Chandan Corporate Consultant

Redditors recently voiced things that they regret not doing in their 20s.

Is it even possible to have regrets in your 20s? After all, every failure is just another lesson to be learned, right?

Turns out there are quite a few regrets you can have as a 20-something (although the list is much shorter than in your 30s).

Redditors recently voiced things that they regret not doing in their 20s. Read their answers to make sure you won't have any regrets in some of the best years of your life.

1. Not getting fit

Your 20-something metabolism can make you complacent with your health, but start working on being fit and healthy earlier, and you definitely won't regret it. After all, exercising and a healthy diet can increase your happiness and make all your experiences better.

For example, if you're fit, you'll be able to take on bucket list trips that require a lot of endurance and a certain fitness level, like climbing Machu Picchu.

2. Not taking risks

So you're heading down the traditional path to play it safe. Think of your 20s as a time for new experiences and don't let your fears hold you back. You're only young once!

3. Rushing to be a grown-up

You're eager to get started on life, but take the time to really enjoy the experience of being in your 20s. You have the rest of your life to act like a grown-up. Don't feel obligated to follow a certain timeline.

"You don't have to rush out and get a full-time career job at 21. You don't have to shack up and marry the first person you meet at 24. You don't have to buy a house or car and have babies by 27," says Reddit user shewhogoesthere. "A lot of people I know who were in a hurry all through their 20s are now ending their 20s and feeling a bit depressed because they quickly extinguished their youth and hit all the goal posts and now they're like, 'What now?' You can't go back, you can't be young again, why throw it away so quickly?"

4. Not starting a retirement fund

Every personal finance expert recommends starting putting money towards your retirement fund as early as possible. This is because the earlier you make your contributions, the greater the rewards with the magic of compounding. This means the more money you put in earlier, the faster it grows.

5. Wasting time on people who don't deserve your time

Yup, the old toxic friend syndrome. It seems like we have this regret in every decade of our life. But in your 20s, friends seem to take up more time and effort than other decades just because many of us are still looking for our significant others and haven't had kids yet. Make sure that the time you spend on your friends is well spent and that you're cultivating friendships that will last a lifetime.

6. Not studying or moving abroad

You usually have fewer obligations in your 20s, so it's a good time to pack up and actually live overseas for a while. It's a completely different experience from travelling, and it's worth doing if you can make it work. You'll be out of your comfort zone culturally and in every other way possible, which is a tremendous learning experience that will open up your perspectives and world view.

7. Staying in bad relationships

This goes hand in hand with friends you shouldn't waste time on. Your 20s will pass by in a flash, so make sure you're spending it with the right people! Bad relationships — be they romantic or platonic — can really do a number on your self esteem, so don't let them drag you down. (y)

आर्थिक वर्षाअखेरजवळ आल्यावर कर बचतीची अनेकांना आठवण होऊ शकते. त्यामुळे ऐनवेळा होणारी धावपळ टाळली पाहिजे. त्यामुळेच अजूक काही दिवस शिल्लक असल्याने तयारी केला पाहिजे. ८० सीच्या अंतर्गत किती गुंतवणूक करण्याची गरज आहे , हे जाणून घेण्याबरोबर कोणते पर्याय उपलब्ध आहेत , हे पाहूयात.

* किती बचत करण्याची आवश्यकता आहे ?
कर बचत करण्यासाठी किती गुंतवणूक करायची आहे याचे गणित मांडले जाते. हे करताना कलम ८० सीची मर्यादा संपली असल्यास या पर्यायांचा विचार करता येऊ शकतो. ...

गृहकर्जाचा हप्ता भरत आहात का ?
गृहकर्जाच्या हप्त्याची मूळ रक्कम वजावटीसाठी पात्र आहे. त्यामुळे याचा लाभ घेतला आहे की नाही हे निश्चित करा. ...

