This document provides guidance on Malaysia's withholding tax rules for special classes of income paid to non-residents. It defines the types of income subject to withholding tax, including payments for services, technical advice, and rental of movable property. The tax rate is 10% of the gross amount paid. Payers must deduct the tax and remit payment within one month. Failure to comply results in penalties such as disallowance of expenses and increased tax debts. Exemptions and rules for currency conversion are also outlined.
The document discusses the reverse charge mechanism in service tax in India, which shifts the liability to deposit service tax from the service provider to the service receiver for certain specified services. It provides details on the types of services that fall under complete and partial reverse charge, as well as the legal compliance requirements for service receivers under reverse charge. It also lists 11 services where the liability to pay service tax lies fully or partially with the service receiver rather than the service provider.
Practical issues in tax deduction at source uploaded by Simpletaxindia.netPSPCL
The document discusses various practical issues related to tax deduction at source under Section 194A to 194C of the Indian Income Tax Act of 1961. It addresses key questions on whether TDS applies to interest payments, commission, rent, professional fees, and payments to contractors. It analyzes case laws to determine if discounting charges, usance interest, delayed purchase price payments, deputation of employees, and franchise agreements fall under the TDS mandate. The document provides guidance on interpreting 'work', service contracts, and what payments are exempt from TDS like warehousing charges.
The document summarizes proposed revisions to the schedule of TDS for resident deductees in India. Some key changes include merging various interest income categories under a single head and reducing TDS rates for certain sections from 10% to 5%. Threshold limits for certain payments are increased and exclusions are to be separately notified. Section 193 relating to TDS on interest on securities will be deleted and replaced by a new Section 194A covering TDS on all interest payments at rates of 5-10%.
TDS is required to be deducted from payments made to resident contractors or sub-contractors under section 194C of the Income Tax Act if the aggregate amount exceeds Rs. 75,000 in a financial year. TDS of 1% or 2% depending on the recipient must be deducted unless the PAN is not quoted, in which case the rate is 20%. The deducted TDS must be deposited with the government within 7 days of the end of the month in which the deduction was made.
TDS (section 194I) requires certain entities making specified payments to third parties to deduct tax at source from these payments. These deducted amounts must be deposited with the government. TDS is applicable to different types of income above certain limits and is deducted based on income tax slabs for salaried individuals. Section 194I specifically requires those responsible for paying rent (not individuals or HUFs) to deduct tax at 2% for plant/machinery rent or 10% for other rents, unless the annual rent amount is below Rs. 2.4 lakh. The document further explains circumstances where TDS on rent is not required and provisions for TDS on property sale (Section 194IA), rent by some
This document discusses customs procedures in India related to import and export of goods. It covers the process that must be followed by carriers bringing goods into or out of India as well as importers and exporters. Key steps include submitting import/export manifests and bills of entry, assessing duties, examining goods, and issuing clearance orders. The document also reviews provisions for warehousing goods, duty drawback, and rates/valuations used to determine customs duties.
This document provides an overview of service tax provisions in India, including:
1. It discusses the shift in India's service tax approach from a selective positive list to a comprehensive negative list in 2012.
2. It outlines key aspects of the new service tax framework including the definition of taxable services, exemptions, place of provision rules, and the reverse charge mechanism.
3. It summarizes major changes introduced in the 2012-2013 budget and Finance Act related to service tax compliance requirements and penalties.
This document outlines various provisions for collecting transitional advance tax in Pakistan. It discusses advance tax that banking institutions must collect on cash withdrawals and transactions. It also discusses advance tax collection for purchases of vehicles, utilities like electricity and telephone, auctions, air tickets, brokerage commissions, and more. The provisions specify applicable tax rates and exemptions for government agencies. The collected advance taxes may be adjustable against final tax liability in many cases.
The document discusses the reverse charge mechanism in service tax in India, which shifts the liability to deposit service tax from the service provider to the service receiver for certain specified services. It provides details on the types of services that fall under complete and partial reverse charge, as well as the legal compliance requirements for service receivers under reverse charge. It also lists 11 services where the liability to pay service tax lies fully or partially with the service receiver rather than the service provider.
Practical issues in tax deduction at source uploaded by Simpletaxindia.netPSPCL
The document discusses various practical issues related to tax deduction at source under Section 194A to 194C of the Indian Income Tax Act of 1961. It addresses key questions on whether TDS applies to interest payments, commission, rent, professional fees, and payments to contractors. It analyzes case laws to determine if discounting charges, usance interest, delayed purchase price payments, deputation of employees, and franchise agreements fall under the TDS mandate. The document provides guidance on interpreting 'work', service contracts, and what payments are exempt from TDS like warehousing charges.
The document summarizes proposed revisions to the schedule of TDS for resident deductees in India. Some key changes include merging various interest income categories under a single head and reducing TDS rates for certain sections from 10% to 5%. Threshold limits for certain payments are increased and exclusions are to be separately notified. Section 193 relating to TDS on interest on securities will be deleted and replaced by a new Section 194A covering TDS on all interest payments at rates of 5-10%.
TDS is required to be deducted from payments made to resident contractors or sub-contractors under section 194C of the Income Tax Act if the aggregate amount exceeds Rs. 75,000 in a financial year. TDS of 1% or 2% depending on the recipient must be deducted unless the PAN is not quoted, in which case the rate is 20%. The deducted TDS must be deposited with the government within 7 days of the end of the month in which the deduction was made.
