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Mihir

Mihir Tanna  |1019 Answers  |Ask -

Tax Expert - Answered on Apr 05, 2023

Mihir Ashok Tanna, who works with a well-known chartered accountancy firm in Mumbai, has more than 15 years of experience in direct taxation.
He handles various kinds of matters related to direct tax such as PAN/ TAN application; compliance including ITR, TDS return filing; issuance/ filing of statutory forms like Form 15CB, Form 61A, etc; application u/s 10(46); application for condonation of delay; application for lower/ nil TDS certificate; transfer pricing and study report; advisory/ opinion on direct tax matters; handling various income-tax notices; compounding application on show cause for TDS default; verification of books for TDS/ TCS/ equalisation levy compliance; application for pending income-tax demand and refund; charitable trust taxation and compliance; income-tax scrutiny and CIT(A) for all types of taxpayers including individuals, firms, LLPs, corporates, trusts, non-resident individuals and companies.
He regularly represents clients before the income tax authorities including the commissioner of income tax (appeal).... more
vijay Question by vijay on Apr 01, 2023Hindi
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I have given my agriculture land on rent to Solar Power co on lease for 20 years. Under which head of income should I file income tax return. the co has deducted tds on the rent. Is gst applicable if my yearly receipts from rent exceeds Rs.20 lacs.

Ans: Rent from open land taxable as Income from other sources irrespective of head under which TDS is deducted.
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Tejas

Tejas Chokshi  | Answer  |Ask -

Tax Expert - Answered on Apr 18, 2023

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I'm a Legal professional engaged as a Consultant with a Company and getting INR 1,50,000/- per month (Annual - INR 18.00 Lakh) as Consultancy Fee. In addition to Consultancy Fee., I've been provided with free accommodation in the township. the value of accommodation as per IT Act/Rules is assessed at INR 9,500/- per month (Annual - 1,14,000/). TDS is also deducted !10% on the Consultancy Fee as also on free accommodation under Section 194R (perquisites). My Total Income from Professional is !8 Lakh + 1.14 Lakh (value of perquisites) = 19.14 Lakh. Am I required to get registration under GST and raise GST Invoice on the Company? Kindly clarify. Shall be grateful for the help. Regards, Rakesh Tiwari
Ans: Dear Rakesh, Basis your question, let us unbundle the situation , one after the other.

1) I have understood that you are not an "employee" of the company and so, provisions of "Income under the head Salaries" under the provisions of the Income - Tax Act, 1961 of India, would not be attracted. And so, your income won't fall under the head salaries.

2) Again, as mentioned by you, the TDS is deducted under @10.00% on consultancy fees (under provisions of Sec 194J ) and also on free accommodation.

Section 194 R is a newly inserted section, and it is applicable from July 1, 2022. The wording of this section reads, ... It mandates a person responsible for providing any benefit or perquisite to a resident to deduct tax at source at a rate of 10% of the value or aggregate value of such benefit or perquisite before providing it to the resident......

.......The provision of this section shall not apply to an individual or a Hindu Undivided Family (HUF) whose total turnover/sales/receipt doesn’t exceed INR 1 crore in case of business or INR 50 lakh in case of profession....

TDS deducted under provisions of Sec 194R itself infer that, you are not an employee of the company, else the TDS of such "benefits" would have been deducted under provisons of "Salaries".

In most cases, the deductor of the tax may not be aware about the actual income of yours ( since you are a lawyer, TDS @ 10.00% under section 194R would not have been deducted, if the income from profession is less than ₹50.00 lacs per annum. The deductor might felt to comply with these provisions and may have deducted the TDS AT 10.00% }

To summarise, as explained above,

a. Your income from consultancy fees and as consultant is liable to be taxed under the provisions of "Income from Business Profession" { Section 28 of Income tax Act, 1961}, considering the fact you are a legal professional and getting consultancy fees is your main source of income, under normal course of business.

b. You can claim other legitimate expenses against this income, which you might have incurred to earn this income, as legitimate deduction. Eg. conveyance expenses, stationery expenses, salary payment to your staff,electricity bill, etc.

3) Coming to GST provisions:

There a concept of reverse charge in case of GST , which is applicable to certain class of service providers and legal professional is one of them. As per my reading of the law, if legal services are provided to a corporate body with turnover exceeding Rs 40 lakh, then GST is applicable on reverse charge basis. You are requested to verify, if the consultancy provided by you as consultant to the receiver of the serivices is a corporate & whoes turnover exceeds ₹40.00 Lacs, then, then, it would be the responsibility of the receiver of the services, to honour the GST liability arriving due to payment of consultancy fees to you , as a legal professional, under reverse charge mechanism & if the turnover of such service recipient, is less than ₹40.00 Lacs & if the total receipt under business professional of the service provider exceeds ₹20.00 Lacs, then it is mandatory to obtain GST registration and the onus to collect the GST from the service receiver lies with the servicer provider and to pay to the exchequer.

In either case, GST registration is mandatory, once the turnover exceeds ₹20.00 Lacs in a particular financial year.

..Read more

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Inderpaul

Inderpaul Singh  |36 Answers  |Ask -

Leadership Coach - Answered on Feb 26, 2025

Asked by Anonymous - Feb 25, 2025Hindi
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Hi. I am a BITS pilani graduate (2017) but i haven't achieved massive success when compared to my peers. I am preparing of UPSC for past 3 years along with my job, hoping to crack UPSC in 2025 or 2026. I am ashamed to meet my juniors and seniors of my college. Do you think by cracking upsc my fortunes will change and have a reputation among the alumni?
Ans: Hello
The real success is being at peace with oneself. This may sound bit philosophical but it is a profound stuff.
Unfortunately our societal orientation has so strongly imbibed the outside-in approach for most aspects of our life while it should be exactly opposite i.e. inside-out. To simplify, real success is not about meeting benchmarks set by someone else rather striving for leading a wholesome life as per own yardsticks wherein material/career elements are only one part of it. It is not to demean/undervalue something but assigning equal/appropriate weightage to all aspects of what makes us alive - health, family, relationships, sharing/caring etc. hence there is absolute no reason for you to feel ashamed merely basis some perceived/incomplete notions. Yes we should continue to strive for enhancements in life in all areas but do it for personal satisfaction and not for others hence there is no reason to feel stressed rather our goals if set right should energize us & give us a larger purpose in life.
Therefore look at things from a larger prism & not merely to gain some 'random perceived gains' that will again be shor-tlived.
All the Best!!
Major Inderpaul
HR Expert, Career & Relationship Coach

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