Legal Compliance Calendar for July Month-2016

Legal Compliance Calendar for July 2016: Every business consultant, business person and their legal and compliance department has to fulfill different regulatory filing on time. So to solve this problem we have compiled the different due date for legal filing under different act like Income Tax Act 1961, Service tax laws, Central Excise and Custom, Companies Act 2013, Provident Fund, Employee State Insurance Corporation or Value Added Tax i.e. different VAT Acts in India etc.

Income Tax Compliance for July 2016 

  1. 7th July – Due for payment of TDS/TCS for July’2016
  2. 31st July – Filling of TDS return for period April to June 2016 and TDS certificate has to been issued within 15 days of Filling of TDS return i.e. 15 August 2016. Previously due date for filling quarterly TDS return was 15 July.
  3. Due for Filling Annual Income Tax Return for Individual and HUF. Individual having only salary Income Tax can file ITR 1 and Business not under audit can file ITR 4S or  ITR 4 by 31 July 2016.

Rules and Guidelines for Income Tax Compliance 

A. For companies

  • TDS deducted during June 2016 due for payment on 07.07.16.
  • Filling of Quarterly TDS return by 31st July 2016.

B. For firm and individual covered under tax audits

  •  TDS deducted in June’ 2016 payment due on- 07.07.2016.
  • Filling of Quarterly TDS return by 31st July 2016.

Central Excise and Custom  Compliance for July 2016 

  1. 6th July- Due date for payment of excise for the month of June’2016
  2. 10th July – Last date for excise return for the month of June’2016 – Due Date for ER-1
  3. 20th July – Last date for excise return for the Quarter ending June’2016 i.e. April to June 2016 – Due Date for ER-1 for Excise registered units as Small Scale Industry

Rules and Guidelines for Central Excise Compliance 

  • Excise registered units as Small Scale Industry – Payment due date is 15th July 2016 and Return due date of 1st quarter ending 30th June 2016 is 20th July 2016 but Unit Registered as Non SSI units – Last date for payment for the month of June is 06.07.2016 and for return 10.07.2016

Service Tax Compliance for July 2016 

  1. 6th July- Due date for payment of service tax for the month of June’2016 for other than Individual, Partnership firm and HUF as they have deposit service tax on quarterly basis.i.e Companies has to deposit service tax on monthly basis in case
  2. 6th July 2016 – Due date for payment of service tax for the period April to June 2016 i.e. Quarter 1 of FY 2016-14 for Individual, Partnership firm and HUF as they have deposit service tax on quarterly basis.

VAT Tax Compliance for July 2016 

  1. 12th July – Last Date or Due Date of Payment of VAT Liability for June 2016 for business having turnover of more than Rs 200 cr in previous year under TNVAT (Tamil Nadu VAT)
  2. 14th July- Last date for payment of Rajasthan VAT liability for dealer covered under monthly tax liability.
  3. 14th July – Last date for Works Contract Tax TDS is for June 2016
  4. 15th July – Last for Monthly return for Composition Dealer under Karnataka VAT
  5. 15th July – Last date for TDS deposit for previous month under Delhi VAT
  6. 20th July – Last date for monthly return or statement for tax deducted at source under KVAT using VAT – 100, VAT – 110 , VAT – 125, VAT–126, VAT-127
  7. 20th July – Due Date or Last Date of Payment of VAT Liability for Month and Quarter ending June under UP VAT (Uttar Pradesh VAT rule 43)
  8. 20th July – Due Date for Payment of VAT Liability under Tamil Nadu VAT Act.
  9. 21st July -Last date for payment of Maharashtra VAT liability.
  10. 21st July – Last date for payment of Delhi VAT liability  for Month ending 30th June and for Quarter April to June 2016
  11. 21st July – Last date for payment of MVAT liability for Quarter 1 (April to June).
  12. 25th July – Last date for Filling of Delhi VAT return for Quarter ending June 2016
  13. 25th July – Last date of payment of VAT Liability under Bihar VAT Act
  14. 31st July – Last Date of Filling of Quarterly return under Bihar VAT Act
  15. 31st July – Last date of Filling Annual Return under Bihar VAT for Compounding Dealer

Provident Fund and ESIC Compliance for July 2016 

  1. 15th July – last date for payment of Provident fund liability, Due Date date for Provident fund Contribution, government has removed the grace period of 5 days from February 2016.
  2. 21st July- Last date for payment of ESIC liability for June 2016.
  3. 25th July- Last date for filing of PF return for the month of June

Summary Date-wise Compliance under different rules and regulation

  • 6th July- Due date for payment of excise and service tax for the month of June’2016
  • 7th July – Due for payment of TDS/TCS for June’2016
  • 10th July – Last date for excise return for the month of June’2016
  • 14th July- Last date for payment of RAJ VAT liability.
  • 14th July – Last date for WCT TDS is for June’2016
  • 15th July – last date for payment of Provident fund liability
  • 20th July – Different VAT return under Karnataka VAT
  • 21st July – MVAT last Date of Payment
  • 21st July- Last date for payment of ESIC liability for June 2016.
  • 25th July- Last date for filing of PF return for the month of June
  • 31st July- Last date for filing of Annual Income Tax return for Individual in ITR 1, ITR 4, ITR4S
  • 31st July – Last date for filling Quarterly TDS return under Income Tax.

Rajasthan VAT ACT 2003 :An Overview and Download

THE RAJASTHAN VALUE ADDED TAX ACT, 2003 has come into force on 30th March 2003 i.e. date when assent of the Governor was received. Value added tax is act  for levy of tax on sale or purchase of goods and to introduce value added system of taxation in the State of Rajasthan. Below Mention Act is updated till 8,March 2016 Last Budget of Rajasthan Government.

Summary of Rajasthan VAT 2003

Section 1 of RVAT Act 1. Short title, extent and commencement date for RVAT Act

Section 2 of the RVAT Act deals with different definition of the terms covered in the RVAT Act 2003. Important terms are 2(6) Meaning of Business , 2(10) Meaning of Term Contractor, 2(11) who is treated as Dealer or considered as dealer, 2(15) what do we mean by term Goods, 2(26) Place of Business and 2(35) & 2(36) definition of term sales and sales price and Most Sought after term works Contract is covered in section 2(44).

Section 3 of the RVAT Act deals with Incidence of tax i.e. who is liable to Rajasthan VAT. Importer of goods, manufacturer of goods with annual turnover of Rs 5 Lakhs and Trader of Goods having annual turnover exceeds Rs 10 lakhs. Also as per section 3(2) dealer having turnover of less than Rs 75 lakhs can opt for composition scheme and Turnover for composition scheme is calculated after deducting the turnover of goods covered in Schedule 1 of RVAT Act (Exempted Goods). Composition Scheme means that dealer will not charge VAT from customer/buyer but will pay specified percentage of turnover as fee in lieu of tax.