TDS (section 194I) requires certain entities making specified payments to third parties to deduct tax at source from these payments. These deducted amounts must be deposited with the government. TDS is applicable to different types of income above certain limits and is deducted based on income tax slabs for salaried individuals. Section 194I specifically requires those responsible for paying rent (not individuals or HUFs) to deduct tax at 2% for plant/machinery rent or 10% for other rents, unless the annual rent amount is below Rs. 2.4 lakh. The document further explains circumstances where TDS on rent is not required and provisions for TDS on property sale (Section 194IA), rent by some
This document discusses customs procedures in India related to import and export of goods. It covers the process that must be followed by carriers bringing goods into or out of India as well as importers and exporters. Key steps include submitting import/export manifests and bills of entry, assessing duties, examining goods, and issuing clearance orders. The document also reviews provisions for warehousing goods, duty drawback, and rates/valuations used to determine customs duties.
This document provides an overview of service tax provisions in India, including:
1. It discusses the shift in India's service tax approach from a selective positive list to a comprehensive negative list in 2012.
2. It outlines key aspects of the new service tax framework including the definition of taxable services, exemptions, place of provision rules, and the reverse charge mechanism.
3. It summarizes major changes introduced in the 2012-2013 budget and Finance Act related to service tax compliance requirements and penalties.
This document outlines various provisions for collecting transitional advance tax in Pakistan. It discusses advance tax that banking institutions must collect on cash withdrawals and transactions. It also discusses advance tax collection for purchases of vehicles, utilities like electricity and telephone, auctions, air tickets, brokerage commissions, and more. The provisions specify applicable tax rates and exemptions for government agencies. The collected advance taxes may be adjustable against final tax liability in many cases.
The document summarizes the procedures for filing income tax returns in India. It discusses:
1) Voluntary returns that must be filed by companies, firms, individuals and HUFs meeting certain income thresholds.
2) Prescribed due dates and forms for different types of taxpayers. Companies and some individuals have a due date of September 30, while most individuals have a July 31 due date.
3) Rules for filing belated or revised returns within one year of the original due date or assessment date.
4) Additional requirements for charitable trusts, political parties, and certain institutions to file by specific due dates using Form ITR-7.
5) Details that must be included in
1) Section 54 deals with refund of tax paid under GST. It allows refund of tax, interest, or any other amount paid within 2 years from the relevant date.
2) Special agencies of UN and foreign embassies can claim refund of taxes paid on inward supplies within 6 months of the last day of the quarter in which supplies were received.
3) Registered persons can claim refund of unutilized input tax credit at the end of any tax period for zero-rated supplies or due to higher tax rates on inputs.
This document provides an overview of Real Property Gains Tax (RPGT) in Malaysia. Some key points:
- RPGT is a tax on capital gains from the disposal of real property in Malaysia, including residential/commercial properties and land. The tax is computed based on the difference between the disposal price and acquisition price.
- RPGT rates range from 0-10% depending on the holding period, with longer holding periods subject to lower rates.
- Various exemptions are available, including for gains below RM10,000 and disposal of a private residence.
- The acquisition date generally coincides with the disposal date between parties. Losses can be carried forward indefinitely except for shares in real property companies.
Registration of service tax requires any person liable to pay service tax to register with the Superintendent of Central Excise by submitting Form ST-1 along with required documents such as PAN card and proof of address. Special categories of persons like input service distributors must also register. Registration allows a certificate in Form ST-2 to be issued. Single or multiple registrations may be obtained depending on the services provided and locations. Changes to registration must be notified within 30 days.
Section 45 of the Income Tax Act determines the chargeability of capital gains. It states that capital gains will be charged to tax in the previous year in which the transfer took place. The section outlines various events that constitute a transfer, such as sale, exchange, relinquishment of an asset, compulsory acquisition, and conversion of a capital asset into stock-in-trade. It also specifies the consideration amount and year of chargeability for different types of transfers, including those between an individual and firm/AOP/BOI, by a firm/AOP/BOI to its partners/members, and those involving compulsory acquisition or determination of consideration by the government. The section seeks to tax capital gains arising from the transfer
Tax refers to any tax imposed under the income tax law and includes penalties, investment taxes, fees or other charges. There are different types of income that are taxed, including income from salary, property, business, capital gains, and other sources. Direct deductions from income include zakat and worker welfare fund contributions. Taxable income is calculated by subtracting allowances and deductions from total income. The tax liability is then calculated using either direct or marginal relief methods, and can be reduced by average tax relief for approved investments and contributions. The final tax amount owed is reduced by any tax deducted at source to determine the tax return amount.
Procedures to claim refund, rebate and duty drawback under customsDVSResearchFoundatio
OBJECTIVE
Import of all kinds of goods and on the export of goods on certain situations attracts customs duty. The Customs Act,1962 contains provisions which govern the levy of customs duty. In this webinar, we shall understand the procedures to be followed while claiming refunds, rebate and duty drawback under customs law.
The presentation discusses the key provisions and procedures related to Tax Deducted at Source (TDS) in India. It explains that TDS is a form of advance tax collection where the onus is on the payer to deduct tax and deposit it with the government. It outlines the TDS process flow and key sections related to TDS for salaries, interest, rent, professional fees, and other payments. It provides thresholds limits for deducting TDS and due dates for payment. The presentation emphasizes best practices for TDS compliance to avoid penalties.
