Excel calculator to show why loan against property is cheaper than personal loan

Excel calculator to show why loan against property is cheaper than personal loan

Almost everyone may find himself in financial problem someday even if he is a big saver of the money. There is sometimes which one needs to borrow money from someone.

In the first stage people prefers to take it from a friend or relative, but what if the amount and tenure required is big?

In this case one needs to go to the bank having a personal loan or loan against property. A loan with leverage your own house or other property is a better option in this case.

 One can use his own property (like house) for collateral for taking a loan with the bank. The value of the loan depends upon the market value of the property which is decided by the authorized valuer. Bank will offer the loan around 70% of the market value of the property.

There are some points by which loan against property are better than personal loan which are as under.

1- One will get higher amount of loan compare to personal loan in the case of loan against property.
2- Rate of interest will be low compare to personal loan. Rate of interest on personal loan varies from 14 to 22% whereas rate of interest on loan against property varies from 12 to 16%.
3- Tenure is also matters when applying for a loan. Personal loan tenure usually is 1-5 year whereas in case of secured loan, it may be 1-15 years depending on case to case.
4- There is a processing fee on both the loan but secured loan has less processing fees rate.


 But one needs to deposit the original documents of the property with the bank. It doesn’t matter one is residing in that property or let it out. The matter is one has the clear record and not any issue.

If the property is in joint names, all of them must be joint applicant of the loan. One can get loan against any type of freehold property.
Keywords-loan against property,benefits of loan against property,how to apply for loan against property,personal loan and secured loan,personal loan vs secured loan

E-payment mandatory for excise or service tax of Rs. 1 lakh or above

E-payment mandatory for excise or service tax of Rs. 1 lakh or above

Any payment of excise duty or service tax of Rs. 1 lakh or above will now to be paid electronically. This new rule is applicable from 1 January 2013.

This limit was Rs. Ten lakhs earlier which is reduced to 1 lakh.

"From January 1, 2014, a manufacturer or a Service Tax payer who has paid a duty or tax of more than Rs 1 lakh in the previous financial year shall be required to pay duty or tax through Internet banking," the Finance Ministry said. 

The Government wants to add funds as much as it can electronically as it reduces the time spent as well as very little chances of fraud etc. It is also convenient for the assessees to pay electronically and there is always a solid proof for e-payment compare to cash payment.
Tags-service tax e-payment,excise e-payment,e-payment rule for excise,e-payment rule for service tax
Issue raised and clarification on service tax VCES scheme

Issue raised and clarification on service tax VCES scheme

Service tax department started Voluntary Compliance Encouragement Scheme (VCES) scheme on 10 May 2013. There are many issue and question raised on rules and penalty in it. So service tax department giving clarification on the issued raised on VCES scheme. In this regard, Service tax department issued a circular no. 174/09/2013 dated 25 November 2013. Full circular is as under.

The Service Tax Voluntary Compliance Encouragement Scheme (VCES) has come into effect from 10.5.2013. Most of the issues raised with reference to the Scheme have been clarified by the Board vide circular Nos. 169/4/2013-ST, dated 13.5.2013 and No. 170/5/2013-ST, dated 8.8.2013. These clarifications have also been released in the form of FAQs. Attention is also invited to letter F. No. 137/50/2013-ST, dated 22.8.2013 as regards the action to be taken by the field formations for effective implementation of the Scheme. A number of interactive sessions have also been held at various places to ascertain and address the concerns of trade on any aspect of the Scheme.

2.  In the recently held interactive sessions at Chennai, Delhi and Mumbai, which were chaired by the Hon’ble Finance Minister, the trade had raised certain queries and also expressed some apprehensions. Most of these issues have already been clarified in the aforementioned circulars/FAQs. Certain issues raised in these interactive sessions, which have not been specifically clarified hitherto or clarified adequately, are discussed and clarified as below.