प्रॉव्हिडंट फंडमध्ये गुंतवणूक केली आहे का ?
भविष्यात आर्थिक गरजा भागविण्यासाठी पीएफमध्ये गुंतवणूक केली जाते. यातील गुंतवणूक ही वजावटीसाठी पात्र आहे. ..

लाइफ इन्शुरन्स आणि पेन्शन प्लॅन आहे का ?
आयुष्यातील जोखीम कमी करण्यासाठी इंन्शुरन्स काढला जातो , तर निवृत्तीनंतर जीवन सुखी घालविण्यासाठी पेन्शन प्लॅनची निवड केली जाते. यांचे प्रीमियम हे कर वजावटीसाठी पात्र आहेत. ....

मुले शाळेत जाण्याएवढी मोठी आहेत का ?
शाळेची फी ही कलम ८० सी अंतर्गत येते. यासाठी भरण्यात आलेल्या फीच्या पावत्या महत्वाच्या असतात. त्यामुळे त्या जपवून ठेवा‍व्यात. ........

कलम ८० सीचे गणित
आपल्या जोखीम घेण्याच्या क्षमतेवर कर बचतीचा पर्याय निवडा. यासाठी किती परतावा अपेक्षित आहे , कधी रक्कम हवी आहे , याचाही विचार करावा. ...

* कर बचतीचे अन्य पर्याय
अशा प्रकारच्या वजावटीसाठी पात्र आहात का , हे जाणून घ्या.

हेल्थ इन्शुरन्स
मुले , बायको आणि स्वतःसाठी हेल्थ इन्शुरन्सचा पंधरा हजार रुपयांपर्यंतचा प्रीमियम हा कलम ८० डी अंतर्गत वजावटीसाठी पात्र आहे. पालकांसाठी हेल्थ इन्शुरन्स काढला असल्यास अतिरिक्त पंधरा हजार रुपयांची वजावट मिळू शकते.

प्रतिबंधात्मक उपाय
बायको , मुले आणि स्वतःसाठी प्रतिबंधात्मक आरोग्य तपासणीवर पाच हजार रुपयांपर्यंत केलेला खर्च ८० डी अंतर्गत वजावटीस पात्र आहे. सवलतीचा लाभ पंधरा हजार रुपयांच्या वर घेता येत नाही.

गृहकर्ज
स्वतः राहत असलेल्या घराच्या गृहकर्जावरील दीड लाख रुपयांपर्यंतचे व्याज हे कलम २४ डी अंतर्गत वजावटीस पात्र आहे. घर भाड्याने दिले असल्यास संपूर्ण व्याज वजावटीसाठी पात्र.

शैक्षणिक कर्ज
स्वतःच्या वा मुलांच्या शिक्षणासाठी शैक्षणिक कर्जावरील संपूर्ण व्याज हे कलम ८० ई अंतर्गत वजावटीस पात्र. मात्र , हा लाभ आठ आर्थिक वर्षांपर्यंतच घेता येतो.

एचआरए
काही निकष पूर्ण केल्यास एचआरएची सवलत मिळते. वेतनाचा भाग म्हणून एचआरए मिळत नसला , तरीही कलम ८० जीजी अंतर्गत महिन्याला दोन हजार रुपयांपर्यंतची सवलत मिळते.

देणगी
पात्र धर्मदाय संस्थांना देण्यात आलेली देणगी ८० जी अतर्गत वजावटीस पात्र आहे. मात्र , राजकीय पक्षांना देण्यात आलेल्या देणग्या आता वजावटीस पात्र नाहीत.

