Here the relationship of employer and employee exists between the seconded employee and subsidiary Company and thus the same is out of the meaning of service. Accordingly GST is not leviable on secondment of employees. In a similar case, Comm. Appeal Jaipur EXCISEST/VAT held that no Service Tax wouRead more
Here the relationship of employer and employee exists between the seconded employee and subsidiary Company and thus the same is out of the meaning of service.
Accordingly GST is not leviable on secondment of employees.
In a similar case, Comm. Appeal Jaipur EXCISEST/VAT held that no Service Tax would be levied on reimbursement made by the Indian Company to its parent company for employee secondment. It was held that there exists an employer and employee relationship between the seconded employee and Indian Company and thus the same is out of the meaning of service as defined under section 65B(44) of the Finance Act, 1994 and thus not exigible to Service Tax. Please refer below case laws
Hi, Pension received by a family member is taxed under the head “income from other sources”. It is taxed in the hands of the receiver. Commuted Pension i.e lump sum amount of pension is not taxable. uncommuted pension received by a family member is exempt to a certain extent. Rs. 15,000 or 1/3rd ofRead more
Hi,
Pension received by a family member is taxed under the head “income from other sources”. It is taxed in the hands of the receiver.
Commuted Pension i.e lump sum amount of pension is not taxable.
uncommuted pension received by a family member is exempt to a certain extent. Rs. 15,000 or 1/3rd of the uncommuted pension received – whichever is less is exempt from tax.
For example – If a family member receives a pension of Rs 1,00,000 during the year then the exemption available is least of – Rs 15,000 or Rs 33,333 (1/3rd of Rs 1,00,000). Thus the taxable family pension will beRs.85,000 (Rs 1,00,000 – Rs 15,000)
Hi, Under Defined-benefit Plan a defined sum of the amount is paid after the retirement of the employee when the employee becomes a pension member. For this Employer and Employee choose to contributes to a pension fund for paying pension to its employees. It's called funded pension plan. It can alsRead more
Hi,
Under Defined-benefit Plan a defined sum of the amount is paid after the retirement of the employee when the employee becomes a pension member. For this Employer and Employee choose to contributes to a pension fund for paying pension to its employees. It’s called funded pension plan. It can also be unfunded means the benefits are paid for by the employer by himself at the time of retirement.
Under Defined-contribution Plan, An annuity is paid to the member of an investment scheme. The contribution is made by employee from his salary or by the employer into a pension fund. This pension fund works as an investment fund. At the time of retirement, the pension will be paid out from this fund’s return. Unlike to defined benefit plan, the annuity is not fixed and guaranteed. It may vary as per the performance of the pension plan.
Hi, The taxability of Pension depends on two factors. First Type of Pension and second type of Employee. The pension is taxable under the head of “Salary” in the hands of the receiver and in the year of receipt and tax is calculated in the following manner: Uncommuted pension i.e. periodical pensionRead more
Hi,
The taxability of Pension depends on two factors. First Type of Pension and second type of Employee. The pension is taxable under the head of “Salary” in the hands of the receiver and in the year of receipt and tax is calculated in the following manner:
Uncommuted pension i.e. periodical pension
It is fully taxable in the hands of all employees, whether government or non-government.
Commuted Pension
a) Government employee or employee of local authorities or statutory corporation: Fully Exempted [section 10(10a)(i)]
b) Non-Government Employee
Any commuted pension received is partially exempt from tax in the following manner:
If the employee is in receipt of gratuity
Exemption = 1/3 X (100% of Commuted Pension*) *if the employee has commuted the whole of the pension.
If the employee does not receive a gratuity
Exemption = 1/2 X (100% of Commuted Pension*) *if the employee has commuted the whole of the pension.
Caution: Exemption shall be allowed to the extent it is allowed to be commuted and the balance uncommuted Pension received periodically will be fully taxable.
