Service Tax on Ocean Freight- Law And Impact

Introduction

Deletions from Section 66D ("Negative list") has become an annual exercise as part of the Finance Bill. This year, three services were removed from the Negative list. Amongst such deletions is the service of transportation of goods from outside India to first customs station in India. The article discusses the law relating to levy of Service Tax on such services post 1.6.2016 and implications thereof on various transactions.

Levy of Service Tax on transportation of goods prior to 01.6.2016

Service of transportation of goods from India to outside India and vice versa was nontaxable prior to 01.06.2016. The non-levy was because of Rule 10 of Place of Provision of Services Rules, 2012 read with Clause (p)(ii) of Negative list. In brief Rule 10 of Place of Provision of Services Rules, 2012 provides that place of provision of a service of transportation of goods is the place of destination of goods, except in the case of services provided by a Goods Transportation Agency in respect of transportation of goods by road, in which case the place of provision is the location of the person liable to pay tax (as determined in terms of rule 2(1)(d) of Service Tax Rules, 1994 (since amended). For eg. A consignment of computers is consigned from Mumbai to Shanghai. The place of provision of goods transportation service will be the destination of goods viz., Shanghai. Since the destination is outside taxable territory, such services of transportation is not liable to service tax. Conversely, if a consignment of machines is consigned from Berlin to New Delhi, the place of provision of such service will be New Delhi.

Thus, service of transportation to destination outside taxable territory is a non taxable service and conversely, service of transportation to destination in taxable territory is taxable and Service Tax shall be levied accordingly. However, while as per Place of Provision of Services Rules, 2012, such service of transportation of imports into taxable territory was taxable, such services were listed in negative list. Accordingly, even transportation of goods in case of imports also good out of the purview of Service Tax. Accordingly, no Service Tax could be levied on Ocean freight and air freight paid for import of goods prior to 01.6.2016.

Levy of Customs Duty on services of transportation in case of imports

Primary reason of inclusion of such transportation in negative list was that since such value of ocean freight is already included in the value for the purpose of levy of Customs Duty thus, levying Service Tax would be levy of two taxes on same value. Section 14of Customs Duty Act, provides that for the purposes of the Customs Tariff Act, 1975 (51 of 1975), the value of the imported goods and export goods shall be the transaction value of such goods, that is to say, the price actually paid or payable for the goods when sold for export to India for delivery at the time and place of importation, where the buyer and seller of the goods are not related and price is the sole consideration for the sale. The Section further provides that such transaction value in the case of imported goods shall include, in addition to the price as aforesaid, any amount paid or payable for costs and services, including commissions and brokerage, engineering, design work, royalties and licence fees, costs of transportation to the place of importation, insurance, loading, unloading and handling charges to the extent and in the manner specified in the rules made in this behalf. Accordingly, Rule 10 of Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 provides that in determining the transaction value, there shall be added to the price actually paid or payable for the imported goods

Service Tax on Ocean Freight - Law and impact is written by CA Gaurav Gupta.Though the levy has lead to a situation of double taxation, still, compliance under Service Tax is required and should not be left under the belief that Customs duty is levied on such value.

Signature Tax plus Perfect Tax Resolutions to Defend Legal Prosecution

Usually the tax amount is calculated as a percentage of your earned monthly income. Your tax claims are deducted from your monthly income which you are liable to pay to the IRS department. Tax payers try to attempt fraud with the IRS department by falsifications of their earned income to avoid taxes. Falsification of misrepresentation of the earned income is against the law and constitutes tax fraud. If an individual is charged with fraud tax and owes more than $100,000 to the IRS, then IRS applies different ways to collect tax. Most common of them are, freezing of bank accounts, imposing property liens, seizing or selling of your personal assets and wage garnishment. Wage garnishment is a legal way to collect tax debt directly from the debtor’s paycheck to ensure the payment of tax claims. Garnishment of wages of an individual is a last-ditch effort of debt collection and is initiated by a court order which allows the IRS to take personnel earnings to pay the debt. If you are tax defaulter then it is necessary for you to consult a tax attorney capable enough to withstand the controversies raised against the allegations of the debtor. Signature Tax Plus will safeguard you and your personal assets, and represent you during all the legal procedure.

