The Building & Other Construction Workers’ Welfare Cess (BOCWW Cess) is a levy imposed on the construction costs incurred by employers for building and other construction activities. As per Section 2(1)(d) of the Building and Other Construction Workers (Regulation of Employment and Conditions ofRead more
The Building & Other Construction Workers’ Welfare Cess (BOCWW Cess) is a levy imposed on the construction costs incurred by employers for building and other construction activities.
As per Section 2(1)(d) of the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996, read with Section 2(d) of the Building and Other Construction Workers’ Welfare Cess Act, 1996, the term “building or other construction work” has a broad scope. It includes activities such as construction, alteration, repairs, maintenance, and demolition related to various structures, including buildings, streets, roads, railways, airfields, irrigation systems, drainage works, flood control projects (including stormwater drainage), power generation and distribution, waterworks, oil and gas installations, electric lines, telecommunication networks, dams, canals, tunnels, bridges, pipelines, transmission towers, and cooling towers. The government may also specify additional construction works through notifications. However, it excludes any construction activities covered under the Factories Act, 1948, or the Mines Act, 1952.
The BOCWW Cess is imposed on the total construction cost incurred by employers. As per Sections 3(1) and 3(3) of the Building and Other Construction Workers’ Welfare Cess Act, 1996, along with Notification No. S.O. 2899 dated 26.09.1996, the cess is charged at 1% of the total construction cost.
Shareholders' liability is limited to their shareholding in the company. They are not personally responsible for the company's debts or actions beyond the unpaid amount, if any, on their shares. However, shareholders may face personal liability if they engage in fraudulent activities. In the case ofRead more
Shareholders’ liability is limited to their shareholding in the company. They are not personally responsible for the company’s debts or actions beyond the unpaid amount, if any, on their shares.
However, shareholders may face personal liability if they engage in fraudulent activities. In the case of companies with unlimited liability, shareholders can be held responsible up to the amount they agreed to contribute to the company’s assets in the event of winding up. Shareholders who also serve as directors may have additional legal responsibilities.
Yes, TDS is applicable to transporters under section 194c, with @1% for individuals/HUF and @2% for others. Yes, the exemption is also available to the transporter of goods. As per Section 194C(6) 0f the Income Tax Act, 1961 "No deduction shall be made from any sum credited or paid or likely to be cRead more
Yes, TDS is applicable to transporters under section 194c, with @1% for individuals/HUF and @2% for others.
Yes, the exemption is also available to the transporter of goods.
As per Section 194C(6) 0f the Income Tax Act, 1961 “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, [where such contractor owns ten or less goods carriages at any time during the previous year and furnishes a declaration to that effect along with] his Permanent Account Number, to the person paying or crediting such sum.”
Hi, I am breaking your question into multiple pieces to make it easier to understand. Payment to Nonresident Taxable Person (NRTP) Section 2(77) of CGST Act, 2017 says that a Non-Resident Taxable Person means "any person who occasionally undertakes transactions involving the supply of goods or serviRead more
Hi,
I am breaking your question into multiple pieces to make it easier to understand.
Payment to Nonresident Taxable Person (NRTP)
Section 2(77) of CGST Act, 2017 says that a Non-Resident Taxable Person means “any person who occasionally undertakes transactions involving the supply of goods or services, or both, whether as principal or agent or in any other capacity, but who has no fixed place of business or residence in India.”
Requirement of Registration in India
Section 24 of the CGST Act, 2017, required NRTP to register under GST law mandatorily five days before the commencement of the business irrespective of the minimum threshold turnover limit.
Applicability of RCM
Since NRTP requires the registration, he has to deposit tax in advance, equivalent to the estimated tax liability calculated on the value of taxable supply for the period for which the registration has been obtained.
Conclusion: GST should be paid under forward charge, not under reverse charge.
Here is the step-by-step process for making payment for TDS on immovable property. Go to the login page of the official Income Tax website (https://eportal.incometax.gov.in/iec/foservices/#/login?language-code=en) log in to your account Navigate to the "E-file" section and select 'e-pay Tax In the 'Read more
Here is the step-by-step process for making payment for TDS on immovable property.