Section 4 of the RVAT Act deals with Levy of tax and its rate i.e. Taxable turnover is taxable at rates of VAT given in Schedule III to Schedule VI.

Section 5 of the RVAT Act deals with payment of lump sum in lieu of tax.

Section 6 of the RVAT Act deals with Levy of tax by weight, volume, measurement or unit on certain goods.

Section 7 deals with Levy of tax on livestock:  Tax shall be payable at such rate per head not exceeding five hundred rupees as may be notified.

Section 8 of RVAT Act Deals with taxation of Works Contract and Exemption of tax i.e. Exemption from Rajasthan VAT. Section 8(1) provides the list of goods covered under Schedule 1 which are exempted from Rajasthan VAT.Section 8(2) covers list of organisation to whom exemption form RVAT is given by the Government of Rajasthan. Exemption Scheme was given in Notification No 77 dated 11.08.2006 which has been amended Notification 3082 (F.12(101)FD/TAX/2011-59 Dated 13 August 2013 further Amended by Notification 3333 dated 09.03.2015 and last updated Notification for Amendment works Contract Exemption Fee is N.NO 3553 dated 08 March 2016.

Section 9 of RVAT Act deals with Bar against collection of tax when not payable i.e. Person not registered with Rajasthan Commercial Department under RVAT Act shall not collect any VAT from other person.

Section 10: Burden of proof i.e. its seller or purchasers liability to prove that particular Goods is not liable for VAT Tax.

Section 11 deals with Obligatory registration i.e. Who is required to register under VAT Every dealer liable to pay tax under sub–section (1) or (5) of section 3 shall get himself registered

Section 12 deal with Voluntary registration

Section 13: Authority competent to grant registration.

Section 14: Authorisation for collection of tax

Section 15 deals with Furnishing of security for registration. Security in the form of National Saving Certificate or in cash or in the form of three years bank guarantee of a nationalized bank of Rs 10,000/- for Small Scale Unit, Rs 15000/- for medium scale unit and Rs 25,000/- for Large Scale Unit (All for Manufacturing Concern). In case of Trading concern Rs 10,000/- and If Dealer is submitting initial security shall be in the form of surety of two dealers registered under this Act he is not required to submit bond or NSC. Dealer can give maximum surety of 4 concerns

Section 16: Amendment and cancellation of registration certificate Every change  there are 2 type of change 1. Change in Basic structure of Dealer 2. No Change is Basic Structure if any change effect the basic structure then dealer have to take New VAT registration e.g. such as, conversion of a proprietary concern into partnership firm or vice versa, dissolution of an existing firm and creation of new firm, formation of a firm into a company or vice versa, a fresh certificate of registration shall be required to be obtained by the dealer, in all other cases dealer is required to update VAT registration with 30 days from the date of change like addition or deletion of branch or change in address of registered office or addition of partner or addition of deletion of commodity or change in Name of business etc.

Section 17: how to Calculate Amount of  Tax payable by a dealer, Basic formula is

T = (O+R+P) – I
Where –
T is net tax payable;
O is amount of output tax;
R is amount of reverse tax;
P is the amount of tax payable under sub–section (2) of section 4; and
I is the amount of input tax.

Section 18: how to calculate Input Tax Credit, Input tax credit shall be allowed, to registered dealers on purchase of any taxable goods made within the State from a registered dealer for Sale but subject to conditions that where any goods purchased in the State are subsequently sold at subsidized price, the input tax allowable under this section in respect of such goods shall not exceed the output tax payable on such goods and no Input allowed for exempted goods.

Section 19: Input tax credit for stock on the date of commencement of this Act

Section 20: Payment of tax

Section 21 deals with Filing of return i.e. What are the different due dates for filling VAT returns under Rajasthan VAT and RVAT rules has provided the due date for RVAT return which are 45 days from the end of quarter for dealer who are liable to deposit tax on monthly basis i.e. Dealer liable to pay VAT of Rs 50,000/- for last financial year and 60 days from the end of the quarter for all the other VAT dealers.

Section 22: Assessment on failure to deposit tax or submit return or audit report

Section 23:  Self Assessment means dealer will be assessed based on the return filled by him.

Section 24: Dealer will be assessed based on the material available on record in case assesee officer not satisfied with the record available he can issue notice to dealer and dealer can file return or revise return and assessing officer can assesee best of his judgement, No assessment order under this section shall be passed after the expiry of two years from the end of the relevant year but Commissioner can extended the period of assessment and last date for assessment for FY 2013-14 is 31st July 2016.

Section 25 deals with  Assessment in case of avoidance or evasion of tax i.e. Dealer can be assessed for any period if assessee officer believes that dealer is trying evade tax but subject to condition that giving the dealer a reasonable opportunity of being heard. In case if tax is imposed under this section dealer has to deposit tax with 30 days of order.

Section 26: Escaped assessment means dealer escape the assessment due to non registration or under assessed.

Section 27: Audit of Dealer: Commissioner has reasons to believe that detail scrutiny of their business is necessary and No notice under sub–section (4) shall be issued after the expiry of five years, and no assessment under this section shall be made after the expiry of eight years, from the end of the relevant year.

Section 28: Assessment in case of a casual trader. Casual dealer will be assessed just after the transaction but no order or report can be made after the expiry of two years from the date of completion of the transaction.

Section 29:  Assessment in special cases. – (1) Minor and incapacitated person then tax will be recovered from guardian or trustee.

Section 30: Assessment of a dissolved firm

Section 31: Rounding–off of tax, interest and penalty rounded off to the nearest multiple of ten rupees

Section 32: Want of form not to affect proceedings.–

Section 33: Rectification of a mistake.No rectification under this section shall be made after the expiry of four years from the date of the order sought to be rectified.

Section 34: Reopening of ex–parte assessment

Section 35: Stay of proceeding.– No civil court or any other authority shall stay assessment proceedings purported to be initiated or already initiated under this Act.

Section 36: Determination of disputed questions

Section 37: Transfer of cases. A dealer may make an application on plain paper to the Commissioner to transfer any case under this Act from one officer or authority to other officer or authority on the following grounds, namely:– (a) Dispute of jurisdiction; or (b) Apprehension of miscarriage of justice; or (c) Business convenience.

Section 38: Liability for payment of tax or demand

Section 39: Liability of a surety.– The liability of a surety under this Act shall be co–extensive to the extent of the amount of security with that of the defaulting dealer and all the modes of recovery enforceable against the dealer shall be simultaneously enforceable against the surety.

Section 40: Liability of the representatives of a deceased person.–Representative of deceased person has to apply for VAT registration within 30 days of Death.

