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NSDL Email – Last date of TCS Returns

This post is NULLIFIED – based on the rejoinder email of NSDL (tin_returns@nsdl.co.in) dated 19th July, 2016 which can be accessed as under:

http://blog.tdsman.com/2016/07/rejoinder-email-dated-19th-july-2016-change-tcs-return-filing-dates/

After the release of the new File Validation Utility (FVU Ver 5.1 & FVU Ver. 2.147) on  28th June 2016, NSDL (tin_returns@nsdl.co.in), through an email has informed Tax Deductors / Collectors about this release.

Apart from explaining the key features of the new release, it has mentioned that the due date for filing Quarterly TDS/TCS statement for Q1 (April to June) of FY 2016-17 is July 31, 2016 for all categories of Deductors / Collectors.

It clears the doubt on the due date for TCS Returns which has been also revised similar to TDS Returns (there had been confusion over the CBDT Notification dated 29th April 2016).

Based on this email from NSDL, the due dates for TDS / TCS Return filing from FY: 2016-17 onwards is summarized as under:

Q1 (Apr – Jun)   :               31st July
Q2 (Jul – Sep)    :               31st October
Q3 (Oct – Dec)   :               31st January
Q4 (Jan – Mar)  :               31st May

Note: The above is based on NSDL’s email and no official notification / clarification has been issued by CBDT.

The text of NSDL’s email is as under:

 

From: tin_returns@nsdl.co.in [mailto:tin_returns@nsdl.co.in]
Sent: 28 June, 2016 4:00 PM
To: info@pdsinfotech.com
Subject: Intimation about the release of new TDS/TCS RPU and FVU versions at NSDL e-Gov.

 

Dear Deductor/Collector,

This is to inform you that due date for filing Quarterly TDS/TCS statement for Q1(April to June) of FY 2016-17 is July 31, 2016 for all the categories of Deductors/Collectors. Do submit quarterly TDS/TCS statement on or before due date to avoid late filing fee under section 234E of Income Tax Act.

In order to locate the nearest TIN Facilitation Centers (TIN-FC) for furnishing of quarterly TDS/TCS statement(s), please click here https://www.tin-nsdl.com/tin-facilities.php

New versions of e-TDS/TCS Return Preparation Utility (RPU) and File Validation Utilities (FVUs) have been made available at TIN website applicable from June28, 2016 at the following URL https://www.tin-nsdl.com/etds-etcs/eTDS-download-regular.php. These RPU and FVUs are freely downloadable utilities and can be used for preparation of e-TDS/TCS statement(s) pertains to Financial Year 2007-08 onwards.

  • RPU Version 1.6 (Java based): This is used for preparing and validating e-TDS/TCS Statement(s) and also contains inbuilt FVUs.
  • FVU Version 5.1 : Applicable for quarterly e-TDS/TCS Statement(s) pertaining to FY 2010-11 onwards.
  • FVU Version 2.147 : Applicable for quarterly e-TDS/TCS Statement(s) from FY 2007-08 upto FY 2009-10.

Key features of new version of RPU and FVUs are as given below:-

  1. Addition of new section codes applicable for Financial Year 2016-17 onwards for statements pertaining to Form 26Q, 27Q and 27EQ (Regular and Correction):

                  a. Section Code 194LBC (Income in respect of investment in securitization trust):

                         (i) This section code is applicable for Form 26Q and 27Q.
                         (ii) The value to be quoted in TDS/TCS statement is ‘LBC’.

                 b. Section Code 206CL (Tax Collection at Source (TCS) on sale of Motor vehicle):

                          (i) This section code is applicable for Form 27EQ.
                          (ii) The value to be quoted in TDS/TCS statement is ‘L’

                c. Section Code 206CM (TCS on sale in cash of any goods other than                     bullion/Jewellery):

                          (i) This section code is applicable for Form 27EQ.
                          (ii) The value to be quoted in TDS/TCS statement is ‘M’

              d. Section Code 206CN (TCS on providing of any services other than                    Chapter-XVII-B):

                          (i) This section code is applicable for Form 27EQ.
                          (ii) The value to be quoted in TDS/TCS statement is ‘N’.

