No IRS in GST
TIOL-DDT 2930
15 09 2016
Thursday
A concerned Netizen mailed us this in response to yesterday's DDT story GST Council is Born - Board Not on Board - IRS Protests -
One of the wisest things done by the Modi Government in the GST Road is keeping the CBEC and IRS officers away from the policy and implementation. Yesterday DDT reported the IRS Association's claim that officers of IRS (C&CE) service have requisite expertise of performing various functions of Indirect Tax Administration such as administrative functions, quasi judicial role, technical knowhow, enforcement work and audit and are successfully implementing indirect tax administration in the country in a wholesome and comprehensive manner, it is the responsibility and determination of the service to successfully and smoothly implement the GST in the country without any hurdles.
Just look at a sample of what they have done all these years:
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Help Centres
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Started in 2005 - Where are they now?
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Interest rates
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Have you ever heard of interest rate of 36%? Now it stands corrected, but who is responsible for this faux pas that still haunts the assessees?
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Returns
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ER1, ER4, ER5, ER6, ER7 --- list goes on - why so many returns continued for so many years?
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ACES
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Booking tatkal ticket in IRCTC is easier than accessing ACES website during return period - You may say returns are filed successfully, but do you know after how many unsuccessful attempts by the taxpayers?
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Refunds
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Ask assessees, how easily they are getting refunds.
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Jurisdictions
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You can't even define jurisdiction for issuing Show Cause Notices - Notwithstanding your weapon of retro amendments to undo court rulings.
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Investigating Agencies
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Getting lambasted by the High Courts and ending up paying costs in addition to refunding tax.
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Adjudication
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How many orders of Commissioners survived the first stage scrutiny by the CESTAT? Why can't the Commissioners understand the law the way CESTAT understands?
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RAC meetings
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To clarify that CENVAT Credit is admissible only on duplicate copy of the invoice - When there is no such rule in statute?
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VCES
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Is it correct to call for voluntary declarations and then chase their records, book cases?
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Appeals
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Carry the matter before the Supreme Court, win the case, create havoc in trade and at the end of the day, amend the Rule to undo the judgement (FIAT case - Rule 6 amendment) - Why to appeal in first place? To have fun?
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CENVAT Credit
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Limitation for taking credit - 6 months and then again one year? Why don't you think before bringing in an amendment that affects trade?
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Show Cause Notice limitation - period
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You enhance limitation under Sec 11A of CE Act, 1944 and 73 of the FA 1994 as per your free will from one year to 2 or 3 years, and still you don't feel the parallel limitation period for filing refund claims should be enhanced? Heads I win and tails you lose?
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Service Tax
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Did you not realise that there should be threshold limit exemption? Even tiny barber shops, cable operators lived under fear of Service Tax for years till better sense prevailed and threshold exemption introduced. Isn't it elementary Mr Watson?
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Balance Education cess
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First 50% balance on capital goods as on 1.03.2015 will lapse, but on the same capital goods 2 nd 50% is allowed - Mr Bean's comedy at its best?
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Construction Service
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Did you realize only in 2016 that a builder can pay ST by availing abatement under Notification 1/2006? Why did you allow the confusion for so many years?
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And you want to religiously carry all these into GST?
GST Training?
ANOTHER concerned Netizen wrote in
"If GST has to roll out on 1.04.2017 not only the officers of Central Govt and State Govts have to be trained theoretically and practically in GSTN, but the Industry and the trade , including its accountants have to be trained. Software modification for the GST, and the GSTN/Software interface is one looking for at this stage as the same will take time, and unless the software is modified and the employees are trained to how to upload returns and how to avail input credit-- is the question that remains unanswered. If you send e-mail to GSTN or CBEC or to your jurisdictional Commissioner Central Excise/Commissioner Commercial Taxes, you will not get any reply or guidance. Under the situation how the revenue secretary is going ahead with his plan of 1.04.2017. Why not GST administration in India upload you-tube presentation explaining the GSTN concept, software requirement, connecting to GSTN." -----A -Netizen
FTP - Guidelines for Issuance of Duty Credit Scrips under Incremental Export Incentivisation Scheme (IEIS) for Quarterly period (01.01.2013 to 31.03.2013)
THE Incremental Export Incentivisation Scheme (IEIS) for Quarterly basis (01.01.2013 to 31.03.2013) was introduced vide Notification No.27 dated 28.12.2012. Under this scheme, an IEC holder was entitled for duty credit scrip @ 2% on the incremental growth during the period 01.01.2013 to 31.03.2013 compared to the period from 01.01.2012 to 31.03.2012 on the FOB value of export subject to conditions prescribed therein.