This document summarizes tax deduction at source requirements in India. It states that any person responsible for making income payments covered by the tax scheme must deduct tax at prescribed rates and deposit the amounts by the 7th of the following month. It also outlines requirements for obtaining a TAN number, issuing TDS certificates, submitting quarterly statements, and penalties for non-compliance. Various sections are cited that specify TDS rates for different types of payments like salary, rent, interest, dividends, and commission.
This document is the Income Tax Ordinance of 1984 from Bangladesh. It begins with definitions of key terms used in the ordinance. It defines terms like agricultural income, amalgamation, annual value, assessee, assessment, capital asset and dividend. It provides definitions for terms related to the structure of the tax authority such as Commissioner, Deputy Commissioner of Taxes, and Director General of Inspection. It also defines common business terms like company, director and employee. The ordinance aims to consolidate and amend the existing laws relating to income tax in Bangladesh.
The document discusses refunds under tax law. It states that a taxpayer who has paid excess tax may apply for a refund within two years of the tax assessment or payment. The Commissioner must refund any excess paid after applying it against other outstanding taxes. If a refund is not paid within three months, the taxpayer is entitled to additional compensation at the KIBOR interest rate until the refund is paid. Appeals procedures are outlined for taxpayers aggrieved by refund decisions.
The document summarizes key provisions of the Customs Act of 1962 related to the clearance of imported and exported goods in India. It discusses restrictions on custody and removal of imported goods, requirements for filing import bills of entry, time limits for duty payment, clearance procedures, disposal of uncleared goods, warehousing, entry and clearance of export goods, and maintenance of an electronic cash ledger. It also provides statistics on the number of bills of entry and shipping bills filed annually as well as the volume of e-payment transactions processed through ICEGATE, the Indian customs gateway.
Vat return review and refund application in uaeRishalHalid1
HLB HAMT provides VAT return review and refund application services in the UAE. They have experienced tax consultants who review corporate tax returns across different industries to ensure accurate and timely filing. Return reviews identify any errors or omissions to rectify through voluntary disclosures or corrections. Refund applications are submitted when input tax exceeds output tax, and HLB HAMT assists with accurate submissions to expedite refunds. They also offer specialized services for UAE nationals building new homes and Expo 2020 participants.
Filing of income tax return including e filing - sanjeev copySanjeev Patel
1. The document discusses the requirements and procedures for filing income tax returns in India, including who must file, the different forms, due dates, and filing methods.
2. It provides details on the tax slabs and rates for different types of individuals and entities. Exemptions from filing are available for low-income salary earners meeting certain conditions.
3. Various options are available for filing returns, including paper, electronically with digital signature, and through authorized tax return preparers. Late or revised returns can also be submitted under certain circumstances.
This document provides an overview of Tax Deducted at Source (TDS) rates and related provisions for the financial year 2015-2016 in India. It lists the TDS rates for various types of payments like interest, rent, professional fees, and contract payments. It also outlines the due dates for depositing TDS, filing returns, and issuing TDS certificates. Payers are required to deduct TDS at the specified rates on applicable payments exceeding the thresholds and comply with the due dates, else they may face interest penalties and fees for non-compliance.
The document discusses the provisions for tax deducted at source (TDS) in India. It provides details on the types of payments that are covered under TDS, including salary, interest, dividends, rent, professional fees, etc. It explains the rate of tax deduction for different payments and the requirements for deductors to obtain a Tax Deduction Account Number (TAN) and file quarterly returns. The purpose of TDS is to collect tax on income at the time it accrues to avoid tax evasion.
Wealth tax is levied at 1% on net wealth exceeding Rs. 30 lakhs as of March 31. Net wealth is total assets minus exempted assets and debts incurred to purchase taxable assets. Individuals and HUFs resident in India are taxed on worldwide assets, while non-residents are taxed only on Indian assets. Common taxable assets include cars, boats, jewelry, urban land and cash in hand exceeding Rs. 50,000. One residential house and certain other assets are exempt from tax. Wealth tax returns are due by July 31 if not liable for audit, else by September 30, with late filing penalties of 1% per month. Wealth tax was abolished from FY 2016
This document provides an overview of key concepts in Pakistan's sales tax system, including:
1) Sales tax is collected at multiple stages of the supply chain from importers to manufacturers to wholesalers and retailers.
2) Liability for sales tax falls on the person making the supply or importing goods, with some exceptions.
3) There are different sales tax rates and rules for importers, manufacturers, wholesalers, distributors, and retailers depending on their annual turnover.
4) The document outlines concepts like zero-rated supplies, exempt supplies, input tax adjustment, and registration requirements.
Income Tax is an annual charge on a person's income during the tax year that is liable to tax under income tax law. A person may be liable to pay tax, deduct or collect tax, pay tax in advance, and pay penalties. Total income is the sum of a person's income under various heads including salary, property income, business income, capital gains, and other income. These heads of income are used to classify all income for imposing tax and computing total income. The document then provides details on the taxation of property income, business income, capital gains, and income from other sources.
