Goods and Services Tax

Allied Laws – FM releases Guidance Paper on service tax: new approach intended to take country and economy a step closer to GST – TMI Updates – Highlights

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Dated:- 20-6-2012 – Union Finance Minister, ShriPranabMukherjee released the Guidance Paper on the new approach to service tax, here today. The release of the Guidance Paper marks the culmination of the year long efforts made by the Government to introduce a negative list based comprehensive approach to taxation of services as a part of the Budget exercise. The new approach to taxation of services is intended to take the country and the economy a step closer towards the introduction of Goods and Service Tax (GST). Speaking on the occasion, Union Finance Minister ShriPranab Mukherjee said that the journey of service tax has been a step-by-step progress that began in 1994 and will complete 18 years at the end of this month. The revenue has also increased from nearly ₹ 400 crore in the first year to more than ₹ 97,000crore in the last financial year, an increase of nearly 37% over 2010-11,he said. The current year is also witnessing growth in excess of 40% in the first two mo

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

fts to Government, services provided by sub-contractors to the main contractors who are exempt, services by public libraries and Employees State Insurance Corporation (ESIC), services by way of public conveniences and sale of going concerns. The Finance Minister said that we have also taken note of the concerns of many States that some of the autonomous bodies set up under a special law may not be able to enjoy the benefits that are available to Government or local authorities. Accordingly, services provided by Government authorities in relation to functions entrusted to municipalities and a number of other services provided to such authorities have also been brought within the purview of exemption, he said.The Finance Minister said that as a result of these exemptions and some other minor changes, the total number of exemptions has gone up from 34 to 38. Shri Mukherjee stated that we have already released the final version of Place of Provision Rules, 2012. He stated that as he had sa

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

while we have set a target of ₹ 1,24,000 crore from service tax for the current year, he was hopeful that the new reform will act as a catalyst to help us exceed the target significantly. He once again commended the CBEC, its Chairman, the concerned Members and Team TRU, ably guided by the Finance Secretary in this bold experiment. The release of the Guidance Paper on the new approach marks the end of the positive list based selective approach to taxation of services, which is in vogue since 1994. The Guidance Paper has become necessary to explain the changes which have been brought about as a result of the new approach. The Guidance Paper brings out in a lucid language, the magnitude and depth of the changes arising on account of the introduction of the new approach. Comprehensive in coverage, the Guidance Paper attempts to anticipate and answer almost all the questions that may arise in the minds of an ordinary taxpayer in the wake of implementation of the new approach. – News

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

2012 (8) TMI 582 – ITAT, MUMBAI – TMI – – Addition of income from house property – AO stated that Annual Value as offered by the assessee was understated – CIT (A) deleted the addition – Held that:- As decided in DCIT Versus Reclamation Realty India (P) Ltd. [2010 (11) TMI 477 – ITAT, MUMBAI] the rateable value under the Municipal law has to be adopted as annual value u/s. 23(a) & that the A.O. has grossly erred by calculating the annual let out value by estimating the market value of the property at ₹ 1,20,00,000/- ignoring the fact that the Municipal Rateable Value given by the Government Authority i.e Mumbai Municipal Corporation at ₹ 1,58,372/ against revenue.



Treating the monies advanced to assessee as deemed dividends – Held that:- Deemed dividend can be assessed only in the hands of a person who is a shareholder of the lender company and not in the hands of a person other than shareholder & the expression ‘shareholder’ referred to in section 2(22)(e) re

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

entical and issues involved are common, all these appeals are disposed of by this common order for the sake of convenience. ITA No. 4330/Mum/2011 (A.Y. 2007-08) 2. Briefly stated facts of the case are that the assessee company is engaged in the business of realty developer. Search & seizure action u/s 132(1) of the Income Tax Act, 1961 (the Act) were undertaken at the premises of Oberoi Group of assesses on 19-7-2007. In response to notice u/s 153A, the return was filed declaring total income of Rs. 4,24,37,950/-. However, the assessment was completed at an income of Rs. 4,93,33,790/- including addition of income from house property Rs. 83,32,258/-, under the normal provisions of the Act and at an income of Rs. 71,40,25,930/- u/s 115JB of the Act, vide order dtd. 24-12-2009 passed u/s 153 r.w.s. 143(3) of the Act. 3. On appeal, the ld. CIT(A) while sustaining the addition of share issue expenses Rs. 2,12,500/- deleted the addition made under the head income from house property Rs.