S.No.
Issue raised
Clarification
1
An instance was brought to notice wherein a declaration was returned probably on the ground that it was incomplete.
As has already been directed by the Board, vide the said letter dated 22.8.2013 (para 2.4 of the letter), the designated authority shall ensure that no declaration is returned.  In all cases, declaration should be promptly received and duly acknowledged. Request for clarification should be dealt with promptly. Defects in the application, if any, should be explained to the declarant and possible assistance be provided in rectifying these defects. The effort must be to accept a declaration, as far as possible, and recover the arrears of tax.
2
An apprehension was raised that declarations are being considered for rejection under section 106 (2) of the Finance Act, 2013, even though the “tax dues” pertain to an issue or a period which is different from the issue or the period for which inquiry /investigation or audit was pending as on 1.3.2013.
Section 106(2) prescribes four conditions that would lead to rejection of declaration, namely,
 (a) an inquiry or investigation in respect of a service tax not levied or not paid or short-levied or short-paid has been initiated by way of,-
(i) search of premises under section 82 of the Finance Act,1994 ; or
 (ii) issuance of summons under section 14 of the Central Excise Act, 1944; or
 (iii) requiring production of accounts, documents or other evidence under the Finance Act, 1994 or the rules made there under; or
      (b) an audit has been initiated,
and such inquiry, investigation or audit was pending as on the 1st day of March, 2013.
These conditions may be construed strictly and narrowly. The concerned Commissioner may ensure that no declaration is rejected on frivolous grounds or by taking a wider interpretation of the conditions enumerated in section 106(2). If the issue or the period of inquiry, investigation or audit is identifiable from summons or any other document, the declaration in respect of such period or issue alonewill be liable for rejection under the said provision.
Examples:
(1) If an inquiry, investigation or audit, pending as  on 1.3.2013 was being carried out for the period from 2008-2011, benefit of VCES would be eligible in respect of ‘tax dues’ for the year 2012, i.e., period not covered by the inquiry, investigation or audit.
(2) If an inquiry or investigation, pending as on 1.3.2013 was in respect of a specific issue, say renting of immovable property, benefit of VCES would be eligible in respect of ‘tax dues’ concerning any other issue in respect of which no inquiry or investigation was pending as on 1.3.2013.
It is also reiterated that the designated authority, if he has reasons to believe that the declaration is covered by section 106(2), shall give a notice of intention to reject the declaration within 30 days of the date of filing of the declaration stating such reasons to reject the declaration. Commissioners should ensure that this time line is followed scrupulously.
3
Whether benefit of VCES would be available in cases where documents like balance sheet, profit and loss account etc. are called for by department in the inquiries of roving nature, while quoting authority of section 14 of the Central Excise Act in a routine manner.
The designated authority/ Commissioner concerned may take a view on merit, taking into account the facts and circumstances of each case as to whether the inquiry is of roving nature or whether the provisions of section 106 (2) are attracted in such cases.
4
Whether the benefit of the Scheme shall be admissible in respect of any amount covered under the definition of ‘taxes dues’, as defined in the Scheme, if paid by an assesses after the date of the Scheme coming into effect, (i.e., 10.5.2013), but before a declaration is filed
Yes, benefit of the Scheme would be available if such amount is declared under the Scheme subsequently, along with the remaining tax dues, if any, provided that Cenvat credit has not been utilized for payment of such amount.
Example:
A person has tax dues of Rs 10 lakh. He makes a payment of Rs 2 lakh on 15.5.2013, without making a declaration under VCES. He does not utilize Cenvat credit for paying this amount. Subsequently, he makes declaration under VCES on 1.7.2013. He may declare his tax dues as Rs 10 lakh. Rs 2 lakh paid before making the declaration will be considered as payment under VCES.
5
Whether declaration can be made in such case where service tax pertaining to the period covered by the Scheme along with interest has already been paid by the parties, before the Scheme came into effect, so as to get waiver from penalty and other proceedings?
As no “tax dues” is pending in such case, declaration cannot be filed under VCES. However, there may be a case for taking a lenient view on the issue of penalties under the provision of the Finance Act, 1994. In this regard attention is invited to section 73 (3) and section 80 of the Finance Act, 1994.
Central excise amendment in valuation rules 8, 9 and 10

Central excise amendment in valuation rules 8, 9 and 10

Central excise department made amendment in rule 8, 9 and 10 in central excise valuation rules. Central excise department issued a circular no. 975/09/2013 dated 25 November 2013 regarding this amendment. Full circular is as under.

