GST was proposed to implement on April 2010, but due to some arguments between state and central Government with regards to revenue loss and compensation to the state government, the implementation is postponed to April 2011, but this time Central government is keen to implement GST. Honorable finance minister Pranab Mukarji ensured the compensation to state due to revenue reduction on implementing GST. Yesterday finance minister announced a three year road map.

TCS is another tax collection mechanism by govt to ensure regular flow of income to the govt and to widen the scope of income tax. In TDS tax is deducted from receiver or deductee but in TCS tax is collected from buyer.
What is TCS?
It is a liability as per section 206C.TCS is the tax collected by the seller from the buyer at the time of debiting of amount payable by buyer or at the time of receipt of amount by way of cash, DD, cheque or any other means whichever …

Employees’ provident scheme aims the old age income security; protect members and their dependent   from stoppage, reduction of earnings due to sickness, maternity, injury, unemployment and death. It is essential that each employee should know their right to get the maximum eligible benefit from EPFO. Hope the post will help you know your rights better.
1.  Right to be a member of Provident fund scheme, EDLI and Pension scheme if he is fulfilling the following conditions.

Employee must be working for a covered establishment. That is he is working for one of …

As per notification from Goverment of India Ministry of Labour and employment ,ESI wages ceiling limit has been increased from current limit 10000.00 to 15000.00, These changes take effect from 01.05.2010, You can download the notification from ESIC website.
This decision will cover more employees under the scheme,  Employer will have an extra compliance burden for deducting esi contribution  and will have to pay extra expenses towards esi  employer contribution for staffs getting salary  from 10000 to 15000 apart from previous contribution up to 10000

Under Tax deduction at source scheme ,as prescribed in income tax act every person is responsible for payment of any specified sum to any person is required to deduct  tax at source and deposit it with central govt with in specified time. if prescribed limit of payment do not exceed there is no need for deduction of tax
In the Budget 2010-11  , it is proposed to increase the threshold limit in sections 194B,194BB,194C,194D,194H,194I,and 194 J to reduce the tax burden of tax payers. There is no change in tax rate …

Income tax rate slab is changed in the recent budget by finance minister Pranab Mukherjee. The main highlights on income tax are.

Tax  slab revised
Surcharge is reduced to 7.5 % from 10 % for domestic company
extended income tax exemption to investment in infrastructure bonds by Rs 120,000.00
Limits for turnover over which accounts need to be audited enhanced to Rs. 60lakh for businesses and to Rs. 15 lakh for professions.

In continuation to our previous post service tax registration payment and return; we wish to give you some more information about service tax.  In this post you can read some regular questions and its answers.
Shall I pay service tax on billed amount or amounts actually received?
How are you paying service tax?   On billed amount or on receipt? Many are paying service tax on billed amount and unaware of the concept ‘tax payment on amount actual received’.   There is no problem paying service tax on billed amount. But this is not …

Most of the readers have already been updated with the new income tax rate for the assessment year 2010-11 however we would like to keep an income tax rate chart for those who are not aware of the change.
Income tax Rate for Individual, Hindu   undivided family, Association of Persons, Body of individual

The reformed indirect tax system GST-Goods and service tax is proposed to implement on 1st April 2010 in India. Several countries implemented this tax mechanism followed by France, the first country introduced GST. Goods and service tax is a new version of VAT which gives a comprehensive setoff for input tax credit and subsuming many indirect taxes from state and national level. The GST Implementation is not yet declared by government and the drafting of GST law is still under process and a clear picture will be …

Invoice is a commercial document showing itemized products and services rendered and its agreed value. The buyer must pay seller as per term agreed. Let us discuss how to prepare a service invoice as per service tax rules.  Following are the guidelines to prepare a service invoice.

Bill should be serially numbered
Name address registration number of the service provider should be mentioned.
Service receivers name and address mentioned in the invoice.
Description of taxable services provided.
Value of the taxable services should be mentioned
Service tax payable on taxable services mentioned
Education cess and Higher secondary …