Key Tax amendments from 01.06.2016

By | June 1, 2016

Tax amendments from 01.06.2016

( As per Finance Act 2016)

Key Indirect Tax Amendments from 01.06.2016

  1. Tax amendments from 01.06.2016 :Krishi Kalyan Cess

    Krishi Kalyan Cess, imposed by Finance Act 2016 by inserting new Chapter-VI Krishi Kalyan Cess, @ 0.5% on all taxable services, Krishi Kalyan Cess will come into force w.e.f 01.06.2016 . You can read key feature of this cess at: KRISHI KALYAN CESS w.e.f 01.06.2016 and read various notifications issued by Govt at  Krishi Kalyan Cess Notifications.

  2. Tax amendments from 01.06.2016 :The Indirect Tax Dispute Resolution Scheme 2016

    The Indirect Tax Dispute Resolution Scheme 2016 covered in  CHAPTER XI of Finance Act 2016 The Indirect Tax Dispute Resolution Scheme 2016 shall come into force on the 1st day of June, 2016  and shall be applicable up to  31st day of December, 2016. Read about  Indirect Tax Dispute Resolution Scheme 2016 Key Features from 01.06.2016 and relevant notifications issued.

  3. Tax amendments from 01.06.2016 : Equalisation levy

    Equalisation levy shall come into force w.e.f 01.6.2016. Equalisation levy is covered in CHAPTER VIII  of Finance Act 2016 ,which extend to whole of India except the State of Jammu and Kashmir.Equalisation levy shall be charged at the rate of six per cent. of the amount of consideration for any specified service received or receivable by a person, being a non-resident . You can read more about Equalisation levy Salient Features (applicable from 01.06.2016).

  4. Tax amendments from 01.06.2016 : Service Tax Amendments

    Govt has brought certain amendments in Service Tax from the date Finance act 2016 received  the assent of the president i.e 14.05.2016 and certain provisions are changed w.e.f 01.06.2016 . Read about Service Tax Amendment w.e.f 14.05.16 and 01.06.16

  5. Tax amendments from 01.06.2016 : Service Tax Amendments : Quarterly Sevice tax Payment by HUF and One person company

Rule 6(1) is being amended to extend the benefit of quarterly payment to One Person Company (OPC) and Hindu Undivided Family (HUF). – See more at Service tax payment on quarterly basis by One Person Company and HUF and Payment of Service Tax : Quarterly for HUF /One person co

Key Direct Tax Amendments from 01.06.2016

  1. Tax amendments from 01.06.2016 : TDS Rates and limit revised

    In order to rationalise the rates and base for TDS provisions, the threshold limit for deduction of tax at source and the rates of deduction of tax at source have been revised with effect from 1-6-2016 See more at TDS Rates and Limit revised w.e.f 01.06.2016.

  2. Tax amendments from 01.06.2016 :TCS on Sale of motor Vehicle

    TCS on Sale of motor Vehicle above Rs 10 Lakh to be collected  by Seller at the time of receipt of such amount w.e.f 01.06.2016 see more at TCS on Sale of motor Vehicle above Rs 10 Lakh w.e.f 01.06.2016

  3. Tax amendments from 01.06.2016 :TCS on cash sale of goods or services (other than bullion or jewellery)

    TCS on cash sale of goods or services (other than bullion or jewellery) where Consideration for goods or services exceeds Rs. 2,00,000 in a bill and out of such consideration, any amount is received in cash The seller will collect tax at the rate of 1% of sale consideration. The seller will collect tax at the rate if sale is made or service is rendered w.e.f 01.06.2016. Read more at TCS on cash sale of goods or services > Rs 2 Lakh wef 1.6.16

  4. Tax amendments from 01.06.2016 : Revised due date for filing TDS Statements

    Govt Revised due date as per Rule-31A, Income-tax Rules to file TDS Statement in Form No 24Q, 27Q, and 26Q w.e.f 01.06.2016 as per [Notification No.30/2016, F.No.142/29/2015-TPL Dated 29.04.2016] See more at TDS statement due date of filing w.e.f 01.6.2016

