DUE DATE FOR OCTOBER 2014

Every assessee is required to pay service tax electronically

With effect from 1st October, 2014; every assessee is required to pay service tax electronically through internet banking therefore service tax liability for the month of September, 2014 or quarter ending September, 2014 is required to be paid electronically irrespective of the constitution of assessee and quantum of turnover/service tax.

Here we would also like to mention that relaxation from e-payment may be allowed by the Deputy Commissioner/Asst. Commissioner on case to case basis.

(Notification No. 09/2014-ST)

Rebate u/s 87A of IT Act, 2,000 for below 5 L Income

Rebate under Section 87A was introduced by Budget 2013.

This Income Tax Rebate is applicable from Financial Year 2013-14/Assessment year 2014-15.

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Budget 2013 introduced an Income Tax Rebate of Rs. 2,000 for people earning income below Rs. 5 Lakh. It is important to note here that Section 87A does not impact the Income Tax Slabs, and is a Rebate under Section 87A of Rs. 2,000.

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Section 87A provides for Income Tax Rebate of Rs. 2,000 to Individuals earning Income below Rs. 5 Lakh. This Rebate of Rs. 2,000 would be given from the Total Tax payable by an Individual. It is pertinent to note here that this Rs. 2,000 is to be subtracted from the Total Tax Payable and not from the Total Income of an Individual.
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Section 87A: Income Tax Rebate

As Section 87A provides for Income Tax Rebate, the taxpayer will first compute the Total Tax Payable and then reduce Rs. 2,000 from this Tax payable provided his Total Income is less than Rs. 5 Lakh. If his Total Income is more than Rs. 5 Lakh, the taxpayer won’t be able to claim income tax rebate under Section 87A.

1. The Net Taxable Income of Rs. 5 Lakh is the sum total of incomes under all heads i.e. Salary, House Property, Business or Profession, Capital Gains and Other Sources.
2. In case there is any loss under any head due to payment of housing loan or for any other reason, such loss would also be reduced from the total income.
3. Deductions from Section 80C to Section 80U under Chapter VI-A would also be allowed and the resultant figure i.e. Total Income should be less than Rs. 5 Lakh for an individual to claim income tax rebate of Rs. 2,000 under Section 87A.

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The above points have been represented below showing the manner of computation:-

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As per Section 67A of the Finance Act, 1994 read with explanation to Section 14 of the Customs Act, 1962, rate of exchange for calculation of gross value of taxable service would be the rate, as determined by CBEC for the conversion of foreign currency into Indian currency or vice versa, applicable on the date on which taxable service has been provided or agreed to be provided. CBEC from time to time issues Notification to notify rate of exchange determined by it. Though Notifications issued under Customs use the words “For Imported Goods” or “Exported Goods” but these rates apply mutatis mutandis in case of Services as well by virtue of Section 67A. For Rate of Exchange applicable from 18^th April, 2014 please refer Annexure-A.

 

 

Annexure-A

SCHEDULE-I

 

S. No.	Foreign Currency	Rate of exchange of one unit of foreign currency equivalent to Indian rupees
(1)	(2)	(3)
		(a)	(b)
		(For Imported Goods)	(For Export Goods)
1.	Australian Dollar	57.30	55.80
2.	Bahrain Dinar	164.60	155.55
3.	Canadian Dollar	55.55	54.15
4.	Danish Kroner	11.35	11.00
5.	EURO	84.40	82.40
6.	Hong Kong Dollar	7.85	7.70
7.	Kuwait Dinar	220.45	208.20
8.	New Zealand Dollar	52.75	51.30
9.	Norwegian Kroner	10.25	9.95
10.	Pound Sterling	102.65	100.50
11.	Singapore Dollar	48.75	47.65
12.	South African Rand	5.90	5.55
13.	Saudi Arabian Riyal	16.55	15.65
14.	Swedish Kroner	9.30	9.00
15.	Swiss Franc	69.50	67.60
16.	UAE Dirham	16.90	15.95
17.	US Dollar	60.80	59.80

 

SCHEDULE-II

                               

S. No.		Foreign Currency	Rate of exchange of 100 units of foreign currency equivalent to Indian rupees
(1)		(2)	(3)
			(a)			(b)
			(For Imported Goods)			(For Export Goods)
1.		Japanese Yen	59.85			58.40
2.		Kenya Shilling	71.55			67.55