For and on behalf of Tax Information Network

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Payment of interest on refund under section 244A of excess TDS deposited under section 195 of the Income tax Act, 1961

The Income Tax (I-T) department will now add interest amount to a delayed refund made on excess tax deducted at source (TDS) cuts and will also not litigate with the deductor on this issue in the future.

The Central Board of Direct Taxes (CBDT) has issued a circular  in this regard to the assessing officers of the I-T department based on a 2014 Supreme Court order, where the apex court had made it clear that the taxman is “bound” to pay an interest on refund made under the TDS category.

The issued circular has been given below:

Circular No. 11/2016

 

F.No.279/Misc./M-140/2015-ITJ

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

 

New Delhi, 26th April, 2016

 

Subject:- Payment of interest on refund under section 244A of excess TDS deposited under section 195 of the Income tax Act, 1961- reg.

The procedure for refund of tax deducted at source under section 195 of the Income tax Act, 1961, to the person deducting the tax is delineated in CBDT Circular No. 7/2007 dated 23.10 .2007. Circular No. 7/2007 states that no interest under section 244A of the Act, is admissible on refunds to be granted in accordance with the circular or on the refunds already granted in accordance with Circular No. 769 or Circular 790 dated 20.4.2000.

2. The issue of eligibility for interest on refund of excess TDS to a tax deductor has been a subject matter of controversy and litigation. The Hon’ble Supreme Court of India in the case of Tata Chemical Limited’ , Civil Appeal No. 6301 of 2011 vide order dated 26.02.2014, held that, “Refund due and payable to the assessee is debt-owed and payable by the Revenue. The Government, there being no express statutory provision for payment of interest on the refund of excess amount/ tax collected by the Revenue, cannot shrug off its apparent obligation to reimburse the deductors lawful monies with the accrued interest for the period of undue retention of such monies. The State having received the money without right, and having retained and used it, is bound to make the party good , just as an individual would be under like circumstances. The obligation to refund money received and retained without right implies and carries with it the right to interest.”

3. In view of the above judgment of the Apex Court it is settled that if resident deductor is entitled for the refund of tax deposited under Section 195 of the Act, then it has to be refunded with interest under section 244A of the Act, from the date of payment of such tax.

4. Accordingly, it is advised that no appeals may henceforth be filed on this ground by the officers of the department and appeals already filed on this issue may not be pressed

5. This may be brought to the notice of all concerned.

SadhanaPanwar

DCIT (OSD)(ITJ)

CBDT, New Delhi

Source: Income Tax

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TDS on payments by television channels and publishing houses to advertisement companies for procuring or canvassing for advertisements

Central Board of Direct Taxes (CBDT) has issued a circular regarding Tax Deduction at Source (TDS) on payments by television channels and publishing houses to advertisement companies for procuring or canvassing for advertisements.

The issued circular has been given below:

Circular No. 05/2016

F.No.275 /06/2016-IT(8)

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes (CBDT)

New Delhi, Dated: 29th February, 2016

Sub: Tax Deduction at Source (TDS) on payments by television channels and publishing houses to advertisement companies for procuring or canvassing for advertisements.

The issue of applicability of TDS provisions on payments made by television channels or media houses publishing newspapers or magazines to advertising agencies for procuring and canvassing for advertisements has been examined by the Board in view of representations received in this regard.

2. It is noted that there are two types of payments involved in the advertising business:

(i) Payment by client to the advertising agency, and

(ii) Payment by advertising agency to the television channel/newspaper company

The applicability of TDS on these payments has already been dealt with in Circular No. 715 dated 8.8.1995, where it has been clarified in Questions No. I & 2 that while TDS under section 194C (as work contract) will be applicable on the first type of payment, there will be no TDS under section 194C on the second type of payment e.g. payment by advertising agency to the media company.