There is no technical issue if an employee raises a service invoice with his company. The only thing is that it should not violate his appointment terms with the company.
There is no technical issue if an employee raises a service invoice with his company. The only thing is that it should not violate his appointment terms with the company.
A vendor registered under the MSMED Act, 2006 is called an MSME vendor. There are three categories of vendors in MSMED act which are based on their investment and turnover. Micro manufacturing and services units- Rs. 1 Crore of investment in plant and machinery or equipment and Rs 5 Crore of turnoveRead more
A vendor registered under the MSMED Act, 2006 is called an MSME vendor. There are three categories of vendors in MSMED act which are based on their investment and turnover.
Micro manufacturing and services units- Rs. 1 Crore of investment in plant and machinery or equipment and Rs 5 Crore of turnover.
Small manufacturing and services units- Rs. 10 Crore of investment investment in plant and machinery or equipment and Rs 50 Crore of turnover.
Medium manufacturing and services units- Rs. 50 Crore of investment in plant and machinery or equipment and Rs. 250 Crore of turnover.
Yes, TDS @10% shall be deducted from the membership fee U/s 194J. Membership fees collected by an association usually include access to managerial, technical, and consultancy services, reflecting the benefits provided to members. Consequently, such fees are subject to TDS at 10% under Section 194J.Read more
Yes, TDS @10% shall be deducted from the membership fee U/s 194J.
Membership fees collected by an association usually include access to managerial, technical, and consultancy services, reflecting the benefits provided to members. Consequently, such fees are subject to TDS at 10% under Section 194J.
Exemption: where the amount of such sum or, the aggregate of the amounts of such sums credited or paid during the financial year does not exceed by INR 30000.
As per Section 194J, professional fee means:
(a) “professional services” means services rendered by a person in the course of carrying on legal, medical, engineering or architectural professions or the profession of accountancy or technical consultancy or interior decoration or advertising or such other profession as is notified by the Board for the purposes of section 44AA or of this section;
(b) “fees for technical services” means rendering of any managerial, technical or consultancy services
What is allowed Cash Payment-up to INR 10,000 Cash receipt- below to INR 2 Lakhs (up to 20,000 for Loan and Advance) Cash Payment of Loan/advance--below 20,000 Now let's discuss the complete provision Section 40A(3) and Section 43 – Cash Payment Section 269SS and Section 269ST – Cash ReceipRead more
What is allowed
Cash Payment-up to INR 10,000
Cash receipt- below to INR 2 Lakhs (up to 20,000 for Loan and Advance)
Cash Payment of Loan/advance–below 20,000
Now let’s discuss the complete provision
Section 40A(3) and Section 43 – Cash Payment
Section 269SS and Section 269ST – Cash Receipts
Section 269T – Repayment of Certain Loans / Deposits
1. Section 40A(3)
Cash Payment
Payment for any expenditure of over Rs.10,000 is made in cash, then the expenditure will be disallowed.
Exemption:
Payment though banking channels like debit card, account transfer, cheque or demand draft, digital payments.
Section 269ST
Cash receipt limit- Receipt of cash amount of Rs 2 Lakh or more not allowed
In aggregate from a person in a day; or
In respect of a single transaction; or
In respect of transactions relating to one event or occasion from a person.
Exemption:
On cash received through an Account Payee Cheque/Draft or through a bank account/post office.
To Government, any banking company, post office savings bank or co-operative bank.
To such other persons or class of persons or receipts, which the Central Government may specify.
Penalty under Section 269ST
Equal to the amount of receipt is payable.
Section 269SS
Cash receipt limit
Receipt of cash amount of more than Rs 20,000 not allowed from Loan/Deposit/advance
Exemption
Up to INR 20,000
From Government;
From any banking company, post office saving bank or co-operative bank;
From ny corporation established by a Central, State or Provincial Act
From any Government company as defined in section 2(45) of the Companies Act, 2013
From an institution, association or body or class of institutions, associations or bodies notified by Central Government in the official gazette.
If both the person, have agricultural income and do not have any taxable income then section 269SS will not apply.
Penalty under Section 269SS
Equal to the amount of loan or deposit or specified sum accepted.