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

hat the actual rental received were totally disproportionate considering the value of the property. 5. The brief facts of the above issue are that during the course of assessment proceedings, it was inter alia observed by the A.O. that the assessee in the year April, 2004 had rented out its flat on the 4th floor in Beachwood House, Juhu Tara Road, Juhu, Mumbai along with the terrace and swimming pool to M/s Aventis Pharma Ltd. (APL) which is an Multinational Pharmaceutical Company for a monthly rent of Rs. 1,00,000/- for the first 10 months which was later extended for a further period of 3 months at the rate of Rs. 10,83,333/- per month. The extension of license period was made following the specific request of the tenant. The total area of the flat given on lease was admeasuring approx. 3,500 sq. ft. with use of the terrace and swimming pool. As per the agreement, the assessee has received a refundable security deposit amounting to Rs. 3,50,00,000/. He further observed that the asses

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ouse property as under:- Annual Letting out value Rs. 1,20,00,000/- Property tax paid (-) Rs. 96,774/- Rs. 1,19,03,226 Deduction u/s 24(a) of the I.T. Act 1961 @ 30% (-) Rs. 35,70,968 Total income in respect of property let out to APL Rs. 83,32,258/- ============= 6. On appeal the ld. CIT(A) following the decision of the Tribunal in DCIT v. Reclamation Realty India Pvt. Ltd. in ITA No. 1411/Mum/07 for A.Y. 2004-05 dtd. 26-11-2010, Hon ble High Court decision in CIT v. Prabhabai Bansali (141 ITR 419 (Cal) & M.V. Sonavala v. CIT (177 ITR 246 (Bom) held that the addition cannot be made in respect of notional return under the head Income from House Property and accordingly directed the A.O. to delete the addition. He also directed to reduce the permissible deduction u/s 24(a) of the Act by taking the revised annual value of the property. 7. At the time of hearing, the ld. D.R. supports the order of the A.O. 8. On the other hand, the ld. Counsel for the assessee, at the outset, submits

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

uctions Ltd. (supra) the Tribunal after considering the provisions of section 23 and the decision of the Tribunal in the case of Reclamation Realty India Pvt. Ltd. (supra) wherein it has been held that we find that the Bombay High Court which is the jurisdictional High Court has held that the rateable value under the Municipal law has to be adopted as annual value u/s. 23(a) of the Act , has held that the A.O. has grossly erred by calculating the annual let out value by estimating the market value of the property at Rs. 7 crores and at the same time ignoring the fact that the Municipal Rateable Value given by the Government Authority i.e Mumbai Municipal Corporation at Rs. 1,55,310/-, is much lower than the actual rent received by the assessee and accordingly upheld the order passed by the ld. CIT(A) in deleting the addition made by the A.O. Similar view has been taken by the Tribunal in other cases cited supra. 11. In the absence of any contrary material or distinguishing feature brou

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ee company without appreciating the facts that the deemed dividend has to be taxed on advances or loan to any concern as defined in Explanation 3(a) to section 2(22)(e), in which common shareholder is a member or a partner and such a shareholder has a substantial interest as defined in Explanation 3(b) of section 2(22)(e). b. On the facts and circumstances of the case and in law, the CIT(A) erred in deleting the addition of Rs. 74,06,226/- being deemed dividend within the meaning of section 2(22)(e) of the I.T. Act 1961. 13. The brief facts of the above issue are that from the balance sheet of the assessee as at 31-3-2002, the A.O. observed that the assessee has credited share application money of Rs. 1,40,03,700/- from M/s New Dimension Consultants P Ltd. (NDCPL). He further observed that the share holding pattern of the assessee company and M/s NDCPL as at 31-3-2001 and 31-3-2002 was as under:- Sl No Name of the shareholder No. of shares held in assessee 31.3.01 31.3.02 No. of shares

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

i is beneficial share holder of KPPL which has received advance in the garb of share application money of Rs. 74,06,226/- from NDCPL of which Mr. Vikas Oberoi is a beneficial share holder and hence the provisions of section 2(22)(e) are applicable and accordingly he made an addition of Rs. 74,06,226/- to the total income of the assessee. 14. On appeal the ld. CIT(A) while relying on the decision of Hon ble jurisdictional High Court in CIT vs. Universal Medicare Private Limited (2010) 324 ITR 264 (Bom) held that the appellant company is not holding any shares in NDCPL, hence, the addition cannot be made in the hands of the appellant company and accordingly deleted the addition made by the A.O. 15. At the time of hearing the ld. D.R. supports the order of the A.O. 16. On the other hand the ld. Counsel for the assessee submits that since the assessee company is not holding any share in NDCPL therefore in view of the decision of Special Bench of the Tribunal in ACIT v. Bhaumik Colour (P.)

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ial shareholder then the provisions of section 2(22)(e) will not apply. 19. In CIT V/s Universal Medicare Private Limited (2010)324 ITR 263 (Bom), their Lordships after considering the aforesaid decision of the Special Bench of the Tribunal has held (page 269, Placitum 10): ………..The definition does not alter the legal position that dividend has to be taxed in the hands of the share- holder. Consequently in the present case the payment, even assuming that it was a dividend, would have to be taxed not in the hands of the assessee but in the hands of the shareholder. The Tribunal was, in the circumstances, justified in coming to the conclusion that, in any event, the payment could not be taxed in the hands of the assessee. We may in concluding note that the basis on which the assessee is sought to be taxed in the present case in respect of the amount of Rs. 32,00,000 is that there was a dividend under section 2(22)(e) and no other basis has been suggested in the order