Tax fraud is investigated by the Internal Revenue Service Criminal Investigation (CI) unit which appoints Revenue officers to collect unpaid tax revenue from the debtor’s. The RO has the right to take away all the stockpile of all your personal belongings like your home, cars, household stuff and may also hold on your life assets including your savings, current account, investments and much more.

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Signature Tax Scam Legal Help to Reduce Tax Obligation

Tax evasion materializes when an individual or business precisely and deliberately misrepresent the income and profit by reporting less than actually earned, in order to limit the amount of tax obligation. The skillful tactics used in tax fraud generally include falsification of the earned income to avoid taxes. Individual and business owners both can be found guilty of tax evasion, individuals earning in cash does not report the exact amount to the IRS department and businesses purposely report fewer sales in order to misguide the IRS. The tax defaulter can be found guilty of a summary offense and liable to pay heavy penalties and sometimes judge may also sentence the offender with maximum 2 years of imprisonment. If IRS has charged you or is threatening to charge you with tax evasion, then it is important for you consult a tax lawyer capable enough to stand beside you during this stressful time. Signature Tax Scam is a renowned Tax Scam Resolution company providing Signature Tax Scam Resolution Services to various individuals and business owners.

By hiring the professional Signature Tax Scams Resolution services, you will be defended from facing the criminal prosecution and heavy penalties. Most of the people cheat State Revenues Department by misrepresentation of earned income. If an individual or business are caught cheating by an auditor, they can levy upon civil fines and penalties or, worse, can refer your case to the IRS's criminal investigation division. While investigating your case IRS may demand a taxpayer to pay back his tax returns along with heavy penalties higher than the expected amount you can afford. The taxpayers may not be aware about the rights of the IRS; Signature Tax Scam experts will help you to understand your rights related to your tax claims.

Signature Tax Scam can help you with filing back tax returns. We provide you with expert and legal guidance of tax professionals to help you on the preparation of tax returns with minimum risk of audit, enforced collections of tax claims and also protect you from facing criminal charges by IRS. Our team of proficient Tax experts will help to make the preparation of tax return in order to avoid tax scams at Signtax. You need services of a proficient tax attorney to negotiate with the IRS and state revenue departments which may require a large bundle of documents, forms and financial records to resolve your tax claims. Our tax attorneys specialize in handling the IRS controversies, and help you to navigate through the legal process and resolve your claims incurred by IRS department.

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Signature Tax Service Professional Help to Resolve Tax Claims

As a consumer, you consume many products and services, on which you have to pay a fee or are levied with charges by Government in form of "Tax". Majority of taxpayers usually fail to file tax returns, due to insufficient funds to settle down the balance on the tax return. Some people may fail to file the returns in the first attempt and may delay with the payments which may result in huge penalties and claims form the IRS department. Many business owners commit innocent mistakes like inaccurate tax calculations by untrained staff, unawareness towards the constant changing laws, which confronts them with heavy financial losses. Dealing with a tax problem on your own, is not a good idea. If you are facing a tax issue you need to hire professional help of a Tax resolution firm which can provide you with expertise Tax Service to resolve Tax problems.

Signature Tax Services US is one of renowned tax resolution firm, comprised with professional Tax Attorneys efficient enough to handle the claims and concerns of IRS department. Tax experts have the authority to demand a client’s record from the IRS and help you to rebuild your tax information and records. In order to settle down your claims with IRS you need accurate, honest and acceptable tax returns which may save you from incurring heavy financial losses. Our skilled and licensed tax consultants offer tax services to resolve Tax problems even in the outmost emergency circumstances. You need Signature Tax Service of a proficient tax attorney to negotiate with the IRS and state revenue departments which may require a large bundle of documents, forms and financial records to resolve your tax claims. The team of our tax attorneys specializes in handling the IRS controversies, and helps you to navigate through the process and resolve your claims incurred by IRS department.