For example:- Mr. A is drawing a salary of Rs. 20,000 p.m. at the time of retirement and retires from service and becomes entitled to receive a pension of Rs 10,000 p.m. He gets half his pension commuted and receives Rs. 1,50,000/- as lump sum payment. Henceforth, he shall be entitled to a pension of Rs. 5,000 p.m. (If Ram commute his full pension then he will receive Rs 3,00,000)
Taxability:-
Uncommuted Pension of Rs 5000 P.M is fully taxable.
Commuted Pension of Rs 1,50,000/-
If A is a Government Employee: Rs 1,50,000 is fully exempted.
If A is a non-Government Employee and also receiving Gratuity:
Exempted pension will be = Rs 1,00,000 (1/3 X 3,00,000) and the taxable amount will be Rs 50,000/-
If A is a non-Government Employee and not receiving Gratuity:
Then Exempted pension will be = Rs 150,000 (1/2 X 3,00,000) and the taxable amount will be Rs Nil.
Yes, Companies can conduct AGM due in the year calendar year 2021 through video conferencing. In view of the COVID-19 pandemic, MCA vide circular no. 02/2021 dated 13.01.2021 has allowed companies whose AGM is due to be held in the year 2021 to hold AGM on or before 31st December 2021 through VideoRead more
Yes, Companies can conduct AGM due in the year calendar year 2021 through video conferencing.
In view of the COVID-19 pandemic, MCA vide circular no. 02/2021 dated 13.01.2021 has allowed companies whose AGM is due to be held in the year 2021 to hold AGM on or before 31st December 2021 through Video Conferencing (VC) or Other Audio-Visual Means (OAVM) i.e. in accordance with the requirements as provided in paragraphs 3 and 4 of the General Circular No. 20/2020 dated 5th May 2020.
Earlier MCA issued circular no. 20/2020 dated May 05, 2020, that has allowed certain classes of companies to conduct the Annual General Meeting (AGM) of their members through Video Conferencing (VC) or Other Audio-Visual Means (OAVM), during the calendar year 2020 subject to the fulfillment of various requirements as mentioned in the circular.
Hi, Encashment of leave at the time of retirement is dealt with in Section 10(10AA) of the Income Tax Act. The exemption is available to the Government and other employees in below manner: A. Govt Employees(Central Govt and State Govt) : The amount of leave encashment received by govt employees on rRead more
Hi,
Encashment of leave at the time of retirement is dealt with in Section 10(10AA) of the Income Tax Act. The exemption is available to the Government and other employees in below manner:
A. Govt Employees(Central Govt and State Govt) :
The amount of leave encashment received by govt employees on retirement is fully exempt from tax. Means no tax liability on encashment of earned leave at the time of retirement.
B. Other Employees:
Least of the below is exempted other employees from the amount received towards Leave encashment at the time of retirement (whether on superannuation or otherwise):
Leave encashment actually received
10 months “average salary”
Cash equivalent of unveiled leave (Maximum 30 days leave X Completed Year of service).
Maximum Amount as specified by the Govt i.e. Rs. 3,00,000
Here we need to remember the following terms:
“Salary” for the above purpose means “Basic + Dearness Allowance” including commission received if any based on a fixed percentage of turnover.
“Average Salary” means the average salary drawn by the employee during the period of 10 months immediately preceding his retirement.
Relief Sec 89: Employees in service can claim relief under section 89 of the Income Tax Act.
Hi, So you have received money, generally, people pay to leave a job. So let see the Income-tax treatment of money received in lieu of notice of resignation. This amount will be treated as "Salary" as defined in section 17(1) and will be chargeable to tax on a receipt basis as mentioned in section 1Read more
Hi,
So you have received money, generally, people pay to leave a job. So let see the Income-tax treatment of money received in lieu of notice of resignation.
This amount will be treated as “Salary” as defined in section 17(1) and will be chargeable to tax on a receipt basis as mentioned in section 15 of the Income Tax Act.
Hi, In short " Yes" The Test report of internal financial controls should be placed before the Audit Committee. Now let see the provision related to it: As per part C of Schedule II of SEBI (LODR) Regulations, 2015, the role of the Audit Committee shall include: - Evaluation of internal financRead more
Hi,
In short ” Yes” The Test report of internal financial controls should be placed before the Audit Committee.