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

of Annual Letting Value of the property , in terms sec. 23(1)(a) of the I.T. Act, 1961. e. Whether on the facts and circumstances of the case the Ld. CIT(A) erred in holding that the rateable value under the Municipal Laws has to be mandatorily adopted as annual value u/s 23(1)(a), disregarding the facts that the actual rental received were totally disproportionate considering the value of the property. 21. At the time of hearing both the parties have agreed that the facts of the above issue are similar to the facts of the case in ITA No. 4330/Mum/2011 for A.Y. 2007-08, therefore, the plea taken by them in the said appeal may be considered while deciding the above grounds of appeals. 22. Having carefully heard the submissions of the rival parties and perusing the material available on record and in absence of any distinguishing feature brought on record by the parties, we direct the A.O. to follow our findings recorded in paras 9 to 11 of this order. We hold and order accordingly. The

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – Started By: – lakshmi gfg – Dated:- 10-6-2012 Last Replied Date:- 21-3-2016 – as it was said that gst applicability date will be announced in the moonsoon session………………what is the last updated info for gst Reply By Pradeep Khatri – The Reply = Though various statements has been aired by the Hon ble FM, but so such confirmation as yet. – Reply By Ganeshan Kalyani – The Reply = Forth year it is going to touch, but no date for implementation of GST is heard as

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Dated:- 23-5-2012 – Press Information Bureau Government of India Ministry of Finance 22-May-2012 15:45 IST The Union Finance Minister Shri Pranab Mukherjee said that the primary benefit of the Goods and Services Tax (GST), when introduced, would be the removal of cascading effect of taxes which acts like a hidden cost and makes goods and services uncompetitive both in domestic and international markets. The Finance Minister Shri Mukherjee said that GST would check leakage of revenue and the States should be able to realize tax revenues commensurate to consumption of goods and services within their territory. He said that it would provide a stable source of tax revenue and would play a very vital role in sewing India together into one common market. The Finance Minister said that for the consumer, the biggest advantage of the GST would be its transparent character as well as the reduction in the overall tax burden on goods which is currently in the range of about 25-30%. The Union Fina

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

t, Shri Haleem Mohammed Khan, Chief Economic Advisor, Dr. Kaushik Basu and senior officials of the Ministry of Finance also attended the aforesaid meeting. The Finance Minister Shri Mukherjee said that there are several factors that make the current situation conducive to the introduction of GST in India. He said that studies have shown that the introduction of GST would act like a stimulus and instantly spur the rate of growth of the economy. Shri Mukherjee said that all the States have successfully switched over from the erstwhile Sales Tax system to the State Value Added Tax (VAT). He said that with the implementation of the recommendations of the 13th Finance Commission, the two items in respect of which the States were prevented from levying VAT viz., textiles and sugar have also been omitted from the AED schedule. The Finance Minister said that ever since the introduction of VAT, almost all the States have witnessed a spur in the rate of growth of their tax revenues. The Finance

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

into the GST. The Finance Minister Shri Mukherjee said that he is hopeful that the Standing Committee on Finance would soon give its report on the Bill so that the process of legislation in this direction can move forward. The Union Finance Minister Shri Pranab Mukherjee said that the Empowered Group on IT Infrastructure for GST (EG) headed by Shri Nandan Nilekani had recommended creation of a Special Purpose Vehicle (SPV) which was further endorsed by the Empowered Committee of State Finance Ministers(EC). He said that the SPV would be a non-government, not for profit company with a self-sustaining revenue model. He added that it would be governed by the representatives from the Centre, State and other private stakeholders. The government would however retain the strategic control over the GSTN, the Minister added. The Finance ,Minister Shri Mukherjee said that EG also recommended that creation of SPV would help in integrating Central and State system of taxation and leveraging the IT

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ratio. They however cautioned that it must be ensured that introduction of GST does not lead to any hike in prices of commodities as inflation is still above comfort level. Some members suggested that there should be single point of taxation as multi point taxation leads to harassment of businessmen and traders. It was also suggested that the threshold limit should be kept little higher so that small traders are outside the purview of GST as it is very difficult for them to maintain books of accounts etc. Many members suggested for the same rate of taxes in all the States so that businessmen and traders donot indulge in any tax evasion activities. Some members suggested that the Constitution Amendment Bill on the subject recently introduced in the Parliament needs some corrections. In this regard, it was suggested that the provision of taking decision by consensus by GST Council is not practicable as it can lead to stalling of its smooth functioning. It was suggested that process to t

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Dated:- 22-5-2012 – Press Information Bureau Government of India Ministry of Finance 22-May-2012 15:45 IST GST to Make Goods and Services more Competitive both in Domestic and International Markets: FM The Union Finance Minister Shri Pranab Mukherjee said that the primary benefit of the Goods and Services Tax (GST), when introduced, would be the removal of cascading effect of taxes which acts like a hidden cost and makes goods and services uncompetitive both in domestic and international markets. The Finance Minister Shri Mukherjee said that GST would check leakage of revenue and the States should be able to realize tax revenues commensurate to consumption of goods and services within their territory. He said that it would provide a stable source of tax revenue and would play a very vital role in sewing India together into one common market. The Finance Minister said that for the consumer, the biggest advantage of the GST would be its transparent character as well as the reduction in