Section 269T
Repayment of Loans / Deposits with Interest (in his name or jointly with another person)- INR 20,000 or more not allowed otherwise than by an account payee cheque or account payee bank draft
Applicable to any branch of a banking company or a co-operative society, firm or another person
Exemption:
When the loan is repaid, or deposit taken or accepted from below mentioned person:
Below to INR 20,000
Government;
Any banking company, post office saving bank or co-operative bank;
Any corporation established by a Central, State or Provincial Act
Any Government company as defined sec 2(45) of the Companies Act, 2013
An institution, association or body or class of institutions, associations or bodies notified by Central Government in the official gazette.
Penalty under Section 269T
Equal to the amount of loan or deposit repaid is payable.
Hi, This single question covers two questions in itself Applicability of TDS on consultancy services on NRI (Bhutan Citizen) Requirement of form 15ca/15cb on payment made to a resident of Bhutan. Section 195 of the Income Tax Act, 1961 covers the TDS provision on the payments made by an individualRead more
Hi,
This single question covers two questions in itself
Applicability of TDS on consultancy services on NRI (Bhutan Citizen)
Requirement of form 15ca/15cb on payment made to a resident of Bhutan.
Section 195 of the Income Tax Act, 1961 covers the TDS provision on the payments made by an individual by way of interest or any other amount other than salary to an NRI or a foreign company and also requires the payer to furnish an undertaking in the form 15CA along with a certificate of Chartered Accountants in form 15CB.
Now let’s discuss the first issue involved in the question:
The TDS liability in India is to be decided on two levels:
First with reference to the provision of this section of the Income Tax Act and
Second with reference to the provision of the Tax treaty/Double Taxation Avoidance Agreement (DTAA) between India and the country of residence of the NR receiver.
Now if you refer the clause 2 of article 12 of the DTTA between the Indian Government and the Roya Government of Bhutan, it is clearly stated that
Royalties or fees for technical or professional services may also be taxed in the Contracting State i.e India, and according to the laws of that State, but if the beneficial owner of the royalties or fees for technical or professional services is a resident of the other Contracting State i.e Bhutan than the tax so charged shall not exceed 10 percent of the gross amount of the royalties or fees for technical or professional services.
Now let’s discuss the second issue involved in the question i.e requirement of form 15CA and 15CB:
Form 15CA and 15CB are not required to be furnished for remittance in two cases:
if it is covered in the negative list of RBI as per rule 37BB.
if the remittance is made by an individual and it does not require prior approval of RBI [as per the provisions of section 5 of the Foreign Exchange Management Act, 1999 (42 of 1999) read with Schedule III to the Foreign Exchange (Current Account Transaction) Rules, 2000]
In your case, it is not covered in the negative list, hence forms 15CA and CB is required to be furnished, there is no such exemption for the country of an NRI.
When Labor cess is applicable?
The Building & Other Construction Workers’ Welfare Cess (BOCWW Cess) is a levy imposed on the construction costs incurred by employers for building and other construction activities. As per Section 2(1)(d) of the Building and Other Construction Workers (Regulation of Employment and Conditions ofRead more
The Building & Other Construction Workers’ Welfare Cess (BOCWW Cess) is a levy imposed on the construction costs incurred by employers for building and other construction activities.
As per Section 2(1)(d) of the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996, read with Section 2(d) of the Building and Other Construction Workers’ Welfare Cess Act, 1996, the term “building or other construction work” has a broad scope. It includes activities such as construction, alteration, repairs, maintenance, and demolition related to various structures, including buildings, streets, roads, railways, airfields, irrigation systems, drainage works, flood control projects (including stormwater drainage), power generation and distribution, waterworks, oil and gas installations, electric lines, telecommunication networks, dams, canals, tunnels, bridges, pipelines, transmission towers, and cooling towers. The government may also specify additional construction works through notifications. However, it excludes any construction activities covered under the Factories Act, 1948, or the Mines Act, 1952.
The BOCWW Cess is imposed on the total construction cost incurred by employers. As per Sections 3(1) and 3(3) of the Building and Other Construction Workers’ Welfare Cess Act, 1996, along with Notification No. S.O. 2899 dated 26.09.1996, the cess is charged at 1% of the total construction cost.
