Amendment to Sec.80-IB taking away tax benefit - Gujrat HC

Amendment made in section 80-IB(9) by adding an Explanation was not clarificatory, declaratory, curative or made "small repair" in the Act, but on the contrary takes away the accrued and vested right of the Petitioner which had matured after the judgments of ITAT. Therefore, the Explanation added by Finance (No.2) 2009 was a substantive law. Explanation added to Section 80-IB(9) by Finance Act (No.2) of 2009 is clearly unconstitutional, violative of Article 14 of the Constitution of India and is liable to be struck down

The disputed question was as to whether the benefits of tax holiday of seven years was available on each undertaking which has now been taken away by the amendment made in section 80-IB(9) by adding on Explanation that provides that all blocks licensed under a single contract shall be treated as a single undertaking

ITAT had found in favour of petitioner-assessee that each well/cluster of wells was a separate undertaking entitled to seven years tax holiday.

The Revenue had challenged the decision of the ITAT before the High Court and thereafter, they have a remedy before the Apex Court.

But, arbitrarily, the 100% tax deduction benefit could not be withdrawn by the Finance Minister or the legislature by amending Section 80-IB(9) of the Act retrospectively from an anterior date.

The amendment in such cases where already tax benefit had accrued and vested in the assessee could not be taken away by giving retrospective amendment to Section 80-IB(9) which is nothing but a substantive provision inserted by amendment and it can only operate prospectively and not retrospectively.

Explanation added to Section 80-IB(9) by Finance Act (No.2) of 2009 is clearly unconstitutional, violative of Article 14 of the Constitution of India and is liable to be struck down.


Latest e-TDS/TCS RPU Utility from Fin. Year 2007-2008.

Finally NSDL has provde JAVA base Utility Ver. 1.0 as CBDT Income Tax Return Utility to TDS Deductors for Preparing TDS/TCS Quarterly Statement from Financial Year 2007-2008 and on-wards.  This new latest e-TDS/TCS Return Preparation Utility is fully based on JAVA Plate-form (RPU Ver. 1.0). Apart from this new utility, we already working with RPU utility ver. 4.5 and 4.2 for preparation of e-TDS/TCS Return.  This new RPU JAVA Base Utility is very simple with following Key features :

Key features of RPU 1.0

  • NSDL e-TDS/TCS Return Preparation Utility in JAVA platform.
  • Preparation of Regular TDS/TCS Statement(s) for Form 24Q, 26Q, 27Q & 27EQ pertaining to Financial Year 2007-08 onwards (for all quarters).
  • NSDL RPU is a freely downloadable utility.
  • Incorporation of latest FVU Version 4.5 and 2.141.

Download New JAVA base RPU Utility Ver. 1.0 (Click Here)

Central Action Plan for the First Quarter TDS Statement for the Asstt. Year 2016-17.

Recently CBDT has issued a letter to all CCITs about Action Plan for 1st Quarter i.e. April, 2015 to June, 2015 of the Financial Year 2015-16.  The CBDT exhibit the Interim Action Plan for the First Quarter of Financial Year 2015-16.  In this action Plan key result for Assessment Units (including Central Charges, Int'I Taxation, TDS and Exemptions is takes place.  The CBDT further states about International Taxation and Transfer Pricing with all dates, which are as under :

Download Action Plan Letter (Click Here)

Tax Calculator for Salaried Employee with TDS Certificates & Tax Calculation For Asstt. Year 2015-16


We would like to inform you that with reference to circular No. 17/2014 dated 10.12.2014 issued by Income Tax Department to calculate Income Tax with all qualifying Deduction from Annual Salaries for Financial Year 2014-15 under section 192 of the Income Tax Act, 1961. Salaried employee can easily calculate their Tax liability and generate Form 16.  This is the final updated Tax Calculation utility for every salaried employee for the Asstt. Year 2015-16 with Form 16, monthwise salary statement, tax calculation sheet.

Facility of this software:
It is easy wat to Calculate Income Tax including Month-wise Salary Statement and Form 16 (Annexure "A" and "B") in TRACE format. This utility helps to employee to calculate tax liability with all applicable deductions, exemptions etc.

This utility covered by Deduction of Chapter-VIA and other Deductions as per circular of Income Tax Department for Salaried Employee.

This Software is based on Income Tax circular issued by Income Tax Department for Salaried Employee for Assessment Year 2015-16.