Input tax credit under GST allows registered taxpayers to claim credit for taxes paid on inputs, capital goods and input services that are used for business purposes. Some key conditions for availing ITC include: the supplier is registered, tax is paid by the supplier, tax invoice is obtained, goods or services are received, and monthly returns are filed. ITC can be claimed on inputs, capital goods and input services if used for taxable supplies but not for exempt or non-business purposes. There are also restrictions on claiming ITC for certain specified items like motor vehicles. The manner of reversal of ITC is prescribed in case of partial exempt or non-business usage.
The document summarizes the procedures for filing income tax returns in India. It discusses:
1) Voluntary returns that must be filed by companies, firms, individuals and HUFs meeting certain income thresholds.
2) Prescribed due dates and forms for different types of taxpayers. Companies and some individuals have a due date of September 30, while most individuals have a July 31 due date.
3) Rules for filing belated or revised returns within one year of the original due date or assessment date.
4) Additional requirements for charitable trusts, political parties, and certain institutions to file by specific due dates using Form ITR-7.
5) Details that must be included in
1) Section 54 deals with refund of tax paid under GST. It allows refund of tax, interest, or any other amount paid within 2 years from the relevant date.
2) Special agencies of UN and foreign embassies can claim refund of taxes paid on inward supplies within 6 months of the last day of the quarter in which supplies were received.
3) Registered persons can claim refund of unutilized input tax credit at the end of any tax period for zero-rated supplies or due to higher tax rates on inputs.
This document provides an overview of Real Property Gains Tax (RPGT) in Malaysia. Some key points:
- RPGT is a tax on capital gains from the disposal of real property in Malaysia, including residential/commercial properties and land. The tax is computed based on the difference between the disposal price and acquisition price.
- RPGT rates range from 0-10% depending on the holding period, with longer holding periods subject to lower rates.
- Various exemptions are available, including for gains below RM10,000 and disposal of a private residence.
- The acquisition date generally coincides with the disposal date between parties. Losses can be carried forward indefinitely except for shares in real property companies.
Registration of service tax requires any person liable to pay service tax to register with the Superintendent of Central Excise by submitting Form ST-1 along with required documents such as PAN card and proof of address. Special categories of persons like input service distributors must also register. Registration allows a certificate in Form ST-2 to be issued. Single or multiple registrations may be obtained depending on the services provided and locations. Changes to registration must be notified within 30 days.
Section 45 of the Income Tax Act determines the chargeability of capital gains. It states that capital gains will be charged to tax in the previous year in which the transfer took place. The section outlines various events that constitute a transfer, such as sale, exchange, relinquishment of an asset, compulsory acquisition, and conversion of a capital asset into stock-in-trade. It also specifies the consideration amount and year of chargeability for different types of transfers, including those between an individual and firm/AOP/BOI, by a firm/AOP/BOI to its partners/members, and those involving compulsory acquisition or determination of consideration by the government. The section seeks to tax capital gains arising from the transfer
Tax refers to any tax imposed under the income tax law and includes penalties, investment taxes, fees or other charges. There are different types of income that are taxed, including income from salary, property, business, capital gains, and other sources. Direct deductions from income include zakat and worker welfare fund contributions. Taxable income is calculated by subtracting allowances and deductions from total income. The tax liability is then calculated using either direct or marginal relief methods, and can be reduced by average tax relief for approved investments and contributions. The final tax amount owed is reduced by any tax deducted at source to determine the tax return amount.
Procedures to claim refund, rebate and duty drawback under customsDVSResearchFoundatio
OBJECTIVE
Import of all kinds of goods and on the export of goods on certain situations attracts customs duty. The Customs Act,1962 contains provisions which govern the levy of customs duty. In this webinar, we shall understand the procedures to be followed while claiming refunds, rebate and duty drawback under customs law.
The presentation discusses the key provisions and procedures related to Tax Deducted at Source (TDS) in India. It explains that TDS is a form of advance tax collection where the onus is on the payer to deduct tax and deposit it with the government. It outlines the TDS process flow and key sections related to TDS for salaries, interest, rent, professional fees, and other payments. It provides thresholds limits for deducting TDS and due dates for payment. The presentation emphasizes best practices for TDS compliance to avoid penalties.
This document summarizes tax deduction at source requirements in India. It states that any person responsible for making income payments covered by the tax scheme must deduct tax at prescribed rates and deposit the amounts by the 7th of the following month. It also outlines requirements for obtaining a TAN number, issuing TDS certificates, submitting quarterly statements, and penalties for non-compliance. Various sections are cited that specify TDS rates for different types of payments like salary, rent, interest, dividends, and commission.
This document is the Income Tax Ordinance of 1984 from Bangladesh. It begins with definitions of key terms used in the ordinance. It defines terms like agricultural income, amalgamation, annual value, assessee, assessment, capital asset and dividend. It provides definitions for terms related to the structure of the tax authority such as Commissioner, Deputy Commissioner of Taxes, and Director General of Inspection. It also defines common business terms like company, director and employee. The ordinance aims to consolidate and amend the existing laws relating to income tax in Bangladesh.
The document discusses refunds under tax law. It states that a taxpayer who has paid excess tax may apply for a refund within two years of the tax assessment or payment. The Commissioner must refund any excess paid after applying it against other outstanding taxes. If a refund is not paid within three months, the taxpayer is entitled to additional compensation at the KIBOR interest rate until the refund is paid. Appeals procedures are outlined for taxpayers aggrieved by refund decisions.