The IRS and state Revenue Department can be demanding when asking a taxpayer to pay his liabilities to the organization. The IRS may demand full payment of your back taxes along with penalties which may be higher than the expected amount, one may not afford. The IRS Department has limited rights, Signature Tax service by tax attorneys will guide you to understand your rights related to the tax issues. We can help you with filing back your tax returns. The expert legal and tax professionals can help you in accurate preparation of returns which will minimize the risk of audit, enforced collection of tax claims and defend you criminal prosecution by IRS.

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Simple Lacerte Tax Cloud is Convenient to File The Returns

Lacerte is Intuit product for managing and preparing taxes. This tax management software is real time software that operates all kinds of taxes needs of an enterprise. When the business management was managed by accounting and bookkeepers, it was considered time consuming that means it took time to operate all kinds of tasks. The evolution of software application by Intuit has simplified the process of taxation planning and filing the returns. The application software has erased the paper based method of filing the taxes returns hence customers of Lacerte software get hassle free easy taxes filing quickly and fastly with this product. Today, there are millions of customers worldwide for the tax software Lacerte. The versatile application is effective in making the tax filing simpler and businesses get advantage of the application software. Lacerte application has all the forms in the software which makes easy for users to select a form and file the taxes for federal, state or local returns. Customers can manage their company tax operations when they have purchased a license of the application. A license copy provides access to get the best use of the software. Customers can file for any number of times in a year with Lacerte tax software.

Advantage of Lacerte tax solution:

Customers should contact Intuit to get a license of the tax software. When a user has no knowledge on the software Lacerte, they must learn through the various methods provided by the Intuit for knowledge gain and to learn the process of company operations. Free trial version is 30 days free use of the software on any device. Webinars and tutorials are other sources to learn the tax filing process. Lacerte tax software can install on any system so users do not need to configure setups because it's compatible to most devices. All devices like mobiles, tablets and laptops are compatible to Lacerte software hence users can file the tax return with any device they prefer. Lacerte software is easy to file the taxes and makes faster tax filing system for small and medium enterprises. It can integrate with other application flawlessly thus making quick data processing. Lacerte hosting is the method to access the application as on cloud or desktop which business owners can decide based on their needs. Lacerte tax cloud hosting is web based solution which runs from remote servers online. Lacerte hosted on desktop is operated from premises which in-house desktop hosting system and managed by accountants and professionals on local servers while it is said to have high cost of operation.

Lacerte tax cloud is easy accessible for users and tax professionals as online hosting is active anywhere anytime because a device with internet connection can connect the system. Lacerte tax cloud server is managed by hosting providers on subscription. Anytime anywhere access feature is best solution for users to work from home, cafe or during travel on any device they prefer. Software updates to Lacerte tax application is automatically done by the software and users get complete track of the tax filing on small devices. Cloud hosting providers offer security, backups, data management and 24x7 customer support.

I am Jim Colson, a professional Content writer in Sagenext Infotech LLC. I have panoptic experience in writing about Lacerte Tax Cloud , ATX hosting, and Drake Tax Hosting .

Tax Extensions How To Apply

If you are not ready with your tax returns yet and the dreadful tax day aka April 15 is nearing, what you mostly need is a tax extension. No matter what might be the reason for not filing, IRS allows for an extension of 6 months on filing tax returns and this provision is known as tax extension. The deadline is postponed to October 15 and this way you will have more time to make up for the mistakes such as having inadequate documents or lack of preparation. Not filing tax returns and failing to file an extension too can lead to hefty penalties, starting from 5% of the unpaid taxes to a maximum of 25%. Apart from failure-to-pay penalty, if adequate finances are a major problem in your case and provided you fail to pay off the dues within April 15, an additional failure-to-pay penalty is added to the latter. Filing for a tax extension not only provides you with extra time but also helps to avoid penalties. The procedure to apply for an extension is pretty simple, yet it provides you with an opportunity to file a good tax return and have a good tax history. Here’s more on how to apply for a tax extension.