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

tary, Shri R.S. Gujral, Secretary, Financial Services, Shri D.K. Mittal, Secretary Disinvestment, Shri Haleem Mohammed Khan, Chief Economic Advisor, Dr. Kaushik Basu and senior officials of the Ministry of Finance also attended the aforesaid meeting. The Finance Minister Shri Mukherjee said that there are several factors that make the current situation conducive to the introduction of GST in India. He said that studies have shown that the introduction of GST would act like a stimulus and instantly spur the rate of growth of the economy. Shri Mukherjee said that all the States have successfully switched over from the erstwhile Sales Tax system to the State Value Added Tax (VAT). He said that with the implementation of the recommendations of the 13th Finance Commission, the two items in respect of which the States were prevented from levying VAT viz., textiles and sugar have also been omitted from the AED schedule. The Finance Minister said that ever since the introduction of VAT, almost

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ill in the Lok Sabha in February 2011-the first step in the legal process that would culminate into the GST. The Finance Minister Shri Mukherjee said that he is hopeful that the Standing Committee on Finance would soon give its report on the Bill so that the process of legislation in this direction can move forward. The Union Finance Minister Shri Pranab Mukherjee said that the Empowered Group on IT Infrastructure for GST (EG) headed by Shri Nandan Nilekani had recommended creation of a Special Purpose Vehicle (SPV) which was further endorsed by the Empowered Committee of State Finance Ministers(EC). He said that the SPV would be a non-government, not for profit company with a self sustaining revenue model. He added that it would be governed by the representatives from the Centre, State and other private stakeholders. The government would however retain the strategic control over the GSTN, the Minister added. The Finance ,Minister Shri Mukherjee said that EG also recommended that creat

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

x collections both by the States and the Centre. This will also lead to increase in the Tax GDP ratio. They however cautioned that it must be ensured that introduction of GST does not lead to any hike in prices of commodities as inflation is still above comfort level. Some members suggested that there should be single point of taxation as multi point taxation leads to harassment of businessmen and traders. It was also suggested that the threshold limit should be kept little higher so that small traders are outside the purview of GST as it is very difficult for them to maintain books of accounts etc. Many members suggested for the same rate of taxes in all the States so that businessmen and traders donot indulge in any tax evasion activities. Some members suggested that the Constitution Amendment Bill on the subject recently introduced in the Parliament needs some corrections. In this regard, it was suggested that the provision of taking decision by consensus by GST Council is not pract

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Dated:- 14-5-2012 – Press Information Bureau Government of India Ministry of Commerce & Industry 14-May-2012 17:19 IST The details of export of goods and services are given below: Value in US $ billion Year 2009-10 2010-11 2011-12 (Provisional) Exports of goods 178.8 251.1 303.7 Growth (%) y-o-y -3.5 40.4 20.9 Source : DGCI&S, Kolkata Value in US $ billion Year 2009-10 2010-11 2011-12 (April-Dec) Exports of Services 96.0 132.9 103.0 Growth (%) y-o-y -9.4 38.4 5.9 # Source : BOP, RBI # :

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

VAT and Sales Tax – Benefit of the sales tax deferral scheme – it is not the case of the Revenue that circular dated May 1, 2000 is in conflict with either any statutory provision or the deferral sche

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

2013 (5) TMI 134 – KERALA HIGH COURT – TMI, [2013] 64 VST 122 (Ker) – – Availing input tax credit – Not a registered dealer at the relevant time – The business was being run earlier, as a 'proprietorship concern' , which expired , than a partnership deed was executed and the business was taken over accordingly. It was much later, the new partnership firm who has approached this Court – Held that:- Section 11 (12) and 11 (13) make it explicitly clear that the benefit contemplated there in can be claimed only by a 'registered dealer' and never by anybody else.



Since the present partnership took its breath for the first time only much later, the petitioner was never an entity before the concerned respondents/authorities anytime before and it cannot be said that the petitioner firm is entitled to have the input tax credit as a matter of right, irrespective of the mandate under the statute, by entertaining the application preferred in January 2006 for retrospective registratio

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

3-11-2004. On demise of the owner, the legal heirs took over the business as a running concern, by forming a partnership. Present petitioner is a different entity, as five of the earlier partners were subsequently excluded and the firm is now being run just by two persons, as the partners. 3. The grievance of the petitioner originates from the time when the petitioner submitted necessary application for availing the benefit of input tax credit in the year 2006. It is stated that the petitioner had applied for obtaining the registration under the KVAT Act, and was granted registration, with effect from 1-4-2005, as per Ext.P3 dated 16-3-2006. However, the claim preferred by the petitioner as borne by Ext.P5 was stated as not acceptable to the department, and the said position was conveyed to the petitioner vide Ext.P6 series show-cause notices under Section 22(1) of the KVAT Act stating that the petitioner, being not a registered dealer at the relevant time, it could not be acceded to.