The document summarizes key provisions of the Customs Act of 1962 related to the clearance of imported and exported goods in India. It discusses restrictions on custody and removal of imported goods, requirements for filing import bills of entry, time limits for duty payment, clearance procedures, disposal of uncleared goods, warehousing, entry and clearance of export goods, and maintenance of an electronic cash ledger. It also provides statistics on the number of bills of entry and shipping bills filed annually as well as the volume of e-payment transactions processed through ICEGATE, the Indian customs gateway.
Vat return review and refund application in uaeRishalHalid1
HLB HAMT provides VAT return review and refund application services in the UAE. They have experienced tax consultants who review corporate tax returns across different industries to ensure accurate and timely filing. Return reviews identify any errors or omissions to rectify through voluntary disclosures or corrections. Refund applications are submitted when input tax exceeds output tax, and HLB HAMT assists with accurate submissions to expedite refunds. They also offer specialized services for UAE nationals building new homes and Expo 2020 participants.
Filing of income tax return including e filing - sanjeev copySanjeev Patel
1. The document discusses the requirements and procedures for filing income tax returns in India, including who must file, the different forms, due dates, and filing methods.
2. It provides details on the tax slabs and rates for different types of individuals and entities. Exemptions from filing are available for low-income salary earners meeting certain conditions.
3. Various options are available for filing returns, including paper, electronically with digital signature, and through authorized tax return preparers. Late or revised returns can also be submitted under certain circumstances.
This document provides an overview of Tax Deducted at Source (TDS) rates and related provisions for the financial year 2015-2016 in India. It lists the TDS rates for various types of payments like interest, rent, professional fees, and contract payments. It also outlines the due dates for depositing TDS, filing returns, and issuing TDS certificates. Payers are required to deduct TDS at the specified rates on applicable payments exceeding the thresholds and comply with the due dates, else they may face interest penalties and fees for non-compliance.
The document discusses the provisions for tax deducted at source (TDS) in India. It provides details on the types of payments that are covered under TDS, including salary, interest, dividends, rent, professional fees, etc. It explains the rate of tax deduction for different payments and the requirements for deductors to obtain a Tax Deduction Account Number (TAN) and file quarterly returns. The purpose of TDS is to collect tax on income at the time it accrues to avoid tax evasion.
Wealth tax is levied at 1% on net wealth exceeding Rs. 30 lakhs as of March 31. Net wealth is total assets minus exempted assets and debts incurred to purchase taxable assets. Individuals and HUFs resident in India are taxed on worldwide assets, while non-residents are taxed only on Indian assets. Common taxable assets include cars, boats, jewelry, urban land and cash in hand exceeding Rs. 50,000. One residential house and certain other assets are exempt from tax. Wealth tax returns are due by July 31 if not liable for audit, else by September 30, with late filing penalties of 1% per month. Wealth tax was abolished from FY 2016
This document provides an overview of key concepts in Pakistan's sales tax system, including:
1) Sales tax is collected at multiple stages of the supply chain from importers to manufacturers to wholesalers and retailers.
2) Liability for sales tax falls on the person making the supply or importing goods, with some exceptions.
3) There are different sales tax rates and rules for importers, manufacturers, wholesalers, distributors, and retailers depending on their annual turnover.
4) The document outlines concepts like zero-rated supplies, exempt supplies, input tax adjustment, and registration requirements.
Income Tax is an annual charge on a person's income during the tax year that is liable to tax under income tax law. A person may be liable to pay tax, deduct or collect tax, pay tax in advance, and pay penalties. Total income is the sum of a person's income under various heads including salary, property income, business income, capital gains, and other income. These heads of income are used to classify all income for imposing tax and computing total income. The document then provides details on the taxation of property income, business income, capital gains, and income from other sources.
Input tax credit under GST allows registered taxpayers to claim credit for taxes paid on inputs, capital goods and input services that are used for business purposes. Some key conditions for availing ITC include: the supplier is registered, tax is paid by the supplier, tax invoice is obtained, goods or services are received, and monthly returns are filed. ITC can be claimed on inputs, capital goods and input services if used for taxable supplies but not for exempt or non-business purposes. There are also restrictions on claiming ITC for certain specified items like motor vehicles. The manner of reversal of ITC is prescribed in case of partial exempt or non-business usage.
Income Tax Amendments Applicable to AY 2020-21 (FY 2019-20)AmitJain910
This document discusses important amendments to consider while filing income tax returns for assessment year 2020-21 relating to rebates, surcharges, tax rates, deductions, depreciation, TDS provisions, capital gains exemption, and more. Key points include a reduced MAT rate of 15%, option to purchase two homes for capital gains exemption, increased standard deduction and TDS limits on rent and cash withdrawals.
This document discusses various aspects of section 195 of the Indian Income Tax Act, which deals with tax deducted at source (TDS) for payments made to non-residents. Some key points discussed include:
- Section 195 mandates any person making payments such as interest, royalty or fees for technical services to non-residents to deduct TDS at the time of payment.
- The rate of TDS depends on factors such as whether a lower treaty rate can be applied based on a tax residency certificate.
- Non-compliance can attract penalties for the payer such as interest, fines and in some cases prosecution.