 Subject – Amendment of rule 8, 9 and 10 of the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000  - reg .

I am directed to invite your attention to amendments in rule 8, 9 and 10 of the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000. Under transaction value regime each transaction or removal is required to be assessed independently, as would be clear from the language of section 4 of the Central Excise Act, 1944. Section 4(1) of the Central Excise Act, 1944 reads as –

Section 4 – Valuation of excisable goods for purposes of charging of duty of excise - (1) Where under this Act, the duty of excise is chargeable on any excisable goods with reference to their value, then, on each removal of the goods, such value shall –
…………………………………

2) Rules 8, 9 and 10 of the Central Excise Valuation Rules, 2000 dealing with determination of assessable value in case of captive consumption and sale to related person have been amended vide notification no. 14/2013 – Central Excise (N.T.) dated 22.11.2013 to clearly state that these rules apply irrespective of whether the whole or a part of the clearances of manufactured goods are covered by the circumstances given in these rules. Each clearance is required to be assessed according to section 4(1)(a) or the relevant rule dealing with the circumstances of clearance of the goods, as the case may be. 

3) For example, if an assessee clears his goods in such a way that first removal of goods is to an independent buyers, some goods are captively consumed, second removal is to such a related person who is covered under rule 9 and third removal is to a person who is covered under rule 10, then the first removal should assessed under section 4(1)(a), captively consumed goods should be assessed under rule 8, second removal should be assessed under rule 9 and third removal should be assessed under rule 10 of these rules. It may be noted that Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000 are not required to be followed sequentially. Each of these rules provide for arriving at the assessable value of goods under different contingencies as noted by Hon’ble Supreme Court at paragraph 70 in case of Commissioner of Central Excise, Mumbai vs M/s FIAT India Pvt Ltd [2012 (283) ELT 161 or 2012-TIOL-58-SC-CX]. 

4) Serial no. 5, 12 and 14 of the Circular no. 643/34/2002-CX dated 1-7-2002 are deleted in view of the amendments in the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000, as these amendments address the issues on which these clarifications were issued. The amended rules and accordingly this circular shall apply with effect from 1st December, 2013.
Amendment in central excise valuation rules 2013

Amendment in central excise valuation rules 2013

Central excise department made amendment in central excise valuation rules which is called central excise valuation rules 2013. These rules will come effect from 1 December 2013. Excise department issued a notification no. 14/2013 dated 22 November 2013 regarding this amendment. Full notification is as under.


G.S.R. (E). - In exercise of the powers conferred by section 37 of the Central Excise Act, 1944 (1 of 1944), the Central Government hereby makes the following rules to further amend the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000, namely:- 

1. (1) These rules may be called the Central Excise Valuation (Determination of Price of Excisable Goods) Amendment Rules, 2013. 

(2) They shall come into force with effect from the 1st day of December, 2013. 

2. In the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000 (hereinafter referred to as the said rules), for rule 8, the following rule shall be substituted, namely:- 

“8. Where whole or part of the excisable goods are not sold by the assessee but are used for consumption by him or on his behalf in the production or manufacture of other articles, the value of such goods that are consumed shall be one hundred and ten per cent of the cost of production or manufacture of such goods.” 

3. In the said rules, in rule 9, for the words “When the assessee so arranges that the excisable goods are not sold by an assessee except to or through a person who is related in the manner specified in any of the sub-clauses (ii), (iii) or (iv) of clause (b) of sub-section (3) of section 4 of the Act, the value of the goods shall 
be the normal transaction value”, the words “Where whole or part of the excisable goods are sold by the assessee to or through a person who is relatedin the manner specified in any of the sub-clauses (ii), (iii) or (iv) of clause (b) of sub-section (3) of section 4 of the Act, the value of such goods shall be the normal 
transaction value” shall be substituted. 

