Levy by incorporating the amount of consideration that is received or payable for online commerce Supply or Services by an online retailer within its definition.

Online sellers will have to settle an Equalisation Levy of 2% (the "New Equalisation Levy") of the money received or owed.

13. What day will take effect the New Equalisation Levy take effect?

The New Equalisation Levy will go into effect April 1st in 2020. This means that beginning in F.Y. 2020-21, a business that provides e-commerce products and services to a certain population will be legally required to contribute this New Equalisation Levy.

14. What exactly does "E-Commerce supply or services" mean in the context of the New Equalisation Levy?

When an e-commerce company engages in offering the services or products of an e-commerce site and services, the new Equalisation taxation is in place. The term "E-Commerce supply or services" is defined under section (cob) in Section of 164 of the FA in 2016 to this effect:

online sales of products that are owned by the e-commerce company or

the online service delivery by an e-commerce provider the e-commerce operator; or

online sale of products or the provision of services, or both, made possible by an e-commerce provider;

Combination of any of the above-mentioned activities.

15. Is this New Equalisation Levy in India be applicable to all online-based items or services the operator of e-commerce provides, sells or facilitates?

The New Equalisation Levy will not be applied to all the products or services that an e-commerce company offers, makes offer, provides, or facilitates. In accordance with section 165 A (1) of the FA in the following people (referred by the term "Specified Persons") will be subject to the New Equalisation Levy:

when an e-commerce provider delivers goods or services or both to a person who is or residing in India;

Any time an e-commerce company offers goods, services, or both to a client who buys those products, services, or both with an IP address from India;

In the event that an online merchant offers services, products or both, to an individual who is not a resident in a particular circumstance.

16. In the event that New Equalisation Levy is an expense that the online retailer has to pay, or if it's payable separately to the customer in the invoice that the online retailer is able to raise?

An online retailer could be subject to a New Equalisation levy, which is a direct tax that is assessed on profits from sales of products or services that are created, provided by or facilitated by the company. This means that the cost has been placed directly on the company that operates the website and has to be paid by it on its own. However, the way an e-commerce business structure its business operations to pay for this additional tax could differ from case to instance.

For example, ABC, an online retailer offers Indian residents the sum of Rs. 20 crores for its services. in turn, must pay an equalisation cost at 2% of that amount, which is 40 lacs, or. 40 lacs, to be following the regulations of the government. In the future, if ABC decides to raise the amount of consideration to the amount of Rs. 10.40 Crores, and then decides to charge the equalisation tax of the amount of Rs. 40 Lac from its customers and it is responsible for the payment of Equalisation levy based on this new amount.

Accounting outsourcing services in Delhi

17. What time should when the New Equalisation Levy be deposited into the Central Government's account?

In accordance with Section of 166  A of the FA in 2016 the online retailer must deposit quarterly the New Equalisation Levy to the credit of the Central Government by the following dates:

A deposit for the New Equalisation Levy for the 4 4th quarter, which has to be paid within the quarter itself, in contrast to the 3rd quarter, in which the levy is to be paid on seven days following the close in the applicable quarter is a real issue.

18. What happens if the online company fails to pay or deposit for the New Equalisation Levy?

If an online business is unable to pay or deposit the New Equalisation Levy, they are also required to pay the penalties listed below:

The interest on the delayed payment of the Equalisation levy

Each e-commerce company who fails to pay the entire equalisation levy before the due date is ordered to make payments of simple interest at the rate of one percent from the levied every month or part of a month in which the inability to deposit continues.

Penalties for failing to pay the Equalisation levy

Any e-commerce business that fails to pay the full or a part of the equalisation tax in the account from the Central Government is subject to an amount equivalent in amount to not paid equalisation levy.

19. What happens for not filing you do not file the Equalisation Levy Statement is not submitted?

A business that fails to meet the deadline for submitting the Equalisation Levy Statement will be liable to pay the fine of Rs.100 for every day that passes without making the submission.

20. What is an e-commerce retailer's obligation to adhere to when giving an account statement?

Every online retailer must prepare and deliver the Equalisation Levy Statement in the way and format that is required by the Assessing Officer as well as any other authority or organization authorized through the Board. In addition, the statement must be submitted on or before the 30th June following the conclusion of the current F.Y.,and it is r

Internal Audit vs External Audit: Key Differences Explained

 As businesses expand and expand, they must ensure that the financial records of their company are accurate and that their business operations follow the legal and regulatory standards. In order to achieve this, they can perform internal audits or employ external auditors. Internal and external audits have the same purpose which is to enhance the efficiency of an organization and increase accountability. They differ however in regards to their purpose as well as their scope and methodology. This article we'll examine the distinctions between internal audits and external audits as well as their benefits.