- Exceptions apply when a lower or nil withholding certificate is obtained
This document outlines Pakistan's taxation scheme for information technology businesses, including startups, existing IT setups, and non-resident enterprises. Some key points:
- IT startups are exempt from income tax for the year of certification and following two years. They are also exempt from withholding tax and minimum tax.
- Existing IT setups providing IT services and IT-enabled services are exempt from income tax on export income and minimum tax conditionality does not apply.
- Non-residents providing digital services online are subject to a 5% tax on income. Payments to non-residents are subject to withholding taxes at rates from 7-15%.
- The document also outlines sales tax
The following Presentation enumerates the various provisions w.r.t. ITC, how it can be used,eligibilty and conditions for claiming ITC along with various case studies and illustrations. further, it elaborates the concept of input service distributor.
Profit & Gains from Business or Profession.RAJESH JAIN
This document provides an overview of income from business and profession under the Indian Income Tax Act. It defines business and profession, outlines the key points and basis of charge for income from business/profession. It also discusses the computation of income, specific deductions allowed, depreciation rules and amounts that are not deductible. The key information includes definitions of business and profession, income includes profits and losses, relevance of accounting method, and that income from illegal businesses is taxable.
The document discusses key aspects of income tax in Ethiopia. It outlines the major tax schedules - Schedule A for employment income tax, Schedule B for rental income tax, and Schedule C for business income tax. For each schedule, it defines taxable income and outlines the applicable tax rates for individuals and bodies based on income thresholds. The document also describes requirements for new rental building notifications.
The conception of TDS was introduced with the end to collecting duty from the veritable source of income. As per this conception, a person( deductor) who’s liable to make payment of specified nature to any other person( deductee) shall abate duty at source and remit the same into the account of the Central Government. The deductee whose income duty has been subtracted at source would be entitled to get a credit of the quantum so deducted on the base of Form 26AS or TDS instrument issued by the deductor.
The document discusses various provisions related to tax deducted at source (TDS) in India. It explains the objectives of TDS which include helping report correct incomes, check tax evasion, and widen the tax net. It discusses key sections like 192 on payment of salaries, 193 on interest on securities, 194 on dividends, 194A on interest other than interest on securities, and common provisions around rate of TDS, threshold limits for deduction, and procedures.
In recent past, it has been noticed that the people making payment to NRIs who have investments in India are not aware of the compliance requirements relating to such payments. Through this slide-desk, the taxability of foreign payments made to NRI has been captured, especially the machinery provisions of section 195 and consequences of default.
The document discusses key aspects of section 195 of the Indian Income Tax Act, which deals with tax withholding for payments made to non-residents. It covers the scope of section 195, comparing it to other tax deduction sections. It also discusses rules around obtaining a certificate for lower or nil withholding from the tax authorities. The document provides an overview of the processes involved in determining taxability and withholding for non-resident payments.
The document outlines new reverse charge mechanisms for certain taxable services in India. Under the new rules:
1) For certain specified services like insurance agency, transportation of goods, sponsorship, legal services, and services provided from outside India, the recipient of the service will now be liable to pay 100% of the service tax, instead of the service provider.
2) For other services like renting of vehicles, supply of manpower, and service portion of works contracts, the service tax will be split between the provider and recipient.
3) The point of taxation for reverse charge services will now be the date of payment by the recipient, or earlier dates in some cases involving associated enterprises.
4)
Vat return review and refund application in uaeFiyona Nourin
HLB HAMT provides VAT return review and refund application services in the UAE. They review past VAT returns filed by clients to identify any errors or issues and ensure compliance. They can also assist with applying for VAT refunds when input tax exceeds output tax. Eligible parties for refunds include UAE nationals building new homes and Expo 2020 Dubai participants. HLB HAMT has experienced consultants who can help navigate the VAT return and refund processes in the UAE.
1. The document discusses provisions around input tax credit (ITC) under GST law, including relevant definitions, eligibility conditions, and restrictions.
2. Key conditions for availing ITC include receiving the goods/services, paying the tax to the supplier, filing valid returns, and possessing the required documents. There are also time limits to claim ITC for a financial year.
3. ITC is restricted and apportioned for goods/services used partly for business and non-business purposes, as well as for taxable, exempt and non-taxable supplies. Certain blocked credits are also specified.
4. Banks and financial institutions have an option to either comply with the general apportionment
1. The document discusses input tax credit under the Goods and Services Tax (GST) in India. It provides definitions of key terms related to input tax credit like input, input service, capital goods, and input tax.
2. It summarizes the conditions for claiming input tax credit, such as possessing valid tax invoices, receiving the goods or services, ensuring the tax has been paid to the government, and filing returns. There are also time limits for claiming input tax credit.
3. The document outlines circumstances where input tax credit is not available, such as when goods or services are used for non-business purposes or making exempt supplies. It also discusses provisions for apportioning credit between taxable and exempt
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2. Objective
• To explain:
a. Special classes of income that are chargeable to tax under section
4A of the Income Tax Act 1967(ITA)
b. Deduction of tax from special classes of income
c. Consequences of not deducting and remitting the tax from special
classes of income.