Wishing A HAPPY AND
PROSPECTIVE NEW CALENDAR YEAR to all PERSONS defined U/Sec 2(31), RELATIVES as defined U/sec 2(41) read with Sec 40A(2)(b) & Sec 64;

Lots and Lots of INCOMES as defined U/Sec 2(24) read with Sec 10 & Sec 54 being EXEMPTED and;

Loads of amounts of DEDUCTIONS U/Sec 80 from GROSS TOTAL INCOME consisting of ALL FIVE HEADS OF INCOMES and;

Prosperity by acquiring as much as possible CAPITAL
ASSETS as defined U/Sec 2(14) and also having HEALTHY BOOKS OF ACCOUNTS as defined U/Sec 2(12A);

Not allowing the ASSESSING
OFFICER as defined U/Sec 2(7A) to give Notice U/Sec
142(1) or 143(2) failing which
not to make any ADDITIONS/
DISALLOWANCES and Pass a
FAVOURABLE INTIMATION
U/sec 143(1);

Also wishing Reasonable 148 / 153A/ 153C Cases with FAVOURABLE ORDERS U/Sec 143(3) in favour of the ASSESSEE as defined U/Sec 2(7) without being Appealed by the Department to the
COMMISSIONER (Appeals) as
defined U/Sec 2(16A) or The
APPELLATE TRIBUNAL as
defined U/Sec 2(4);

HOWEVER if APPEALED a LAND MARK order favouring the Assessee without ADDITIONS/ INTEREST / PENALTY / PROSECUTION U/Sec 271 or any Other SECTIONS of the INCOME TAX ACT 1961.

WISHING AGAIN A HAPPY
AND PROSPECTIVE NEW CALENDAR YEAR :D :D :D

Chandan Corporate Consultant *The purpose behind this activity is to create awareness between entrepreneur & Employees about Tax & Financial matters, which will help to simplify some critical legal aspects*

Understand your form 16

If, after taking about form 16 the entire day in office, you wonder what it actually is while returning home, then this is the answer for you.

Form 16: Form 16 is the certificate issued by the employer to employee stating the details of income earned and the tax deducted on your behalf and paid to the government. Every employee who is subjected to TDS is supposed to receive their Form 16 by April 30 every year. However many employers issue it post this deadline.

Important points to be noted:

No Form 16 is required if TDS is not deducted from salary
If TDS is deducted by banks to the pension holder, banks should also issue Form 16. For interest income, the bank issues form 16A
Components of Form 16:

Form 16 can be said to be comprised of some real major components. These are discussed briefly so that next time while filing for tax, you know exactly what you are filling in.

PAN

PAN stands for Permanent Account Number, which is a 10 digit alpha-numeric code generated by the Income Tax Department of India. The tax department has made it mandatory for everyone (including NRIs, PIOs & Companies) who wishes to indulge in any type of investments or financial transactions in India. Carrying on business, filing or paying taxes, investing in India, buying a property, opening a bank or demat account, etc. now require a PAN number.

TAN

TAN or Tax Deduction and Collection Account Number is a 10 digit alpha numeric number, required to be obtained by all persons/companies who are responsible for deducting or collecting tax. TAN nos. are also unique to companies.

Gross salary

Gross salary refers to the employee’s total remuneration including allowances, over time pay, Commissions, and bonuses, and any other amounts before any deductions are made.

Perquisites

Perquisites are nothing but the perks you enjoy. It is the additional benefit provided by the employer to the employee in addition to the salary or wages provided.

For example, Rent Free accommodation, Loans at a subsidized rates to employees etc.

Profits in lieu of Salary

Profit in Lieu of Salary is a part of the salary income, thus it is taxable under the head ‘Income from salary’. It is any payment made to employees in lieu of salary. This means any payment due to, or received by employee from his employer (or former employer) at or in connection with the termination of employment or due to modification in terms and conditions relating thereto.

Example: Gratuity, Commuted value of pension, Retrenchment Compensation etc. received or due to be received to the extent which is not exempt, and which it does not consist of contribution made by the employee, or interest thereon will be taxable as profit in lieu of salary.

Allowance

Allowance is a payment made by employer to an employee to enable him/her to meet certain cost of expenditure incurred on behalf of the employer, expenses which he/she may not have underwent otherwise. This generally forms the part of the employee’s taxable income.