Now let see the provision related to it:
As per part C of Schedule II of SEBI (LODR) Regulations, 2015, the role of the Audit Committee shall include:
– Evaluation of internal financial controls and risk management systems;
Further, as per regulation 17(8) of SEBI (LODR) Regulations, 2015, the CEO and CFO shall provide the compliance certificate to the board of directors which would be part of the Annual Report. In that Compliance Certificate, CEO and CFO will certify that:
– They accept responsibility for establishing and maintaining internal controls for financial reporting and that they have evaluated the effectiveness of internal control systems of the listed entity pertaining to financial reporting and they have disclosedto the auditors and the audit committee, deficiencies in the design or operation of such internal controls, if any, of which they are aware and the steps they have taken or propose to take to rectify these deficiencies.
– They have indicated to the Auditors and the Audit Committee “significant changes in internal control over financial reporting during the year”.
Since the Test report is merely an evaluation report of the IFC, they may place the test report to the audit committee for its evaluation.
Hi, TDS on Payment to consultant is covered in section 194J of the Income Tax Act. Let's discuss the second part of this question i.e who is required to deduct TDS As per section 194 J, Every person (Service Recipient) needs to deduct TDS on consultancy charges, except Individual and HUF: In case ofRead more
Hi,
TDS on Payment to consultant is covered in section 194J of the Income Tax Act.
Let’s discuss the second part of this question i.e who is required to deduct TDS
As per section 194 J, Every person (Service Recipient) needs to deduct TDS on consultancy charges, except Individual and HUF:
In case of an individual or HUF carrying on a business: Where his turnover does not exceed Rs. 1 crore during the previous financial year.
In case of an individual or HUF carrying on the profession: Where his turnover does not exceed Rs. 50 lakh during the previous financial year.
Now let’s see the first part of the question i.e what happens if TDS is not deducted.
Following consequences need to face to the service recipient.
Disallowance of 30% Expenditure in the year in which it is claimed.
Interest @1.% per month/part of the month from the date on which TDS was required to be deducted up to the date of actual deduction.
Is secondment of employees is considered as service and reimbursement of their salary is chargeable to GST?
Here the relationship of employer and employee exists between the seconded employee and subsidiary Company and thus the same is out of the meaning of service. Accordingly GST is not leviable on secondment of employees. In a similar case, Comm. Appeal Jaipur EXCISEST/VAT held that no Service Tax wouRead more
Here the relationship of employer and employee exists between the seconded employee and subsidiary Company and thus the same is out of the meaning of service.
Accordingly GST is not leviable on secondment of employees.
In a similar case, Comm. Appeal Jaipur EXCISEST/VAT held that no Service Tax would be levied on reimbursement made by the Indian Company to its parent company for employee secondment. It was held that there exists an employer and employee relationship between the seconded employee and Indian Company and thus the same is out of the meaning of service as defined under section 65B(44) of the Finance Act, 1994 and thus not exigible to Service Tax. Please refer below case laws
Imasen Manufacturing India (P.) Ltd.
See less[2021] 128 taxmann.com 255 (Commissioner Appeals – GST- Rajasthan)
Is family pension taxable or not?
Hi, Pension received by a family member is taxed under the head “income from other sources”. It is taxed in the hands of the receiver. Commuted Pension i.e lump sum amount of pension is not taxable. uncommuted pension received by a family member is exempt to a certain extent. Rs. 15,000 or 1/3rd ofRead more
Hi,
Pension received by a family member is taxed under the head “income from other sources”. It is taxed in the hands of the receiver.
For example – If a family member receives a pension of Rs 1,00,000 during the year then the exemption available is least of – Rs 15,000 or Rs 33,333 (1/3rd of Rs 1,00,000). Thus the taxable family pension will beRs.85,000 (Rs 1,00,000 – Rs 15,000)
See lessWhat is the difference between defined contribution plan and defined benefit plan of pension?