4. In the said rules, in rule 10, for the words “When theassessee so arranges that the excisable goods are not sold by him except to or through an inter-connected undertaking, the value of goods shall be determined in the following manner, namely:- ” the words “Where whole or part of the excisable goods are sold by the 
assessee to or through an inter-connected undertaking, the value of such goods shall be determined in the following manner, namely:- ” shall be substituted. 
Tags-central excise valuation rules,valuation rule in central excise,amendment in valuation rule excise,excise notification no. 14,excise notification no. 14/2013


All new debit and credit card will have additional biometric validation for transaction

All new debit and credit card will have additional biometric validation for transaction

Reserve bank of India advised banks to put additional security feature for all debit and credit card transaction which is biometric validation supported by Aadhar card. RBI issued a note dated 26 November 2013 about Security and risk migitation measures for card present transaction. Full note is as under.

A reference is invited to our circular dated September 22, 2011 on security issues and risk mitigation measures related to Card Present (CP) transactions, along with circulars dated February 28, 2013 and June 24, 2013 on security and risk mitigation measures for electronic payment transactions wherein various timelines were indicated for accomplishment of tasks for securing card and electronic payment transactions.

2. It may be recalled that the “ Working Group on Securing Card Present Transactions“ (Chairperson: Gowri Mukherjee) set up by RBI, had recommended the evaluation of UIDAI’s Aadhaar as an effective alternative for additional factor of authentication for domestic transactions subject to fulfilment of certain tasks stated therein. In order to evaluate this recommendation, another Working Group was formed by RBI to assess the feasibility of Aadhaar (biometric validation) as additional factor of authentication for card present transactions.

3. The recommendations of the Working Group have been examined by RBI. After taking into consideration the developments that have taken place in the card payment ecosystem as well as the scalability and effectiveness of Aadhaar over a period of time, the banks are advised as follows:

In respect of cards, not specifically mandated by the Reserve Bank to adopt EMV norms, banks may take a decision whether they should adopt Aadhaar as additional factor of authentication or move to EMV Chip and Pin technology for securing the card present payment infrastructure.

All new card present infrastructure has to be enabled for both EMV chip and PIN and Aadhaar (biometric validation) acceptance.

4. The directive is issued under section 18 of Payment and Settlement Systems Act 2007, (Act 51 of 2007).

5. Please acknowledge the receipt of this circular.
No royalty from sale of software under DTAA agreement

No royalty from sale of software under DTAA agreement

No ‘royalty’ from sale of software, HC ignores amended Sec. 9 as DTAA more beneficial; Samsung’s case distinguished  
 
The Delhi High Court upheld the order of the Tribunal that amount received by the assessee under the license agreement for allowing the use of the software would not be royalty under the DTAA.

The Delhi High Court held as under:

1) What was transferred was neither the copyright in the software nor the use of the copyright in the software, but what was transferred was the right to use the copyrighted material or article which was distinguishable from the rights in a copyright;

2) It further held that the right that was transferred was not a right to use the copyright but was only limited to the right to use the copyrighted material and the same would not give rise to any royalty income and would be business income;

3) The Delhi High Court expressed its disagreement with the decision of the High Court in the case of CIT v. Samsung Electronics Co. Ltd. (2011) 203 Taxman 477 (Kar.) that right to make a copy of the software and storing the same in the hard disk of the designated computer and taking backup would amount to copyright work – DIT v. Infrasoft Ltd. (2013) 39 taxmann.com 88 (Delhi)
Excise cenvat credit is allowable even if supplier had not paid the duty

Excise cenvat credit is allowable even if supplier had not paid the duty

Cenvat credit was allowable to assessee even if supplier hadn’t discharged its duty  
 
Requirement of taking "reasonable steps" does not mean that assessee is required to verify from department whether duty stands paid by supplier because that would be practically impossible and would lead to transactions getting delayed; therefore, assessee is entitled to credit even if supplier has not paid duty to department

In the instant case the assessee took deemed Modvat credit benefit under Notification No. 58/97-CE(NT) on basis of invoices issued by supplier of inputs, but on verification it was found that supplier had not paid duty. The Department opined that since rule 57A(6) required the assessee to take all reasonable steps to ensure that duty had been paid, no credit could be allowed if duty had not been paid on inputs supplied.

