TDS & TCS RATE CHART (FY: 2017-18 / AY: 2018-19)

TDS & TCS RATE CHART (FY: 2017-18 / AY: 2018-19)

	TDS RATE CHART FY: 2017-18 (AY: 2018-19)
Section	Nature of Payment	Threshold	Indv/ HUF	Others
		Rs.	TDS Rate (%)
192	Salaries	–	Avg	–
192A	Premature withdrawal from EPF	50000	10	–
193	Interest on Securities	10000	10	10
194	Dividends	2500	10	10
194A	Interest (Banks)	10000	10	10
194A	Interest (Others)	5000	10	10
194B	Winning from Lotteries	10000	30	30
194BB	Winnings from Horse Race	10000	30	30
194C	Contractor – Single Transaction	30000	1	2
194C	Contractor-During the F.Y.	1 Lakh	1	2
194C	Transporter (44AE) declaration with PAN	–	–	–
194D	Insurance Commission(15G-15H allowed)	15000	5	10
194DA	Life insurance Policy	1 Lakh	1	1
194E	Non-Resident Sportsmen or Sports Association	–	20	20
194EE	NSS	2500	10	10
194F	Repurchase Units by MFs	–	20	20
194G	Commission – Lottery	15000	5	5
194H	Commission / Brokerage	15000	5	5
194I	Rent of Land and Building – F&F	1.80 Lakh	10	10
194I	Rent of Plant/Machinery/Equipment	1.80 Lakh	2	2
194IB	Rent by Individual/HUF(wef 01.06.2017)	50000/PM	5	–
194IA	Transfer of certain immovable property other than agriculture land	50 Lakh	1	1
194J	Professional Fees/ Technical Fees/ etc.	30000	10	10
194J	Payment to Call Centre Operator (wef 01.06.2017)	30000	2	2
194LA	Compensation on transfer of certain immovable property other than agricultural land	2.50 Lakh	10	10
194LA	Immovable Property(TDS exempted under RFCTLARR Act (wef 01.04.2017)	–	–	–
194LB	Income by way of interest from infrastructure debt fund (non- resident)	–	5	5
Sec 194 LC	Income by way of interest by an Indian specified company to a non-resident / foreign company on foreign currency approved loan / long-term infrastructure bonds from outside India (applicable from July 1, 2012)	–	5	5
194LD	Interest on certain bonds and Govt. Securities(from 01-06-2013)	–	5	5
Note: TDS Rates without PAN – 20% flat (if TDS rate is lower than 20%)

Note: The above list covers most of the sections applicable for domestic transactions

TCS RATES FOR FY: 2017-18 (AY: 2018-19)
Section	Nature of Payment	TCS Rate %
206C	Scrap	1
206C	Tendu Leaves	5
206C	Timber  obtained  under  a forest lease or other mode	2.5
206C	Any other forest produce not being a timber or tendu leave	2.5
206C	Alcoholic Liquor for human consumption	1
206C	Parking   Lot,   toll   plaza, mining and Quarrying	2
206C	Minerals, being coal or lignite or iron ore (applicable   from   July   1,2012)	1
206C	Sale of motor vehicle of the value exceeding Rs. 10 Lacs; (wef 01.06.2016) Motor vehicle clause Not applicable on Central Government, a State Government, an embassy, a High Commission, legation, commission, consulate and the trade representation of a foreign State; local authority ; a public sector company which is engaged in the business of carrying passengers (wef 01.04.2017)	1
Note : TCS Rates without PAN – Double of TCS rate as above or 5%, whichever is higher

Note: The above list covers most of the sections applicable for domestic transactions

Note :
1. Surcharge is not deductible on payments made to residents, other than salary.
2. In case of non-resident, surcharge would be applicable on TDS.

GST On Legal Services – Clarification By Finance Ministry

GST On Legal Services – Clarification By Finance Ministry

Amendments under the head "Capital Gain"

Amendments under the head "Capital Gain"

Shifting base year from 1981 to 2001 for computation of capital gains:

The existing provisions of section 55 provide that for computation of capital gains, an assessee shall be allowed deduction for cost of acquisition of the asset and also cost of improvement, if any. However, for computing capital gains in respect of an asset acquired before 01.04.1981, the assessee has been allowed an option of either to take the fair market value of the asset as on 01.04.1981 or the actual cost of the asset as cost of acquisition. The assessee is also allowed to claim deduction for cost of improvement incurred after 01.04.1981, if any. As the base year for computation of capital gains has become more than three decades old, assessees are facing genuine difficulties in computing the capital gains in respect of a capital asset, especially immovable property acquired before 01.04.1981 due to non-availability of relevant information for computation of fair market value of such asset as on 01.04.1981.