Hi, Under Defined-benefit Plan a defined sum of the amount is paid after the retirement of the employee when the employee becomes a pension member. For this Employer and Employee choose to contributes to a pension fund for paying pension to its employees. It's called funded pension plan. It can alsRead more
Hi,
Under Defined-benefit Plan a defined sum of the amount is paid after the retirement of the employee when the employee becomes a pension member. For this Employer and Employee choose to contributes to a pension fund for paying pension to its employees. It’s called funded pension plan. It can also be unfunded means the benefits are paid for by the employer by himself at the time of retirement.
Under Defined-contribution Plan, An annuity is paid to the member of an investment scheme. The contribution is made by employee from his salary or by the employer into a pension fund. This pension fund works as an investment fund. At the time of retirement, the pension will be paid out from this fund’s return. Unlike to defined benefit plan, the annuity is not fixed and guaranteed. It may vary as per the performance of the pension plan.
See lessHow income tax on pension is calculate?
Hi, The taxability of Pension depends on two factors. First Type of Pension and second type of Employee. The pension is taxable under the head of “Salary” in the hands of the receiver and in the year of receipt and tax is calculated in the following manner: Uncommuted pension i.e. periodical pensionRead more
Hi,
The taxability of Pension depends on two factors. First Type of Pension and second type of Employee. The pension is taxable under the head of “Salary” in the hands of the receiver and in the year of receipt and tax is calculated in the following manner:
b) Non-Government Employee
Any commuted pension received is partially exempt from tax in the following manner:
If the employee is in receipt of gratuity
Exemption = 1/3 X (100% of Commuted Pension*) *if the employee has commuted the whole of the pension.
If the employee does not receive a gratuity
Exemption = 1/2 X (100% of Commuted Pension*) *if the employee has commuted the whole of the pension.
Caution: Exemption shall be allowed to the extent it is allowed to be commuted and the balance uncommuted Pension received periodically will be fully taxable.
For example:- Mr. A is drawing a salary of Rs. 20,000 p.m. at the time of retirement and retires from service and becomes entitled to receive a pension of Rs 10,000 p.m. He gets half his pension commuted and receives Rs. 1,50,000/- as lump sum payment. Henceforth, he shall be entitled to a pension of Rs. 5,000 p.m. (If Ram commute his full pension then he will receive Rs 3,00,000)
Taxability:-
If A is a Government Employee: Rs 1,50,000 is fully exempted.
If A is a non-Government Employee and also receiving Gratuity:
Exempted pension will be = Rs 1,00,000 (1/3 X 3,00,000) and the taxable amount will be Rs 50,000/-
If A is a non-Government Employee and not receiving Gratuity:
Then Exempted pension will be = Rs 150,000 (1/2 X 3,00,000) and the taxable amount will be Rs Nil.
See lessCan a Company has Annual General Meeting through Video Conference?
Yes, Companies can conduct AGM due in the year calendar year 2021 through video conferencing. In view of the COVID-19 pandemic, MCA vide circular no. 02/2021 dated 13.01.2021 has allowed companies whose AGM is due to be held in the year 2021 to hold AGM on or before 31st December 2021 through VideoRead more
Yes, Companies can conduct AGM due in the year calendar year 2021 through video conferencing.
In view of the COVID-19 pandemic, MCA vide circular no. 02/2021 dated 13.01.2021 has allowed companies whose AGM is due to be held in the year 2021 to hold AGM on or before 31st December 2021 through Video Conferencing (VC) or Other Audio-Visual Means (OAVM) i.e. in accordance with the requirements as provided in paragraphs 3 and 4 of the General Circular No. 20/2020 dated 5th May 2020.
Circular is available at the link- http://www.mca.gov.in/Ministry/pdf/GeneralCircularNo.02_14012021.pdf
Earlier MCA issued circular no. 20/2020 dated May 05, 2020, that has allowed certain classes of companies to conduct the Annual General Meeting (AGM) of their members through Video Conferencing (VC) or Other Audio-Visual Means (OAVM), during the calendar year 2020 subject to the fulfillment of various requirements as mentioned in the circular.