Section 41: Liability on dissolution, discontinuance or partition of business.

Section 42: Liability on transfer of business.–In case of transfer of business then the remaining unpaid at the time of the transfer, shall be payable by the transferee.

Section 43: Liability of principal and agent. Both Agent and Principal are jointly and severally liable to pay tax.

Section 44: Liability of firms and partners. All the partners are liable under the Act  for Tax.

Section 45: . Liability of Directors of a private company. Every person who was a director, at any time during the period for which the tax or other sums are due, shall be jointly and severally liable for the payment of such ta every person who was a director, at any time during the period for which the tax or other sums are due, shall be jointly and severally liable for the payment of such tax.

Section 46: Liability in case of amalgamation of companies

Section 47: Liability under this Act to be the first charge

Section 48: Certain transfers to be void.

Section 49: General mode of recovery. Any tax due shall be recoverable as an arrear of land revenue can be recovered by by attachment and sale of movable or immovable property of such dealer or person.

Section 50: Special mode of recovery. Tax can be recovered from any person from whom any amount is due or may become due to a dealer who has failed to pay due tax or other sum on demand by the assessing authority; or  any person who holds or may subsequently hold any money for or on account of such dealer.

Section 51: Power to reduce or waive interest and penalty in certain cases.If Commissioner is satisfied the dealer is under financial hardship and not is position to pay demand can wiase penalty or interest or both but only after recording reasons in writing.

Section 51A: Power of State Government to waive penalty and interest in certain cases

Section 51B:  Rebate of tax

Section 52: Power to write off demand.Writing off demand if its more than 10 year old and can’t be recovered as no property is available for attachment and demand has become irrecoverable.

Section 53: process of applying for refund

Section 54: Power to obtain security or withhold refund in certain cases.

Section 55: Interest on failure to pay tax or other sum payable.

Section 56: Penalty for not making application for registration is Rs 1000/-

Section 57: Penalty for failure to furnish security at the time of registration or additional security under section 15 then AO can impose penalty of Rs 2000/- and a further penalty of rupees twenty five for every day” till the requisite security or additional security is furnished.

Section 59: Penalty for not maintaining or keeping accounts “a sum not exceeding rupees five thousand and in case of continuing default a further penalty of rupees fifty for every day of such continuance.”

Section 60: Forfeiture and penalty for unauthorised collection of tax by unregistered dealer or excess collection by dealer then penalty in addition to tax collected will be a penalty equal to double the amount of tax which has been so collected by him.

Section 61: Penalty for avoidance or evasion of tax.–Penalty in addition to tax payable by him under this Act, a sum equal to two times the amount of tax avoided or evaded.

Section 62: Penalty for not furnishing statistics  “shall pay by way of penalty, a sum not exceeding rupees one thousand

Section 63: . Penalty on awarders. Where an awarder of a works contract, fails to deduct the amount in lieu of tax from the bill of a contractor as prescribed, or after having deducted such amount from such bill does not deposit the same in the prescribed manner and time, he shall be liable to pay tax deducted by him and a penalty for each violation, “which may extend upto rupees one thousand in the case of non–deduction, and a penalty at the rate of two percent per month on the amount so deducted” but not deposited for the period during which such default continues.

Section 64: Penalty for other violations

Section 65: Opportunity before imposition of penalty.– No penalty under this Act shall be imposed unless a reasonable opportunity of being heard is afforded to the dealer or the person concerned.

Section 66: Time limit for imposition of penalty or levy of interest. No order for imposition of penalty after expiry of two years from the end of the year in which the relevant assessment or rectification order is passed.

Section 67: Prosecution for offence

Section 68: Composition of offences.

Section 69: Penalty or composition under this Act not to interfere with punishment under other law.

Section 70: Investigation of offence

Section 71:  Accounts to be maintained by a dealer. Dealer should maintain record through which the value and quantity of the goods received, manufactured, sold or otherwise disposed of or held in stock by him can be calculated

Section 72:  Registered dealers to issue VAT invoice.

Section 73:  Audit of accounts. Every Dealer other than who opt for payment under section 3(2) or under section 5 or who efiles the VAT return. which makes Audit section irrelevant as all the dealers registered under Rajasthan VAT are required to e-file VAT return.

Section 74: Dealer to declare the name of his business manager in FORM VAT 02

Section 75: Power of entry, inspection and seizure of accounts and goods.

Section 76: Establishment of check–post or barrier and inspection of goods while in movement.

Section 77:Establishment of check–post on contract basis.

Section 78: Transit of goods by road through the State and issue of transit pass. shall make an order that notwithstanding anything contained in this Act, Where such owner, driver or person incharge fails to deliver such transit pass in respect of any goods such owner, driver or person incharge shall pay tax on such sale together with the penalty equal to double the amount of such tax. Transit Pass in FORM 47A. Rajasthan State Government has  specified the list of Goods for which transit passed is required.Form VAT 47A can be generated online through Rajtax Portal.

Section 79:  Import of goods into the State or export of goods outside the State.

Section 80: Liability to (“xxx”) furnish information by certain agent

Section 80A:  Liability to furnish information by certain persons

Section 81: Special provisions relating to under–billing. where AO believes that goods are under valued then he may seized the goods and impose the addition amount tax and impose penalty equal such additional VAT tax.

Section 82:  Appeal to the appellate authority. Appeal to be presented with 60 days of date of communication of such order.

Section 83:  Appeal to the Tax Board

Section 84: Revision to the High Court

Section 85: Revision to the Commissioner

Section 86:  No appeal or revision in certain cases. Dealer cannot file appeal or revision under section 82, 83,84 and section 85 for matter related to notice or summons issued for assessment, direction to maintain certain accounts or furnish certain information, statement, statistics or return; an order for impounding, seizure or retention of accounts, registers or documents etc.

Section 87: Persons appointed under this Act to be public servants

Section 88: Constitution of the Rajasthan Tax Board

Section 89: Indemnity.– No suit, prosecution or other legal proceeding shall lie against any officer or official of the State Government for anything which is done or intended to be done under this Act or the rules made thereunder in good faith.

Secion 90: Bar to proceedings except as provided in this Act.– No assessment made and no order passed by any officer appointed or authority constituted under this Act, shall be called into question, except as provided in this Act.

Section 91; General powers of the Commissioner

Section 92: Power to enforce evidence.

