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.