  5. Tax amendments from 01.06.2016 :No TDS on Rent if declaration in 15G/15H

    In order to reduce compliance burden in such cases, it is proposed to amend the provisions of section 197A for making the recipients of payments referred to in section 194-I also eligible for filing self-declaration in Form no 15G/15H for non-deduction of tax at source in accordance with the provisions of section 197A. see more at  No TDS on Rent if declaration in 15G/15H w.e.f 01.06.2016

  6. Tax amendments from 01.06.2016 : Revised dates for Advance Tax Payment

    Now all Assessee ,Whether Corporate or non Corporate Assessee,  (Except Assessee to whom section 44AD applies ) are required to pay tax in 4 Installments . on or before 15th June ,15th September,15th December ,15th March  see more at Advance Tax Due Dates w.e.f 01.06.2016

  7. Tax amendments from 01.06.2016 :Direct Tax Dispute Resolution Scheme 2016

    CHAPTER X of Finance Act 2016 covers The Direct Tax Dispute Resolution Scheme 2016 which shall open from w.e.f 01.06.2016. A person may make a declaration to the designated authority in respect of tax arrear or specified tax under the Direct Tax Dispute Resolution Scheme, 2016 on or before 31st day of December, 2016  see more at Direct Tax Dispute Resolution Scheme 2016 key features from 01.06.2016

  8. Tax amendments from 01.06.2016 :Income Declaration Scheme 2016

Income Declaration Scheme 2016  incorporated as Chapter IX of the Finance Act 2016 shall remain in force for a period of 4 months from 1st June, 2016 to 30th September, 2016 – See more at: Income Declaration Scheme 2016 analysis

9. Tax amendments from 01.06.2016 : Relief to a non-resident for furnishing PAN [Section 206AA]

Section 206AA, inter alia, provides that any person (who is entitled to receive any sum on which tax is deductible at source) shall furnish his PAN to the deductor, failing which tax shall be deducted at the rate mentioned in the relevant provision or at the rate of 20 per cent, whichever is higher.

Amendment – Which effect from June 1, 2016, sub-section (7) of the said section has been substituted to provide that above provisions shall not apply to a non-resident / foreign company (who does not have PAN) subject to such condition as may be prescribed.

Read Rule 37BC Notified by the Government for Non Resident not having PAN ,Relaxation from Higher TDS by Govt on 24.06.016

10 .  Tax amendments from 01.06.2016 : Amendment to section 133C

Section 133C empowers the prescribed income-tax authority to issue notice calling for information and documents for the purpose of verification of information in its possession. This section has been amended (with effect from June 1, 2016) to further provide that the information and documents so obtained by the prescribed income-tax authority may be scrutinized and the outcome of such scrutiny may be made available to the Assessing Officer for further necessary action, if any.

One thought on “Key Tax amendments from 01.06.2016

  1. vivek singh

    REF: 9. Tax amendments from 01.06.2016 : Relief to a non-resident for furnishing PAN [Section 206AA]

    Sir,

    we are a Medical Publisher and a reprint agency making royalty paid reprints of content from foreign publishers. In the reference to Above Tax amendment which gives Tax relief to foreign royalty recipient (companies/individuals) even if they does not have Indian PAN. As in most of the cases, recipient insist for net royalty payment, hence applicable Tax of 25.75% on gross royalty, which in calculation turn out to be 34.68 % of net royalty value, has to be borne by us. After this amendment, the applicable TDS should be in the range of 15%(including cess, at gross value) to foreign royalty recipients including INDIVIDUALS as well as COMPANIES. your reconfirmation would be greatly appreciated as we have opinion/elaboration from out Tax consultant as “This rebate is application on foreign INDIVIDUALS only and not on COMPANIES”. For example, few of the companies we regularly pay royalties are, American Diabetic Association, American Pediatrics Association, John Scott & company, Mary Ann Libert Inc., Antimicrobial Therapy Inc.(they does not have PAN) etc. are they come under preview of amendment thus Tax relief?

    Looking forward to have your valuable opinion!

    Best Regards

    vivek Singh
    Medicca Press Lmited

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