Section 93: Power to seek assistance from police officer or other officer.–

Section 94: Disclosure of information relating to a dealer.– (1) Where any information about the registration, returns and assessment or matters incidental thereto, of a dealer is required– (a) by a court in connection with any proceeding before it; or (b) by a police officer in connection with any investigation of a case; or (c) by any Government department for an

Section 95: Automation

Section 97: Court fees payable under this Act.– (1) Notwithstanding anything contained in any other law for the time being in force, all applications, appeals and other proceedings under this Act shall require court fee stamps of such value as may be prescribed. (2) The State Government shall be exempted from court fee leviable under this Act and the rules made there under. “

Section 97A: No refund etc. in case of retrospective exemption.In case any change giving retrospective exemption to dealer and he has collected VAT tax then has to deposit that sum with Rajasthan State Government and if already deposited no refund will be issued.

Section 97B: Delegation of powers.- The State Government may, by notification in the Official Gazette, direct that subject to such conditions, if any, as may be specified in the notification, any power exercisable by an assessing authority under this Act may be exercised by such officer of the State Government, as may be specified in the notification.”

Section 98: Power to remove difficulties. – (1) Where any difficulty arises in giving effect to the provisions of this Act, the State Government may, by notification make such orders not inconsistent with this Act, as may appear to be necessary or expedient for removing the difficulty. (2) No order under sub–section (1) shall be made after the expiration of three years from the date of commencement of this Act. (3) Every order made under sub–section (1) shall be laid before the House of the State Legislature.

Section 99: Power to make rules.–All rules made under this Act, shall be laid, for a period of not less than fourteen days which may be comprised in one session or in two successive sessions and if before the expiry of the sessions in which they are so laid or in the session immediately following the House of the State Legislature makes any modification in any of such rules or resolves that any such rules should not be made, such rules shall thereafter have effect only in such modified form or be of no effect, as the case may be, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done there under.

 Section 100: Repeal and savings.

DOWNLOAD PDF RAJASTHAN VALUE ADDED ACT 2003

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Legal Compliance Calendar for June Month-2016

Legal Compliance Calendar for June 2016: Every business consultant, business person and their legal and compliance department are always on guard that they fulfill all the regulatory filing on time. So solve this problem we have compiled the different due date for legal filing under different act like Income Tax Act 1961, Service tax laws, Central Excise and Custom, Companies Act 2013, provident Fund, Employee State Insurance Corporation or Value Added Tax etc.

Income Tax Compliance for June 2016 

  1. 7th June – Due for payment of TDS/TCS for May’2016
  2. 15th June- Last date for first installment of advance Income tax for Assessee having tax liability more than Rs. 10000/- and
  3. 15th June – Issuance of TDS certificate for other than salary for quarter 1 i.e. for TDS return filed for Period January to March 2016 due date for same was 15 May 2016 same has been to changed to 30 May for next year

Rules and Guidelines for Income Tax Compliance 

A. For companies

  • TDS deducted during May’2016 due for payment on 07.06.16.
  • Advance tax for FY 16-17 First instt of 15% due on 15/06/2016
  • Issue TDS certificate for Q1 for other than salary by 15/06/16 and TCS certificate by 30/05/16

B. For firm and individual covered under tax audits

  •  TDS deducted in May’ 2016 payment due on- 07.06.2016.
  • Advance tax to be paid 15% ( first installment) of tax liability till 15/06/2016
  • Issue TDS certificate for quarter ending 31st March 2016 for other than salary by 15/06/16 and TCS certificate by 30/05/2016
  • Annual information statement due date 31/05/2016

Central Excise and Custom  Compliance for June 2016 

  1. 6th June- Due date for payment of excise for the month of May’2016
  2. 10th June – Last date for excise return for the month of May’2016 – Due Date for ER-1

Rules and Guidelines for Central Excise Compliance 

  • Excise registered units as Small Scale Industry – No payment and no return due this month of June but Unit Registered as Non SSI units – Last date for payment for the month of May is 06.06.2016 and for return 10.06.2016

Service Tax Compliance for June 2016 

  1. 6th June- Due date for payment of service tax for the month of May’2016 for other than Individual, Partnership firm and HUF as they have deposit service tax on quarterly basis.i.e Companies has to deposit service tax on monthly basis in case

VAT Tax Compliance for June 2016 

  1. 14th June- Last date for payment of Rajasthan VAT liability for dealer covered under monthly tax liablity.
  2. 14th June – Last date for Works Contract Tax TDS is for May 2016
  3. 15th June – Last for Monthly return for Composition Dealer under Karnataka VAT
  4. 15th June – Last date for TDS deposit for previous month under Delhi VAT
  5. 20th June – Last date for monthly return or statement for tax deducted at source under KVAT using VAT – 100, VAT – 110 , VAT – 125, VAT–126, VAT-127
  6. 21st June -Last date for payment of MVAT liability.
  7. 29th June- Last date for filing of VAT 11 annual return for the Year 2015-16 in Rajasthan VAT
  8. 30th June – Due Date filing return half yearly return for October to March (For dealers not liable to file F-704 under Maharashtra VAT
  9. 30th June – Person who stands enrolled before the commencement of a year or is enrolled on or before 31st May of a year under under Profession Tax Act 1975 for Profession Tax Enrollment Certificate (PTEC) holder Maharashtra

Provident Fund and ESIC Compliance for June 2016 

  1. 15th June – last date for payment of Provident fund liability Due Date date for Provident fund Contribution, government has removed the grace period of 5 days from February 2016.
  2. 21st June- Last date for payment of ESIC liability for May 2016.
  3. 25th June- Last date for filing of PF return for the month of May

Corporate Law and LLP Compliance 

30th June – Extended Last date for return of LLP for FY- 2015-16

Summary Date-wise Compliance under different rules and regulation

  • 6th June- Due date for payment of excise and service tax for the month of May’2016
  • 7th June – Due for payment of TDS/TCS for May’2016
  • 10th June – Last date for excise return for the month of May’2016
  • 14th June- Last date for payment of RAJ VAT liability.
  • 14th June – Last date for WCT TDS is for May’2016
  • 15th June – last date for payment of Provident fund liability
  • 15th June- Last date for first installment of advance Income tax for Assessee having tax liability more than Rs. 10000/- and issuance of TDS certificate for other than salary for quarter 4 for FY 2015-16
  • 20th June – Different VAT return under Karnataka VAT
  • 21st June – MVAT last Date of Payment
  • 21st June- Last date for payment of ESIC liability for May 2016.
  • 25th June- Last date for filing of PF return for the month of May
  • 29th June- Last date for filing of VAT 11 annual return for the Year 2015-16 in RAJ VAT
  • 30th June – Extended Last date for return of LLP for FY- 2015-16

DOWNLOAD FINANCE BILL 2016: BUDGET 2016-2017

FINANCE Bill 2016: BUDGET 2016-2017

This Year i.e. 2016-2017 Budget was Presented by Finance Minister Mr. Arun Jaitley (Budget of 2014-15 & 2015-16 also by Arun Jaitley under the Prime Minsiter  of India Mr.Narendra Modi) Finance Minister has started the Budget with Following Paragraph on February 29, 2016

“I am presenting this Budget when the global economy is in serious crisis. Global growth has slowed down from 3.4% in 2014 to 3.1% in 2015. Financial markets have been battered and global trade has contracted. Amidst all these global headwinds, the Indian economy has held its ground firmly. Thanks to our inherent strengths and the policies of this Government, a lot of confidence and hope continues to be built around India. The International Monetary Fund has hailed India as a ‘bright spot’ amidst a slowing global economy. The World Economic Forum has said that India’s growth is ‘extraordinarily high’. We accomplished this despite very unfavourable conditions and despite the fact that we inherited an economy of low growth, high inflation and zero investor confidence in Government’s capability to govern. We converted these difficulties and challenges into opportunities.” 

