Public Speaking

Public speaking is one of the major skill which has to be enriched with us.It may cause the new speakers to get sweat and frightening at the time of speaking.All of us has to realise that,it is the verymuch needed communication skill.Speakers attempting to speak persuasively are to learn about and apply organisational patterns of public speaking.The audience may respond with enthusiasm when the speaker provide a speech that brings the message in an understandable manner.Students should develop this communication skill throughwhich the students can achieve a lot in their future.There are certain books that provides the technics to speak among the public.Eventhough,the books cannot entirely qualifies the students to become a good speaker.The quality of a good speach will appear infront of the students only because of excessive practise.

'Practice makes Perfect'-this proverb is well suited for students in this occasion.The areas of public speaking such as Topic research,Audience analysis etc where which certain skills are to be introduced.People are likely to change their behaviours if a small change is made.Most of the careers have direct relation to the public speaking.For jobs such as the salesman,manager,some communication techniques are required.The communication skills changes our lifestyle to a better garden in the world.All of us has to think and collect our essential words and sentences that provide a better gateway to attain the success in our attempt everytime.
There are some points through which the speaker to bear in minds while starting the speech.The speaker should try to establish a good relation with the audience,starting with the merits of the topic before speaking the demerits.We are living in the world of persuasion.So we had to boost ourselves to be a good communicator among the public.If the audience have different beliefs or behaviours,then we should try to persuade them.This ia a Co-active approach.The art of Publicspeech is a gallery and we should try to increase in us.

Avoiding Being Taxed Second Time

When a person earns money the source of which is located outside the country and it becomes liable to tax in two countries. The country in which the income is earned and the one in which he is the resident. This is situation is very for multinational and trans-national corporate entities and double taxation on their incomes is a distinct possibility. Which is hardly just and desirable and to take care of this anomaly many countries enter into bilateral agreements for avoidance of double taxation. or granting relief in respect of the income on which tax has already been paid in both countries. This mechanism also proves greatly useful for the tax authorities of the countries to interact and exchange information for the prevention and investigation of tax evasion and avoidance of taxes and also assistance in recovery of taxes levied on them.

International trade necessitates cross-border movement of goods, services, capital and human resources and determining the tax jurisdiction of a country over a particular person assumes particular significance. It is necessary to decide whether a particular income is to be taxed in the country where the particular income arise. In the case of immovable property or intellectual property it is an important aspect to decide if the tax jurisdiction lies with the country of residence of the property or with the country where the property is situated or where the intellectual property is utilized. Both the countries may have tax jurisdiction viz., the residence or the home country and the source or the host country , over the same income of the same assessee. The principal objective behind a Double Taxation Avoidance Treaty is to provide a rational and equitable basis of allocation between two countries of income over which both have jurisdictions.

This mechanism of a treaty is basically designed to promote trade between two countries on the basis of revenue sharing between them arising out of the bilateral trade. There are two models of treaties in this regard, viz., OECD model and UN model. The OECD model follows the principle that the foreign income should also be taxed in the country of residence of the taxpayer. The UN model on the other hand, is a compromise between the residence and the sourced rules. Unlike the USA or UK or most of the Commonwealth countries, such treaties are not an act of legislation. In India under Article 253 of the Constitution Parliament has power to make any law for the whole or any part of the territory of India for implementing any treaty or convention with any other country. The Central Government has enacted the provisions for dealing with double tax being empowered under the afore-mentioned constitutional provisions.

Thus the Central Government can enter into an agreement with the government of any country outside India for granting relief in respect of income on which taxes have been paid in both the countries; for avoidance of double taxation of income under this Act and under the corresponding law in force in that country to promote mutual economic relations, trade and investment; for exchange of information for the purposes outlined earlier; for recovery of income tax under the corresponding law in force in that country.

Capital and Revenue Receipt

There are two types of receipts in Income Tax. They are Capital Receipts and Revenue Receipts. It is very difficult to make the distinction between these two kinds of receipts. However, the following rules may be applied in making the distinction between them.