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

over automatically, to the newly introduced KVAT system, which was not case of the petitioner. Thereafter, the petitioner was served with Ext.P10 revised notice dated 20-6-2006, specifically referring to the rejection of the claim in Form 25 A filed on 31-3-2006, as the petitioner was not a registered dealer as on 31-3-2005, which was the 'sine qua non' to have 'automatic carry forward' under the KVAT Act, in relation to registration. Further proceedings were issued in respect of the liability sought to be mulcted upon the petitioner, when the petitioner approached this Court by filing the above writ petition. 4. During the pendency of the above writ petition, taking note of the lapse on the part of the petitioner, the assessment was finalised as per Ext.P13 and the liability was accordingly sought to be realised by issuing Ext.P4 demand notice . This made the petitioner to amend the writ petition by filing I.A No 1698 of 2008, which was allowed and matter is now taken

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ount of input tax credit, maintain the accounts and such other records as may be prescribed, in respect of purchases, supplies and sales effected by him in the State. Sec 11(13) of the Act:- 13) Subject to the provisions of sub-sections (4) to (7) and sub-sections (9) to (12) , input tax credit shall be allowed to a registered dealer in respect of the tax paid under the Kerala General Sales Tax Act, 1963 (15 of 1963) where the tax paid by the dealer who sold the goods to such registered dealer or by any previous seller, or the Kerala Tax on Entry of Goods into Local Areas Act, 1994(15 of 1994), in respect of goods purchased by him during a period of one year immediately preceding the date of commencement of this Act, subject to such conditions and restrictions as may be prescribed where such goods are i) held as opening stock on such date and sold or used in the manufacture of taxable goods or used in the execution of works contract or used as containers or packing materials for the pa

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ate application was necessary to have registration, particularly under the KGST Act, which was the only reason for delay. The contention is that the petitioner shall not be non-suited on the above ground, more so when the petitioner was given to understand that the defect could be rectified; which made the petitioner to deposit the 'registration fee' along with the 'compounding fee' for the delay, thus remitting a total sum of ₹ 35,000/-. The learned Counsel for the petitioner also places reliance on two decisions rendered by this Court reported in Sales Tax Officer vs. Kerala Curry House (2010 (36) VST 126) and Chandra Interiors vs. State of Kerala (2011 (44) VST 100) in support of the case. 7. With regard to the statutory prescription, in so far as Section 11 (12) and Section 11 (13) are categoric, there cannot be any ambiguity in this regard and if at all any benefit is to be obtained, the parameters specified under the provisions have to be complied with. Sinc

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

e actual date of the commencement of business. A learned Judge held that the party was eligible to have retrospective registration from the date of commencement of the business; against which appeal was preferred, which was being considered by the learned Judges in the said case. 9. It was noted that Section 16 (2) of the Act prior to the amendment provided that the registration shall take effect only after the date of filing the application for registration. But later, it was substituted adding 'proviso' to the following effect: "Provided that registration shall be deemed to have been granted with effect from the date of commencement of business irrespective of the date of application, for the purposes of,- (a) paying tax under sub-section (5) of section 6, subject to eligibility, and (b) opting for payment of tax under section 8 for the relevant years subject to eligibility: Provided further that new dealers applying for registration and existing dealers having registrat

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

s made clear that, as per the new proviso, the registration granted will have retrospective effect from the date of commencement of the business, only for the purpose of 'clauses (a) and (b)' of the said proviso which enabled the eligible dealer to pay the tax on presumptive basis under Section 6(5) of the Act, and also dealers eligible for payment of tax under Section 8, irrespective of the fact whether the dealer was carrying on business during that year without registration. Subject to the said limited benefit conferred under clauses (a) and (b) of the proviso, it was categorically held that, a dealer had no right to claim retrospective registration, by making an application for correction of the certificate of registration. From the above, it is clear that the above decision does not come to the rescue of the petitioner, who claims the benefit of input tax credit without being a registered dealer as on 31-3-2005. 10. Coming to (44) VST 100, it was a case where the petitione

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

tance, that the case projected by the dealer was entertained and appropriate relief was extended, which does not support the case of the petitioner in any manner; for the plain reason that Section 11 (12) and 11 (13) make it explicitly clear that the benefit contemplated therein can be claimed only by a 'registered dealer' and never by anybody else. 11. Yet another important aspect to be considered is as to the 'identity' of the person concerned. Admittedly, the business was being run earlier, as a 'proprietorship concern' by one Mr. K.K. Abraham, who expired on 23-11- 2004. It is also conceded in the writ petition that, on his demise, a partnership deed was executed with the widow of the deceased, three daughters and the husbands of the daughters as aforesaid, as the partners and the business was taken over accordingly. It was much later, that the present partnership came into existence by re-constituting the firm, excluding 'five' erstwhile partners an

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – Started By: – MEHUL ASHAR – Dated:- 20-3-2012 Last Replied Date:- 20-3-2012 – Respected Sir, will GST be implemented from august -2011 as declared by the FM IN THE BUDGET 201

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Dated:- 16-3-2012 – Press Information Bureau Government of India Ministry of Finance 16-March-2012 13:29 IST Government Keen on Early Enactment of DTC Bill Model Legislation for GST on the Anvil National Information Utility to be Operational by August The Union Finance Minister ShriPranab Mukherjee today expressed firm commitment to enact the Direct Taxes Code (DTC) Bill at the earliest, after expeditious examination of the report of the Parliamentary Standing Committee. The Bill was introduced in Parliament in August 2010, and was to come into force from April 1 this year. However, the timeline could not be adhered to as the report of the Parliamentary Standing Committee on the matter was received only on March 9 this year. Similarly, Shr

