Category SMEs

SMEs, Taxation, TDS

Section 194IA- TDS on payment on transfer of certain immovable property

1.Deductor- Any Purchaser (Other than person referred to in section 194LA) 2. Deductee- Any seller being resident 3. Time of deduction- At the time of credit or payment, whichever is earlier 4. Rate of TDS- 1% of the total considerations for transfer of immovable…

CA Rahul
May 23, 2021

GST, SMEs, Taxation

Registration under GST Act

1. Section 25- Procedure for Registration a. Time Limit- Every person who is liable to be registered under section 22 or Section 24 shall apply for registration within 30 days from the date on which he becomes liable to registration. b.…

CA Rahul
May 23, 2021

SMEs, Taxation

Reverse Charge Mechanism

1.Section 2(38)- Reverse Charge means the liability to pay tax by the recipient of supply of goods or services or both instead of the supplier of such goods or services or both. 2. Specified Goods under Reverse Charge- Notification No.4/2017-Central Tax…

CA Rahul
May 23, 2021

SMEs, Taxation

Section 80TTA and Section 80TTB

Section 80TTA 1. Eligibility: Deduction u/s 80TTA is available to an assessee, other than the assesse referred to in Section80TTB, being an individual or HUF. 2. Deduction is allowed from the following incomes: a. Interest earned from savings account with…

CA Rahul
May 23, 2021

SMEs, Taxation, TDS

Section 194M- TDS on payment to residents contractors and residents

1. Any person, being an individual or a Hindu Undivided Family, responsible for paying any sum to a resident, for carrying out any work under any contract or by way of fees for professional services rendered during the financial year.…

CA Rahul
May 22, 2021

SMEs, Taxation

Taxation of Business Trust and Unit Holders

1. Section 2(13A) – Definition of Business Trust: Business Trust means a trust registered as, i) An Infrastructure Investment Trust under the SEBI regulations, 2014; or ii) A Real Estate Investment Trust under the SEBI regulations, 2014, and the units…

CA Rahul
May 22, 2021

SMEs, Taxation

Taxation on Non-Residents

1. Non-Resident Indian means an individual being a citizen of India or a person of Indian origin who is not a resident. 2. Foreign Exchange Asset means any specified asset which the assesse has acquired or purchased with or subscribed…

CA Rahul
May 22, 2021

SMEs, Taxation

Slump Sale

1. Section 2(42C): Definition of Slump Sale: Transfer of one or more undertakings as a result of the sale for a lump sum consideration without values being assigned to the individual assets and liabilities in such sales. 2. Section 50B:…

CA Rahul
May 22, 2021

SMEs, Taxation

Income from manufacture of Tea, coffee and Rubber Section 33AB – Tea development account, coffee development account and rubber development account.

1.Eligible assesse – All assesse engaged in the business of growing and manufacturing tea, coffee or rubber in India. 2.Quantum of deduction – Lower of the following a. Amount deposited in NABARD or deposit account b. 40% of PGBP of such business…

CA Rahul
May 22, 2021

SMEs, Taxation, TDS

Section 32AD – Investment if new plant or machinery in notified backward areas in certain states

1. Eligible assessee – Any assesse i.e. Company or non – corporates 2. Quantum of deduction – Deduction @ 15% of the actual cost of the new asset installed. 3. Condition of setting up new undertaking – Assessee should set up an undertaking…

CA Rahul
May 22, 2021