Example: – Medical Allowance, Travel Allowance etc.

Some of the most important allowances that you will come across in Form 16 are :

1) HRA (House Rent Allowance) :

HRA is a special allowance given to an employee to meet his rent expenses. It is exempt from tax to the extent of least of the following:

a) HRA received from employer

b) Rent Paid in excess of 10% of the salary

c) 40% or 50% of the Salary (50 % in case of an individual belongs to metropolitan cities like Mumbai, Delhi, Chennai, Kolkata for all others it is 40%).

Note:

Salary for HRA calculations: Basic+ DA+ Commission (Paid as a fixed percentage of sales)

(Above exemption is only available on actual payment of rent).

For example, Let us understand this with an example. Say, you live in Hyderabad and your salary structure for a month is as follows:

Basic – Rs 12,000

HRA – Rs 5,000

Other taxable allowances – Rs 2,000

Monthly rental expenses – Rs. 7,000

Now, HRA will be exempt to the extent of the least of:

Rs 4,800 (40% of salary for non-metro); or

Rs 5,000 (HRA received); or

Rs 5,800 (excess of rent paid over 10 per cent of salary, i.e. (7000-(10% of 12,000)

HRA exemption will be the least of the above i.e. 4,800.

2) Conveyance allowance

Conveyance allowance is usually paid for the welfare of the employees to compensate for the expenses they bear while commuting to office every day. Conveyance allowance is exempt to the extent of Rs. 800. An orthopedically handicapped employee enjoys a higher exemption of Rs. 1,600

3) Medical allowance

Medical allowance is paid by the company to cater the amount spends by employee on medical treatment and medicines. Medical allowance can be paid out monthly or yearly. Medical allowance is a fully taxable component of the salary. However, if you receive reimbursement of medical expenses against submission of bills, such reimbursement is tax free up to Rs. 15000 per year.

4) Entertainment Allowance

Entertainment allowance is imparted to employees to enable them to avail entertainment services. Deduction on entertainment allowance is only is allowed to government employees. The amount of deduction allowed is to the extent of least of the following -

Rs. 5,000 (OR)
1/5th or 20% of the salary (excluding all other allowances benefit or any other perquisites)
5) Deductions

Government encourages certain type of savings -mostly long term savings for your retirement – and therefore offers you tax breaks on such savings. These tax breaks are nothing but deductions allowed from the gross total income (Chapter VI A).

6) Education Cess

Education cess is a contribution made towards the Secondary and Higher Education development in the economy. All taxes in India are subject to an education cess, which is 3% of the total tax payable.

7) Relief u/s 89

Relief is granted to individuals when salary is paid in arrears in a lump sum.

For example, Salary (received in arrears/advance, family pension received in arrears, retirement benefits such as gratuity, commuted pension, VRS and retrenchment compensation)

With all the knowledge imparted in this article, you are now well harnessed to file your taxes with proper knowledge and confidence.

No More NIL TDS

Till recently TDS deductor were use to submit TDS return for a Quarter even if they have not deducted and paid any TDS for a specific Quarter. If Assessee do not have any TDS liability for a specific quarter and he still submits a TDS return such Return is called NIL TDS Return. CBDT has not made provided that “TDS statement can not be filed without quoting any valid challan and deductee row. “ Which implies that Nil TDS return is no more permissible. Earlier Asssessee use to submit NIL TDS return to avoid penalty for late Filing of TDS Return as they use to revise the return post filing of Nil Return. Now the same is not possible. A good move by the CBDT!! The move also clear confusion about Filing of NIL TDS return and it is clear now that Tax Deductor are not required to file NIL Tds return.