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Allied Laws – GST to be operational by August 2012 – TMI Updates – Highlights

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Service Tax – GST – By: – Swati Dodhi – Dated:- 15-3-2012 Last Replied Date:- 30-12-1899 – Goods and Service Tax (GST) As the introduction of the Goods and Service Tax (GST) gathers momentum, the businesses in India have started bracing themselves. GST, which is likely to subsume most of the current indirect tax levies, is expected to be the most efficient indirect tax system in India. GST would be a single comprehensive indirect tax to be levied on goods and services. It would be levied at every production and distribution leg with the eligibility to claim set-off of most indirect taxes on procurement leg. Under the current regime, there is a fractured credit mechanism; businesses don't get credit for all the taxes they pay.

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

n enhanced logistics cost. For instance, to avoid the burden of CST, the businesses open distribution centres in all the States, which lead to additional logistics cost. With the introduction of GST, the businesses may re-define their supply chain and structure the same in a most economic and efficient manner without worrying about the indirect taxes – for example, the businesses may not need to open distribution centres or warehouses in each and every State; they can operate from a place most convenient for their business from a commercial perspective. This would not only allow the businesses to save the inventory and warehousing cost but would also reduce the unwarranted compliance requirements under indirect tax laws in each and every st

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

from 10 per cent currently to 16 per cent under GST. Besides the fact that GST is likely to have an impact on the pricing of goods and services, the cash flow of businesses may result in favourable swing. Unlike the current regime, no input tax would become cost under GST and could be set-off against the output tax liability instead of cash payment. REVAMP OF BUSINESSES GST would not just require the businesses to re-define the supply chain but also to re-design their accounting and IT systems. The transformation would require the businesses to revise the formats of invoices, purchase/sales registers, stock registers, reporting declarations to factor the changes under the GST regime. The IT systems would have to be reconfigured accordingly.

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Dated:- 22-2-2012 – Press Information Bureau Government of India Ministry of Finance 22-February-2012 16:39 IST GST will bring about a Paradigm Shift in the Arena of Indirect Taxation in the Country; asks CBEC to make extra efforts to meet the Targets Of Indirect Tax Collections for the Current Fiscal : FM The Union Finance Minister Shri Pranab Mukherjee said that with the introduction of Goods and Services Tax (GST), we are now perhaps at the door-step of the most significant reform in the history of indirect taxes in the country. He said that GST is expected to be a more efficient system of taxation and is likely to give a boost to the tax revenues of the Centre and the States. The Finance Minister Shri Pranab Mukherjee said that GST will also remove barriers amongst States and convert the entire country into a common market. Once implemented, GST will bring about a paradigm shift in the arena of indirect taxation in the country, the Finance Minister added. Shri Mukherjee was speaki

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

re than doubled over the last ten years from ₹ 68,282 crore in 2000-01 to ₹ 1,37,427 crore in 2010-11 which is 40 per cent of the total revenue from Indirect Taxes. Shri Mukherjee said that the in the current financial year, the collections from Central Excise up to January, 2012 stand at ₹ 1,17,730 crore, out of total indirect tax collections of ₹ 3,17, 233 crore. He said that there has been exponential growth in the service tax revenues over the years. As compared to a revenue of just ₹ 2612 crore in 2000-01, the service tax collections in 2010-11 stood at ₹ 70,391 crore, which is about 20 per cent of total indirect tax collections, the Finance Minister said. The Finance Minister Shri Mukherjee said that the indirect tax collection figures up to January 2012 indicate that there have been some gains over the last year. However, the Finance Minister said that still further efforts are required to ensure to meet the target of indirect tax collections

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

source of inspiration to the other officers of the Service. On the revenue front, he mentioned that while Service tax revenues had been buoyant, there were challenges in so far as Central Excise & Customs revenue were concerned. However, he expressed the hope that the budgetary targets would be achieved by the Department. Quoting the report of the Global Financial Integrity that 70% of the illicit outflow of funds is through trade mispricing, he highlighted the role of the Department in combating various forms of organized economic crimes. He mentioned that there was a good momentum on the GST front, the implementation of which required the concurrence of the States. Speaking about the welfare measures of the staff, Shri Gujral mentioned that the Cadre review of the Department is expected to be through within a period of one month. Chairman CBEC Shri S.K.Goel informed that the indirect tax collections of ₹ 3,17,233 crore till January 2012 in the current financial year, are 15

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

nce and dedication to work in their respective fields. I congratulate the officers who are being conferred with the certificates of the Presidential Award 2011. I also greet the family members of the awardees who have assembled here to witness the conferment of this prestigious award. Your presence is undoubtedly a source of motivation to the awardees. The Customs and Excise Department has undergone a major transformation in keeping with the needs of a rapidly changing economic environment in the country. The Department has shown an ability to adapt quickly and successfully to the challenges that it has encountered. In fact, by launching major IT initiatives for facilitating tax compliance, the Department has set an example for others to emulate. The latest such initiative, namely, the introduction of mandatory e-filing of Central Excise and Service tax returns would not only make the process convenient for the assesses and reduce the transaction costs, but would also throw up useful i