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KEY IMPORTANT FEATURES OF INDIA BUDGET 2016-17

Key Features of India Budget for Year 2016-2017

  • Growth of Economy accelerated to 7.6% in 2015-16. Fiscal deficit in RE 2015-16 and BE 2016-17 retained at 3.9% and 3.5%. Revenue Deficit target from 2.8% to 2.5% in RE 2015-16.
  • Total expenditure projected at Rs. 19.78 lakh crore. Plan expenditure pegged at Rs. 5.50 lakh crore under Plan, increase of 15.3%. Non-Plan expenditure kept at Rs.14.28 lakh crores
  • Foreign exchange reserves touched highest ever level of about 350 billion US dollars.
  • Allocation for Agriculture and Farmers’ welfare is Rs. 35,984 crore
  • ‘Pradhan Mantri Krishi Sinchai Yojana’ to be implemented in mission mode. 28.5 lakh hectares will be brought under irrigation.
  • A dedicated Long Term Irrigation Fund will be created in NABARD with an initial corpus of about Rs 20,000 crore.
  • Promote organic farming through ‘Parmparagat Krishi Vikas Yojana’ and ‘Organic Value Chain Development in North East Region’.
  • Allocation under Pradhan Mantri Gram Sadak Yojana increased to Rs. 19,000 crore. Will connect remaining 65,000 eligible habitations by 2019.
  • To reduce the burden of loan repayment on farmers, a provision of Rs.15,000 crore has been made in the BE 2016-17 towards interest subvention
  • Allocation under Prime Minister Fasal Bima Yojana Rs.5,500 crore.
  • Rs. 850 crore for four dairying projects – ‘Pashudhan Sanjivani’, ‘Nakul Swasthya Patra’, ‘E-Pashudhan Haat’ and National Genomic Centre for indigenous breeds.
  • A sum of Rs. 38,500 crore allocated for MGNREGS (Mahatma Gandhi National Rural Employment Gurantee Act for Details About NREGA Scheme www.nrega.nic.in)
  • 3,000 Stores under Prime Minister’s Jan Aushadhi Yojana will be opened during 2016-17.
  • “Stand Up India Scheme” to facilitate at least two projects per bank branch. This will benefit at least Rs.2.5 lakh entrepreneurs.
  • Digital Depository for School Leaving Certificates, College Degrees, Academic Awards and Mark sheets to be set-up.
  • GoI will pay contribution of 8.33% for of all new employees enrolling in EPFO for the first three years of their employment. Budget provision of Rs. 1000 crore for this scheme.
  • Deduction under Section 80JJAA of the Income Tax Act will be available to all assesses who are subject to statutory audit under the Act.
  • Total investment in the road sector, including PMGSY allocation, would be Rs. 97,000 crore during 2016-17.
  • India’s highest ever kilometres of new highways were awarded in 2015. To approve nearly 10,000 kms of National Highways in 2016-17.Allocation of Rs. 55,000 crore in the Budget for Roads. Additional Rs. 15,000 crore to be raised by NHAI through bonds.Total outlay for infrastructure – Rs. 2,21,246 crore.
  • Mobilisation of additional finances to the extent of Rs. 31,300 crore by NHAI, PFC, REC, IREDA, NABARD and Inland Water Authority by raising Bonds.
  • Amendments in the SARFAESI Act 2002 to enable the sponsor of an ARC to hold up to 100% stake in the ARC and permit non institutional investors to invest in Securitization Receipts.
  • Allocation of Rs. 25,000 crore towards recapitalisation of Public Sector Banks.Target of amount sanctioned under Pradhan Mantri Mudra Yojana increased to Rs. 1,80,000 crore.General Insurance Companies owned by the Government to be listed in the stock exchanges.
  • Raise the ceiling of tax rebate under section 87A from Rs.2000 to Rs.5000 to lessen tax burden on individuals with income upto Rs. 5 laks. Increase the limit of deduction of rent paid under section 80GG from Rs.24000 per annum to Rs.60000, to provide relief to those who live in rented houses.Deduction for additional interest of Rs.50,000 per annum for loans up to Rs.35 lakh sanctioned in 2016-17 for first time home buyers, where house cost does not exceed Rs. 50 lakh.
  • Increase the turnover limit under Presumptive taxation scheme under section 44AD of the Income Tax Act to Rs.2 crores to bring big relief to a large number of assessees in the MSME category.
  • Extend the presumptive taxation scheme with profit deemed to be 50%, to professionals with gross receipts up to Rs.50 lakh
  • Phasing out deduction under Income Tax: Accelerated depreciation wherever provided in IT Act will be limited to maximum 40% from 1.4.2017. Benefit of deductions for Research would be limited to 150% from 1.4.2017 and 100% from 1.4.2020. Benefit of section 10AA to new SEZ units will be available to those units which commence activity before 31.3.2020. The weighted deduction under section 35CCD for skill development will continue up to 1.4.2020.
  • Additional tax at the rate of 10% of gross amount of dividend will be payable by the recipients receiving dividend in excess of Rs.10 lakh per annum.
  • New manufacturing companies incorporated on or after 1.3.2016 to be given an option to be taxed at 25% + surcharge and cess provided they do not claim profit linked or investment linked deductions and do not avail of investment allowance and accelerated depreciation. Lower the corporate tax rate for the next financial year for relatively small enterprises i.e companies with turnover not exceeding Rs.5 crore (in the financial year ending March 2015), to 29% plus surcharge and cess.
  • 100% deduction of profits for 3 out of 5 years for startups setup during April, 2016 to March, 2019. MAT will apply in such cases.
  • 10% rate of tax on income from worldwide exploitation of patents developed and registered in India by a resident.
  • Complete pass through of income-tax to securitization trusts including trusts of ARCs. Securitisation trusts required to deduct tax at source.
  • Period for getting benefit of long term capital gain regime in case of unlisted companies is proposed to be reduced from three to two years.
  • Non-banking financial companies shall be eligible for deduction to the extent of 5% of its income in respect of provision for bad and doubtful debts.
  • Determination of residency of foreign company on the basis of Place of Effective Management (POEM) is proposed to be deferred by one year.
  • Commitment to implement General Anti Avoidance Rules (GAAR) from 1.4.2017.
  • Exemption of service tax on services provided under Deen Dayal Upadhyay Grameen Kaushalya Yojana and services provided by Assessing Bodies empanelled by Ministry of Skill Development & Entrepreneurship.
  • Exemption of Service tax on general insurance services provided under ‘Niramaya’ Health Insurance Scheme launched by National Trust for the Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disability.
  • Basic custom and excise duty on refrigerated containers reduced to 5% and 6%.
  • Surcharge to be raised from 12% to 15% on persons, other than companies, firms and cooperative societies having income above Rs. 1 crore.
  • Tax to be deducted at source at the rate of 1 % on purchase of luxury cars exceeding value of Rs.ten lakh and purchase of goods and services in cash exceeding Rs.two lakh.
  • Securities Transaction tax in case of ‘Options’ is proposed to be increased from .017% to .05%.
  • Equalization levy of 6% of gross amount for payment made to non- residents exceeding ` 1 lakh a year in case of B2B transactions.
  • Krishi Kalyan Cess, @ 0.5% on all taxable services, w.e.f. 1 June 2016. Proceeds would be exclusively used for financing initiatives for improvement of agriculture and welfare of farmers. Input tax credit of this cess will be available for payment of this cess.
  • Infrastructure cess, of 1% on small petrol, LPG, CNG cars, 2.5% on diesel cars of certain capacity and 4% on other higher engine capacity vehicles 13 and SUVs. No credit of this cess will be available nor credit of any other tax or duty be utilized for paying this cess.
  • Excise duty of ‘1% without input tax credit or 12.5% with input tax credit’ on articles of jewellery [excluding silver jewellery, other than studded with diamonds and some other precious stones], with a higher exemption and eligibility limits of Rs.6 crores and Rs.12 crores respectively.
  • Excise on readymade garments with retail price of Rs.1000 or more raised to 2% without input tax credit or 12.5% with input tax credit.
  • ‘Clean Energy Cess’ levied on coal, lignite and peat renamed to ‘Clean Environment Cess’ and rate increased from Rs.200 per tonne to Rs.400 per tonne.
  • Excise duties on various tobacco products other than beedi raised by about 10 to 15%.
  • Domestic taxpayers can declare undisclosed income or such income represented in the form of any asset by paying tax at 30%, and surcharge at 7.5% and penalty at 7.5%, which is a total of 45% of the undisclosed income. Declarants will have immunity from prosecution.
  • Surcharge levied at 7.5% of undisclosed income will be called Krishi Kalyan surcharge to be used for agriculture and rural economy.
  • New Dispute Resolution Scheme to be introduced. No penalty in respect of cases with disputed tax up to Rs.10 lakh. Cases with disputed tax exceeding Rs.10 lakh to be subjected to 25% of the minimum of the imposable penalty.
  • Any pending appeal against a penalty order can also be settled by paying 25% of the minimum of the imposable penalty and tax interest on quantum addition.
  • High Level Committee chaired by Revenue Secretary to oversee fresh cases where assessing officer applies the retrospective amendment.
  • One-time scheme of Dispute Resolution for ongoing cases under retrospective amendment.
  • Penalty rates to be 50% of tax in case of underreporting of income and 200% of tax where there is misreporting of facts.
  • Disallowance will be limited to 1% of the average monthly value of investments yielding exempt income, but not exceeding the actual expenditure claimed under rule 8D of Section 14A of Income Tax Act.
  • Time limit of one year for disposing petitions of the tax payers seeking waiver of interest and penalty.
  • Mandatory for the assessing officer to grant stay of demand once the assesse pays 15% of the disputed demand, while the appeal is pending before Commissioner of Income-tax (Appeals).
  • Monetary limit for deciding an appeal by a single member Bench of ITAT enhanced from Rs. 15 lakhs to Rs.50 lakhs.
  • 11 new benches of Customs, Excise and Service Tax Appellate Tribunal (CESTAT).