See lessDo I have any liability as a share holder of a Private Limited Company?
Shareholders' liability is limited to their shareholding in the company. They are not personally responsible for the company's debts or actions beyond the unpaid amount, if any, on their shares. However, shareholders may face personal liability if they engage in fraudulent activities. In the case ofRead more
Shareholders’ liability is limited to their shareholding in the company. They are not personally responsible for the company’s debts or actions beyond the unpaid amount, if any, on their shares.
However, shareholders may face personal liability if they engage in fraudulent activities. In the case of companies with unlimited liability, shareholders can be held responsible up to the amount they agreed to contribute to the company’s assets in the event of winding up. Shareholders who also serve as directors may have additional legal responsibilities.
See lessIs TDS deducted on Transports? is there any exemption on it?
Yes, TDS is applicable to transporters under section 194c, with @1% for individuals/HUF and @2% for others. Yes, the exemption is also available to the transporter of goods. As per Section 194C(6) 0f the Income Tax Act, 1961 "No deduction shall be made from any sum credited or paid or likely to be cRead more
Yes, TDS is applicable to transporters under section 194c, with @1% for individuals/HUF and @2% for others.
Yes, the exemption is also available to the transporter of goods.
As per Section 194C(6) 0f the Income Tax Act, 1961 “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, [where such contractor owns ten or less goods carriages at any time during the previous year and furnishes a declaration to that effect along with] his Permanent Account Number, to the person paying or crediting such sum.”
A specimen of the Declaration by Transporter is attached herewith.
See lessIs RCM applicable on the fee paid to a foreign player playing in India?
Hi, I am breaking your question into multiple pieces to make it easier to understand. Payment to Nonresident Taxable Person (NRTP) Section 2(77) of CGST Act, 2017 says that a Non-Resident Taxable Person means "any person who occasionally undertakes transactions involving the supply of goods or serviRead more
Hi,
I am breaking your question into multiple pieces to make it easier to understand.
Payment to Nonresident Taxable Person (NRTP)
Section 2(77) of CGST Act, 2017 says that a Non-Resident Taxable Person means “any person who occasionally undertakes transactions involving the supply of goods or services, or both, whether as principal or agent or in any other capacity, but who has no fixed place of business or residence in India.”
Requirement of Registration in India
Section 24 of the CGST Act, 2017, required NRTP to register under GST law mandatorily five days before the commencement of the business irrespective of the minimum threshold turnover limit.
Applicability of RCM
Since NRTP requires the registration, he has to deposit tax in advance, equivalent to the estimated tax liability calculated on the value of taxable supply for the period for which the registration has been obtained.
Conclusion: GST should be paid under forward charge, not under reverse charge.
See lessHow to make payment of TDS on purchase of Property?
Here is the step-by-step process for making payment for TDS on immovable property. Go to the login page of the official Income Tax website (https://eportal.incometax.gov.in/iec/foservices/#/login?language-code=en) log in to your account Navigate to the "E-file" section and select 'e-pay Tax In the 'Read more
Here is the step-by-step process for making payment for TDS on immovable property.
6. Choose your preferred payment mode: ‘Pay later’ or ‘Pay Now’.
7. Click on ‘Pay Now’ to make payment of TDS
8. After payment, the Form 26QB acknowledgment will be generated and can be downloaded.
9. Login as a Taxpayer on the TRACES Portal (https://contents.tdscpc.gov.in/) and generate the TDS Certificate from
See lessCan an employee raise invoice for other services apart to taking salary?
There is no technical issue if an employee raises a service invoice with his company. The only thing is that it should not violate his appointment terms with the company.
There is no technical issue if an employee raises a service invoice with his company. The only thing is that it should not violate his appointment terms with the company.
See lessWho is called a MSME vendor?
A vendor registered under the MSMED Act, 2006 is called an MSME vendor. There are three categories of vendors in MSMED act which are based on their investment and turnover. Micro manufacturing and services units- Rs. 1 Crore of investment in plant and machinery or equipment and Rs 5 Crore of turnoveRead more
A vendor registered under the MSMED Act, 2006 is called an MSME vendor. There are three categories of vendors in MSMED act which are based on their investment and turnover.