1. Introduction Auditing is an important aspect of managing finances in every organization. It is the process of reviewing the financial records and operation to verify that they are correct as well as in line with law and regulations. There are two kinds of auditing which are: the internal audit, and an external audit. Internal audits are performed by employees of the company as opposed to an external audit which is performed by a third-party auditor. Both kinds of audits are essential to the organization's success, however they differ in their goals, scope, and methods.

1. What is an Internal Audit?
   Definition and Objectives
   Internal audits are an impartial and independent review of a company's internal controls financial reporting, internal controls, and operational procedures. The objective of internal audits is to discover risks and weaknesses in the organisation's procedures and systems and make recommendations to improve. Auditors who are internal employees work for the business and are accountable on behalf of the committee for audit or the management. Accounting outsourcing services in Delhi 
   
   Scope
   Internal audits cover an array of subjects that include financial reporting in compliance with the law and regulations as well as risk management operating efficiency. Internal auditors examine their internal control and procedures and provide recommendations to improve.
   
   Methodology
   Internal auditors utilize a systematic process to evaluate the effectiveness of an organization's procedures and controls. They might employ a mixture of interview, documents review as well as observation and tests to assess whether internal controls are effective and procedures. Internal audit reports contain recommendations for improvement. Management is accountable for the implementation of the recommendations.

1. What is an External Audit?
   Definition and Objectives
   External audits are an independent assessment of the financial statements of a company and internal controls performed by an auditor from a third party. The objective in an external audit is give an impartial assessment of the financial statements of the company and to verify the compliance of regulations and laws. External auditors are not part of the business and report to shareholders or the board of directors.
   
   Scope
   The external audit is focused upon the accounting records as well as internal controls of the business. External auditors examine the company's financial statements and assess how effective internal controls are. They also assess the compliance with applicable laws and regulations.
   
   Methodology
   External auditors utilize a systematic process to examine the organization's internal controls and financial statements. They can employ a mix of documents, tests, and interviews to determine whether internal control systems are effective and procedures. External audit reports offer an objective opinion about the financial statements of the company and provide a list of areas for incompatibility or weaknesses.

1. Differential ties between External Audit and Internal Audit
   Independence
   The primary distinction in internal and external audits is their independence. Internal auditors have the status of employees within an organization and external auditors are not part of the company. This autonomy allows external auditors to offer an impartial review of the organization's internal controls and financial statements.
   
   Reporting Line
   Internal auditors are accountable on behalf of the committee for audit or the management, whereas external auditors report to board of directors or shareholders. External auditors give an independent assessment of the financial statements of an organization and internal controls, whereas internal auditors concentrate on identifying weaknesses and risks and making recommendations for improvement.
   
   Focus
   The internal audit is focused on the internal controls within the organization including financial reporting, as well as operations processes. It examines whether internal controls and procedures and offers suggestions for improvement. The external audit is focused on the financial statements of the company and its internal procedures. The audit provides an independent view about the financial statements of the business and also identifies weak points or areas of incompatibility.
   
   Responsibility
   Internal auditors are accountable to identify weaknesses and risks and recommending improvements. Management is accountable for the implementation of these suggestions. External auditors are accountable to give an impartial review of the organization's internal control and financial statements.
   
   Standards
   The internal audit is conducted according to the standards established by the Institute of Internal Auditors (IIA). External audit is conducted in accordance with the standards that are set by the International Auditing and Assurance Standards Board (IAASB).

1. Benefits of Internal and External Audits
   Audits both internal and external provide many benefits to companies which include:
   
   Improved Controls
   Audits can help determine points where the internal security need to be improved, thus reducing the possibility of errors and fraud.
   
   Compliance
   Audits are a way to ensure compliance with law and regulations, which reduces the chance of financial and legal sanctions.
   
   Efficiency
   Audits uncover areas in which processes could be improved and streamlined to make them more efficient, thus reducing costs and increasing productivity.
   
   Trust and Credibility
   Audits offer an impartial opinion about the financial statements of an organization along with internal procedures, thereby increasing credibility and trust among stakeholders.

