Digitally Signing of Invoices Service Tax and Excise

In today's era of digitization, more and more Small and Medium Enterprises are moving Online. There are more use of Computers, internet, ERP Softwares, Online Billing etc. than it was before. Businessmen are using all sorts of new technologies which will save their time and efforts, one of such technology is of Online Invoice printing and signing. Many of the software provider are  providing these facilities and it saves a lot of time especially of those enterprises where there are more than hundreds of billing everyday. Use of Digital signature is gaining a lot of popularity and as the people are getting educated about the advantages of the system, they are getting inclined towards it.

 Digital signature certificates comes in 3 classes i.e. Class I, Class II and Class III. The Information Technology Act has made the DSC signing at par with manual signing. Income Tax, Sales Tax, Company Law, all are making Digital Signing mandatory and so the Central Board of Excise and customs. Central Board of Excise and Customs with its latest Notification No. No.  18/2015-Central Excise (N.T.) has issued procedure and safeguards to be followed if the Tax payer wants to issue invoices in Digital form with Digital Signature.

Now a Taxpayer can Digitally sign the Invoices issued to there clients and customers. The salient features and procedure for getting the assesse power of Digital Signing is given below:

Service Tax to remain 12.36% till Notified Date is announced

With the Presidents assent on Finance Act, 2015 on 14th May 2015, various Service Providers have started charging 14% Service Tax. We would like to bring this to notice of our readers that the rate will remain 12.36% till the date declared in the notification.

The relevant portion of Finance Act, 2015 is given below:

In section 66B of the 1994 Act, with effect from such date as the Central Government may, by notification in the Official Gazette, appoint, for the words “twelve per cent.”, the words fourteen per cent.” shall be substituted.

The notification will be available soon and till then rates of 12.36% is to be charged and not 14%. Also the Swach Bharat cess of 2% is to be charged only after the date notified and not from 14th May, 2015.

Service Tax Rate will remain 12.36%

As we all are aware that in the Budget 2015, Finance Minister Shri Arun Jaitely Ji have announced the increase in rate of Service Tax from 12.36% to 14%. There is news all around that from 1st April all the Services will become costly. But in reality nothing will be costly now but after enactment of Finance Bill, 2015.

Yes, you read it correct. There will be no hike in rate of Service Tax from Today but it will be increased only after enactment of Service Tax Act. In this regard relevant portion of D.O.F. No.334/5/2015-TRU dated 28th February 2015 is produced below:

“3.3 The Service Tax rate shall come into effect from a date to be notified by the Central Government after the enactment of the Finance Bill, 2015”.

Tax Amendments Proposed in Union Budget 2015-2016

Honorable Finance Minster Shri Arun Jately Ji, has given his Union Budgetary speech today for the budget of the year 2015-2016. You can get full Summarised updates from following link:
http://www.ngoandtaxconsultant.in/2015/02/unionbudget2015-2016.html


We are giving a comprehensive list of Amendments in Direct and Indirect Taxes proposed for the year 2015-2016.

DIRECT TAX

1. No Changes in Tax Slabs for Individual Assesses. Maximum no taxable income will be Rs. 444,200.00

2. Wealth Tax to be abolished.

3. To make up for loss due to removal of Wealth Tax. A special surcharge of 2 % on Super Rich is to be levied (Income above Rs. 1 crore).

4. Assets to be specified in Wealth Tax Return, is now to be specified in Income Tax return.

5. Corporate Tax to be reduced to 25% from earlier 30%. All the exemptions to be rationalized and removed in phase manner.

6. Exemption on Transport Allowances for Salaried class to be increased from Rs. 800 to Rs. 1600.

7. Deduction for health premium under section 80D to be increased from Rs. 15000 to Rs. 25000 and for senior citizen to Rs. 30000. For Super Senior Citizen the expenses upto Rs. 30000 will be allowed as deduction on medical expenses

8. Pension fund and New Pension fund deduction to be increased from Rs. 1.00 lakhs to Rs. 1.50 lakhs.

9. In case of serious diseases, the deduction of Rs. 60000 is raised to Rs. 80000

10. Income tax on Royalty for Technical Services reduced to 10%

11. 100% deduction on contirbution to Swach Bharat Abhiyaan and Clean Ganga Mission

12. Quoting of PAN number made necessary for purchase above Rs. 1.00 lakhs

13. Cash disallowance for purchase above Rs. 20000 of immovable property.

14. Rs. 50000 deduction under section 80CCD

15.Yoga to be charitable activity under Income Tax Act.

16. No DTC as Income Tax Act, has been modified to include most of the provision of DTC

17. GAAR will be defered by 2 years.

18. Manager of Off Shore Fund can open offices in India and laws will be ammended to provide them exemption as if they are not working from India.

19. Deduction under section 80U to be increased.

20. New Law on Black money to be intoduced. To have prosecution and penalty provision for Tax evasion.

INDIRECT TAX

1. Service Tax now increased to 14% instead of 12.36%

2. GST to be applied next year.

3. Service Tax exemption to Cold Storage for certain fruits.

4. Custom Duty to be reduced on 22 goods, to encourage Make in India mission.

5. Excise duty will be reduced to 6% on leather shoes

6. Excise duty rates to be reduced

7. Excise registration will now be online and will be provided in 2days. Excise return and docs to be filled digitally.