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

control-based gate pass system to invoice and record-based system. The objective of these reforms was to repose a greater trust on assesses and introduce a number of trade facilitation measures in Central Excise rules and procedures. The system of compliance in central excise was sought to be implemented mainly through audit and anti-evasion machineries. These reforms have to continue to their logical end, making compliance easy and cost effective. Service Tax was introduced for the first time in 1994. It has steadily grown over the years and now covers 119 services. There has been exponential growth in the service tax revenues over the years. As compared to a revenue of 2612 crore in 2000-01, the collections in 2010-11 stood at 70,391 crore, which is about 20 per cent of total indirect tax collections. With the introduction of Goods and Services Tax (GST), we are now perhaps at the door-step of the most significant reform in the history of indirect taxes in the country. Under the GST

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

d a large number of trade facilitation measures, the most recent ones being the Authorized Economic Operator Scheme for faster clearances as part of secure global supply chain and Onsite Post Clearance Audit. Self-assessment in tax returns has been introduced last year. It marks a fundamental shift from the departmental assessment and a new era has begun, one of trust based customs control. Customs will continue to play a vital role in combating the menace of fake Indian currency, counterfeit products, narcotic drugs and psychotropic substances, smuggling of which has become a major economic threat. It means that the Customs operational units have to be equipped with the latest technology and resources for dealing with such offences. A powerful intelligence network is equally important in this task. I am happy to see that the department has been proactive in co-operating with other countries for the prevention and detection of customs offences. As we approach the end of the current fin

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

FEMA – Export of Goods and Services – Receipt of advance payment for export of goods Involving shipment (manufacture and ship) beyond one year . – Cir. No. 81 Dated: February 21, 2012 – TMI Updates – Highlights

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Export of Goods and Services – Receipt of advance payment for export of goods Involving shipment (manufacture and ship) beyond one year . – FEMA – 81 – Dated:- 21-2-2012 – RBI/2011-12/403 A.P. (DIR Series) Circular No.81 February 21, 2012 To All Category – I Authorised Dealer Banks Madam / Sir, Export of Goods and Services – Receipt of advance payment for export of goods Involving shipment (manufacture and ship) beyond one year Attention of Authorised Dealer Category – I (AD Category I) banks is invited to the sub-regulation (2) of Regulation 16 of the Foreign Exchange Management (Export of Goods and Services) Regulations, 2000, notified vide Notification No.FEMA.23/RB-2000, dated 3rd May 2000, as amended from time to time, in t

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

or the overseas buyer. ii. compliance with the Anti Money Laundering standards has been ensured; iii. the AD Category-I bank should ensure that export advance received by the exporter should be utilized to execute export and not for any other purpose i.e., the transaction is a bona-fide transaction; iv. progress payment, if any, should be received directly from the overseas buyer strictly in terms of the contract; v. the rate of interest, if any, payable on the advance payment shall not exceed London Inter-Bank Offered Rate (LIBOR) + 100 basis points; vi. there should be no instance of refund exceeding 10% of the advance payment received in the last three years. vii. the documents covering the shipment should be routed through the same auth

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Service Tax – Head Office distributed credit – The input service distributor can distribute the Service Tax paid on input services amongst its various units only if such services are used among the un

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

FEMA – Export of Goods and Services- Simplification and Revision of Softex Procedure. – Cir. No. 80 Dated: February 15, 2012 – TMI Updates – Highlights

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

FEMA – 80 – Dated:- 15-2-2012 – RBI/2011/12/400 A.P. (DIR Series) Circular No. 80 February 15, 2012 To All Authorised Dealers in Foreign Exchange Madam / Sir, Export of Goods and Services- Simplification and Revision of Softex Procedure Attention of the Authorised Dealers is invited to Regulation 6 of the Notification No.FEMA 23/2000-RB dated May 3, 2000 viz. Foreign Exchange Management (Export of Goods and Services) Regulations, 2000, as amended by the Notification No.FEMA 36/2001-RB dated February 2, 2001, in terms of which designated officials of the Ministry of Information Technology, Government of India at the Software Technology Parks of India (STPIs) or at Free Trade Zones (FTZs) or Export Processing Zones (EPZs) or Special Economic Zones(SEZs), had been authorised to certify exports declared through SOFTEX Forms. 2. Considering the spurt in the volume of software exports from India in recent times, the complexity of work contracts involved, the voluminous nature of contract ag

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

the values etc. and will thereafter forward the first copy of the revised SOFTEX format to the concerned Regional Office of RBI, the duplicate copy alongwith bulk statement in excel format to Authorised Dealers for negotiation / collection / settlement, the third copy to the exporter and the last copy will be retained by STPI for its own record. Under the revised procedure, the exporters, however, will have to provide information about all the invoices including the ones lesser than US$25000, in the bulk statement in excel format. [The revised procedure for submission of the Softex form and other relevant documents are detailed in the Annex.] 4. The new procedure will be effective initially in STPI Bangalore, Hyderabad, Chennai, Pune and Mumbai with effect from April 01, 2012. Based on the success in these centers, it would be adopted by all the STPIs and SEZ/ EPZ/ 100% EOU/ EHTP/ DTA units by June 2012. 5. Authorised Dealers may bring the contents of this circular to the notice of th