- The last date to apply for a tax extension is April 15 and for an easy and quick filing, people prefer e-filing over the traditional ways of doing it on paper forms.

- You can either request the extension forms from IRS by mail or download for free on its website, the second option being more practical and feasible. You would need form 4868 for individual purposes and form 7004 for business purposes.

- Once you have the access to the form, all you would need to apply for a tax extension is your name, contact details and your social security number. Make sure to make no entry errors or provide any false information and you can be rest assured that your application will be approved!

- To further confirm the status of your application, you can track the same through internet. You will also receive a confirmation mail from the IRS on the approval so that you can prepare to file your tax return in peace. Note that this provision wouldn’t be available if you are filing offline.

- In addition, your application wouldn’t be lost as it would happen in the case of mail. There are many e-filing provider websites who will teach you how to apply for a tax extension, provide you with the forms for free, advice on all features of extension and help you complete filing within 5 to 6 minutes!

As told before, it is really simple to understand how to apply for a tax extension. For more information, you can contact the IRS website or take the help of an e-file provider website to help you understand how to apply for a tax extension and also managing your application for you.

FileLater.com is an authorized e-file provider website helping the taxpayers of the US, both individuals and businesses to know how to apply for a tax extension by providing all the forms, resources and advice. For more on filing a tax extension, visit About.com.

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Tax Preparation Has Become Simpler With Intuit Tax

For the taxes preparation and filing the taxes returns, Intuit developed software for businesses and enterprises to let them manage taxes returns efficiently. There are millions of users globally who operate their taxation with Intuit tax software solution. Intuit is world's no.1 cloud taxation software solution. The software is a suite of accounting solutions and ERP for making the taxes returns quicker. With the help of taxation softwares, the process of taxes return has become simpler and easier. The easy application makes quick filing of the taxes and reduces the manual process of paper based filing. The manual process of taxes filing needs paperwork to be done which requires more time by users to make the taxes filing. The manual taxes filing was complex task which accountants had to work overtime to make taxes filing for multiple customers and businesses. Tax software has lot of features that makes the application efficient for small and medium enterprises. ProSeries is the best solution of tax filing for personal and professional purpose. Users or firms can file the taxes returns for federal, state or local tax submission for any number of times in a year.

Intuit Tax software:

Intuit offers free trial version of tax application to learn the application before using the system. It can be installed on any device and users can learn the product anytime. The trial version allows less knowledged users to become a good learner of the application. The trial is free for 30 days from the date of installation so users should get most benefit of learning while webinars, video portals are running all the time online that can be accessed anytime. The tax software is compatible solution to most devices so users have freedom to install on any system such as smartphone, laptop, tablet and computer. It's quick and simple to install the free software application on any preferred device and get access to learning the application. Multiple users can collaborate on the real time tax application to make the tax solution simplified. All users of the firm can collaborate on the hosted solution and make tax return executed. Intuit Tax is easy, quick and fast processing software which makes easy filing of the taxes and on time. Company owners have no burdens of tax preparation and they can rest assured when they have tax solution with them. Customer can purchase the license from Intuit and get discount as new customer on new product.

Along with the license purchase, customers also get free expert tips to easily file the tax returns. The hosting of Intuit tax software on cloud and desktop are two options which customers can select to make the tax return process done. Tax solution on cloud hosting is a new solution hosted online on remote servers. Desktop hosting of the application is traditional approach that lets users prepare the tax. Cloud hosting is a low cost solution offered by hosting providers on subscriptions. The subscription feature is easy on cash management and customers get security, backups and support services.

I am Jim Colson, a professional Content writer in Sagenext Infotech LLC. I have penoptic experience in writing about Intuit Tax Online , Tax Software Hosting , and Drake Cloud .