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3. Special Classes of Income Chargeable to Tax
a. Amounts paid in consideration of services rendered by the non-resident person or his
employee in connection with:
• (i) the use of property or rights belonging to him; or
• (ii) the installation or operation of any plant, machinery or other apparatus purchased from him
[paragraph 4A(i) of the ITA]
b. amounts paid to a non-resident person in consideration of technical advice, assistance or services
rendered in connection with technical management or administration of any scientific, industrial or
commercial undertaking, venture, project or scheme [paragraph 4A(ii) of the ITA]
c. rent or other payments made under any agreement or arrangement to a non- resident person for
the use of any moveable property [paragraph 4A(iii) of the ITA].
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4. Derivation of Special Classes of Income
• The gross income in respect of the amounts paid under paragraphs 4A(i), 4A(ii) and 4A(iii) of the
ITA shall be deemed to be derived from Malaysia if:
• (a) the responsibility for the payment lies with the Government, a State Government or a local
authority;
• (b) the responsibility for the payment lies with a person who is resident in Malaysia for that basis
year; or
• (c) the payment is charged as an outgoing or expense in the accounts of a business carried on in
Malaysia.
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5. • Pursuant to section 6 of the Finance Act 2017 [Act 785], effective from 17.1.2017, income under
paragraphs 4A(i) and 4A(ii) of the ITA which is derived from Malaysia is chargeable to tax in
Malaysia regardless of whether the services are performed in or outside Malaysia.
• However, with effect from 6.9.2017 the Minister of Finance exempts a person not resident in
Malaysia from the payment of income tax in respect of income derived from Malaysia in
relation to paragraphs 4A(i) and 4A(ii) of the ITA which are performed by the person outside
Malaysia.
• In a case where the contract requires performance of services both within and outside
Malaysia, the proportion of contract value that is attributable to services performed in Malaysia
must be ascertained in a manner that is fair and justifiable. Only the portion of contract value
that is attributable to services performed in Malaysia is subject to withholding tax under section
109B of the ITA.
Derivation of Special Classes of Income
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6. Services Rendered in Connection with the Use or Installation or
Operation of Assets [Paragraph 4A(i) of the ITA]
• Paragraph 4A(i) of the ITA consists of amounts paid in consideration of services which are
performed in or outside Malaysia, rendered by a non-resident person or his employee, in
connection with:
• (a) the use of property or rights belonging to the non-resident person; or
• (b) the installation or operation of any plant, machinery or other apparatus purchased from him.
Example of the service
• a. Provision of personnel for advisory or supervisory services
• b. Installation and commissioning services
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7. Technical Advice, Assistance or Services Rendered in Connection with
Technical Management or Administration [Paragraph 4A(ii) of the ITA]
• Examples of technical management include the provision of marketing, consultancy and legal services, supply of technical
and software personnel, inter-company technical services and technical support such as testing and calibration services.
• Examples of administration include non-technical assistance, non-technical services, management and administrative
functions such as planning, direction, control, co-ordination, accounting, financial management consultation and labour
negotiations.
• Examples of services that generate income falling within the scope of paragraph 4A(ii) of the ITA
(a) Management or marketing services
(b) Consultancy services
(i) Fee for consultancy services
(ii) Fee for consultancy services includes reimbursement
(iii) Monthly fees for consultancy services include reimbursement in respect of related expenses
(c) Legal services in connection with a debt or agency arrangement
(d) Inter-company technical services
(f) Testing and calibration services
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8. Rent or Other Payments Made under any Agreement for Use of Moveable
Property [Paragraph 4A(iii) of the ITA]
• Activities falling within the scope of paragraph 4A(iii) of the ITA:
(a) Slot hire / charter
- exclusive use of a particular slot / space in a ship / aircraft
(b) Leasing of ships / aircrafts
(c) Time charter
- chartered for a specific time.
(d) Voyage charter
- a ship / aircraft is chartered in respect of a particular voyage / flight i.e a predetermined route.
Noted: Freight charges paid to non-residents in respect of export/import of goods do not fall within the scope of paragraph
4A(iii) of the ITA as freight charges are fees for the shipment of goods and not payments for the use of a moveable property.
However, fees other than freight charges for the shipment of goods such as handling fees and agency service fees falls under
the scope of paragraph 4A(ii) of the ITA and would be subject to withholding tax under section 109B of the ITA.
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9. Income which is chargeable to tax under paragraph 4A(iii) of the ITA are
specifically given exemption under the Income Tax (Exemption) Orders
a. Pooling arrangements
- A non-resident deriving income under paragraph 4A(iii) of the ITA consisting of payments made under an
agreement or arrangement for participation in a pool by a company resident in Malaysia engaged in the business of
transporting passengers or cargo by sea
b. Income received from a Malaysian shipping company
- A non-resident person in Malaysia deriving income under paragraph 4A(iii) of the ITA from a Malaysian shipping
company, consisting of payments made under any agreement or arrangement for the use of a ship is specifically
exempted from payment of income tax under the Income Tax (Exemption) Order 2007 [P.U.(A) 58/2007].
c. Income derived from the rental of International Standard Organisation (ISO) containers by a Malaysian shipping
company
- A non-resident person who receives income derived from the rental of ISO containers by a Malaysian shipping
company is exempted from withholding tax from 20.10.2001 under the Income Tax (Exemption) (No. 24) Order 2002
[P.U.(A) 210/2002].