They are:-

1. Fixed and Circulating Capital

2. Source of income and income itself

3. Compensation against fixed asset and trading asset and

4. Motive in an isolated transaction.

1. Fixed and Circulating Capital

The receipt on account of a fixed capital is a capital receipt.

Eg:- Sale proceeds of machinery by a textile mill, is a capital receipt to the company because machinery is a fixed asset in the case.

The receipt on account of circulating capital is a revenue receipt.

Eg:- sale proceeds of machinery by a dealer in machinery is a revenue, because machinery is a circulating asset in his case.

2. Source of income and income itself

A receipt in substitution of source of income is a capital receipt.

Eg:- Compensation for loss of employment is a capital receipt as it is in lieu of source of income.

A receipt in substitution of the income itself is a revenue receipt.

Eg:- Compensation for temporary disablement is a revenue receipt, as it is for loss of income during the period of temporary disablement.

3. Compensation against fixed asset and trading asset

Compensation recevied against fixed asset is a capital receipt. Whereas compensation received against a trading asset is a revenue receipt.

4. Motive in an isolated transaction

If the property purchased is held as an investment to earn income, the receipt from sale of such property is a capital receipt.

If any property is purchased with motive of selling it at aprofit and the receipt by ale of such property is a revenue receipt.

Moreover, capital receipts are exemped from tax, unless they are expressely taxable, whereas revenue receipts are taxable unless they are expressely exempted from tax. So, the distinction between capital receipts and revenue receipts is vital for income tax purposes.

Confiscation and Penality

* Ceasing of goods from the manufacturer

* If the production or goods produced is illegal but latter on the government will be banned by the manufacturer

* Legal production is prepared abd it is ceased when the documents are not prepared and not maintained properly, so then the goods should be stopped

Various grounds for confiscation

* Personal ledger account (PLA)

* Wrong information has been maintained

* Daily stock account

* If the documents are prepared but false entries are made

* Confiscation can go along with penalty

* It is the higher of the two limits

Depreciation Under Income Tax Act

The term "Depreciation" has not been defined on the INcome Tax Act. For practical purpose depreciation means decrease in the value of property through wear and tear or obsolescence. Depreciation allowance is allowed in respect of building, machinery, plant or furniture owned by the assessee and used for the purpose of business or profession. In orde to claim depreciation on assests, the following conditions must be satisfied by the assessee.

1. Asset must be owned by assessee

2. Asset must be actually used for the purpose of business or profession and

3. Asset should be used during the relevant previous year.

Method of Computation of Depreciation

To understand the method of computation of depreciation, one must know the meaning of following terms :-

1. Block of Assets

2. Actual Cost and

3. Written Down Value.

1. Block of Assets

"Block of Assets" maens a group of assets falling within a class of assets comprising -

i. tangible assets like being building, machinery, plant or furniture.

ii. intangible assests like being know-how, patents, copy rights, trademarks, licenses, franchises or any other business or commercial rights of similar nature, in respect of which the same percentage of depreciation is prescribed. In simple words, assets falling within a class of assets in respect of which the same rate of depreciation is admissible will form "Block of Assets".

2. Actual Cost

Section 43(1) of the Act defines the term "Actual Cost". Actual Cost of an asset means its actual cost to the assessee including the expenses on installation, etc., If the part of the cost is met directly or indirectly by the third person, the cost to the assessee will be reduced by such amount borne by that person.

Moreover

i . If an asset is acqiured by the assessee by way of gift or inheritance, its actual cost to the assessee shall be its actual cost to the previous owner as reduced by a depreciation actually allowed in respect of this asset for any assessment year up to the assessment year 1988-89. The depreciation that would be allowable as if that asset was the only asset in the relevant block of assets.

ii. If any amount if paid or payable as interest in connection with the acquisition of any asset, the ampunt of interest related to the period after the asset has been first put to use, shall not be included in the cost of the assets.

