06 September 2014
Dear All One of my client has filed his return for FY 2012-13 on 31-03-2014 but he did not show income from his partnership firm, in addition to this firm has not filed its return for FY 2012-13 now if i filed firms return,i cant show the income to partners bcz it will need to revised return of partner and that is now possible due to lat filing. how i manage this situation ?
30 July 2015
How to calculate service tax in following case( Resident flat ) Market Value 55,00,000/-( Stamp duty valuation ) Selling Prices ie contract value 46,00,000/- ST whether to be calculate on Market value of Contract value
24 July 2024
Let's address your queries one by one:
### 1. Filing of Return for FY 2012-13
If your client did not show income from his partnership firm in his individual income tax return for FY 2012-13, and the firm itself has not filed its return for the same period, here's how you can manage the situation:
- **Firm's Return:** First, you should proceed with filing the partnership firm's return for FY 2012-13. Include all income details and ensure accurate reporting.
- **Impact on Partner's Return:** Since your client did not report income from the partnership firm in his individual return for FY 2012-13, it indicates an underreporting of income.
- **Revision of Individual Return:** Typically, if your client wishes to rectify the omission of income from the partnership firm in his individual return, he would need to file a revised return (u/s 139(5) of the Income Tax Act) for FY 2012-13. However, there are time limits for filing revised returns, and for FY 2012-13, this window has likely closed.
- **Adjustment in Current Returns:** If your client cannot revise the individual return for FY 2012-13, he should ensure that subsequent returns accurately reflect income from the partnership firm from FY 2012-13 onwards. This can help in regularizing the tax compliance going forward.
- **Consultation with Tax Advisor:** Given the complexities involved, it's advisable to consult with a tax advisor or a chartered accountant who can assess the situation comprehensively and provide specific guidance tailored to your client's circumstances.
### 2. Calculation of Service Tax
Service tax calculation on the sale of residential property is based on the "consideration" received or receivable for the property. Here’s how it typically works:
- **Consideration Defined:** For service tax purposes, consideration includes the total amount of money paid or payable for the property. This generally means the contract value or the sale price agreed upon between the buyer and the seller.
- **Inclusions in Consideration:** The consideration includes all amounts paid directly or indirectly by the buyer to the seller. This covers the sale price, any amenities or facilities provided, parking charges, club membership fees, etc.
- **Calculation:** In your case: - **Market Value:** ₹55,00,000 (Stamp duty valuation) - **Selling Price (Contract Value):** ₹46,00,000
Service tax would typically be calculated on the selling price or contract value of ₹46,00,000, as this is the consideration for the sale of the property.
- **Rate of Service Tax:** The rate of service tax applicable would depend on the date of sale and the specific provisions under the service tax laws applicable at that time.
- **Stamp Duty Valuation:** While stamp duty valuation provides a guideline for the property's market value, service tax is generally levied on the actual consideration (contract value) agreed between the parties unless specified otherwise under tax laws.
- **Consult Tax Expert:** Since tax implications can vary based on specific circumstances and the prevailing tax laws, it's recommended to consult a tax expert or a chartered accountant for precise advice tailored to your situation.
These steps should help you navigate the situation regarding filing returns and understanding service tax implications accurately. Always ensure compliance with current tax laws and regulations applicable to your jurisdiction.
CAclubindia
