Clarification on Reports Appearing on Black Money Act
Clarification on Reports Appearing on Black Money Act
Over last few days a number of reports have appeared in the media expressing views and concerns regarding the applicability of various provisions of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act 2015.
Some of the views expressed in these reports are based on surmises and may not be factually accurate or correctly reflecting the legal position. The CBDT has already issued an Explanatory Circular No. 12 dated 02-07-2015 and another Circular No 13 dated 06.07.2015 containing a set of ‘Frequently Asked Questions’ (FAQs) clarifying various aspects of the Act.
Any further Issues and concerns that need clarification may be brought to the notice of the CBDT at the e-mail address sandip.mishra@nic.in so that these are also addressed in an appropriate manner.
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Commencement of Electronic Verification of Income Tax Returns for AY 2015-16
To facilitate the taxpayers and to provide end-to-end e-enabled services, the Income Tax Return for A.Y. 2015-16 can now be verified electronically.
A taxpayer may verify his return through Internet Banking or through Aadhar based authentication process. Persons using this facility will not be required to submit a signed paper copy of ITR-Verification form (ITR-V) to CPC Bengaluru.
For the convenience of small taxpayers having total income of Rs. 5 lakhs or below without any claim of refund, facility for generating Electronic Verification Code (EVC) has also been provided on the E-filing website of the Department. In such cases EVC will be sent to the Registered Email ID and Mobile Number of person to enable him to thereafter use this code to verify the return.
In case a taxpayer is unable to electronically verify the ITR using the EVC for any reason, then, the signed copy of ITR-V may be sent within the specified time of 120 days to CPC Bengaluru by Ordinary post or Speed post.
Details regarding e-verification are available in Notification 2/2015 in issued on 13th July 2015 athttp://incometaxindia.gov.in/news/evc_notification-13-07-2015.pdf.
Taxpayers are requested to use Electronic Verification facility in view of the convenience and flexibility offered. Taxpayers are also requested to e-file their returns early to avoid the rush closer to the last date.
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Service Charges Collected by Restaurants/Hotels/Eateries Retained by the Restaurants/Hotels/Eateries and are Not ‘Service Tax’ Imposed by the Government
Some restaurants/hotels/eateries besides charging for the food and beverages are also charging ‘service charges’ in their bills. The proceeds of the ‘service charges’ are retained by the restaurants/hotels/eateries.
Some of the consumers have a misapprehension that these ‘service charges’ are being collected by the restaurant on behalf of the Government as tax.
It is clarified that these ‘service charges’ collected by the restaurants/hotels/eateries are retained by the restaurants/hotels/eateries and are not ‘service tax’ imposed by the Government.
It is further clarified that effective service tax rate in respect of services provided in relation to serving of food or beverage by a restaurant, eating joint or mess having the facility of air–conditioning or central air-heating in any part of the establishment is 5.6% (14% of 40%) of the total amount charged.
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Some of the consumers have a misapprehension that these ‘service charges’ are being collected by the restaurant on behalf of the Government as tax.
It is clarified that these ‘service charges’ collected by the restaurants/hotels/eateries are retained by the restaurants/hotels/eateries and are not ‘service tax’ imposed by the Government.
It is further clarified that effective service tax rate in respect of services provided in relation to serving of food or beverage by a restaurant, eating joint or mess having the facility of air–conditioning or central air-heating in any part of the establishment is 5.6% (14% of 40%) of the total amount charged.
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