In order to revise the base year for computation of capital gains, it is proposed to amend section 55 of the Act so as to provide that the cost of acquisition of an asset acquired before 01.04.2001 shall be allowed to be taken as fair market value as on 1st April, 2001 and the cost of improvement shall include only those capital expenses which are incurred after 01.04.2001. Consequential amendment is also proposed in section 48 so as to align the provisions relating to cost inflation index to the proposed base year.

These amendments will take effect from 1st April, 2018 and will, accordingly, apply in relation to the assessment year 2018-19 and subsequent years.

Change in holding period from 36 months to 24 months for immovable property:

Definition of 'short-term capital asset' proposed to be amended to reduce holding period from 36 months to 24 months for immovable property

The existing provision of the Act provide for concessional rate of tax and also indexation benefit for taxation of capital gains arising from transfer of long-term capital asset. To qualify for long-term asset, an assessee is required to hold the asset for more than 36 months subject to certain exceptions, for example, the holding period of 24 months has been specified for unlisted shares.

With a view to promote the real-estate sector and to make it more attractive for investment, it is proposed to amend section 2 (42A) of the Act with effect from assessment year 2018-19 so as to reduce the period of holding from the existing 36 months to 24 months in case of immovable property, being land or building or both, to qualify as long term capital asset.

Special provisions for computation of capital gains in case of joint development agreement

Under the existing provisions of section 45, capital gain is chargeable to tax in the year in which transfer takes place except in certain cases. The definition of 'transfer', inter alia, includes any arrangement or transaction where any rights are handed over in execution of part performance of contract, even though the legal title has not been transferred. In such a scenario, execution of Joint Development Agreement between the owner of immovable property and the developer triggers the capital gains tax liability in the hands of the owner in the year in which the possession of immovable property is handed over to the developer for development of a project.

With a view to minimize the genuine hardship which the owner of land may face in paying capital gains tax in the year of transfer, it is proposed to insert a new sub-section (5A) in section 45 so as to provide that in case of an assessee being individual or Hindu undivided family, who enters into a specified agreement for development of a project, the capital gains shall be chargeable to income-tax as income of the previous year in which the certificate of completion for the whole or part of the project is issued by the competent authority.

• The stamp duty value of his share, being land or building or both, in the project on the date of issuing of said certificate of completion as increased by any monetary consideration received, if any, shall be deemed to be the full value of the consideration received or accruing as a result of the transfer of the capital asset.

• Benefit of this proposed regime shall not apply to an assessee who transfers his share in the project to any other person on or before the date of issue of said certificate of completion. In such a situation, the capital gains as determined under general provisions of the Act shall be deemed to be the income of the previous year in which such transfer took place and shall be computed as per provisions of the Act without taking into account this proposed provisions.

Notes:

 (i)  "Competent authority" means the authority empowered to approve the building plan by or under any law for the time being in force.

(ii)  "specified agreement" means a registered agreement in which a person owning land or building or both, agrees to allow another person to develop a real estate project on such land or building or both, in consideration of a share, being land or building or both in such project, whether with or without payment of part of the consideration in cash.

(iii) "Stamp duty value" means the value adopted or assessed or assessable by any authority of Government for the purpose of payment of stamp duty in respect of an immovable property being land or building or both.'

It is also proposed to make consequential amendment in section 49 so as to provide that the cost of acquisition of the share in the project being land or building or both, in the hands of the land owner shall be the amount which is deemed as full value of consideration under the said proposed provision.

These amendments will take effect from 1st April, 2018 and will, accordingly, apply in relation to the assessment year 2018-19 and subsequent years.

It is also proposed to insert a new section 194-IC in the Act so as to provide that in case any monetary consideration is payable under the specified agreement, tax at the rate of ten per cent shall be deductible from such payment. This amendment will take effect from 1st April, 2017.

Expanding the scope of long term bonds under 54EC

The existing provision of section 54EC provides that capital gain to the extent of Rs.50 lakhs arising from the transfer of a long-term capital asset shall be exempt if the assessee invests the whole or any part of capital gains in certain specified bonds, within the 6 months from the date of transfer of asset. Currently, investment in bond issued by the National Highways Authority of India or by the Rural Electrification Corporation Limited is eligible for exemption under this section.

In order to widen the scope of the section for sectors which may raise fund by issue of bonds eligible for exemption under section 54EC, it is proposed to amend section 54EC so as to provide that investment in any bond redeemable after three years which has been notified by the Central Government in this behalf shall also be eligible for exemption. This amendment will take effect from 1st April, 2018 and will accordingly, apply in relation to the assessment year 2018-19 and subsequent years.