Conclusion
External audits and internal audits share the same objective to improve the efficiency of an organization and accountability. They differ however in regards to their purpose the scope, methodology, and objectives. Internal audits focus on identifying the weaknesses and risks and recommending improvements as opposed to the external audit, which gives an independent assessment of the financial statements of a company as well as internal control. Audits of both types bring numerous benefits, including better controls, compliance, efficacy as well as trust and credibility with other stakeholders.

 

Hello foreign parent company

 

Meaning of Foreign Subsidiary Company
A foreign subsidiary company is any company, where 50% or more of its equity shares are owned by a company that is incorporated in another foreign nation. For example, a company incorporated in USA (Parent company) is executing the same business operation through an Indian subsidiary company. However, this company should abide by the rules and regulations of the domestic law of the corresponding country where it is situated, it should not follow the laws applicable to its parent company.

As per section 2, clause 22, “dividend” includes–

1.    Distribution of accumulated profits to shareholders entailing release of the company’s assets; 

2.    Distribution of debentures or deposit certificates to shareholders out of the accumulated profits of the company and issue of bonus shares to preference shareholders out of accumulated profits;

3.    Distribution made to shareholders of the company on its liquidation out of accumulated profits; 

4.    Distribution to shareholders out of accumulated profits on the reduction of capital by the company; and 

5.    Loan or advance made by a closely held company to its shareholder out of accumulated profits.

Taxability of Dividends before AY 2020-2021:
If a shareholder gets dividend from a domestic company on or before the 31st day of March, 2020, then he/she shall be exempt from tax under section 10(34) of the Act and the domestic company is liable to pay a Dividend Distribution Tax (DDT) @15% (excluding surcharge and cess) under section 115-O of the Income Tax Act. In case of dividend under Section 2 (22) (e), the DDT rate shall be substituted from 15% to 30%.

Taxability of Dividends paid by Indian company to Foreign Parent Company

Tax Withheld u/s 195 on the Dividend paid to Foreign Parent Company: In accordance with the provisions of Section 195 of the Income Tax Act, tax is required to be withheld @ 20% (plus applicable surcharge and cess) on the amount of dividend payable to foreign parent company. The TDS withheld by the payer must be deposited to the Government within 7^th of the next month (except in case of Tax Deductible in March, the due date is 30^th April of the next year.  

Section 90- Avoidance of Double Taxation Avoidance Agreement
As per section 90 of the Income Tax Act, a non-resident shareholder has an option to be governed by the provisions of the Double Taxation Avoidance Agreement (‘DTAA’) between India and the country of tax residence of the shareholder, if such provisions are more beneficial to such shareholder to avoid of double taxation of income under this Act and under the corresponding law in force in that country. Here are the few examples:

1.    Tax treaty between India and Germany determines that their bilateral withholding tax on dividends is 10%, then India will tax dividend payment that are going to Germany at a rate of 10%, and vice versa.

2.    In case of tax treaty between India and Canada, the withholding tax on dividend is 15% if at least 10% of the shares of the company paying the dividends is held by the recipient of dividend. But in other cases, the withholding tax on dividend is 25%, hence the India will tax divided payment at the rate of 20%.

3.    In case of tax treaty between India and United Kingdom, the withholding tax on dividend is 10%. But in case the dividends are paid out of income (including gains) derived directly or indirectly from immovable property within the meaning of Article 6 by an investment vehicle, the withholding tax on dividend is 15% of the gross amount of the dividends.

Documents required by the non-resident shareholder to avail the DTAA benefits:

·        Self-attested copy of PAN, if any, allotted by the Indian tax authorities.  In case of non-availability of PAN, declaration is to be submitted.

·        Self-attested copy of valid Tax Residency Certificate (‘TRC’) issued by the tax authorities of the country of which shareholder is tax resident, evidencing and certifying shareholder’s tax residency status.

·        Completed and duly signed self-declaration in Form 10F.

·        Self-declaration certifying the following points that the shareholder: –

1.    is and will continue to remain a tax resident of the country of its residence during the FY

2.    is the beneficial owner of the shares and is entitled to the dividend receivable from the Company.|

3.    qualifies as ‘person’ as per DTAA and is eligible to claim benefits as per DTAA for the purposes of tax withholding on dividend declared by the Company.

4.    has no permanent establishment / business connection / place of effective management in India OR Dividend income is not attributable/effectively connected to any Permanent Establishment (PE) or Fixed Base in India.

5.    has no reason to believe that its claim for the benefits of the DTAA is impaired in any manner

Relief under Section 91- Countries with which no agreement exists
When there is no agreement under section 90 for the relief or avoidance of double taxation, section 91
the Income Tax Act provides relief from double taxation in such cases. 