Physical Requirements:
  • OS required Windows-2000, XP, Vista, Windows-7, Windows-8 etc.
  • MS Office-7 or Above Version is required.
  • Printing Facility Provides on Inkjet, Ledger Printer and other printers.
  • Required Standard A4 Size Paper Sheets.
Data Entry:
  • Only  "White" Cells are provide for input data.
  • Press Mouse Buttons for applications which you want to operate.
Key Features:
  • It maintain Each Employee Data.
  • It Calculate Gross Income as per current D.A. Rates automatically as per Government D.A. Rates.
  • It Provides Facility to Enter Data Manually along with all Arrears etc.
  • It Calculate Tax Liability.
  • It Display Month-wise Salary Statement for Asstt. Year 2013-14.
  • It Generate TDS Certificate (Form 16) Automatically with Annexure "B".

Download Consolidated files and TDS Certificates whose TAN are currently restricted by TRACES

This is to inform you that Centralized Processing Centre (TDS) has observed from its records that there are Short Payment Defaults in Quarterly TDS Statements submitted by you and therefore, downloading of Consolidated Files and TDS Certificates are currently restricted for your TAN 

Please note that

  • CPC (TDS) has initiated a special drive for closure of Short Payment Defaults due to Unmatched or Insufficient Challans in the TDS Statements.
  • Since the due date for filing of TDS Statements for Quarter 4, 2014-15 and distribution of TDS Certificates subsequently is approaching fast, you are suggested to close the above defaults without any further loss of time.

The Short payment defaults in the TDS Statements may appear due to the following reasons:

A. Unmatched Challans:

  • At times, data entry mistakes are committed, while reporting tax payments in the respective TDS statements.
  • Incorrect quoting of TAN in ITNS 281 at the time of Deposit of TDS.
  • While depositing TDS, incorrect Assessment Year may have been reported in challan ITNS281, while statement pertains to a different Assessment Year.
  • Multiple OLTAS challans may have been reported in the TDS statement incorrectly, with information pertaining to only one challan, and mapped with the referenced Deductee rows.

B. Insufficient Challans:

  • Adequate balance may be available in OLTAS challans, however, already consumed challans may have been incorrectly used in the TDS Statement
  • You have tried to consume more than the available challan balance for reporting TDS deducted in the statements

Though CPC (TDS) makes best efforts to match challans, however, they may remain unmatched leading to "Short Payment" Defaults.

Action to be taken:

  • Download the Justification Report from our portal TRACES to view your latest outstanding demand.
  • In case there is no available challan for consumption, you are required to first deposit the due tax in the bank and then the same challan will be available for tagging in CPC (TDS) system after around 3-4 days of deposit
  • The Online Correction facility of TRACES needs to be used for closure of the Short Payment default, which can be availed without digital signature.
  • CPC (TDS) recommends to close the above default by tagging unconsumed challans, if available in CPC (TDS) system, through Online Correction.
  • Details of defaults will be provided during Online Correction process after logging into the web portal TRACES.
  • Once the challan is suitably tagged and Online Correction is submitted to CPC (TDS), it shall process the statement, thereby rectifying the Short Payment default.
  • CPC (TDS) has introduced Move Deductees facility in Online Corrections for closure of Short Payment defaults in your quarterly TDS Statements. With use of this feature, a portion of the Deductee Rows can now be moved to any other Unconsumed OLTAS challan with adequate balance. You can refer for the details to our communication CPC (TDS) drive for closure of Short Payment Defaults: Enhancement in Online Corrections feature for "Moving Deductee rows" from Unmatched Challans dated March 10, 2015 on TRACES.

For any assistance, you can write to or call our toll-free number 1800 103 0344.

CPC (TDS) is committed to provide best possible services to you.


Latest e-Tutorial for Online Correction of unmatched Challans & Quarterly TDS Statement.

CPC (TDS) has been issued a new notification recently with new features to correct e-TDS/TCS Return along with unmatched Challans.  CPC (TDS) has found Short Payment Defaults in quarterly TDS Statements due to Unmatched Challans and thus they further enhanced the Online Correction facility at TRACES, providing you with the feature of "Move Deductees" from Unmatched Challans to any other Unconsumed OLTAS Challan.  To facilitate closure of Short Payments due to Unmatched Challans, CPC(TDS) has further improved the intelligence, simplicity and convenience of Online Correction feature.

New Feature to Move Deductees added to Online Correction facility:

CPC (TDS) has introduced Move Deductees facility in Online Corrections for closure of Short Payment defaults in your quarterly TDS Statements. With use of this feature, a portion of the Deductee Rows can now be moved to any other Unconsumed OLTAS challan with adequate balance. The facility can be used in the following situation:


  • The challan(s) remain unmatched due to data entry errors in the TDS Statement(s).
  • Multiple OLTAS challans may have been reported in the TDS statement incorrectly, with information pertaining to only one challan, and mapped with the referenced Deductee rows.
  • The incorrect Challan information furnished above is causing Short Payment Defaults in the TDS Statement due to Unmatched Challans.