In pursuance of the Trade Notice No.4 dated 05.05.2016, changes in entitlement in the online system for the IEIS Quarterly cases has been incorporated and list of such cases where Supplementary Scrip is to be issued is made available in the Online Application Menu of the Quarterly IEIS Scheme.
All the concerned RAs now have facility to re-open the files in such cases for issue of the balance claim pending after deducting the initial Scrip value and process such cases for issuance of Scrips for the balance entitlement after ensuring due diligence as indicated in the Trade Notice 4/2016 dated 05.05.2016 and earlier instructions on scrutiny of claims.
DGFT instructs that RAs shall exercise due diligence while processing such claims by following guidelines of greater scrutiny as prescribed in Public Notice No. 28 dated 25.09.2013 to check claims having high growth percentage and/or value and against irregularities if any. Where the export growth or total claim under the Scheme is excessive and out of trend, RA would check claims in detail, including where necessary by seeking help from Customs, DRI etc. In this regard Notification No.27 dated 28.12.2012 may also be carefully seen, in addition to other relevant FTP/HBP provisions, Inter alia, transfer of export performance from any other IEC holder is not permitted under the scheme as per Para 3.14.4 (d) of FTP 2009-14. Similarly disclaimer provision of Para 3.17.10(b) of FTP 2009-14 is also not admissible as per Para 3.14.4(e) of FTP 2009-14. Therefore, applicants who have purchased goods from another legal entity who is also having IEC are not entitled for benefit under the Scheme on such purchases of goods. More generally, no right is vested in cases where irregularities have been resorted to by applicants.
The RAs are also informed that applicant firms who have given reduced export performance details once at any time will not be given any benefit of re-applying with changed export performance.
DGFT Trade Notice No. 16/2016 Dated: September 14 2016
Balaji Exempted From TDS
IN exercise of the powers conferred by sub-section (1F) of section 197A of the Income-tax Act, the Central Government has notified that no deduction of tax shall be made from payments of the nature specified in section 193 or section 194A or section 194-I of the Act to the Tirumala Tirupati Devasthanams, Tirupati, Andhra Pradesh.
197A (1F): -No deduction to be made in certain cases. (1F) Notwithstanding anything contained in this Chapter, no deduction of tax shall be made from such specified payment to such institution, association or body or class of institutions, associations or bodies as may be notified by the Central Government in the Official Gazette, in this behalf.
193 -Interest on securities: The person responsible for paying to a resident any income by way of interest on securities shall, at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax at the rates in force on the amount of the interest payable:
194A -Interest other than interest on securities: Any person, not being an individual or a Hindu undivided family, who is responsible for paying to a resident any income by way of interest other than income by way of interest on securities, shall, at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon at the rates in force:
194-I. Rent: Any person, not being an individual or a Hindu undivided family, who is responsible for paying to a resident any income by way of rent, shall, at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon.
CBDT Notification No. 81/2016; Dated: September 9 2016
Due Date for Filing Income Tax Returns by those covered under Mandatory Audit - CBDT Clarifies
CENTRAL Board of Direct Taxes, vide order u/s 119 of the Income-tax Act, dated 9th September, 2016, has extended the 'due date' for filing of income tax returns by the taxpayers whose accounts are audited u/s 44AB and who are required to furnish the returns of income for Assessment Year 2016-17 by 30th September, 2016 as per provisions of section 139(1) of the Act from 30th September, 2016 to 17th October, 2016. DDT 2928 12 09 2016
Clarification are now being sought whether the said extension of 'due date' would also apply for getting the accounts audited in accordance with the provision of section 44AB.
CBDT clarifies,
Section 44AB of the Act, stipulates that the accounts are to be got audited by an accountant and furnished in the prescribed manner before the 'specified date'. The 'specified date' under Explanation (ii) to that section has been defined to be the 'due date' for furnishing the return of income under sub-section (1) of section 139. Therefore, the extended 'due date' as per CBDT order dated 9th September, 2016 would also apply for the purpose of section 44AB of the Act .
CBDT F.No.225/195/2016-ITA II; Dated: September 14 2016
GST
We have merely passed an empowering and enabling legislation. We have not passed an enforceable tax regime. Nine-tenths of the details are yet to come. As we all know, both God and the Devil lies in the details. Let the process start…
Congress spokesperson Abhishek Singhvi
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Until tomorrow with more DDT
Have a nice day.
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