ICAI has requested CBDT to extend the due date of e‐filing of income‐tax returns, tax audit reports and report under section 92E of the Income‐tax Act, 1961

The efforts of the members in supporting the e‐initiative the Department requiring e‐filing of almost all audit reports under the Income‐tax Act, 1961 is appreciable. ICAI is aware of the numerous issues being faced by the members with regard to registration, frequent changes in utilities, uploading of balance sheet and profit and loss and so on. The Direct Taxes Committee of ICAI is taking up these issues with appropriate authorities from time to time. It has issued “Frequently Asked Questions” prepared in consultation with the officials of Directorate of Income tax (Systems) for the guidance of members. Inspite of these efforts, difficulties are being faced by the members in e‐filing the tax audit reports mainly due to continuous change in the utilities hosted on the CBDT website. Further, the difficulties being faced by the members and the assessees in Andhra Pradesh, Uttarakhand, Gujarat, Muzaffarnagar and other affected areas of Uttar Pradesh are also known to ICAI.

Considering the above factors, a request was extended to Chairperson, CBDT for extension of due date of filing income tax returns along with tax audit reports by one month from end of 30th September, 2013. ICAI has also sought extension of due date of furnishing the report under section 92E by one month from the end of 30th November, 2013 for AY 2013‐14.

Even though matter is being pursued on regular basis, it is desirable that the members complete their audits on or before 30th September, 2013 so that the assessees are able to file their income tax returns on time.

HRA exemption allowable on Rent Paid to wife

Requirement of the section 10(13A) is that any allowance (by whatever name called) granted to an assessee by his employer to meet expenditure actually incurred on payment of rent in respect of residential accommodation occupied by the assessee, to such extent as may be prescribed.

However, the exemption is not available in case the residential accommodation occupied by the assessee is owned by him or the assessee has not actually incurred expenditure on payment of rent (by whatever name called) in respect of the residential accommodation occupied by him.

Admittedly, the AO has given a finding of fact that the assessee and his wife are living together as a family. Therefore, it can be inferred that the house owned by wife of the assessee is occupied by the assessee also and in remand report it has been submitted that the assessee has submitted the rent receipt(s) of Rs.15,000/- dated 3.7.2008 and Rs.1,65,000/- dated 31.3.2009 and stated that the payments have duly been paid through bank transfer entry. A verification of the said entry shows the transfer on the given dates but the receipts date and amount of Rs.1,65,000/- not reflecting as transfer.

Therefore, in our considered opinion, the assessee has fulfilled twin requirements of the provision, i.e. occupation of the house and the payment of rent. Under these circumstances, the assessee is entitled for exemption u/s.10(13A) of the Act. Since we have observed that the ld.CIT(A)’s chose not to make enhancement and disallow the relief u/s.24 of the Act, therefore we cannot comment upon this aspect of the matter. In this view of the matter, we delete the addition and direct the AO to allow exemption u/s.10(13A) of the Act to the assessee. This ground is also allowed as indicated above.

No Service Tax on value of goods supplied free by service recipient under construction services :

The value of goods supplied or provided free by a service recipient under construction of commercial or industrial complex service, do not comprise the Gross amount under Notn.no.15/2004. Landmark judgment.

Introduction:

In a landmark judgment, the larger bench of the Hon’ble Tribunal, New Delhi has held in the case of Ms Bhayana Builders (P) Ltd., & Others Vs CST, Delhi & Others 2013 (9) TMI 294 CESTAT New Delhi that value of free supplies by service recipient do not comprise the gross amount charged under notification No.15/2004 under Construction of Commercial or Industrial Complex service. Etymologically the words supplied and provided are closely associated words. Provided also means to supply; furnish. Supply bears a similar connotation. The word used is structurally associated (in the Explanation) with the earlier two words and the three words are employed to define the meaning of the expression gross amount charged, an expression that occurs in the preamble to Notification No. 15/2004-ST. The issue on valuation was referred to this bench in view of the earlier conflicting decisions in two division benches in the case of Ms.Cemex Engineers Vs. Commissioner of Service Tax 2011-TIOL-866-CESTAT-BANG and Ms.Jaihind Projects Vs CST, Ahmedabad 2010 (10) –TMI-926 CESTAT Ahmedabad.
Relevant Legal provisions:
After the amendment w.e.f. 18.04.2006, Section 67 of the Finance Act reads:
“SECTION 67. Valuation of taxable services for charging service tax. — (1) Subject to the provisions of this Chapter, where service tax is chargeable on any taxable service with reference to its value, then such value shall, —
(i) in a case where the provision of service is for a consideration in money, be the gross amount charged by the service provider for such service provided or to be provided by him;
(ii) in a case where the provision of service is for a consideration not wholly or partly consisting of money, be such amount in money as, with the addition of service tax charged, is equivalent to the consideration;
(iii) in a case where the provision of service is for a consideration which is not ascertainable, be the amount as may be determined in the prescribed manner.
(2) Where the gross amount charged by a service provider, for the service provided or to be provided is inclusive of service tax payable, the value of such taxable service shall be such amount as, with the addition of tax payable, is equal to the gross amount charged.
(3) The gross amount charged for the taxable service shall include any amount received towards the taxable service before, during or after provision of such service.
(4) Subject to the provisions of sub-sections (1), (2) and (3), the value shall be determined in such manner as may be prescribed.
Explanation. — For the purposes of this section, —
(a) “consideration” includes any amount that is payable for the taxable services provided or to be provided;
[(b) *** ]
(c) “gross amount charged” includes payment by cheque, credit card, deduction from account and any form of payment by issue of credit notes or debit notes and [book adjustment, and any amount credited or debited, as the case may be, to any account, whether called “Suspense account” or by any other name, in the books of account of a person liable to pay service tax, where the transaction of taxable service is with any associated enterprise].]”
Exemption Notification No. 15/2004-ST dated 10.09.2004.
“13.5 The gross value charged by the building contractors include the material cost, namely, the cost of cement, steel, fittings and fixtures, tiles etc. Under the Cenvat Credit Rules, 2004, the service provider can take credit of excise duty paid on such inputs. However, it has been pointed out that these materials are normally procured from the market and are not covered under the duty paying documents. Further, a general exemption is available to goods sold during the course of providing service (Notification No. 12/2003-S.T.) but the exemption is subject to the condition of availability of documentary proof specially indicating the value of the goods sold. In case of a composite contract, bifurcation of value of goods sold is often difficult. Considering these facts, an abatement of 67% has been provided in case of composite contracts where the gross amount charged includes the value of material cost. (refer Notification No. 15/2004-S.T., dated 10-9-2004). This would, however, be optional subject to the condition that no credit of input goods, capital goods and no benefit (under Notification No. 12/2003-S.T.) of exemption towards cost of goods are availed”.
Department’s views:
Revenue relied on the decision in M/s N.M. Goel and Co. vs. Sales Tax Officer, Rajnandgaon and Another (1989) 1 SCC 335 . Also reliance was placed on the judgment of the Supreme Court in Bharat Sanchar Nigam Limited vs. Union of India 2006 (2) STR 161 (SC) and the decision of this Tribunal in Naresh Kumar & Co. Pvt. Ltd. vs. Commr. of Service Tax, Kolkata 2008 (11) STR 578 (Tri. Kolkata) to contend that where there is a nexus between the expenses incurred and the service provided, the value of such expenditure should also be included in the value of the service. These judgments, in our considered view do not assist resolution of the issue referred. There could be no dispute that free supplies by the recipient for use in construction services have a nexus; and an integral nexus for that matter with the construction activity. The essential question is however whether such free supplies by the recipient would constitute consideration accruing to the economic benefit of the service provider so as to be includible in the “gross amount charged” for the service provided, for the purpose of computation of the taxable value under Section 67; or as a case may be ought to be included in the “gross amount charged” for availing the benefits under Notification No. 15/2004-ST, as comprehended within the meaning of the expression “used” in the Explanation thereto.