3. Written Down Value

Written Down Value means, in the case of assets acquired in the previous year the actual cost of the assessee.In the case of assets acquired before the previous year the actual cost to the assessee less depreciation actually allowed to him.

In the case of any block of assets the written down value shall be computed in the following manner:

i) The aggregate of the written down value of all the assets falling within a block at the beginning of the year shall be calculated.

ii) The aggregate of written down value of assets shall be increased by actual cost of assets falling in block which was acquired during the previous year.

iii) The sum so arrived, shall be reduced by the money payable in regard to any asset which is sold, discarded or destroyed during the previous year.

iv) In case, if the Written down value, of any block shall be reduced

Classification of goods

There are 4 major classification. They are :

1. Excisable goods - Those which have been included in the tariff which are subject to the excise duty.

2. Non-Excisable goods - Those goods which have not been included in the tariff under central excise duty before the production process begins.

3. Dutiable goods - The goods which have been included in the tariff but particularly exempted in the central excise tariff

4. Non-Dutiable goods - The goods which have been included in the tariff which are exempted goods. 0% duty goods and are subjected to excise duty.

In a nut shell any excisable goods need not be necessarily dutiable, but all dutiable goods are necessarily exciseable.

PAN - Permanent Account Number

* It is the form of identity

* For filling tax returns it is mandatory

* For opening bank accounts, for any transactions, any transfer of funds exceeding rs.25000 and withdrawal of rs.50000 requires PAN card.

Exemptions of PAN

* Submit form 60 and 61 can be used instead of PAN

* Service tax is very compulsory even for gettig Phone Connection and for Pass Book

Format

Form 49A is hte prescribed form of PAN, and this can be downloaded from the net.

Proof to be submitted

* Voters ID card

* Photo

* Bank PassBook

* Birth Certificate

* Credit Card Statement

Refund of TDS collected illegally can be treated as your Income for Income Tax purposes

Any kind of income earned by the assessee attracts income tax at the point of earining such income and tax law is not concerned how such income is expended. The Act makes an obligation to pay tax on all incomes received. The Income Tax Act, 1961, considers income earned legally as well as tainted income alike.

The assessee was engaged in tax consultancy and audit work. During the search conducted at the residential premises and office of the assessee certain incriminating documents were seized. From the documents seized it was revealed that the assessee had been claiming and receiving income-tax refund by filing bogus TDS certificates with returns of income prepared by him even in the names of non existing persons. The assessing officer treats the deposits, being TDS certificates encashed by the assessee during the previous year, as professional income during the p.y. The Commissioner(Appeals) reduced the income on account of the refunds received by him and held it taxable under residuary head instead of Professional. The Tribunal held that the amount of refunds received by the assessee by fruadulent means could not be assessed as income of the assessee.

The High Court held that when the Tribunal found that the assessee had indulged in fabricating TDS certificates and got refunds from the Department it should not have come to the conclusion that such income was not taxable.

This decision was taken by Madras High court in CIT V/s K. Thangamani (2009) 309 ITR 015 (Mad.)

Rights and Liabilities of Buyer and Seller

The Transfer of property Act,Section 55 deals with the Rights and Liabilities of Buyer and Seller.

The Buyer's Rights and Liabilities is divides into two :

1. Before of completion of Sale and

2. After completion

Buyer's Rights :

1. Before of completion of Sale :

a. A charge on the property for the purchase of money properly paid by him in anticipation of the delivery.This charge is converse of the seller's charge for unpaid price.

b. Interest on such purchase money.

c. The money and costs awarded to him in a suit for specific performance of the contract or to obtain a decree for its recession.

2. After Completion :

After Completion i.e., where ownership haS passed to him.

a. The buyer is entitled to the benefits of any improvement or increase in value of the property.

b. Rents and profits thereof.