The Supreme Court held in favour of assessee as under:

1) In this case supplier of inputs had given declaration indicating that excise duty had been paid on said inputs. Fact that supplier had not discharged duty was a lapse on part of seller; it was different and not a condition or rather a precondition postulated in Notification;

2) When there was a prescribed procedure and that had been duly followed by the assessee, it could not be said that the assessee had not taken reasonable steps as prescribed in notification;

3) Due care and caution were taken by the assessee and it was not stated by Department what further care and caution could have been taken. Requirement of "reasonable care" does not mean verification from department whether duty stands paid by supplier because that would be travelling beyond notification and practically impossible and would lead to transactions getting delayed;

4) Thus, the Assessee was entitled to deemed credit under the Notification No. 58/97-CE(NT). - Commissioner of Central Excise, Jalandhar v. Kay Kay Industries (2013) 38 taxmann.com 336 (SC)
Services permitted in Special Economic Zone SEZ list

Services permitted in Special Economic Zone SEZ list

Ministry of Commerce approved two more services in the approved services in Special Economic Zone SEZ. Theses services are as under.

(i)Rent-a-cab Scheme Operator's Services
(ii)SEZ Online Services
The approved list of the services allowed in the SEZ are as follows.

Default List of Services approved by Department of Commerce
Sl. No.
List of Approved Services
1
Airport Authority Services
2
Architech Services
3
Asset Management Services
4
Advertising agency services
5
Airport services
6
Banking and other financial services
7
Business Exhibition services
8
Cargo Handling services
9
Chartered Accountant Services
10
Cleaning Activity services
11
Clearing & forwarding agents services
12
Commercial or industrial construction services
13
Company secretary services
14
Computer network services
15
Consulting Engineer's services
16
Cost accountant services
17
Courier services
18
Credit rating agency services
19
Custom house agent services
20
Commercial training & coaching services
21
Convention services
22
Copyright services
23
Design services
24
Development & supply of content services
25
Erection, commission and installation services
26
General insurance business services
27
Goods transport agency services
28
Information Technology Software Services
29
Interior decorator services
30
Internet communication services
31
Intellectual property services
32
Legal consultancy services
33
Management, maintanance or repair services
34
Manpower Recruitment and supply agency services
35
Market research agency services
36
Other Port services
37
Outdoor caterer services
38
Packaging activity services
39
Port services
40
Processing & clearing house services
41
Renting of Immovable property services
42
Security agency services
43
Site formation & clearance, excavation earth moving
44
Storage & warehousing services
45
Supply of tangible goods
46
Survey & map making services
47
Scientific or technical consultancy service
48
Sound recording studio or agency services
49
Technical inspection and certification
50
Technical Testing and Analysis services
51
Telecommunication services
52
Transport of goods by Air services
53
Transport of goods by Rail services
54
Transport of goods by Road services
55
Works contract services
56
Transport of goods services
57
Construction Services
58
On-line Information and database access services
Tags-service tax allowed on sez,service allowed in sez,service tax exemption in sez,sez service exemption
Income tax clarification about section 144C

Income tax clarification about section 144C

Income tax department issued a circular no. 9/2013 dated 19 November 2013 about clarification in respect of circular no. 5/2010 dated 3 June 2010 on section 144C. Full circular is as under.

Sub: Clarification in respect of Circular No.5/2010 – F. No. 142/13/2010 –SO (TPL) dated 03.06.2010- regarding. 

