Summer Training

at
GSK Consumer Health Care limited, Nabha

Saurabh sabharwal

Form 16 A
16 A form is TDS certificate for the professionals,
contractors and persons providing things on rent.
This form is issued by the company at the end of the
financial year.

Form 16
Form 16 is a salary Certificate issued by the company
to its employees.TDS is deducted by the company
every month from the salary of employees.
Employees at the end of financial year can use the
form 16 to claim refund from income tax authorities
in case the Tax deducted is more than the actual.

Investment declaration
Preliminary declaration:- first of

all employees give their

preliminary declaration to the companies about various
investment and expenses which are eligible for deduction from
their salary for income tax purpose by filling the preliminary
declaration forms containing various subheadings as follows:
o House rent paid
o Lic
o ULIP
o Long term infrastructure bonds
o NSCs
o House loan repayment and interest
o Tuition fees of children, etc

Continued.
System entry:- after employees have filled the

preliminary declaration forms, companies make the

system entry of the same.
Audit :- after the system entry companies do a audit

of the system entries with the actual declaration

made by the employees as a minor mistake can lead
to wrong calculation of income tax of employees.

Continued
Final declaration:- after all of the above steps are

completed, then the employees are asked for final

declaration. In the final declaration employees are
asked to submit the proof of each investment or
expense they have declared in the preliminary form.
Only those investments are considered for which
employees generate proof.

Excise documents
RG 23 A (part II):-

RG 23 A (part II) is a register maintained by

the companies to record the transactions relating to
the inputs used in the manufacturing of the
products. Companies have to pay excise duty
@10%,education cess 3%( 2% (education cess) + 1%
(higher education cess)) in the inputs. This duty paid
is considered at the time of output duty for
deduction i.e. input credit is availed at the time of
output.

Input goods
Input meanso

All goods, except light diesel oil, high speed diesel oil and motor spirit,
commonly known as petrol, used in or in relation to the manufacture of
final products whether directly or indirectly and whether contained In the
final product or not and includes lubricating oils, greases, cutting oils,
coolants, accessories of the final products cleared along with the final
product, goods used as paint, or as packaging material, or as fuel. Or for
generation of electricity or steam used in or in relation to manufacture of
final products or for any other purpose, within the factory of production;

All goods except light diesel oil, high speed diesel oil, motor spirit,
commonly known as petrol and motor vehicles, used for providing any
output service.

Continued
RG 23 C (part II):-

RG 23 C (part II) is a register maintained by

the companies to record the excise duty availed on
the capital goods. 50% credit of excise duty on
capital goods is taken in current financial year and
remaining 50 % credit is availed in the next financial
year.

Capital goods
Capital goods means:The following goods, namely:-

All goods falling under chapter 82, 84, 85, 90, of the first schedule to the Excise Tariff Act;
Pollution control equipment;
Components, spares and accessories of the goods specified above;
Moulds and dies. Jigs and fixtures;
Refractories and refractory materials;
Tubes and pipes and fittings thereof; and
Storage tank,
Used
In the factory of the manufacturer of the final products, but does not include any equipment or appliance
used in an office; or

For providing output service;

Motor vehicle registered in the name of provider of output service for providing taxable service as
specified in sub- clauses (f), (n), (o), (zr), (zzp), (zzt), (zzw) of clause (105) of section 65 of the
Finance Act.

Form A. R. E 1
Application for removal of Excisable Goods for Export by (Air/Sea/Post/Land)

Form A. R. E 1 is filled by the companies which are

exporting some material to its own branch in some

other country. This form is filled to take rebate from
the excise duty i.e. companies need not to pay any
excise duty on such export. But company which want
to avail such service has to sign a letter of
undertaking with the excise department under Rule
19 of central excise law.

C Form
C Form is filled by the companies in case of inter

state sale and purchase.Generally companies have to

pay tax on intra state purchase @ 12%. But if the
seller and buyer are authorized dealers having CST
number, then by filling the C Form they can get
heavy rebate on such tax and only tax at the rate of
1% or 2% is to be paid.

F Form
F Form is issued by the company in case of intra

state branch transfer. By filling F Form the

companies are exempt from paying any tax on
transfer of such goods' Form is issued once in a
month for one party.

Differential Excise Duty

Value of the goods vary from time to time. Thus the
excise duty calculated on such value also differs. To
counter the effect of such difference of excise duty
differential excise duty is charged at the rate of 18%
on the amount of variation.

ESIC
ESIC ( employee state insurance contribution) is an

insurance scheme started by government for the

employees of the company.Now a days, it is
mandatory for every company to register its
employees with the ESIC.Under this scheme
employees contribution is 4.75% and employers
contribution is 1.75% of the basic pay of the
employee.

TDS
TDS is the tax getting deducted from the person the amount

(Employee/Deductee) by the person paying such amount

(Employer/Deductor). This is applicable for certain types of
payments, as applicable under the Act.
Presently this concept of TDS is also used as an instrument
in enlarging the tax base. Some of such income subjected to
TDS are salary, interest, dividend, interest on securities,
winnings from lottery, horse races, commission and
brokerage, rent, fees for professional and technical services,
payments to non-residents etc. It is always considered as an
Advance tax which is paid to the government.

TDS Rates for 2010-11

Male

Female

Senior Citizen

Tax (%)

For Income
Between 0 to
1,80,000

For Income
Between 0 to
1,90,000

For Income
Between 0 to
2,50,000

For Income
Between 1,80,001
to 5,00,000

For Income
Between 1,90,001
to 5,00,000

For Income
Between 2,50,001
to 5,00,000

10

For Income
Between 5,00,001
to 8,00,000

For Income
Between 5,00,001
to 8,00,000

For Income
Between 5,00,001
to 8,00,000

20

For Income above For Income above For Income above 30

8,00,001
8,00,001
8,00,001
Surcharge

Education Cess

Form VAT-2
Value added tax is paid by the company at the

treasury branch of any nationalized bank. After the

payment is made the receipt of the same is submitted
at districts central sales tax department. However,
one copy of the vat form is to be submitted to the
bank, another copy is to be submitted to local
government department and last is to be retained by
the party itself. However last months challan can be
paid till 30th of the current month. And if its a WCT
(work contract tax) then the tax of the last month is to
be paid by the 15th of the current month.

FORM VAT-2A
This form is same as Form VAT-2.The only

difference between the two is that amount to be paid

to the local municipal authority is 10% in this case
and 98% of basic vat which is excluded from the
surcharge in case of form VAT-2.However, this
percentage is calculated on the tax charged to the
party involved.

FORM2-B
Invoice of Tax paid into Treasury/Sub Treasury/

Branch of State Bank of India/ State Bank of Patiala

or any other Bank authorized to transact Govt.
business and credited to the Head of Account
"_______Punjab Municipal Infrastructure
Development Fund .
Also amount to be paid to the local municipal office
is 2% of basic vat which is excluded from the
surcharge in case of form VAT-2.

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