The Appellants have strongly quoted the principles applied in “ejusdem generis” and “noscitur” in a plethora of decisions. Elaborating on the noscitur principle it is contended that the expression “used” in the Explanation to Notification No. 15/2004-ST (to explain the meaning of “gross amount charged”, an expression in the preamble to the Notification), cannot be construed, in so far as language permits, as be inconsistent with the meaning of the expression “gross amount charged” in the preamble to the Notification. In substance, the contention is that the Notification exempts service tax to the extent of the tax leviable on 67% of the “gross amount charged”, in relation to construction service; Section 67 (a provision dealing with valuation of taxable services for charging tax) enacts that the value of any taxable service shall be the “gross amount charged”; and “gross amount charged” under Section 67 would not include the value of free supplies. We have also concluded that that is the position; that implicit in this legislative architecture (of Section 67) is the concept that any value to constitute a consideration, whether monetary or otherwise should have flown or should flow from a service recipient to a service provider and should accrue to the benefit of the later; and that this is a precondition of taxability under Section 67. On this syllogism, in defining to explain the meaning of “gross amount charged”, the Explanation could not be construed as expanding the scope of “gross amount charged” in the preamble to the Notification, is the contention.
Revenue contended that even if one of the literal meanings of the expression used, namely free supplies used is considered as the legal meaning as well, construction service providers may not be handicapped as they may seek benefits under Notification No. 12/2003-ST. In our view however the fact that the assessee have an alternative recourse to avoiding the rigour cannot be the criterion for interpreting the Explanation. This contention by Revenue proceeds on a fallacious comprehension of Notification No. 12/2003-ST.
The benefits under this Notification are only in respect of the value of goods and materials sold by a service provider to the recipient of a taxable service. In the case of free supplies by the recipient there is no sale or transfer of title in the goods and materials in favour of the service provider, at any point of time. Therefore when free supplied goods and materials are incorporated into the construction would be no sale by the provider to the recipient either. Notification No. 12/2003-ST would therefore be inapplicable.
Board Circular dated 16.02.2006 (a circular issued subsequent to the introduction of the Explanation in Notification No. 15/2004-ST) and in the context of an identical Explanation introduced in Notification No. 18/2005-ST, clarified that gross amount charged shall include the value of goods and materials supplied. This circular constitutes contemporanea expositio of the meaning of the Explanation in Notification No. 18/2005-ST.
Conclusion: The question was well answered by the larger bench in the following way:
Goods and materials, supplied/ provided/ used by the service provider for incorporation in the construction, which belong to the provider and for which the service recipient is charged towards the value of such supply/ provision / use and the corresponding value whereof was received by the service provider, to accrue to his benefit, whether independently specified as attributable to the specific material/ goods incorporated or otherwise, would alone constitute the gross amount charged., This is not to say that an exemption Notification cannot enjoin a condition that the value of free supplies must also go into the gross amount charged for valuation of the taxable service. If such intention is to be effectuated the phraseology must be specific and denuded of ambiguity.
(a) The value of goods and materials supplied free of cost by a service recipient to the provider of the taxable construction service, being neither monetary or non-monetary consideration paid by or flowing from the service recipient, accruing to the benefit of service provider, would be outside the taxable value or the gross amount charged, within the meaning of the later expression in Section 67 of the Finance Act, 1994; and
(b) Value of free supplies by service recipient do not comprise the gross amount charged under Notification No. 15/2004-ST, including the Explanation thereto as introduced by Notification No. 4/2005-ST.
And hence commodities like steel, cement etc., supplied by the ultimate service receiver do not constitute the term “consideration” as these materials are delivered again to the service recipient in a construction industry and therefore such free supplies do not comprise the gross amount for valuation purpose.