If any person who is resident in India in any previous year proves that, in respect of his income is not deemed to accrue or arise in India and with which there is no agreement under section 90, he shall be entitled to the deduction from the Indian income-tax payable by as under:

A sum calculated on such doubly taxed income at the Indian rate of tax or 
the rate of tax of the said country, whichever is the lower or 
At the Indian rate of tax if both the rates are equal.

SABKA VISHWAS (LEGACY DISPUTE RESOLUTION) SCHEME, 2019 (open for 1-9-2019 to 31-12-2019)

Scheme Highlight

• With a specific window period to exercise the option
• Proceedings under the scheme specifically stated to not be treated as a precedent for past and future liabilities
• Coverage: — 28 enactments including Excise & Service Tax

Note- the final hearing has not taken place as on 30.06.2019

*** ‘Quantified’ means a written communication of the amount of duty payable under the indirect tax enactment [Section 121(g)]. Such written communication will include a letter intimating duty demand; or duty liability admitted by the person during enquiry, investigation or audit; or audit report etc.

• A person making a voluntary disclosure:-
   (i) After being subjected to any enquiry or investigation or audit; or
   (ii) Having filed a return under the indirect tax enactment, wherein he has indicated an amount of duty as payable, but has not paid it;
• This scheme is applicable on –
   The Central Excise Act, 1944 or the Central Excise Tariff Act, 1985 or Chapter V of the Finance Act, 1994 and the rules made there under;The following Acts, namely:
   The Agricultural Produce Cess Act,1940, The Coffee Act, 1942, The Mica Mines Labour Welfare Fund Act, 1946, The Rubber Act, 1947, The Salt Cess Act, 1953, The Medicinal and Toilet Preparations (Excise Duties) Act, 1955, The Additional Duties of Excise (Goods of Special Importance) Act, 1957, The Mineral Products (Additional Duties of Excise and Customs) Act, 1958, The Sugar (Special Excise Duty) Act, 1959, The Textiles Committee Act, 1963, The Produce Cess Act, 1966, The Limestone and Dolomite Mines Labour Welfare Fund Act, 1972, The Coal Mines (Conservation and Development) Act, 1974, The Oil Industry (Development) Act, 1974, The Tobacco Cess Act, 1975, The Iron Ore Mines, Manganese Ore Mines and Chrome Ore Mines Labour Welfare Cess Act, 1976, The Sugar Cess Act, 1982 & The Finance Act.
• This scheme provides for a substantial relief margin on all Duty demands, ranging from 40% to 70% of the demand, except in the case of voluntary disclosure. The relief will be applicable as follows-

Relief Available from the Duty Demand For Cases Pending Adjudication or Appeal* For Cases of Confirmed Duty Demands (Where No Appeal is Pending) For Cases of Voluntary Disclosure Duty demands up to Rs.50 lakh 70% 60% The full amount of duty disclosed Duty demands >Rs.50 lakh 50% 40%

• The following consequences:
• In case adjudication order determining the duty/tax liability is passed and received prior to 30.06.2019, but the appeal is filed on or after 01.07.2019 than not eligible under the Litigation category. However, such a person may choose to withdraw the appeal, and furnish to the department an undertaking to not file any further appeal in the matter. In this case, he can make a declaration under the Arrears category.
• If any person convicted for an offence punishable under a provision of the indirect tax enactment. However, in respect of the same matter, I intend to file a declaration under the Scheme than such person will not be eligible.
• Restrictions of Scheme.
   (i) Any amount paid under this Scheme:-
• shall not be paid through the input tax credit account under the indirect tax enactment or any other Act;
• shall not be refundable under any circumstances
• shall not, under the indirect tax enactment or under any other Act:-
• be taken as input tax credit; or
   (ii) Entitle any person to take input tax credit, as a recipient, of the excisable goods or taxable services, with respect to the matter and time period covered in the declaration.

(ii) In case any pre deposit or other deposit already paid exceeds the amount payable as indicated in the statement of the designated committee, the difference shall not be refunded.

• How to Apply for SVLDRS, 2019…
• The taxpayer can apply for this scheme from https://cbic-gst.gov.in
• The taxpayer already registered under CE / ST can login and fill Part-B of SVLDRS Form-1.
• The unregistered taxpayer can register himself by filling Part-A of SVLDRS Form -1.

Declaration

Step 1:-