Exemption of long term capital gains tax u/s 10(38)

Under the existing provisions of the Section 10(38) of the Income tax Act, 1961, the income arising from a transfer of long term capital asset, being equity share of a company or a unit of an equity oriented fund, is exempt from tax if the transaction of sale is undertaken on or after 1st October, 2014 and is chargeable to Securities Transaction Tax under Chapter VII of the Finance (No.2) Act, 2004.

It has been noticed that exemption provided under section 10(38) is being misused by certain persons for declaring their unaccounted income as exempt long-term capital gains by entering into sham transactions. With a view to prevent this abuse, it is proposed to amend section 10(38) to provide that exemption under this section for income arising on transfer of equity share acquired or on after 1st day of October, 2004 shall be available only if the acquisition of share is chargeable to Securities Transactions Tax under Chapter VII of the Finance (No 2) Act, 2004. However, to protect the exemption for genuine cases where the Securities Transactions Tax could not have been paid like acquisition of share in IPO, FPO, bonus or right issue by a listed company acquisition by non-resident in accordance with FDI policy of the Government etc., it is also proposed to notify transfers for which the condition of chargeability to Securities Transactions Tax on acquisition shall not be applicable.

This amendment will take effect from 1st April, 2018 and will, accordingly, apply in relation to the assessment year 2018-19 and subsequent assessment years.

Under the existing provisions of the Act, income chargeable under the head "Capital gains" is computed by taking into account the amount of full value of consideration received or accrued on transfer of a capital asset. In order to ensure that the full value of consideration is not understated, the Act also contained provisions for deeming of full value of consideration in certain cases such as deeming of stamp duty value as full value of consideration for transfer of immovable property in certain cases.

In order to rationalize the provisions relating to deeming of full value of consideration for computation of income under the head "capital gains", it is proposed to insert a new section 50CA to provide that where consideration for transfer of share of a company (other than quoted share) is less than the Fair Market Value (FMV) of such share determined in accordance with the prescribed manner, the FMV shall be deemed to be the full value of consideration for the purposes of computing income under the head "Capital gains".

"Quoted share" means the share quoted on any recognized stock exchange with regularity from time to time, where the quotation of such share is based on current transaction made in the ordinary course of business.'.

This amendment will take effect from 1st April, 2018 and will, accordingly, apply in relation to the assessment year 2018-19 and subsequent assessment years.

Job work in GST

Job work in GST

As per Section 19 of CGST Act. 

1. The principal shall, subject to such conditions and restrictions as may be prescribed, be allowed input tax credit on inputs sent to a job worker for  job work.

2. Notwithstanding anything contained in clause (b) of sub-section (2) of section 16 (received at place of business), the principal shall be entitled to take credit of input tax on inputs even if the inputs are directly sent to a job worker for job work without being first brought to his place of business.

3. Where the inputs sent for job work are not received back by the principal after completion of job work or otherwise or are not supplied from the place of business of the job worker in accordance with clause (a) or clause (b) of sub-section (1) of section 143 within one year of being sent out, it shall be deemed that such inputs had been supplied by the principal to the job worker on the day when the said inputs were sent out:

Provided that where the inputs are sent directly to a job worker, the period of one year shall be counted from the date of receipt of inputs by the job worker.

4. The principal shall, subject to such conditions and restrictions as may be prescribed, be allowed input tax credit on capital goods sent to a job worker for job work.

5. Notwithstanding anything contained in clause (b) of sub-section (2) of section 16, the principal shall be entitled to take credit of input tax on capital goods even if the capital goods are directly sent to a job worker for job work without being first brought to his place of business.

6. Where the capital goods sent for job work are not received back by the principal within a period of three years of being sent out, it shall be deemed that such capital goods had been supplied by the principal to the job worker on the day when the said capital goods were sent out: Provided that where the capital goods are sent directly to a job worker, the period of three years shall be counted from the date of receipt of capital goods by the job worker.

Nothing contained in sub-section (3) or sub-section (6) shall apply to moulds and dies, jigs and fixtures, or tools sent out to a job worker for job work. (because these tools are consumable nature) Explanation. For the purpose of this section, 'principal' means the person referred to in section 143.

Rule 45 Conditions and restrictions in respect of inputs and capital goods sent to the job worker-

1. The inputs, semi-finished goods or capital goods shall be sent to the job worker under the cover of a challan issued by the principal, including where such goods are sent directly to a job-worker.

