Benchmark Financial and Advisory Services

Benchmark Financial and Advisory Services Welcome to Benchmark Financial and Advisory Services (BFAS).We bring with us a rich blend of heritage and aspiration of a growing firm which provides tailor made solutions to satisfy the need of client through a flawless and dedicated process & tecnology.

Services by an entity registered under section 12AA of the Income tax Act, 1961 (43 of 1961) by way of charitable activities; is exempt from Service Tax and comes under the purview of Negative Listing of Service Tax under the Notification no. 25/2012-Service Tax

Important Definition subject to the statement:
“charitable activities” means activities relating to -
(i) public health by way of -
(a) care or counseling of (i) terminally ill persons or persons with severe physical or mental disability, (ii) persons afflicted with HIV or AIDS, or (iii) persons addicted to a dependence-forming substance such as narcotics drugs or alcohol; or
(b) public awareness of preventive health, family planning or prevention of HIV infection;
(ii) advancement of religion or spirituality;
(iii) advancement of educational programmes or skill development relating to,-
(a) abandoned, orphaned or homeless children;
(b) physically or mentally abused and traumatized persons;
(c) prisoners; or
(d) persons over the age of 65 years residing in a rural area;
(iv) preservation of environment including watershed, forests and wildlife; or
(v) advancement of any other object of general public utility up to a value of,-
(a) eighteen lakh and seventy five thousand rupees for the year 2012-13 subject to the condition that total value of such activities had not exceeded twenty five lakhs rupees during 2011-12;
(b) twenty five lakh rupees in any other financial year subject to the condition that total value of such activities had not exceeded twenty five lakhs rupees during the preceding financial year;

Services by veterinary clinic in relation to health care of animals or birds; is exempt from Service Tax and comes under the purview of Negative Listing of Service Tax under the Notification no. 25/2012-Service Tax

Important Definition subject to the statement:
“health care services” means any service by way of diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognised system of medicines in India and includes services by way of transportation of the patient to and from a clinical establishment, but does not include hair transplant or cosmetic or plastic surgery, except when undertaken to restore or to reconstruct anatomy or functions of body affected due to congenital defects, developmental abnormalities, injury or trauma;

Health Care Services by clinical establishment, an authorized medical practitioner or para-medics; is exempt from Service Tax and comes under the purview of Negative Listing of Service Tax under the Notification no. 12/2012-Service Tax

Important Definition subject to the statement:
“authorised medical practitioner” means a medical practitioner registered with any of the councils of the recognised system of medicines established or recognized by law in India and includes a medical professional having the requisite qualification to practice in any recognised system of medicines in India as per any law for the time being in force;

"clinical establishment" means a hospital, nursing home, clinic, sanatorium or any other institution by, whatever name called, that offers services or facilities requiring diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognised system of medicines in India, or a place established as an independent entity or a part of an establishment to carry out diagnostic or investigative services of diseases;

Services provided to the United Nations or specified international organisation is exempt from Service Tax and comes under the purview of Negative Listing of Service Tax under the Notification no. 12/2012-Service Tax

New 14 services added in negative list of services w.e.f. 01/07/2012 via notification number 25/2012

From 01.07.2012 new provisions on penalty are applicable for belated filing of income tax return. From july 2012 onwards one has to pay belated fiiling fee under section 234 E and Penalty under section 271 H of the income tax Act. New provisions regarding this has been ammended to the Act.

I. LATE FILING FEE UNDER SECTION 234E

As per section 234 E of the Income Tax act 1962, if a person has defaulted in filing the TDS return within the due date , he has to pay the late filing fee of Rs.200 per day for each day of delay. The maximum amount payable for the delay is limited to the amount of tax deducted or collected as the case may be .

For example . Mr.X has deducted Rs.1000/- as TDS from Mr.Y and remitted to the govt for the 1st quarter of 2012. The due date for filing TDS return is 15th July 2012 . If Mr.X failed to file the return in due date and files the same only in 19th July 2012. Then he has to pay Rs. 600 as late filing fee of TDS return for 3 days( ie for 16th 17th and 18th).

Suppose in the above case Mr.X files the return only on 31st July. Then there is a delay of 15 days. In this case the late filing fee is limited to Rs.1000/- (lower of 3000(200*15) and 1000(Tds amount collected).

II. PENALTY UNDER SECTION 271H

In addition to the above mentioned fee which is payable for uploading return belatedly , additional penalty under section 271 H of the Act may also be invoked if the default for filing the return continues for more than 1year from the original date for filing the return. The penalty under 271 H is minimum Rs.10000/- and maximum of Rs.100000/- .