*SERVICES AT YOUR DOOR STEPS*

HAVE YOU FILED YOUR TAX RETURNS?

Hurry up, file it within due date through one of the reliable sources, we provide services in following matters:

1. INCOME TAX
2. VAT/ SALES TAX
3. SERVICE TAX
4. EXCISE DUTY/CUSTOM DUTY
5. ACCOUNTING SERVICES
6. PROJECT REPORT
7. FINANCIAL & BANKING SERVICES
8. APPEAL/ASSESSMENT
9. BUSINESS AUDIT/REFUND AUDIT

: Contact us at:

M/S. CHANDAN CORPORATE CONSULTANTS
202, Mahalaxmi Metro Square, Behind Dagadusheth Ganpati, Off. Laxmi Road, Jogeshwari Lane, Pune – 411002.

Call us on: Ph. No. 8379087878/ 9762073226

E-mail us on: [email protected]" rel="ugc" target="_blank">[email protected]

"" UNITED STATES GAAP "" ----> A BASIC CONCEPT..

U.S. GAAP - Generally Accepted Accounting Principles :-

GAAP:-

Generally Accepted Accounting Principles (GAAP) is defined as the standard guidelines of accounting rules for financial accounting and to prepare financial statements for private companies and the companies trading publicly in United States. It chalks down the standards, conventions, and rules for accountants to pursue in recording and summarizing transactions, and in the preparation of financial statements. In United States these rules are decided by the Governmental Accounting Standards Board (GASB) which applies to local and state governments.

U.S. GAAP:-

Again, it has to be remembered that GAAP are not a rigid set of rules. These are flexible guidelines only. Over the years, these groups of conventions and standards have evolved in the specific need of standard common platform for the preparation and presentation of financial statements In United States, the American Institute of Certified Public Accountants (AICPA), The Financial Accounting Standards Board (FASB) and the Securities and Exchange Commission (SEC) offer guidance and assistance about standard acceptable practices of accounting

Necessity OF GAAP:-

Acquiescence with GAAP promotes creditability with stockholders and creditors reassuring them and outsiders that financial report of a company precisely reflect its financial position.
Routine auditing is done by Certified public accountants to determine the compliance of financial statements with GAAP. Financial statements display these audit findings.
Even finance companies, banks and investors look for these audited financial statements of their clients.

The evolvement of GAAP is based on four fundamental qualities the financial statements must possess. The financial statements must be Relevant, Reliable, Consistent and Comparable. Economic Entity Assumption, Going Concern Assumption, Monetary Unit Assumption, and Periodic Reporting Assumption are the four basic assumptions for these financial statements.

GAAP exercises four basic principles to implement and achieve the objectives.

Historical Cost Principle – Companies should consider the acquisition costs and not fair market value for their liabilities and assets.
Revenue Recognition Principle – Accrual basis accounting is preferred
Matching Principle - This principle allows greater evaluation of actual profitability and performance as the expenses are matched with the revenues.
Principle of Full Disclosure - Information disclosed in the financial statement should be enough to make a judgment while keeping the costs reasonable.

Organizations behind GAAP:-

United States Securities and Exchange Commission (SEC) – During the Great Depression, the SEC was created as need of structure setting accounting standards. The SEC works closely with various private organizations setting GAAP, believing that the private sector had the proper knowledge, resources, and talents, but does not set GAAP itself.
American Institute of Certified Public Accountants (AICPA) - SEC urged the AICPA and in 1939, Committee on Accounting Procedure (CAP) has come into existence. However, it could not address the growing need for structured body of accounting principles. So, 1959, the AICPA created the Accounting Principles Board (APB), which also got dissolved in 1973 for lack of productivity and failure to act promptly. So, again the AICPA created FASB.
Financial Accounting Standards Board (FASB) - Realizing the need to reform the APB, a new structure is composed of three organizations: the Financial Accounting Foundation (FAF), the Financial Accounting Standards Advisory Council (FASAC), and the major operating organization in this structure the Financial Accounting Standards Board (FASB).
Governmental Accounting Standards Board (GASB) – With structure similar to that of the FASB, GASB was created in 1984 to the addresses state and local government reporting issues.