2. The challan issued by the principal to the job worker shall contain the details specified in rule 55.

3. The details of challans in respect of goods dispatched to a job worker or received from a job worker or sent from one job worker to another during a quarter shall be included in FORM GST ITC-04 furnished for that period on or before the twenty-fifth day of the month succeeding the said quarter

4. Where the inputs or capital goods are not returned to the principal within the time stipulated in section 143, it shall be deemed that such inputs or capital goods had been supplied by the principal to the job worker on the day when the said inputs or capital goods were sent out and the said supply shall be declared in FORM GSTR-1 and the principal shall be liable to pay the tax along with applicable interest.

Explanation.- For the purposes of this Chapter,-

I. the expressions 'capital goods' shall include 'plant and machinery' as defined in the Explanation to section 17;

II. for determining the value of an exempt supply as referred to in sub-section (3) of section 17-

a) the value of land and building shall be taken as the same as adopted for the purpose of paying stamp duty; and
b) the value of security shall be taken as one per cent. of the sale value of such security.

As per Section 143

A registered person (hereafter in this section referred to as the 'principal') may under intimation and subject to such conditions as may be prescribed, send any inputs or capital goods, without payment of tax, to a job worker for job work and from there subsequently send to another job worker and likewise, and shall, -

a. bring back inputs, after completion of job work or otherwise, or capital goods, other than moulds and dies, jigs and fixtures, or tools, within one year and three years, respectively, of their being sent out, to any of his place of business, without payment of tax;

b. supply such inputs, after completion of job work or otherwise, or capital goods, other than moulds and dies, jigs and fixtures, or tools, within one year and three years, respectively, of their being sent out from the place of business of a job worker on payment of tax within India, or with or without payment of tax for export, as the case may be:

Provided that the principal shall not supply the goods from the place of business of a job worker in accordance with the provisions of this clause unless the said principal declares the place of business of the job worker as his additional place of business except in a case -

1. where the job worker is registered under section 25; or
2. where the principal is engaged in the supply of such goods as may be notified by the Commissioner.

1. The responsibility for keeping proper accounts for the inputs or capital goods shall lie with the principal.

2. Where the inputs sent for job work are not received back by the principal after completion of job work or otherwise in accordance with the provisions of clause (a) of sub-section (1) or are not supplied from the place of business of the job worker in accordance with the provisions of clause (b) of sub-section (1) within a period of one year of their being sent out, it shall be deemed that such inputs had been supplied by the principal to the job worker on the day when the said inputs were sent out.

3. Where the capital goods, other than moulds and dies, jigs and fixtures, or tools, sent for job work are not received back by the principal in accordance with the provisions of clause (a) of sub-section (1) or are not supplied from the place of business of the job worker in accordance with the provisions of clause (b) of sub-section (1) within a period of three years of their being sent out, it shall be deemed that such capital goods had been supplied by the principal to the job worker on the day when the said capital goods were sent out.

4. Notwithstanding anything contained in sub-sections (1) and (2), any waste and scrap generated during the job work may be supplied by the job worker directly from his place of business on payment of tax, if such job worker is registered, or by the principal, if the job worker is not registered.

Explanation - For the purposes of job work, input includes intermediate goods arising from any treatment or process carried out on the inputs by the principal or the job worker.

Author analysis-

It is also pertinent to add here that the provisions relating to job work are applicable only when registered taxable person intends to send taxable goods for job work to the job worker. In other words these provisions are not applicable to exempted or non-taxable goods or when the sender is a person other than registered taxable person. The principal can send the inputs or capital goods after payment after payment of GST without following the special procedure. In such a case, the job-worker would take the input tax credit and supply back the processed goods (after completion of job work) on payment of GST.

It is also not necessary that job worker and principal be located in same state or Union territory Provisions relating to job work have been adopted in the IGST Act, 2017 (vide Section 20) as well as inUTGST Act, 2017 (vide Section 21). Therefore, job worker and principal can be located either in the same State or in same Union Territory or in difference States or Union Territories.

Extended Meaning of 'Input'

For the purpose of job work, the term 'Input' has been given an extended meaning and shall include

1. Input sent as such i.e. without carrying out any process on such input; and
2. Intermediate goods arising from any treatment or process carried out on the input. The said treatment or process may be carried out either by the principal or by the Job worker.

List of GST Tax Rates 2017

List of GST Tax Rates 2017  

GST Rates on Food, Pharma, Kitchen, Lifestyle, Construction Categories (Click Here)

Updated GST Tax Slab in India 13 July 2017

GST Rates on Food, Pharma, Kitchen, Lifestyle, Construction Categories

GST Rates on Food, Pharma, Kitchen, Lifestyle, Construction Categories