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

s are exhausted, the exporter can apply again to RBI for allotment of number. Exporters can use the allocated Softex number either for each invoice or for a group of invoices with same currency of a particular customer. Softex number would be the control number for identifying any of the export transaction. E. Details of information – As per the template in Annexure A, which will broadly cover information as under Name and Address of the Exporter Letter of permission number and date Name of authorized data com service provider Import Export Code number Software Export Declaration Details of Export of Software during the period Period of submission i.e. Month name SOFTEX Number Name of Client Address of Client Country of Export Invoice Number Invoice Date Project Code or Contract or Agreement or PO & Date Type of Software Exported Invoice Currency Offshore Invoice value Details of billings on account of Royalty on Software Packages/products exported as per Annexure B Period of

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

py Submission – Software Exports Declaration in summary excel sheet with above details. G. Hard copy submission – Covering letter along with summary sheet declarations and Annexure copies in quadruplicate. Copies of Softex forms, Invoices, SoW, MSA or any other document are not required to be submitted along with summary. H. Additional Information – At the request of STPI, software exporter need to submit additional details about selected sample invoices within 30 days of the request or any reasonable extended time at the discretion of the Director , STPI at the request from the exporter. I. Time Period for additional Information – STPI would do sample audit periodically but not during the period beyond six months, to make the records concurrent with the filing of the Softex. This however, doesn t stop the regulator from asking old records as per FEMA. J. STPI will send the attested Bulk Softex statement in hardcopy to software exporter and soft copy to RBI, Reg

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ormation as under Name and Address of the Exporter Import Export Code number Details of invoice wise collections (Attachment A) SOFTEX Number Name of Customer Invoice Number Invoice Date Invoice Currency Offshore Invoice value Offshore Invoice value realized Date of Realization of exports proceeds Name of the Bank Country of the Bank Details of Foreign Currency Inward Remittance in India(Attachment B). Authorized Dealers will give a control number for this Attachment B, which shall be used by them to settle all the softex forms in Attachment A. Inward remittance in India from overseas bank accounts Name and address of the Authorized Dealer at which the amount has been received Inward remittance details like FIRC number, date, amount and foreign currency Name and address of the Overseas bank from which remittance has been effected Direct Inward remittance in India from customers against exports of software Name and address of the Authorized Dealer at which the amount has been received I

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

FEMA – Foreign Exchange Management Act, 1999 – Export of Goods and Services – Forwarder’s Cargo Receipt . – Cir. No. 65 Dated: January 12, 2012 – TMI Updates – Highlights

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

FEMA – 65 – Dated:- 12-1-2012 – RBI/2011-12/345 A. P. (DIR Series) Circular No.65 January 12, 2012 To All Authorised Dealers in Foreign Exchange Madam/Sir, Foreign Exchange Management Act, 1999 – Export of Goods and Services – Forwarder s Cargo Receipt Attention of Authorized Dealers is invited to A.P. (DIR Series) Circular No. 27 dated March 2, 2001, in terms of which they may accept Forwarder s Cargo Receipts (FCR) issued by IATA approved agents, in lieu of bill of lading, for negotiation / collection of shipping documents, in respect of export transactions backed by letters of credit, only if the relative letter of credit specifically provides for negotiation of this document in lieu of bill of lading and also if the relative sale

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

of repute/IATA approved agents (in lieu of bill of lading), for purchase/discount/collection of shipping documents even in cases, where export transactions are not backed by letters of credit, provided their relative sale contract with overseas buyer provides for acceptance of FCR as a shipping document in lieu of bill of lading. However, the acceptance of such FCR for purchase/discount would purely be the credit decision of the bank concerned who, among others, should satisfy itself about the bona fides of the transaction and the track record of the overseas buyer and the Indian supplier since FCRs are not negotiable documents. It would be advisable for the exporters to ensure due diligence on the overseas buyer, in such cases. 4. Authoriz

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Customs – Customs duty exemption to least developed countries amongst the SAARC countries. – Ntf. No. 99/2011-Customs Dated: November 9, 2011 – TMI Updates – Highlights

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Customs – 99/2011-Customs – Dated:- 9-11-2011 – [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) Notification No. 99/2011-Customs New Delhi dated the 9th November, 2011 G.S.R.801(E).- In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), and in supersession of the notifications of the Government of India, in the Ministry of Finance (Department of Revenue), No. 51/2008-Customs, dated the 21st April, 2008 [G.S.R. 297 (E), dated the 21st April, 2008] and No. 85/2011-Customs dated 6th September, 2011[G.S.R.662 (E), dated the 6th September, 2011], except as respects things done or omi

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Allied Laws – CAG REPORT : AN EYE-OPENING FOR GST – Article – TMI Updates – Highlights

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =