TIOL-DDT 2931
16 09 2016
Friday

THE President yesterday constituted the GST Council with the Union Finance Minister as the Chairperson, in exercise of the powers conferred under Article 279A of the Constitution

In order to ensure that there is no slippage on date of implementation of GST from 1st April, 2017, the Prime Minister reviewed the progress made on various steps needed for the rollout of GST relating to preparation of Model GST laws and rules to be framed, establishment of IT infrastructure for both Centre and States, training of officers of Central and State Governments and outreach for awareness of trade and industry.

Dr. Subramanian Swamy has again written to the Prime Minister:

"You may recall my letters about the GSTN and why it is not in our national interest to pursue it within the present structure set up for GSTN, which involves majority participation by the private sector whose shares are largely foreign owned.

Now I learn that without reference to any expenditure norm, there is a move to grant Rs.300 crores to GSTN by the Finance Ministry. This position of the Ministry of Finance to grant Rs.300 crores was taken without any analysis whether the CBEC cannot perform the same work at much less expense.

The Cabinet may perhaps therefore have the matter fully examined before a final decision is taken in the matter."

Infosys CEO Vishal Sikka made a presentation to Finance Minister Arun Jaitley and senior officials of the Ministry on GST Network (GSTN) and the road map for its operationality.

Sikka is reported to have said, "It is going to be a hell of a challenge. We know it is worrying sitting back there, but we are going to be ready."

It certainly is going to be a hell of a challenge. The Ministry of Finance still seems to be using 'Windows 7'. See the monitor in the picture above. The first thing Sikka should do is present them a 'Windows 10'.

CBEC doesn't seem to be a part of the show. But yesterday they issued a letter to all the Chief Commissioners that it has been decided to fill up 02 posts of Commissioners, 04 posts of Additional/Joint Commissioners and 04 Posts of Deputy/Assistant Commissioner in the GST Council's Secretariat. Board wants the applications of eligible (and willing) officers latest by 1pm today. When will an Assistant Commissioner working in Dindigul (in Tamil Nadu) see the Board's letter and how can he send his application through proper channel by today afternoon? Are the selections already over?

No IRS should be in GST Regime

ADVOCATE Rakesh mailed us this:

IRS hierarchy is totally a failure in proper framing and implementation of Indirect Tax Laws. In adjudication and appeals in the cases of hearings, dates are adjourned without intimating the parties. To get the refund is an uphill task and to claim interest over delayed refund is beyond imagination. 90% cases are adjudicated without application of mind, which are reversed at Customs Excise Service Tax Appellate Tribunal itself. Most of the Technical/Legal work and preparation of orders is done by the directly recruited Inspectors or the Superintendents but they are not allowed to enter to the Golden path of class-I. Directly recruited Class-I officers having no legal qualification, who are not exposed to litigation, like working in the Office of the Commissioner(Appeals), are made in charge of divisions who deal cases of refund/rebate of duty to the unlimited amount, whereas directly recruited judges having Legal qualification and exposed to Courts, before they are posted have limited pecuniary limits for deciding the cases.

There is no departmental qualifying test for promotion at any level. since the directly recruited inspectors demanding 2-3 promotion in their career, the Central Board of Excise & Customs decided to fill the post of Inspectors through the promotion of lower cadres without any merit. Can any such promoted inspector read Central Excise Manual and write a single small para on any technical/legal matter? A GREAT MESS CREATED BY THESE OFFICERS.

Income Declaration Scheme, 2016 - CBDT Clarifications

THE Income Declaration Scheme, 2016 has come into effect from 1st June, 2016 and is open for declarations upto 30.09.2016. Vide Circular No. 16 of 2016 dated 20.05.2016; it was clarified that a person will not be eligible to file declaration under the Scheme for the assessment year(s) in respect of which a notice under section 142(1)/143(2)/148/153A/153C has been served upon him on or before 31.05.2016. It was also clarified that where a search has been conducted under section 132 or requisition has been made under section 132A or a survey has been carried out under section 133A of the Income-tax Act, in a previous year then the person shall not be eligible under the Scheme if the time for issuance of a notice under section 143(2)/153A/153C for the relevant assessment year has not expired.

