Statutory filings under Indirect Taxation for the month of January, 2011

Income Tax Act, 1961	Remittance of TDS & TCS	On or before 7th January, 2011
	Filing of TDS & TCS returns	On or before 15th January, 2011
	Issue of TDS & TCS Certificates for the 3rd Quarter	On or before 30th January, 2011
Central Excise Act, 1944	Remittance of duty by all type of units except SSIs in challan no. GAR- 7	On or before 5th January, 2011
	Filing of monthly return by all type of units except SSIs  in Form No. ER 1	On or before 10th January, 2011
	Filing of monthly returns by all types of units for CENVAT credits availed  - Form No. ER 1	On or before 10th January, 2011
	Remittance of duty by SSIs in challan no. GAR- 7	On or before 15th January, 2011
	Filing of monthly returns by SSI/EOU/FTZ/SEZ in Form No.ER 2	On or before 10th January, 2011
	Filing of monthly returns by all units for receipt & consumption of inputs out of PLA where excise duty exceeding Rs. One crore in a year - Form No. ER 6	On or before 10th January, 2011
Karnataka VAT Act	Remittance of sales tax for the month of December, 2010	On or before 20th January, 2011

Service Tax on renting of electricity meters

The Service Department has issued circular regarding a doubt on whether the renting on electricity meter installed on consumers premises by a service provider, is covered by the exemption under notification no. 11/2010 dated 27^th February, 2010 and/or  32/2010 dated 22^nd June, 2010.

On examination of the matter, the Department is of the opinion that the electricity meter is installed to determine the amount of electricity consumed by the consumer and has direct and close nexus with the transmission and distribution of electricity. Hence the same is covered under the exemption extended by the relevant notifications.

Service Tax Notification – Exemption to certain schemes of general insurance

The Government has via notification no. 58/2010 dated 21^st December, 2010 granted exemption to general insurance business from levy of service tax under section 66 of the Finance Act, 1994 provided the said insurance scheme has been approved by the Government of India under the Weather Based Corp Insurance Scheme or the Modified National Agricultural Insurance Scheme and implemented by the Ministry of Agriculture.

Intimation of annual holidays

All factories covered under the Factories Act are required to intimate the list of annual holidays for the year 2011 to the Inspector of Factories on or before 31^st December, 2010.

All industrial establishments in the state of Karnataka are required to display and submit the list of holidays (as per the Karnataka Industrial Establishment (National & Festival holidays) Act) that will be observed in the establishment during the year 2011 on or before 31^st December, 2010.

Due dates for Statutory Compliances - January, 2011

Act	Particulars	Due date
EPF Act	Pay P.F.Deductions for the month of December, 2010	On or before 15th January, 2011
EPF Act	Submit monthly return for the month of December, 2010 in Form 5 (along with Form 2, 10, 12 & 12A)	On or before 25th January, 2011
EPF Act (in respect of international workers)	Submit monthly statement (for the month of December, 2010) IW-1 relating to details of Employyes qualifying for membership as International workers along with Form 5 (for unexempted) /Form 4 PS (for exempted)	On or before 15th January, 2011
ESI Act	Make ESI payments for the month of December, 2010	On or before 21st January, 2011
Karnataka Labour Welfare Fund Act, 1965	Pay Welfare Fund contributions and submit statement in Form "D"	On or before 15th January, 2011
Karnataka Labour Welfare Fund Act, 1965	Transfer unpaid accumulations and fines to the Welfare Commissioner	On or before 15th January, 2011
Employment Exchange (Compulsory Notification of Vacancies) Act, 1959	Submit quarterly Return in Form ER - 1	On or before 31st January, 2011
Karnataka Shops and Establishments Act, 1961	Submit combined Annual Return in Form U	On or before 31st January, 2011
Karnataka Factories Rules, 1969	Submit Form 20 - Annual Return	On or before 31st January, 2011
Minimum Wages Act, 1948	Submit Annual Return in Form III under Rule 22(4) of Karnataka Minimum Wages Rules, 1958	On or before 31st January, 2011
Maternity Benefit Act, 1961	Submit Form K, L & M	On or before 31st January, 2011
Professional Tax	Submit Form 5  and pay Tax deducted from employees' salary/wages	On or before 20th January, 2011
Service Tax	Payment of Service Tax for the month of December, 2010	On or before 5th January, 2011
Water Cess Act & Rules	Pay Water Cess and submit return for the month of December, 2010	On or before 5th January, 2011

Sales Tax Audit, Sales Tax Assessment and Annual Return Filing

STATE	DUE DATE FOR FILING		PERSON ELIGIBLE TO CONDUCT THE AUDIT
	Annaul Return	Audit Report
Karnataka	31st December, 2010	31st December, 2010	Chartered Accountant
Tamil Nadu	Not Applicable	Not Applicable	Not Applicable
Andhra Pradesh	31st December, 2010	Not Applicable	Not Applicable
Kerala	31st December, 2010	31st December, 2010	Chartered Accountant
Uttar Pradesh	31st January 2011	31st January 2011	Chartered Accountant
Maharashtra	31st January 2011	Not Applicable	Chartered Accountant
Delhi	30th November, 2010	Not Applicable	Not Applicable
Punjab	30th November, 2010	30th November, 2010	Chartered Accountant
Himachal Pradesh	30th September, 2010	Not Applicable	Not Applicable
Orissa	Not Applicable	30th September, 2010	Chartered Accountant
Haryana	30th November, 2010	Not Applicable	Not Applicable
Assam	30th November, 2010	30th November, 2010	Any Authorised Person

TDS Rate Chart

Section	Nature of Payments	Threshold (Rs.)	HUF & Individual (%)	Others (%)
194A	Interset from Banks	10,000	10	10
194A	Other Interst	5,000	10	10
194B	Winning from Lotteries	10,000	30	30
194BB	Horse Race	5,000	30	30
194C	payment to contractors/Sub contractors/ Advertisement	30,000 (Rs.75,000 in a year)	1	2
194D	Insurance commission	20,000	10	10
194H	Commission / Brokerage	5,000	10	10
194I	Rent on Property	180,000	10	10
194I	Rent on Plant & Machinery	180,000	2	20
194J	Professional Fee	30,000	10	10
Note: If the deductee has not provided his PAN, then TDS to be dedcuted at 20% or the abovementioned rate whichever is higher

Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976

Applicability:

The Karnataka Profession Act is applicable to following persons:

a.            Every employer who pays salary/wages to his employer more than Rs.5,000/- per month

b.            Every person other than employer liable to pay tax under the Act.

Registration:

Every employer covering under “a” category shall apply for registration in Form 1 within 30 days from the date on which he is liable to pay tax.  Ever persons covering under “b” category shall apply for enrollment in Form 2 within 30 days from the date on which is liable to pay tax.

Due dates:

Every person who is liable to pay tax under this Act has to pay the tax for the month and submit the return in Form 5 on or before 20^th day of the subsequent month. Employer has to submit annual statement in Form – 5A on or before 30^th day of May of every year. Return for enrolled person has to be submitted on before 30^th day of April of every year.

Withdrawal of Provident Fund by International Workers

On 1st October 2008, Ministry of Labour and employment has made it mandatory for International Workers (IW) to contribute to Indian Social Security Benefit. Now, the ministry has introduced further amendments and published the in the Gazette of India dated 11th September, 2010 

Important change being IW will now be permitted to withdraw balance in their account only after retirement at the age of 58 years. Before this amendment, they were permitted withdraw on migration from India for permanent settlement abroad. However, exceptions for withdrawal before retirement are:

·        Retirement on account of total disablement/incapacity to work.

·        On suffering from leprosy, cancer, tuberculosis.

·        On any other grounds specified in Social Security Agreement(SSA) under which IW is covered.

This amendment will have major impact on IWs who are from non-SSA countries and will be deprived from taking back their contribution at the time leaving India

Due dates for Statutory Compliances - December, 2010

Act	Particulars	Due date
EPF Act	Pay P.F.Deductions for the month of November, 2010	On or before 15th December
EPF Act	Submit monthly return for the month of November, 2010 in Form 5 (along with Form 2, 10, 12 & 12A)	On or before 25th December
EPF Act (in respect of international workers)	Submit monthly statement (for the month of November, 2010) IW-1 relating to details of Employyes qualifying for membership as International workers along with Form 5 (for unexempted) /Form 4 PS (for exempted)*	On or before 15th December, 2010
ESI Act	Make ESI payments for the month of November, 2010	On or before 21st December, 2010
Professional Tax	Submit Form 5  and pay Tax deducted from employees' salary/wages	On or before 20th December, 2010
Service Tax	Payment of Service Tax for the month of November, 2010	On or before 5th December, 2010
Water Cess Act & Rules	Pay Water Cess and submit return for the month of November, 2010	On or before 5th December, 2010

Important due date of returns under the Karnataka VAT Act

Form No.	Subject	Due date
VAT 100	Monthly return	On or before 20th of every month
VAT 110	Return for casual traders	On or before 20th of every month
VAT 120	Return for composite dealers	On or before 15th of every month
VAT 126	Monthly statement of TDS (For industrial Canteens)	On or before 20th of every month
VAT 240	Annual Audited Statement	On or before 31st December

Clarification on rate of Tax on sale of used vehicle in Karnataka

The Commercial Tax Department, Government of Karnataka has issued a clarification under section 59 (4) of the Karnataka VAT Act regarding the rate of tax applicable on “Sale of used motor vehicles” in the state of Karnataka. The Department clarified that the “used motor vehicle” is liable to tax at 5% provided no input credit available in respect of the vehicle sold and the motor vehicle has been registered in Karnataka under the Motor Vehicle Act, 1988 before its sale.

Brief note on the Employees State Insurance Act, 1923

Applicability:

The Act is applicable to every non-seasonal power using factories employing 10 or more persons and non-power using factories employing 20 or more persons. The ESI scheme is also extended to hotels, restaurants, news papers, Cinemas and road motor transport undertakings employing 20 or more persons. The existing wage limit for coverage under the ESI scheme is Rs.15,000/- per month. The Act continues to apply even after the number of persons employed is falls below the minimum coverage limit.

Registration:

The Employer has apply for registration under the Act with the ESIC, Regional office of the concerned area in Form 01 along with necessary documents such as

·         Factory License,  

·         Memorandum and Articles of Association/Partnership Deed

·         VAT / CST Certificate

·         Latest Building Tax / Property Tax Receipt etc.

On receipt of all the required documents ESIC will register the employer and allot code number. The employer shall mention the code number in all further communication with the ESIC.

Contribution:

The employer shall contribute 4.75% of the wages and employee’s share is 1.75% of the wages.

The monthly contribution has to be remitted on or before 21^st day of the subsequent month.

Returns:

Half yearly returns have to be submitted in Form – 5 by the employer on or before 12^th May and 11^th November respectively. The Annual information has to be submitted in Form 01-A.

Records:

The employer shall maintain following records:

·         Register of employees in Form – 6

·         Accident Book in Form – 11

·         Inspection book under Regulation 102A

·         Copies of returns of declaration forms

·         Copies of returns of contributions, Challans etc.

·         Other general correspondence.

Karnataka Value Added Tax Act, 2003

Applicability:

The Karnataka Value Added Tax Act comes into from 1^st day of April, 2005. The Act is applicable to the whole state of Karnataka.

Registration:

Every dealer liable to register under section 22 shall submit application for registration in Form VAT -1 to the Local VAT office along with following documents:

·            Registration Fee of Rs.500/-

·            Certificate of Incorporation & Memorandum and Articles of Association/ Partnership Deed etc.

·            List of Directors

·            2 color photographs of Proprietor/Partners/Directors

·            Proof of Address

·            Details of Additional place of business in Form VAT – 3.

·            Details of all Partners in Form VAT – 4.

·            Security Deposit as demanded by the Local VAT Office.

On receipt of application for registration, the concerned VAT Officer will scrutinize the documents and on verification of place of business, if satisfied, will grant the certificate of Registration.  For Amendment/modification in the Registration Certificate, application shall be made in Form VAT -2 to the Local VAT Office. After scrutiny of the documents, Local VAT Officer will modify the Certificate.

Payment of Tax:

VAT for the particular month has to paid on or before 20^th day of subsequent month.

Returns:

The registered dealer has to file monthly as well as Annual Return to the Local VAT Office. Monthly Return has to be filed in Form VAT -100 on or before 20^th day of the subsequent month.

Annual Audited statement of Accounts has to be filed in Form VAT-240 on or before 31^st day of December.