See lessis amount received on encashment of earned leave at the time of retirement taxable? is there any exemption available on it?
Hi, Encashment of leave at the time of retirement is dealt with in Section 10(10AA) of the Income Tax Act. The exemption is available to the Government and other employees in below manner: A. Govt Employees(Central Govt and State Govt) : The amount of leave encashment received by govt employees on rRead more
Hi,
Encashment of leave at the time of retirement is dealt with in Section 10(10AA) of the Income Tax Act. The exemption is available to the Government and other employees in below manner:
A. Govt Employees(Central Govt and State Govt) :
The amount of leave encashment received by govt employees on retirement is fully exempt from tax. Means no tax liability on encashment of earned leave at the time of retirement.
B. Other Employees:
Least of the below is exempted other employees from the amount received towards Leave encashment at the time of retirement (whether on superannuation or otherwise):
Here we need to remember the following terms:
Regards
See lessWhat will be the tax treatment of salary receive from employer in lieu of notice of resignation?
Hi, So you have received money, generally, people pay to leave a job. So let see the Income-tax treatment of money received in lieu of notice of resignation. This amount will be treated as "Salary" as defined in section 17(1) and will be chargeable to tax on a receipt basis as mentioned in section 1Read more
Hi,
So you have received money, generally, people pay to leave a job. So let see the Income-tax treatment of money received in lieu of notice of resignation.
This amount will be treated as “Salary” as defined in section 17(1) and will be chargeable to tax on a receipt basis as mentioned in section 15 of the Income Tax Act.
Thanks
See lessWhether testing report of Internal Financial Controls (IFC) is required to be placed before the Audit Committee?
Hi, In short " Yes" The Test report of internal financial controls should be placed before the Audit Committee. Now let see the provision related to it: As per part C of Schedule II of SEBI (LODR) Regulations, 2015, the role of the Audit Committee shall include: - Evaluation of internal financRead more
Hi,
In short ” Yes” The Test report of internal financial controls should be placed before the Audit Committee.
Now let see the provision related to it:
As per part C of Schedule II of SEBI (LODR) Regulations, 2015, the role of the Audit Committee shall include:
– Evaluation of internal financial controls and risk management systems;
Further, as per regulation 17(8) of SEBI (LODR) Regulations, 2015, the CEO and CFO shall provide the compliance certificate to the board of directors which would be part of the Annual Report. In that Compliance Certificate, CEO and CFO will certify that:
– They accept responsibility for establishing and maintaining internal controls for financial reporting and that they have evaluated the effectiveness of internal control systems of the listed entity pertaining to financial reporting and they have disclosed to the auditors and the audit committee, deficiencies in the design or operation of such internal controls, if any, of which they are aware and the steps they have taken or propose to take to rectify these deficiencies.
– They have indicated to the Auditors and the Audit Committee “significant changes in internal control over financial reporting during the year”.
Since the Test report is merely an evaluation report of the IFC, they may place the test report to the audit committee for its evaluation.
Regards
See lessWhat if payment made to consultant by client is without deducting the tds. Who need to pay the tds?
Hi, TDS on Payment to consultant is covered in section 194J of the Income Tax Act. Let's discuss the second part of this question i.e who is required to deduct TDS As per section 194 J, Every person (Service Recipient) needs to deduct TDS on consultancy charges, except Individual and HUF: In case ofRead more
Hi,
TDS on Payment to consultant is covered in section 194J of the Income Tax Act.
Let’s discuss the second part of this question i.e who is required to deduct TDS
As per section 194 J, Every person (Service Recipient) needs to deduct TDS on consultancy charges, except Individual and HUF:
Now let’s see the first part of the question i.e what happens if TDS is not deducted.
Following consequences need to face to the service recipient.
Thanks!
See lessIs interest paid on home loan included in the cost of housing property while computing capital gains tax on its sale?
Since it is included in the cost of acquisition, the benefit of Indexation can be availed as per the provision of section 48.
Since it is included in the cost of acquisition, the benefit of Indexation can be availed as per the provision of section 48.
See less