For instance, if there are two OLTAS challans reported in the TDS Statement an if:

  • Total TDS in Deductee Rows, mapped to Unmatched Challan(s): Rs. 1,10,000
  • OLTAS Challan CIN1: Rs. 1,00,000
  • OLTAS Challan CIN2: Rs. 10,000
  • Challan reporting in TDS Statement: Instead of reporting the above challans separately, incorrectly only CIN1 tagged in TDS Statement with TDS amount of Rs. 1,10,000

The above error causes Short Payment Default in the TDS Statement


  • In above situation, CIN 2 should first be added to the relevant TDS Statement using Online Correction facility
  • Deductee Rows with a total TDS of Rs. 10,000 can now be moved to CIN 2, which has incorrectly not been reported in the TDS Statement
  • Now CIN 1 (Rs. 1,10,000), as mentioned in the TDS Statement, can be tagged to the Unconsumed OLTAS Challan CIN1 (Rs. 1,00,000).

Therefore, Download Latest e-Tutorial for Online Correction of unmatched Challans and TDS Statments Quarterly. (Click Here)

Clarification on PAN Mandatory for Service Tax Registration.

Before a days ago, Central Board of Excise and Customs, Department of Revenue had issued a circular regarding simplification of Registration Procedures in Central Excise and Service Tax.  This circular is as under:

Circular No. 997/4/2015-CX
dated the 28th Feb., 2015
F. No. 201/24/2013-CX.6

Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise and Customs

 Principal Chief Commissioners / Chief Commissioners of Central Excise (All),
 Principal Chief Commissioners/Chief Commissioners of Central Excise & Service Tax (All).

Sub: Simplification of Registration Procedures in Central Excise and Service Tax –reg.


Registration process in Central Excise has been prescribed vide Notification no 35/2001 - C.E(N.T) dt 26-6-2001 as amended from time to time. The prescribed procedure has been amended by notification no. 07/2015-CE (N.T.) dated 01.03.2015 to simplify the procedure and improve the ease in doing business in manufacturing. The salient features of the revised registration procedure are as follows -

2) Registration in Central Excise presently envisages filing of application online on ACES, submission of documents, examination of documents, verification of premises by the departmental officer, submission of verification report, generation of Registration Certificate by the Deputy / Assistant Commissioner, dispatch of signed copy of Registration Certificate to the assessee and enabling the assessee to electronically pay the duty.

3) Under the new simplified procedure, once duly completed application form is received online on ACES, registration would be granted within two working days and issued online 
without any examination of the documents and verification of documents or premises before the grant of registration, thus initiating trust based registration. Simultaneously, assessee would be enabled to electronically pay duty. Further, the assessee would not need a signed copy of Registration Certificate as proof of registration. Registration Certificate downloaded online from ACES system would be accepted as proof of registration. Verification of the documents and premises shall be carried out post facto.

4) Verification of the premises shall be carried out after the registration has been granted. The applicant shall tender self-attested copy of the prescribed documents at the time of the verification of the premises.

5) Henceforth, registration shall mandatorily require that the PAN number of the proprietor or the legal entity being registered be quoted with the exception of the Government Departments for whom this requirement shall be non-mandatory. Applicants, who are not Government Department, shall not be granted registration in the absence of PAN number.

6) Communication with assessee is proposed to be made electronic to reduce transaction time and to achieve this e-mail address and mobile number of the applicant is being made mandatory. Existing registrants, who have not submitted this information, are requested to file this information within three months of the new registration process coming into effect.

7) Document to establish possession of the premises can be any document which establishes that the applicant is in possession of the premises required to be registered such as proof of ownership, lease or rent agreement, allotment letter from the Government, no objection certificate (NOC) from the landlord. Any of the following documents shall be 
submitted to establish identity, viz. PAN card, Ration Card, Passport, Voter I-card, Aadhar Card, Driving licence, or any other Photo-identity card issued by the Central Government, State Government or PSU.

8) The process of De-registration and cancellation of the registration has also been streamlined by prescribing clear procedure for the same so that winding up of business and starting new business of manufacture is made easy .

9) Similarly in service tax, the registration process for single registration has been simplified by providing for grant of registration online within two working days of filing the complete Form ST-1 in ACES, thus initiating trust-based registration. The specified documents should reach the office of the jurisdictional Deputy/Assistant Commissioner within 15 days of the date of filing the registration application. Where the need for the verification of premises arises, the same will have to be authorized by an officer not below the rank of Additional /Joint Commissioner. The conditions relating to the grant of registration in two working days have been specified in the Order No. 1/2015-Service Tax dated 28th Feb., 2015.