Tax Updates For 2010

There are many laws constantly changing with the IRS. At Online Tax Pros we stay up to date with the latest tax changes so we can relay them to you, The Public. Here are some of the most recent tax updates for 2010:

Earned Income Credit

The maximum amount of the credit has increased. The most you can receive for 2010 is: -

$3,050 with one qualifying child -

$5,036 with two qualifying children -

$5,666 with three or more qualifying children -

$457 if you do not have a qualifying child

Earned income amount increased. The maximum amount of income you can ear & still receive the cedit has increased also. You may qualify for this credit if: -

You have three or more qualifying children & you earn less than $43,352 ($48,362 if married filing jointly) -

You have two qualifying children & earn less than $40,363 ($45,373 if married filing jointly) -

You have one qualifying child and you earn less than $35,535 ($40,545 if married filing jointly) -

You do not have a qualifying child & you earn less than $13,460 ($18,470 if married filing jointly)

The maximum amount of investment income you can have and still receive the credit remains at $3,100 for 2010. If you get the advance payments of the credit from your employer with you pay, the total advance payments you get during 2010 can be as much as $1,830

Economic Recovery Payment

If you receive any economic recovery payment during 2010 it is not taxable. These $250 payments were made in 2010 to people who: -

Received social security benefits, supplements security income (SSI), railroad retirement benefits, or veterans disability compensation or pension benefits in November 2008, December 2008, or January 2009. -

Live in the U.S. States, the District of Columbia, Puerto Rico, Guam, the U.S. Virgin Islands, American Samoa, or the Northern Mariana Islands -

did not receive an economic recovery payment in 2009

If your married an you and your spouse both meet these requirements, each of you may get a $250 payment. If you are entitled to a payment, you will automatically receive it, you do not apply for it. However, any payment you receive will reduce your making work payment credit.

Residential Energy Credits

Nonbusiness energy property credit. This credit, which expired after 2007, has been reinstated. You may be able to claim a nonbusiness energy property credit of 30% of the cost of certain energy-efficient property or improvements you placed in service in 2010. This property can include high-efficiency heat pumps, air conditioners, & water heaters. It also may include energy-efficient windows, doors, insulation materials, and certain roofs. The credit has expanded to include certain asphalt roofs and stoves that burn biomass fuel.

Limitation. The total amount of credit you can claim is limited to $1,500.

Residential energy efficient property credit. Beginning in 2009, there is no limitation on the credit amount for qualified solar electric property costs, qualified solar water heating property costs, qualified small wind energy property costs, & qualified geothermal heat pump property costs. The limitation on the credit amount for qualified fuel cell property costs remains the same.

Itemized Deductions

The limit on Itemized deductions expired in 2010. However, under current law, the limit on itemized deductions will resume in 2011 at pre-2006 levels.

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Use a Tax Organizer to Estimate Quarterly Taxes (1)

For many taxpayers, a tax organizer is a critical component of keeping Uncle Sam happy. A reputable tax service provider works with you to customize an organizer to perfectly suit your needs and goals. Estimated taxes — also known as quarterly taxes — are a good idea for many and a requirement for some. If you do not have enough taxable income withheld throughout the year from an employer, you may need to send quarterly payments to the IRS. If you do not have enough withheld (or any at all) and you do not pay enough estimated/quarterly taxes throughout 2016, the IRS may penalize you next April.

How can you figure out if you are withholding enough? Your CPA can tell you. It depends on many factors, including your tax bracket. You may also need to pay an additional amount for state taxes (rates vary by state, with some boasting zero income tax) and/or county taxes.