Buyer's Liabilities :

1. Before Completion of Sale :

The buyer is bound :

a. To disclose to the seller any fact as to the nature or extent of the seller's interest in the property which the seller is not aware.This duty is like the seller's duty to disclose material defects in the property.

b. To pay or tender the purchase money to the seller or to such person as he directs.

2. After Completion of Sale :

a.To bear any loss arising from destruction,injury or decrease in value of the property.

b. To pay public charge and rents which may become payable in respect of the property.

Seller's Rights :

1. Before Completion of Sale :

The seller is entitled to rents and profits till the ownership passes to the buyer.If the buyer takes possession before completion of the sale,the seller has a right to claim interest on the unpaid purchase money from the date of possession.

2. After Completion of Sale :

The seller is entitled to a charge upon the property in the hands of.

a. The buyer or

b. Any transferee without consideration or

c. Any transferee with notice of non-payment,for the amount of the unpaid purchase-money.

1. Before Completion of Sale :

a.To produce to the buyer on his request for examination all documents relating to the property.The buyer must inspect the title deeds in his own interest,as otherwise,he may be fixed with constructive notice of matters which he could have discovered the title.

b. To the best of information,all relevant questions put to him.

c. On payment or tender of the price,to execute a proper conveyance of the property.

d. Between the date of the contract of sale and the delivery of the property,to take proper care of the proeprty.

e. To pay compensation to the buyer if there is any loss or damages to the property.

f. To pay all public charges and rent accrued due in respect of the property,up to the date of the sale.Public charges means Government Revenue,Municipal Taxes, etc.

2. After Completion of Sale :

a. To give to the buyer or such person as he directs such possession of property as its nature admits.Actual possession is not possible in the case of incorporeal rights such as a right to fishery,etc..

b. Where the whole of the purchase money has been paid to the seller he is also bound to deliver to the buyer all documents of tilte.The cost of obtaining the deeds should be borne by the seller.

Benefits Of Saving TAX

BENEFITS

*Upto one lakh you can get exemption for the income tax on investing in ELSS funds.

*There will not be any tax on the dividends you get from these funds.

*The three year lock-in-period gives you good long term profits.

*The investment is a solution for the increasing inflation.

DISADVANTAGES

*There will not be any guarantee on the returns.

*Some times, you may get negative returns.

*Can not come out of the funds immediately whenever money is required, due to the lock-in-period.

Save Tax

It’s the month of March and most people would’ve just started thinking about investing for tax savings. Investing, however, is not an annual one-time transaction. It is a process and tax planning is only a part of it. Planning may not make your tax liability zero, but it can certainly reduce your overall liability.



There many provisions to save taxes and Section 80C of the Income Tax Act is very popular amongst the tax savers where a deduction of up to Rs. 1 lakh from the taxable income can be availed of, if invested in certain approved products.

PPFs are popular option since investors find the 8% tax-free return attractive. However, this comes at a cost of 15-year tenure and relative liquidity – one can avail loan from PPF account subject certain conditions. PPFs can be ideal investment if you are looking to build a corpus for long term needs like retirement or your children’s education. Let us look at the power of compounding here. If a 30-year-old invests Rs.70,000/- p.a for 15 years and leaves the money for his retirement, he will observe that he has a corpus in excess of Rs.75 Lakhs at the time of retirement. It should be noted that the returns are assured but not fixed. This is because the rate of return is subject to revision i.e. it can be revised upwards or downwards thereby impacting the returns.

Service Tax

It is a form of indirect tax imposed on special services called taxable services. Service tax cannot be leived.



Objective:

Tax Rate in India

* 14th may 2003 - 5% to 8%

* From 10 sept 2004 - 10%

* 2006 - 7% to 12%

* 24th feb 2009 - 10%

* It was first brought in july 1994

Payment of Service Tax:

Rules:

* ST is payable on the value of taxable services charged.

* The due date for payment of ST is on or before 25th of the month immediately following the quarter when the value of taxable service is rendered.