Section 144C, providing for reference to Dispute Resolution Panel (DRP), was inserted in the Income-tax Act, 1961 by Finance (No.2) Act, 2009. Sub-section (1) of section 144C reads as under: 

“The Assessing Officer shall, notwithstanding anything to the contrary contained in this Act, in the first instance, forward a draft of the proposed order of assessment (hereinafter in this section referred to as the draft order) to the eligible assessee if he proposes to make, on or after the 1st day of October, 2009, any variation in the income or loss returned which is prejudicial to the interest of such assessee.” 

2. Explanatory Circular for Finance (No.2) Act, 2009 i.e. Circular No. 5 of 2010 dated 03.06.2010, in para 45 has explained the said new section 144C and the consequential amendments made in other sections of Income-tax Act. 

Para 45.5 of the Circular No.5/2010 dated 03.06.2010 reads as under: 

“45.5 Applicability: These amendments have been made applicable with effect from 1st October, 2009 and will accordingly apply in relation to assessment year 2010-11 and subsequent assessment years. The Dispute Resolution Panel Rules have been notified by S.O. No. 2958 (E) dated 20th November, 2009.” 
In the above extracted Para 45.5 there has been an inadvertent error in stating the applicability of the provisions of section 144C inserted vide Finance (No.2) Act, 2009 that amendments will apply in relation to the assessment year 2010-11 and subsequent assessment years. Accordingly, para 45.5 is replaced with the following:

“45.5. Applicability: Section 144C has been inserted with effect from 1st April, 2009. Accordingly, the Assessing Officer is required to forward a draft assessment order to the eligible assessee, if he proposes to make, on or after the 1st day of October, 2009, any variation in the income or loss returned which is prejudicial to the interest of such assessee. In other words section 144C is applicable to any order which proposes to make variation in income or loss returned by an eligible assessee, on or after 1st October, 2009 irrespective of the assessment year to which it pertains. Amendments to other sections of the Income-tax Act referred to in para 45.3 of the circular 5/2010 dated 3rd June, 2010 shall also apply from 1st October, 2009”
Tags-section 144c,section 144c of income tax,section 144c income tax,section 144c of income tax act, income tax section 144c,income tax circular no. 9/2013,income tax circular no. 9

Payment made to one advertising agency to another attracts TDS u/s 194C

Payment made to one advertising agency to another attracts TDS u/s 194C

Sum paid by one advertising agency to another akin to payment to a sub-contractor; sec. 194C attracted  
 
Payment made by one advertising agency to other advertising agency for getting work done would be subjected to TDS under section 194C

Facts:

a) The assessee, engaged in business of advertising services, had shown purchase from other advertising agency, namely, RAS without deduction of any tax at source;

b) On query raised, the assessee contended that RAS was not advertising agency but media buying agency and as per Circular No. 715, dated 8-8-1995, print or electronic purchase was exempt from TDS;

c) The Assessing Officer observed that the assessee was liable to deduct tax under section 194C(2). On further appeal, the CIT (A) dismissed assessee’s appeal. Aggrieved-assessee filed the instant appeal.

The Tribunal held in favour of revenue as under:

1) The section 194C(2) clearly shows that provisions of tax deduction are applicable on the work of advertisement because the same is included under expression 'work' in the Explanation (3) which defines 'work';

2) Further, the provisions make it clear that whenever a person being main contractor gets some work done from the sub-contractor, even then the provisions of tax deduction would be applicable;

3) Circular No. 715, dated 8-8-1995 clearly provides that the provisions of TDS would apply when a client makes payment to an advertisement agency. Admittedly, RAS was not part of media and, in fact, RAS had booked advertisements further with other media group. So, it was a case of one advertising agency getting work done from the other advertising agency, i.e., a sub-contractor;

4) It is possible that when an advertisement is booked, some part of the work is done by one agency and some part is done by another agency. In the absence of any evidence to show that RAS had not provided any services, the only conclusion possible was that such agency had provided some services. Therefore, the provisions of section 194C(2) were clearly applicable - AAKASH TAH V. ACIT (2013) 38 taxmann.com 330 (Chandigarh - Trib.)
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