How to Pay or Deposit Outstanding Income Tax Demand Online or Offline through Challan 280

Income Tax Demand or Refund is issued once your assessment for that year is completed and Income tax officer i.e. Assessing Officer issues Income Tax Assessment order under section 143 (Summary assessment and Scrutiny assessment), Section 144 (Best judgment assessment), Section 147(Income escaping assessment). But Once Assessment is completed there can three outcome

1. No Demand or Refund for that Assessment Year

2. Refund Issued for that Assessment Year

3.  Demand Payable

So Assessee has two option or alternate in relation to that assessment year he accepts it or rejects is in case no acceptable then he can file Appeal Against that Assessment year with Income Tax Appeal with 30 days of receipt of Income tax Assessment order. In case accepts that Assessment order he has the option to pay outstanding  Income Tax Demand either online or offline through challan no 280. Basic Information required for Depositing Income Tax Demand or Normal Income Tax is PAN Number and Year for which you want to deposit income tax.

Process for Deposit Online Outstanding Income Tax Demand (Click on Link for Payment of Income Tax ) or Download the Challan No 280

Opening Page for tax Information System

Select Challan No 280 :Payment of Income Tax & Corporation Tax 

Challan No 280 Online Payment Screen

Tax Applicable: select code 21 for any Person other than Companies

PAN Number: 

Assessment for Year: Year for which Demand is Outstanding (Note Asst Year for Financial Year 2011-12 will be 2012-13, 2012-13 will be 2013-14, 2013-14 will be 2014-15 and So on)

Name of Person: As Given on PAN Card (it will be displayed once you fill all details and click on proceed link given at the end of form 280)

Address of the Assessee

Mobile No and Email id

Type Of Payment: Select 400(TAX ON REGULAR ASSESSMENT) for Income Tax Demand Deposit and 300 (SELF ASSESSMENT TAX) for Deposit of Tax Before filing Income tax return after year ending and 100 (ADVANCE TAX) for deposit of Income Tax Before year ending for FY 2015-16 (Assessment Year 2016-17) upto 31st March 2016.

Select Bank: Bank for which Net Banking Facility is activated

Once Proceed is Selected Confirmation Screen will be opened

CONFIRMATION PAGE FOR TAX PAYMENT

If All the Details Correct Select Submit to Bank Option.