Service in India taxable for service providers:

* Service provided to non-resident

* Service of insurance agents

* Service of agents of mutual funds

* Firms located in India reveiving sponsorship services

VAT: Value Added Tax

Introduction:

VAT or goods and service tax (GST) is a consumption tax (CT) leived on any value that is added to a product.

Meaning:

* It is a consumption tax because it is taken ultimately by the final consumer

* VAT is a general consumption tax assessed on the value added to goods and services

* It is not a charge on companies. It is charged as a % of price

* To avoid cascading effece which can have a snowballing effect on companies

Necessity of VAT in India:

* Eliminates cascading effect of TAX

* Encourages proper maintainence of accounts books

* Evasion of TAX is minimised

* Prices gets neutralised

* Increased revenue

Modes or Criteria for Valuation

Specific duty - The length volume thickness, density the rate of excise duty. Any duty(ie) on the measurable parameters. It is based on measurable parameters it is clarity. Applicable to the goods/ value of goods

Tariff value - It becomes valuation of goods under excise duty. The value fix by the excise authorities and is fixed.

Compound levy - Excise duty is leived in lumpsum in other option. It is leived on some other fixed sum. The manufacturers can directly opt for this scheme. This mode is optional because this is more beneficiary for the government. The only benefit for the manufacturers is that they can pay the amount as optional and is leived of the calculations and he need to pay after.

MRP with abutement - The maximum range/limit of retail proce is the maximum price beyond which the retailer cannot sell it. The buyer can negotiate this. The seller can sell the product till what the product can be bargained.

Conditions for availing this MRP scheme :

* The goods should be covered under standards of weights and measurements acts.

* The MRP should be accompanied by the range of abatement.

Assesable value with reference to transaction value - The transaction value becomes the basis for the excise duty.

Conditions for availing this scheme:

* The buyer should not be related to the manufacturer

* The price should not be the sole criterian for exchange

* At the time of every removal seperate excise duty should be lieved

* Goods should be transported from the manufacturer to the producer/ to the buyer at the place and time of removal

What Is TAX

TAX:
It is a compulsory charge levied by the govt. irrespective of the exact amount of service rendered to the individuals , net imposed as a penalty for any offense.



Indirect Tax:

Sales tax -> seller and buyer
Excise duties (tax for goods manufactured)
Customs duty ( import )
Service tax

Entry tax -> imposed on goods when the goods are entered into the boundary of another state.

Direct tax-> exclusive interrogative only by the central govt.

Income tax
Wealth tax
Gift tax

Octroi: levied directly on the person who earn/possess the properties or income

Gift tax: tax levied on the one who exempt the limit

Heads of income chargeable to
- salaries (tax deducted at source)
- income gained from income/profession
- capital gains (gain acquired from sale of fixed assets)
- including from house property (rent)
- including from other sources (lotter, gambling, etc)

Capital gain = sale price – cost price
Income tax act 1961 (legislation that governs the direct taxation)

Tax v/s Duty


Tax

Is levied on a transaction of a person on his income

Duty

Is levied on the goods imported/produced

Apex body that controls the indirect tax is CBDT – central board for direct taxes

Apex body that controls the indirect tax system is CBED – central board of excise and customs

A View On What Is Taxation

Taxation

Adam Smith defined TAX as source of derivative income for the government, a coerced payment as far as an individual is concerned, a compulsory levy
in conformity with the pre-established rules as fas as the administrator is concerned and a contribution by the people to the common expenditure from the conceptual
point of view.


Cannons of Taxation

* By Adam Smith

* By Western/European economists

* By Raja Chelliah(In Indian Context)

By Adam Smith

* Equality

* Certainity

* Convenience

* Economy

By Western/European economists

* Cannon of diversity

* Cannon of elasticity

* Cannon of productivity

* Cannon of simplicity

* Cannon of expediency

By Raja Chelliah(In Indian Context)

* Cannon of mobilisation of economic surplus

* Cannon of unused capacity

* Cannon of income elasticity