3. However, another issue has been raised in various cases as to whether the fees/charges taken or retained by advertising companies from media companies for canvasing/booking advertisements (typically 15% of the billing) is ‘commission’ or ‘ discount’ . It has been argued by the assessees that since the relationship between the media company and the advertising company is on a principal-to-principal basis, such payments are in the nature of trade discount and not commission and, therefore, outside the purview of TDS under section 194H. The Department, on the other hand, has taken the stand in some cases that since the advertising agencies act on behalf of the media companies for procuring advertisements, the margin retained by the former amounts to constructive payment of commission and, accordingly, TDS under section 194H is attracted.

4. The issue has been examined by the Allahabad High Court in the case of Jagran Prakashan Ltd and Delhi High Court in the matter of Living Media Limited and it was held in both the cases that the relationship between the media company and the advertising agency is that of a ‘ principal to principal ‘ and, therefore, not liable for TDS under section 194H. The SLPs filed by the Department in the matter of Living Media Ltd. and Jagran Prakashan Ltd have been dismissed by the Supreme Court vide order dated 11.12.2009 and order dated 05 .05.2014, respectively. Though these decisions are in respect of print media, the ratio is also applicable to electronic medial television advertising as the broad nature of the activities involved is similar.

5. In view of the above, it is hereby clarified that no TDS is attracted on payments made by television channels! newspaper companies to the advertising agency for booking or procuring of or canvassing for advertisements. It is also further clarified that ‘commission’ referred to in Question No.27 of the Board’s Circular No. 715 dated 8.8.95 does not refer to payments by media companies to advertising companies for booking of advertisements but to payments for engagement of models, artists, photographers, sports persons, etc. and, therefore, is not relevant to the issue of TDS referred to in this Circular.

Hindi version follows.

(Sandeep Singh)

Under Secretary to Government of India

Click here to download full circular.

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Circular on claiming Tax Credit against non-deposit of TDS

A circular has been issued by CBDT regarding non-deposit of Tax Deducted at Source.  CBDT has mentioned in the circular that as per Section 199 of the Act credit of Tax Deducted at Source is given to the person only if it is paid to the Central Government Account. However, as per Section 205 of the Act the assessee shall not be called upon to pay the tax to the extent tax has been deducted from his income where the tax is deductible at source under the provisions of Chapter- XVII. 

The issued circular has been given below: 

No. 275/29/2014-IT-(B)
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes 

Dated New Delhi, the 1st June, 2015 

 

To,

The CCsIT (CCA)

Subject: Non-deposit of Tax Deducted at Source – regarding.

Sir/Madam,

1. Grievances have been received by the Board from many taxpayers that in their cases the deductor has deducted tax at source from payments made to them in accordance with the provisions of Chapter-XVII of the Income-tax Act, 1961 (hereafter ‘the Act’) but has failed to deposit the same into the Government account leading to denial of credit of such deduction of tax to these taxpayers and consequent raising of demand.

2. As per Section 199 of the Act credit of Tax Deducted at Source is given to the person only if it is paid to the Central Government Account. However, as per Section 205 of the Act the assessee shall not be called upon to pay the tax to the extent tax has been deducted from his income where the tax is deductible at source under the provisions of Chapter- XVII. Thus the Act puts a bar on direct demand against the assessee in such cases and the demand on account of tax credit mismatch cannot be enforced coercively.

3. This may be brought to the notice of all the assessing officers in your region so that if the facts of the case so justify, the assessees are not put at any inconvenience on account of default of deposit of tax into the Government account by the deductor.

4. This issues with the approval of Chairperson, CBDT.

 

Yours faithfully

(Sandeep Singh)
Under Secretary to the Govt. of India

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