Now a doubt:

Can a declaration under the Scheme be filed for an assessment year for which the proceedings under section 142(1)/143(2)/148/153A/153C were pending as on 31.05.2016 but the said proceedings have been completed.

CBDT Clarifies:

A declaration under the Scheme can be filed in respect of the assessment year for which notice under section 142(1)/143(2)/148/153A/153C has been served on or before 31.05.2016 but the proceedings have been completed and the period of filing declaration under the Scheme has not expired. However, the declarant shall not be entitled to file the declaration in respect of the income which is the subject matter of the assessment order. It is reiterated that the cases where the time for issuance of a notice under section 143(2)/153A/153C pursuant to search, seizure or survey operation, as the case may be, for the relevant assessment year(s) has not expired shall not be eligible to avail the Scheme.

CBDT Instruction No. 8/2016., Dated: September 15 2016

IDS 2016 - Information Confidential

ON concerns regarding confidentiality of the information filed under the Scheme, Government has reiterated that information contained in a valid declaration is confidential and shall not be shared. In respect of declarations filed with the Commissioner of Income-tax, Centralised Processing Centre, Bengaluru [CIT (CPC)], the declaration shall not be shared even with the jurisdictional Principal Commissioner / Commissioner and payments made under the Scheme shall not be visible to the jurisdictional officers. Form-2 and Form-4 required to be issued in such cases shall be system generated by the CPC.

Similarly, the declaration filed with jurisdictional Principal Commissioner/Commissioner shall not be shared with any authority within or outside the department including the jurisdictional Assessing Officer. Further, the payments under the Scheme shall neither be reflected in 26AS statement nor can be viewed by the Assessing Officer in the Online Tax Accounting System (OLTAS) of the Department in the interest of confidentiality.

Income Tax - Joy of Giving

CBDT has decided that the Income Tax Department will observe the week between 2nd October and 8th October, 2016 as "Joy of Giving Week", to commemorate Gandhi Jayanti.

During this week, the officers and staff members of the Department are encouraged to donate clothes, toys, books and other useful items to people in need or to credible/ deserving charitable organizations. They may also do voluntary work with any charitable organization engaged in promotion of local causes. During this period, all the office buildings of the Department may put banners at visible locations displaying the following message:

Joy of Giving Week,
2nd to 8th October, 2016

CBDT F.No.385/17/2016-IT(B)., Dated: September 15 2016

FTP - Issuance of Free Sale & Commerce Certificate to Merchant Exporters

PARA 2.37 of Hand Book of Procedure, 2015-2020 deals with the issue of Free Sale & Commerce Certificate by Regional Authorities to exporters / merchants.

DGFT clarifies that the exporter has to indicate the details of the manufacturer or the exporter (if he himself is not the manufacturer) in Annexure "A" of the Free Sale & Commerce Certificate. Free Sale & Commerce Certificate can be issued to Merchant Exporters also if they provide details of manufacturer of the item in Annexure "A" of Appendix 2H.

DGFT Policy Circular No.2/2015-20., Dated: September 15 2016

New Exchange rates From Today

CBEC has notified new exchange rates for Imported Goods and for Export Goods with effect from 16th September 2016. The USD is 67.75 for imports and 66.05 Rupees for exports.

Notification No. 121/2016-Cus (NT)., Dated: September 15 2016

Slight Increase in Tariff Value of Gold and Silver

GOVERNMENT has marginally increased the tariff value of gold and silver and the values of other items except poppy seeds and arecanuts are changed.

Notification No. 120/2016-CUSTOMS (N.T.)., Dated: September 16 2016

Until Monday with more DDT

Have a nice weekend.

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