In Case if Assessee wants to Deposit Income Tax Offline then he can download Challan No 280 and Fill the Above details

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SERVICE TAX SWACHH BHARA CESS TO BE INTRODUCED FROM 15 NOVEMBER 2015 AT 0.5%

Ministry of Finance Department of Revenue Central Board of Excise and Customs (CBEC)  has issued the Notification for date and rate of Swachh Bharat Cess from 15th November 2015 at .5% on value of taxable services. So from 15th Nov 2015 Service Provider has to charge 14% Service Tax and .5% Swachh Bharat Cess on value of taxable services

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)

New Delhi, the 6th November, 2015

 

Notification No. 22/2015-Service Tax

G.S.R. —(E).- In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994) read with sub-section (5) of section 119 of the Finance Act, 2015 (20 of 2015), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts all taxable services from payment of such amount of the Swachh Bharat Cess leviable under sub-section (2) of section 119 of the said Act, which is in excess of Swachh Bharat Cess calculated at the rate of 0.5 percent. of the value of taxable services:

Provided that Swachh Bharat Cess shall not be leviable on services which are exempt from service tax by a notification issued under sub-section (1) of section 93 of the Finance Act, 1994 or otherwise not leviable to service tax under section 66B of the Finance Act, 1994.

This notification shall come into force from the 15th day of November, 2015.

 

Extension of Due Date of Returns of Income and Audit reports u/s 44AB to 31st Oct 2015

Central Board of Direct Taxes (Income Tax Dept) has extended the due date of Filing Income Tax Return and Audit Report from 30th Sept 2015 to 31st Oct 2015.

F.No.22S/207 /201S/1T A.II

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

North Block, ITA.rr Division

New Delhi dated the 1 st of October, 2015

Order under Section 119 of the Income-tax Act, 1961 In supersession of orders under Section 119 of the Income-tax Act, 1961 (‘Act’) dated 30th September, 20 15 vide file of even number, the Central Board of Direct Taxes, in exercise of powers conferred under Section 119 of the Act, hereby orders that the returns of income and audit reports u/s 44AB due for e-filing by 30th September, 20 15 may be filed, across the country, by 3 1 st October, 2015.

(Rohit Garg)

Deputy Secretary to the Government of India

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NEW SERVICE TAX RATE OF 14% EFFECTIVE FROM 1st JUNE 2015

Government of India i.e. Ministry of Finance (Department of Revenue) has issued the notification no D.O.F.No.334/5/2015-TRU on 19th may 2015 regarding the change in service tax rate from 12% to 14% and new service tax rate of 14% will be effective from 1st June 2015. Current Service Tax Rate of 12%+2%+1%=12.36% will remain applicable till 30th May 2015 from 1st June 2015 new rate of 14% shall come into force. Another addition of 2% i.e. Swachh Bharat Cess to this rate of 14% will remain pending till notified by the central government.

New Delhi, the 19th May, 2015
D.O.F.No.334/5/2015-TRU

The Finance Bill, 2015, has received the assent of the Honorable President and has been notified. In the Budget, 2015, certain amendments in the Finance Act, 1994 have been incorporated through the Finance Act, 2015, which will come into effect from a date to be notified. In this regard, 1st June, 2015 is being notified as the date on which the provisions as specified in paragraph 2 below will come into effect. Certain provisions in some notifications already issued, will also come into effect from 1st June, 2015.

2. Following provisions will come into effect from 1st June, 2015.

2.1 Section 66B of the Finance Act, 1994, prescribes the service tax rate. It has been amended by Section 108 of the Finance Act, 2015. The rate of Service Tax is being increased from 12% to 14% (including cesses). The increase in Service Tax rate will come into effect from 1st June, 2015. (Notification No.14/2015-Service Tax, dated 19th May, 2015 refers)

2.2 Sections 153 and 159 of the Finance Act, 2015 provide that section 95 of the Finance (No.2) Act, 2004 and section 140 of the Finance Act, 2007, levying Education Cess and Secondary and Higher Education Cess, respectively, on taxable services, shall cease to have effect from a date to be notified by the Central Government. The above provisions levying Education Cess and Secondary and Higher Education Cess should also cease to have effect from 1st June, 2015. (Notification No.14/2015-Service Tax, dated 19th May, 2015 refers), that is the date with effect from which the increase in the Service Tax rate comes into effect.

2.3 The Negative List entry [section 66D (j)] that covers “admission to entertainment event or access to amusement facility” is to be omitted vide section 109 (4) of The Finance Act, 2015. Section 65B (9) and 65B (24) of the Finance Act, 1994 defines amusement facility and entertainment event, respectively. These entries in the definitions have been omitted by the Section 107 (a) and (c) of the Finance Act, 2015. These changes will come into effect from 1st June, 2015. The implication of these changes are as follows,-
(a) Service Tax shall be levied on the service provided by way of access to amusement facility providing fun or recreation by means of rides, gaming devices or bowling alleys in amusement parks, amusement arcades, water parks and theme parks.
(b) Service tax shall be levied on service by way of admission to entertainment event of concerts, pageants, musical performances concerts, award functions and sporting events other than the recognized sporting event, if the amount charged is more than Rs. 500 per person for the right to admission to such an event.
This levy would come into effect from 1st June, 2015. (Notification No.14/2015-Service Tax, dated 19th May, 2015 refers)

2.3.1 However, the existing exemption, by way of the Negative List entry, to service by way of admission to entertainment event, namely, exhibition of cinematographic film, circus, recognized sporting event, dance, theatrical performance including drama and ballet shall be continued, through the route of exemption. Entry 47 and definition of “recognised sporting event” [paragraph 2 entry „zab‟] has been inserted in notification No. 25/2012-ST vide S.No.1.(xii) and S. No. 2.(b) respectively of notification No. 06/2015-ST dated 1st March, 2015. This entry will also come into effect from 1st June, 2015. (Notification No.16/2015-Service Tax, dated 19th May, 2015)

2.4 The entry in the Negative List [section 66D (f)] that covers service by way of any process amounting to manufacture or production of goods has been amended vide section 109(2) of Finance Act, 2015, to exclude any service by way of carrying out any processes for production or manufacture of alcoholic liquor for human consumption. Consequently, Service Tax shall be levied on contract manufacturing/job work for production of potable liquor for a consideration. In this context, the definition of the term “process amounting to manufacture or production of goods” [section 65 B (40)] has also been amended vide section 107 (f) of the Finance Act, 2015. This levy would come into effect from 1st June, 2015. (Notification No.14/2015-Service Tax, dated 19th May, 2015 refers)

2.4.1 A consequential amendment in S. No. 30 of notification No. 25/2012-ST dated 20th June, 2012, to exclude intermediate production of alcoholic liquor for human consumption from ambit of the exemption, will also come into effect from 1st June, 2015. [Notification No. 06/2015-ST dated 1st March 2015 Entry at Sl. No. 1.(ix)] (Notification No.16/2015-Service Tax, dated 19th May, 2015 refers)