- Micro manufacturing and services units- Rs. 1 Crore of investment in plant and machinery or equipment and Rs 5 Crore of turnover.
- Small manufacturing and services units- Rs. 10 Crore of investment investment in plant and machinery or equipment and Rs 50 Crore of turnover.
- Medium manufacturing and services units- Rs. 50 Crore of investment in plant and machinery or equipment and Rs. 250 Crore of turnover.
See lessIs TDS deducted on Membership Fee?
Yes, TDS @10% shall be deducted from the membership fee U/s 194J. Membership fees collected by an association usually include access to managerial, technical, and consultancy services, reflecting the benefits provided to members. Consequently, such fees are subject to TDS at 10% under Section 194J.Read more
Yes, TDS @10% shall be deducted from the membership fee U/s 194J.
Membership fees collected by an association usually include access to managerial, technical, and consultancy services, reflecting the benefits provided to members. Consequently, such fees are subject to TDS at 10% under Section 194J.
Exemption: where the amount of such sum or, the aggregate of the amounts of such sums credited or paid during the financial year does not exceed by INR 30000.
As per Section 194J, professional fee means:
(a) “professional services” means services rendered by a person in the course of carrying on legal, medical, engineering or architectural professions or the profession of accountancy or technical consultancy or interior decoration or advertising or such other profession as is notified by the Board for the purposes of section 44AA or of this section;
(b) “fees for technical services” means rendering of any managerial, technical or consultancy services
See lesscash limit a day
What is allowed Cash Payment-up to INR 10,000 Cash receipt- below to INR 2 Lakhs (up to 20,000 for Loan and Advance) Cash Payment of Loan/advance--below 20,000 Now let's discuss the complete provision Section 40A(3) and Section 43 – Cash Payment Section 269SS and Section 269ST – Cash ReceipRead more
What is allowed
Now let’s discuss the complete provision
1. Section 40A(3)
Cash Payment
Exemption:
Section 269ST
Cash receipt limit- Receipt of cash amount of Rs 2 Lakh or more not allowed
Exemption:
Penalty under Section 269ST
Section 269SS
Cash receipt limit
Exemption
Penalty under Section 269SS
Equal to the amount of loan or deposit or specified sum accepted.
Section 269T
Exemption:
When the loan is repaid, or deposit taken or accepted from below mentioned person:
Penalty under Section 269T
Equal to the amount of loan or deposit repaid is payable.
See lessDo we require the 15CA CB to process the consultant payment from India to Bhutan?
Hi, This single question covers two questions in itself Applicability of TDS on consultancy services on NRI (Bhutan Citizen) Requirement of form 15ca/15cb on payment made to a resident of Bhutan. Section 195 of the Income Tax Act, 1961 covers the TDS provision on the payments made by an individualRead more
Hi,
This single question covers two questions in itself
Section 195 of the Income Tax Act, 1961 covers the TDS provision on the payments made by an individual by way of interest or any other amount other than salary to an NRI or a foreign company and also requires the payer to furnish an undertaking in the form 15CA along with a certificate of Chartered Accountants in form 15CB.
Now let’s discuss the first issue involved in the question:
The TDS liability in India is to be decided on two levels:
Now if you refer the clause 2 of article 12 of the DTTA between the Indian Government and the Roya Government of Bhutan, it is clearly stated that
Royalties or fees for technical or professional services may also be taxed in the Contracting State i.e India, and according to the laws of that State, but if the beneficial owner of the royalties or fees for technical or professional services is a resident of the other Contracting State i.e Bhutan than the tax so charged shall not exceed 10 percent of the gross amount of the royalties or fees for technical or professional services.
Now let’s discuss the second issue involved in the question i.e requirement of form 15CA and 15CB:
Form 15CA and 15CB are not required to be furnished for remittance in two cases:
In your case, it is not covered in the negative list, hence forms 15CA and CB is required to be furnished, there is no such exemption for the country of an NRI.
Thanks.
See less