COMPLEXITIES OF DATES IN FINANCE ACT
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THE DATE OF APPLICABILITY OF VARIOUS PROVISIONS OF SERVICE TAX IS A BIG PROBLEM AND IN 2007 I HAVE WRITTEN AN ARTICLE ON THE SUBJECT. THIS ARTICLE IS RELATED TO DATES AS MENTIONED IN FINANCE ACT, 2007 BUT THE SPIRIT BEHIND THE ARTICLE CAN BE APPLIED IN ANY YEAR.
JOURNAL- ONCE AGAIN???
- CA SUDHIR HALAKHNADI
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1.DATE OF ENACTMENT OF FINANCE ACT-2007
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2. APPLICBILITY OF THE FINANCE ACT-2007
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3. SENIOR AND HIGHER EDUCATION CESS
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4. SHEC ON PREENACTMENT TDS
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5. THE 1ST. JUNE EFFECT ON INCOME TAX
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6. SERVICE TAX ON NEW SERVICES
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CHAPTER I
PRELIMINARY
1. (1) This Act may be called the Finance Act, 2007.
(2) Save as otherwise provided in this Act, sections 2 to 84 shall be deemed to have come into force on the 1st day of April 2007.
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Act to have effect pending legislative provision for charge of tax.
294. If on the 1st day of April in any assessment year provision has not yet been made by a Central Act for the charging of income-tax for that assessment year, this Act shall nevertheless have effect until such provision is so made as if the provision in force in the preceding assessment year or the provision proposed in the Bill then before Parliament, whichever is more favourable to the assessee, were actually in force
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1. TDS rates for Brokerage and commission under section 194H has been raised from 5% to 10%.
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2. TDS provisions on commission or Brokerages payable by BSNL and MTNL to their PCO franchisees are not applicable w.e.f. 1st. June 2007.
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2. TDS provisions under section 194C for Individual and HUFs having turnover in excess of limit laid down by Section 44AB with respect to payments to contractors are also applicable w.e.f. 1st. June 2007. The TDS provisions under section 194C with respect to payment to Sub-contractors for these specified Individual and HUFs are already applicable and now w.e.f. 1st. June 2007 these provisions will also be applicable for payments to contracts also.
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3. The TDS provisions under section 194A for interest from Bank and co-operative Banks and central Governments notified Post office deposit scheme will not apply for payment up to 10000.00 w.e.f. 1st. June 2007. The limit up to 31st. May is Rs.5000.00. The central Government has recently notified senior citizen deposit scheme for this purpose.
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4. An explanation is added to section 206C is added w.e.f. 1st. June 2007 to mention that TDS is not required with respect to Minning and quarrying Mineral oil including petroleum and Natural Gas.
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S.NO
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DESCRIPTION OF SERVICE
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1.
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Service provided by a telegraph authority in relation to telecommunication service- Section 65(105) (zzzx).
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2.
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Service provided in relation to mining of mineral, oil or gas- Section 65(105) (zzzy)
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3.
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Service provided in relation to renting of immovable property for use in the course or furtherance of business or commerce- Section 65(105) (zzzz).
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4.
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Service provided in relation to the execution of a works contract- Section 65(105) (zzzza).
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5.
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Service provided in relation to development and supply of content for use in telecom services, advertising agency services and on-line information and database access or retrieval services- Section 65(105) (zzzzb).
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6.
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Service provided by any person, except a banking company or a financial institution including a non-banking financial company or any other body corporate or commercial concern, in relation to asset management including portfolio management and all forms of fund management- Section 65(105) (zzzzc).
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7.
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Service provided in relation to design services- Section65 (105) (zzzzd).
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