2.5 An entry in the Negative list covers betting, gambling or lottery [Section 66D (i)]. This entry has been amended by section 109 (3) of the Finance Act, 2015 so as to include an explanation that “betting, gambling or lottery” shall not include the activity carried out by a lottery distributor or selling agent in relation to promotion, marketing, organising, selling of lottery or facilitating in organising lottery of any kind, in any other manner. The objective of making these exclusions was to make it explicitly clear that while lottery per se is not subject to service tax, aforesaid services in relation to lottery will be taxable. This will come into effect from 1st June, 2015. (Notification No.14/2015-Service Tax, dated 19th May, 2015 refers)

2.6 In respect of certain services like money changing service, service provided by air travel agent, insurance service and service provided by lottery distributor and selling agent, the service provider has been allowed to pay service tax at an alternative rate subject to the conditions as prescribed under rules 6(7), 6(7A), 6(7B) and 6(7C) of the Service Tax Rules, 1994. Consequent to the upward revision in Service Tax rate, the said alternative rates shall also be revised proportionately.

2.6.1 Amendments to this effect have been made in the Service Tax Rules which will also come into effect from 1st June, 2015, that is the date with effect from which the increase in the Service Tax rate is made effective. [Notification No. 05/2015-ST 1st March 2015 Entry at Sl. No. 2(a)(e)(ii)] (Notification No.15/2015-Service Tax, dated 19th May, 2015 refers)
3. Presently, services provided by Government or a local authority, excluding certain services specified under clause (a) of section 66D, are covered in the Negative List. An enabling provision has been made, by amending section 66D (a) (iv), to exclude all services provided by the Government or local authority to a business entity from the Negative List [section 109(1) of Finance Act, 2015]. Consequently, the definition of “support service” [section 65 B (49)] is also to be omitted from date to be notified [section 107(h) of Finance Act, 2015].

As and when this amendment is given effect to, all services provided by the Government or local authority to a business entity, except the services that are specifically exempted, or covered by any another entry in the Negative List, shall be liable to service tax. The date from which this amendment would come into effect will be notified in due course.

4. An enabling provision has been incorporated in the Finance Act, 2015 vide section 117 (Chapter VI) to impose a Swachh Bharat Cess on all or any of the taxable services at a rate of 2% or lower on the value of such taxable services. This cess shall be levied on such services at such rate from such date as may be notified by the Central Government. The date from which this amendment would come into effect will be notified in due course.

5. In other words, date of effect of the provisions discussed in para 3 & 4 above are not being notified at present.

6. Amendments have been made by Sections 113, 114 and 115 in the Finance Act, 1994, in order to impart greater clarity and align the service tax provisions with those in Central Excise by adding provisions relating to closure of proceedings in sections 76, 78 and 78B. A similar alignment with the central excise provisions has been done in sections 76(2) and 78(2) with respect to cases where the appellate authority increases the duty or penalty. These changes have come into effect immediately after enactment of Finance Bill, 2015.

7. All the above changes may be brought to the notice of trade and industry and wide publicity may be made in this regard.

Process for Issue of Summons in Central Excise and Service Tax

Central Board of Excise and Customs (CBEC) has issued the guidelines on 20th January 2015 through circular No. 207/07/2014-CX-6 for issue of summons in Central Excise and Service Tax matters. As per Section 14 of Central Excise Act, 1944, summons can be used in an inquiry for recording statements or for collecting evidence/ documents. Summons can be issued by  Superintendents or higher authority but only after taking prior permission of  Assistant Commissioner or higher authority with reasons of summons recorded in writing. In case not able get written permission then telephonic permission is required & same should be reduced to writing and intimated to the officer.  The officer issuing summons should submit a report or should record a brief of the proceedings in the case file and submit the same to the  officer who had authorised the issue of summons. senior management officials such as CEO, CFO, General Managers of a large company or a PSU should not generally be issued summons at the first instance. They should be summoned only when there are indications in the investigation of their involvement in the decision making process which led to loss of revenue. Instruction has also been issued vide F. No. 137/39/2007-CX.4 dated 26.2.2007 in Service Tax matters. Board has already issued a circular vide F. No 208/122/89-CX.6 dated 13.10.1989 in respect of Central Excise

 

No. 207/07/2014-CX-6

Government of India

Ministry of Finance

Department of Revenue

Central Board of Excise and Customs

  New Delhi, the 20th January, 2015

 

To

 

Principal Chief / Chief Commissioners of Central Excise (All),

Principal Chief / Chief Commissioners of Central Excise of Central Excise & Service Tax (All),

Sub: Instructions regarding issue of summons in Central Excise and Service Tax matters – reg.

Madam/Sir,

It has been brought to the notice of the Board that in some instances, the summons under Section 14 of the Central Excise Act, 1944 have been issued by the field formations to the top senior officials of the companies in a routine manner to call for material evidence/ documents. Besides, summons have been issued to enforce recovery of dues, which are under dispute. As per Section 14 of Central Excise Act, 1944, summons can be used in an inquiry for recording statements or for collecting evidence/ documents. While the evidentiary value of securing documentary and oral evidence under the said legal provision can hardly be over emphasized, nevertheless, it is desirable that summons need not always be issued when a simple letter, politely worded, can also serve the purpose of securing documents relevant to investigation. It is emphasized that the use of summons be made only as a last resort when it is absolutely required.

On this issue, Board has already issued a circular vide F. No 208/122/89-CX.6 dated 13.10.1989 in respect of Central Excise. Instruction has also been issued vide F. No. 137/39/2007-CX.4 dated 26.2.2007 in Service Tax matters.

The following guidelines are being issued to be followed in both Central Excise and Service Tax matters:–

 

(i) Power to issue summons are generally exercised by Superintendents, though higher officers also issue summons. Summons by Superintendents should be issued after obtaining prior written permission from an officer not below the rank of Assistant Commissioner with the reasons for issuance of summons to be recorded in writing;

(ii) where for operational reasons it is not possible to obtain such prior written permission, oral/telephonic permission from such officer must be obtained and the same should be reduced to writing and intimated to the officer according such permission at the earliest opportunity;

(iii) In all cases, where summons are issued, the officer issuing summons should submit a report or should record a brief of the proceedings in the case file and submit the same to the  officer who had authorised the issue of summons.

Further, senior management officials such as CEO, CFO, General Managers of a large company or a PSU should not generally be issued summons at the first instance. They should be summoned only when there are indications in the investigation of their involvement in the decision making process which led to loss of revenue.

These instructions may be brought to the notice of all the field officers for strict compliance. Non observance of the instructions will be viewed seriously. Hindi version would follow.

 

 

Yours faithfully,

 

(ROHAN)

Under Secretary, (CX-6)