IPCC Tax amendments @ nov 2011

Rahul (Chartered Accountnat CS)   (1580 Points)

01 October 2011  

 

Amendments

 

Applicable for

 

IPCC/PCC NOV 2011

 

 

 

INCOME TAX

 

 

 

  1. As per Notification No. 85/2010, dated 22.11.2010, Transport allowance exemption shall be 70% of allowance received or `10,000 p.m.  (instead of `6,000 p.m.), whichever is less

 

 

 

  1. As per Notification No. 24/2011, dated 13.05.2011 in case of RPF, interest is exempt up to 9.5% p.a. with retrospective effect 01-09-2010. Therefore earlier Notification 69/2010 is set aside, which had reduced the said rate to 8.5% p.a.

 

 

 

  1. Maximum exemption for gratuity under Payment of Gratuity Act shall be `10,00,000 instead of `3,50,000 wef 17th May 2010 and in case of other persons, limit shall be `10,00,000 wef 11th June’ 2010. 

 

 

 

4.            Salaried persons entitled to act as Tax Return Preparers.

 

 

 

5.            Cost Inflation Index for 2010-11 is 711

 

 

 

SERVICE TAX

 

 

 

  1. In case of excess payment of Service Tax maximum amount that can be adjusted was `1,00,000  per month or per quarter as the case may be but now this limit has been increased to `2,00,000 w.e.f.  01.04.2011 (Notification No.3/2011 dated 01.03.2011)

 

 

 

  1. In case of exchange of foreign currency, rate of service tax was 0.25% of the gross amount of currency exchange but now w.e.f. 01.04.2011 the rate will be as given below: (Notification No. 26/2011 dated 31.03.2011)

 

S. No.

For an amount

Service tax shall be calculated at the rate of

1.

Upto `1,00,000

0.1% of the gross amount of currency exchanged

or

`25

Whichever is higher

2.

Exceeding `1,00,000 and upto `10,00,000

`100 + 0.05% of the gross amount of currency exchanged

3.

Exceeding `10,00,000

` 550 + 0.01% of the gross amount of currency exchanged

or

`5,000

Whichever is lower

 

  1. In case of life insurance, rate was 1% of the gross amount but now it will be 1.5% of the gross amount. (Notification No. 35/2011 dated 25.04.2011)

 

 

 

  1. In case of sale of lottery ticket, service tax shall be as given below:

 

Where the guaranteed lottery prize payout is > 80%

` 6000/- on every `10 lakh (or part of `10 lakh) of aggregate face value of lottery tickets printed by the organizing State for a draw.

Where the guaranteed lottery prize payout is < 80%

` 9000/- on every `10 lakh (or part of `10 lakh) of aggregate face value of lottery tickets printed by the organizing State for a draw.

 

  1. Rate of interest under section 75 was 13% p.a. but now it is 18% p.a. w.e.f 01.04.2011 (Notification No. 14/2011 dated 01.03.2011

 

 

 

 

 

TAXABLE SERVICES

 

  1. In case of CA, CS, ICWA, service tax shall be charged even in case of services provided by way of representation before any Court or Statutory Authority and it is applicable w.e.f. 01.05.20011 (Notification No. 32/2011 dated 25.04.2011) 

 

 

 

 

 

 

 

VAT

 

No amendment