10) For further details, notification no. 07/2015-CE (N.T.) dated 01.03.2015 may be referred. The new procedure for registration shall come into effect from 01.03.2015. Difficulty, if any, in implementation of the procedure may please be brought to the notice of the Board. Hindi version would follow.

Under Secretary to the Government of India 

Don't miss to file Professional Tax e-Return for Fin. Year 2014-15 on or before 31.03.2015.

An employer registered under this Act shall furnish monthly return as per the provisions of clause (c) of sub-rule (3) of rule 11 till the end of the year in which he is granted the certificate of registration Date 14/7/2011.

Professional Tax Department (State Government) had issued a notification VAT/AMD.1010/IB/PT/Adm-6 Date 14/7/2011 regarding  Filling of e-return for all PTRC holders is made mandatory and As per Government Notification No PFT.1012/ C.R.29/ Taxation-3 Date 14-June-2012. every employer holding Profession Tax Registration Certificate (PTRC) shall pay Tax, Interest, Penalty or any amount due and payable by or under the said act electronically With effect from 01-July-2012 is mandatory.

Mode of Return:
  • Amount of Profession Tax is exceed Rs. 50000/- annualy they submit PT Return Monthly.
  • Profession Tax collection not exceed Rs. 50000/- per annum they submit PT Return Halfyearly or Yearly.
Procedure for PT e-Return:
Tax is to be paid in chalan No MTR-6, and online return should be submitted in Form IIIB. Before submission of online return Employer has to enroll himself for e-services (one time activity).

(For detail process of enrollment of PTRC e-services and filling of e-return, please see the demo at >> e-services >> Instruction Sheets for e-services >> PTRC e-services Enrollment and e-return)

Due Date:
  • For Financial year 2014-15 due date of PT e-Return is 31st March, 2015.
  • If PT Return not lupload in due time Rs. 1000/- charged as Late Fee.
Download PT e-Return Software (Click Here)

Key Changes in Service Tax in the Finance Budget 2015

Key changes being made in the Service Tax in the Union Budget 2015-16, by amending the clauses 105 to 116 of the Bill under Chapter V of the Finance Act, 1994 and Chapter VI of the Bill (clause 117) to levy Swachh Bharat Cess @ 2% of the value of taxable services. These changes are categorized below based on the dates on which they would come into effect.

Date to be notified after the enactment of the Finance Bill 2015.

Changes in Service Tax rates
The rate of Service Tax is being increased from 12% plus Education Cesses to 14%. The ‘Education Cess’ and ‘Secondary and Higher Education Cess’ shall be subsumed in the revised rate of Service Tax. Thus, the effective increase in Service Tax rate will be from the existing rate of 12.36% (inclusive of cesses) to 14%, subsuming the cesses.

Swachh Bharat Cess
An enabling provision is being incorporated in the Finance Bill, 2014 (Chapter VI/clause 117) to empower the Central Government to impose a Swachh Bharat Cess on all or any of the taxable services at a rate of 2% on the value of such taxable services.

Review of Negative List

  • Service Tax is to be levied on the service provided by way of access to amusement facility such as rides, bowling alleys, amusement arcades, water parks, theme parks, etc.
  • Service tax to be levied on services by way of admission to entertainment event of concerts, non-recognised sporting events, pagents, music concerts and award functions, if the amount charged for admission is more than Rs. 500. Service by way of admission to exhibition of the cinematographic film, circus, dance, or theatrical performances including drama, ballets or recognized sporting events shall continue to be exempt.
  • Service tax to be levied on service by way of carrying out any processes as job work for production or manufacture of alcoholic liquor for human consumption. 
  • An enabling provision is being made to exclude all services provided by the government or local authority to a business entity from the Negative List. Once this amendment is given effect to, all service provided by the government to business entities, unless specifically exempt, shall become taxable.

Amendments in Notification No .25/2012-ST.

  • To exclude job work in relation to alcoholic liquor for human consumption from the scope of this exemption.
  • To exempt services by way of (i) right to admission to exhibition of film, circus, dance or theatrical performances including drama, or ballet; (ii) recognized sporting event; and (iii) admission to other events where the consideration for admission is upto Rs. 500;

Amendments in Service Tax Rules
Amendments in alternative rates of service tax provided for air travel agent, insurance service, money changing service and service provided by a lottery distributor and selling agent in rule 6(7), 6(7A), 6(7B) and 6(7C) of the Service Tax Rules.