No Such Thing as a Free �Ц

While income is generally thought of as revenue from working, owning your own business, etc., taxes must also be paid on interest, rent, prizes, dividends, alimony and more. For business owners, your estimated tax payment can cover both income and self-employment taxes. Different taxpayers have to use different forms to file their estimated taxes, which are due in April, June, September and January. Sole proprietors, self-employed people and S corporation shareholders must use Form 1040-ES, Estimated Tax for Individuals. Corporations must use Form 1120-W, Estimated Tax for Corporations. It can be hard to tell whether you will get dinged with an IRS penalty for not paying estimated taxes (or enough in estimated taxes), but a tax professional can tell you that if you anticipate owing more than $1,000 in taxes each year, it is best to pay estimated taxes. For corporations, that figure drops down to $500. Farmers and fishermen fall under a different category, which is outlined in IRS Publication 505.

Paying it Forward

You can best estimate how much you should pay in quarterly taxes in two ways: Ask your CPA, or use the Form 1040-ES worksheet. A lot of guessing is involved, but you can use last year’s income information as a foundation (if you have similar income year after year). However, if you’re off, do not worry. If you pay too much, you will get a refund, and if you do not pay quite enough, you can pay the remaining balance in April. Bear in mind that it is important to post your estimated payments on time. The easiest solution is using the Electronic Federal Tax Payment System, or mail in your payment via snail mail. Via the online system, you can make payments as often as you wish — daily, weekly, monthly, etc. All that matters is that by the time your quarterly payment is due, the full amount has been sent. Alternatively, you can also pay via electronic check over the phone. Some taxpayers have been assessed a penalty for failing to make payments on time, even if they ultimately paid appropriate quarterly taxes, so keep an eye on the calendar. Your strongest secret weapon is your CPA. With tax laws, benefits and credits constantly changing, you deserve an expert in your corner. Using a tax organizer is the best way to keep track of your income and expenses and will make your CPA’s job easier, so you won’t have any surprises when tax day rolls around next year.

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Use QuickBooks ProConnect & Self-Employed Tax Tool to Simplify Your Bookkeeping (1)

QuickBooks Online Comes Powered by ProConnect Tax Online to Ensure Efficiency in Taxation
Taking a step further, Intuit has integrated ProConnect™ Tax Online (PTO) into its QuickBooks Online to give a new edge to the overall business accounting. It has brought in a unified platform for the businesses to practice all the key elements such as bookkeeping, taxes, income & expenditure management, and many more. With estimated more than 2 million QuickBooks Online (QBO) subscribers in the coming years, Intuit is quite excited to provide its customer with a unified platform that can establish a reliable accounting mechanism for a better and more accurate bookkeeping practice.

When it comes to meeting taxation requirement, the accounting professionals try to draw on a system that can help them handle all the complexities and technical elements accurately and efficiently. You may experience some sorts of difficulties if you have insufficient accounting system - but Intuit, with the newly integration with ProConnect Tax Online system, ensures a simplified dashboard and execution level that you can utilize to maintain the workflow all the time. Read more at https://www.linkedin.com/pulse/quickbooks-online-comes-powered-proconnect-tax-ensure-alvin-johnson?published=t

2. QuickBooks Enterprise Self-Employed Tax Tool: A Smarter Way to Untangle Your Business Books

Taking the bookkeeping professionals by surprise, Intuit birthed a new smarter tool for the small businesses, termed as QuickBooks Self-Employed, which they can use to simplify the tax calculation and deductions. It is being termed to a driving force behind the way how the professionals handle and manage their finance. Unlike Turbo Tax, the new tax calculation software is quietly intended to streamline both the business and personal finances. Most of the small business owners mingle their personal banking transactions with the business books - which lastly cause inconveniences in the way how the bookkeeping is executed properly.

Presently, the software has been advanced with some powerful estimated tax quarterly calculator that provides the enterprise users with a widespread opportunity to manage their business expenses and calculating taxes. It combines some new tools such as deduction tracker, invoicing, tax calculator, reports, and other related documents. Read more at https://technicalsupportquickbooks.com/quickbooks-enterprise-self-employed-tax-tool/

You can also find relevant technical support links on QuickBooks by visiting www.technicalsupportquickbooks.com or get direct technical support from official website for QuickBooks.

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