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10. • (a) in the course of rendering services to the payer, or
• (b) in respect of the use of any moveable property,
-Such expenses include the cost of airfare, travelling, accommodation, telephone and photocopying charges.
- Considered as being part of the contract value
Noted: hotel accommodation are not included in the computation of gross income falling under section 4A of the ITA for the
purposes of withholding tax. This exemption is aimed at reducing the cost of services provided by non-residents.
Reimbursements Disbursements
out-of-pocket expenses incurred by the
payee and are subsequently reimbursed
by the payer.
out-of-pocket expenses incurred by the
payer and paid to a third party on behalf
of the payee
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11. Advance Payments and Deposits
• Advance payments and non-refundable deposits paid to a non-resident payee -
(a) for services to be rendered, or
(b) in respect of the use of any moveable property
under section 4A of the ITA form part of the gross income of a contract and would be subject to
withholding tax under section 109B of the ITA.
- Refundable deposit do not form part of the gross income of a contract. (No withholding tax on it)
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12. Deduction of Tax
• Income tax shall be charged for each YA upon the income of a non-resident person chargeable to
tax under section 4A of the ITA which is derived from Malaysia, at the rate of 10% on the gross
amount
• A. Withholding tax borne by payee
• B. Withholding tax borne by payer
• Note
• Effective from the date of publication of this PR, where withholding tax under section 109B of the
ITA is borne by a payer, the withholding tax is to be computed on the gross amount paid to a non-
resident. This means that the payment made to the non-resident need not be regrossed to
determine the amount of withholding tax.
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13. Payment to a non-resident is made in non-ringgit currency
• the equivalent Ringgit Malaysia (RM) value has to be calculated at the time payment is made at
the –
(i) prevailing foreign exchange rate on the date the payment is made (the rate would be reflected in
the telegraphic transfer);
(ii) rate published in the official portal of IRBM; or
(iii) rate published by Bank Negara Malaysia.
• The withholding tax is to be computed based on the amount in RM on the date payment is made
to the non-resident.
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14. Remittance of Tax Deducted
• The payer must within one month after paying or crediting the recipient pay the withholding tax
so deducted to the DGIR.
• The payer is required to complete Form C.P.37D and submit the following particulars:
(a) Name, address and income tax reference number of the payer,
(b) Full name, address, country and income tax reference number of the payee,
(c) Copies of invoice or debit note (if applicable), and
(d) Bank remittance slip or other documentary evidence showing the date the amount is paid or
credited.
• Form C.P.37D can be downloaded from the official portal of the Inland Revenue Board of Malaysia
(IRBM) at http://www.hasil.gov.my.
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15. Consequences of Not Deducting and Remitting Tax
• increased by 10% of the amount of withholding tax which he fails to pay and the total sum shall be a
debt due from him to the Government and shall be payable to the DGIR [subsection 109B(2) of the
ITA].
• payment will be disallowed as an expense in the computation of the adjusted income from any source
of the payer [paragraph 39(1)(j) of the ITA]
• if the payer subsequently pays the withholding tax together with the increased amount (as stated in
paragraph 14.1), that payment under section 4A of the ITA made to the non-resident can be
subsequently allowed as a deduction [proviso to paragraph 39(1)(j) of the ITA].
• Effective 1.1.2011, for year of assessment 2011 and subsequent years of assessment, in addition to the
late payment penalty, where -
(a) the withholding tax deduction is made or paid after the due date for the furnishing of an ITRF for a
year of assessment that relates to the payment of the section 4A income, and
(b) a deduction for expenses related to such payment is made in the ITRF furnished or claimed on the
information given to the DGIR in arriving at the adjusted income of the payer
• the tax or amount so paid shall not prejudice the imposition of penalty under subsection 113(2) of the
ITA [proviso (ii) to paragraph 39(1)(j) of the ITA].
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16. Consequences of Not Deducting and Remitting Tax
• In cases where late payment penalty is paid to a non-resident by a payer, it should be ascertained
whether that late payment penalty is considered an interest income. In the absence of a DTA
between Malaysia and the country of residence of the non-resident or if there is a DTA and there
is no mention whether late payment penalty is regarded as interest income or not, the domestic
tax laws of Malaysia shall prevail. Pursuant to section 4B of the ITA, the late payment interest
which is payable to the non-resident would be considered as interest income under paragraph
4(c) of the ITA. As such, the withholding tax provision under section 109 of the ITA is
applicable.(Note: The default withholding tax rate for interest is 15%)
• Late payment penalty does not meet the requirements of Section 33(1) and hence is not a tax
deductible expense.
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17. Application for Relief Other Than in Respect of Error or Mistake
• Effective 1.1.2017, a payer who has furnished to the DGIR a return for a year of assessment and
has paid tax for that year of assessment may file an application for relief if the payer alleges that
the assessment relating to that year of assessment is excessive. The assessment is said to be
excessive where a deduction is not allowed in respect of payment not due to be paid under
subsection 109B of the ITA on the day the return is furnished. The payer may make an application
in writing to the DGIR within one year after the end of the year the payment is made.
• [section 131A of the ITA]
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18. Clarification on Due Date of Payment
• If the due date for payment of withholding tax falls on a weekly holiday (Saturday and Sunday) or
a public holiday in Malaysia, the following working day would be considered as the due date for
payment. Payers have to ensure that all payments are received by the Payment Centres by the
due date.
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