Recommendations made by the GST Council in the 23rd meeting at Guwahati on 10th November, 2017

0 comments Friday, November 10, 2017
The GST Council, in its 23rd meeting held at Guwahati on 10th November 2017, has recommended the followingfacilitative measuresfortaxpayers:
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Exporters must file GSTR-1E for every month to speed up their refund claims

3 comments Thursday, November 2, 2017
The Government of India vide notification 51/2017 of Central tax has amended Rule 96 and Rule 96A of the CGST Rules, 2017 to give relief to exporters in a step to speed up the refund process.
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No space for transitional credit in GST return form 3b

2 comments Thursday, August 3, 2017

Companies have hundreds of crores of rupees in input tax credit but they may still need to pay the goods and services tax ( GST) for July and August in full, potentially disrupting working capital flows.

That’s because the relevant GSTR 3B form doesn’t provide any column for carry-forward of credit from the earlier regime of central excise duty, service tax and value added tax. Companies will thus be unable to adjust the tax paid against their liability. Experts said this does not seem to be the government’s intention and it must clarify this quickly as industry is counting on this adjustment and would now need funds to pay GST in full.
Companies such as those in auto sector have hundreds of crores of rupees in such credit.

“This will cause substantial cash flow problems for the taxpayers unless the assessees are allowed to utilise transitional credit on a provisional basis,”

The GST Council, the apex decision-making body for the new tax regime, had approved a liberal transition framework to ensure smooth sailing when making the switch.

Any entity can claim credit of service tax or VAT paid in the previous regime against GST liability. If it does not have proof of payment of tax, it can take advantage of the deemed benefit norm. The key benefit of GST is that there is no cascading of tax through seamless availability of input tax credit.

Companies have to file form GSTR 3B, a summarised return, for July by August 20. That for August has to be filed by September 20.

The format of this return includes a summary of details of outward supplies, inward supplies liable to reverse charges and input tax credit eligible on various procurements made during the month. But the form does not provide space for carry-forward of credit from the earlier regime. This essentially implies that the GST liability for the months of July and August will have to be settled in cash.

There is a mechanism for claiming credit from the previous regime but that has not been integrated with the GST filing process.

This transitional credit will be available only after filing of GSTR TRAN-1 on the GSTN common portal.

Even if a taxpayer files TRAN-1 prior to August 20 (that is, prior to filing GSTR 3B for July), the credits would not be allowed to be migrated in GST as there is no specific table for disclosing opening credit in GSTR 3B. TRAN-1 and TRAN-2 are the forms for transition of input tax credit while GSTR 3B is the form in which actual GST payable is filed. To be sure, input tax credit can be availed of after September in all instances.

Tax experts are seeking a clarification or a change in the form.

“It cannot be the intention of the government to deny the benefit of input credit,  “It could lead to huge cashflow issues for industry, running into thousands of crores. A clarification or amendment in Form(GSTR) 3B is needed urgently.”

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Leviability of IGST on High sea sales of imported goods


Circular No. 33 /2017-Cus


Government of India

Ministry of Finance

Department of Revenue

(Central Board of Excise and Customs)
New Delhi, dated the 1st August, 2017

All Principal Chief Commissioners/Chief Commissioners of Customs /Customs

All Principal Chief Commissioners/Chief Commissioners of Customs and Central Excise/GST,

All Principal Commissioners/Commissioners of Customs / Customs (Preventive),

All Principal Commissioners/ Commissioners of Customs and Central Excise/GST.

Sir /Madam,

Subject: Leviability of Integrated Goods and Services Tax (IGST) on High Sea Sales ofimported goods and point of collection thereof-reg.

Reference has been received in the Board regarding clarity on Leviability of Integrated Goods and Services Tax (IGST) on High Sea Sales of imported goods.

2. The issue has been examined in the Board. 'High Sea Sales' is a common trade practicewhereby the original importer sells the goods to a third person before the goods are entered forcustoms clearance. After the High sea sale of the goods, the Customs declarations i.e. Bill of Entryetc is filed by the person who buys the goods from the original importer during the said sale. Inthe past, CBEC has issued various instructions regarding high sea sales appropriating the contractprice paid by the last high sea sales buyer into the Customs valuation [Circular No. 32/2004-Cus.,dated 11-5-2004 refers].

3. As mentioned earlier, all inter-state transactions are subject to IGST. High sea sales ofimported goods are akin to inter-state transactions. Owing to this, it was presented to the Boardas to whether the high sea sales of imported goods would be chargeable to IGST twice i.e. at thetime of Customs clearance under sub-section (7) of section 3 of Customs Tariff Act, 1975 and alsoseparately under Section 5 of The Integrated Goods and Services Tax Act, 2017.

4. GST council has deliberated the levy of Integrated Goods and Services Tax on high sea sales in the case of imported goods. The council has decided that IGST on high sea sale (s) transactions of imported goods, whether one or multiple, shall be levied and collected only at the time of importation i.e. when the import declarations are filed before the Customs authorities for the customs clearance purposes for the first time. Further, value addition accruing in each such high sea sale shall form part of the value on which IGST is collected at the time of clearance.

5. The above decision of the GST council is already envisioned in the provisions of sub- section (12) of section 3 of Customs Tariff Act, 1975 inasmuch as in respect of imported goods, all duties, taxes, cessess etc shall be collected at the time of importation i.e. when the import declarations are filed before the customs authorities for the customs clearance purposes. The importer (last buyer in the chain) would be required to furnish the entire chain of documents, such as original Invoice, high-seas-sales-contract, details of service charges/commission paid etc, to establish a link between the first contracted price of the goods and the last transaction. In case of a doubt regarding the truth or accuracy of the declared value, the department may reject the declared transaction value and determination the price of the imported goods as provided in the Customs Valuation rules.

6. Field formations are requested to decide the cases of high sea sales of imported goods accordingly. Difficulties, in the implementation of this circular may be brought to the knowledge
of the Board.

Yours faithfully
(Zubair Riaz)
Director (Customs)

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No requirement of certificate from GST officer to claim higher rate of drawback

0 comments Monday, July 31, 2017

CIRCULAR NO.32/2017-Cus, Dated: July 27, 2017

Sub: Clarification regarding exports under claim for drawback in the GST scenario.

As you are aware, the higher All Industry Rates (AIRs) under Duty Drawback scheme viz. rates and caps available under columns (4) and (5) of the Schedule of All Industry Rates of Duty Drawback have been continued for a transition period of three months i.e. 1.7.2017 to 30.9.2017 (Circular No. 22/2017-Customs dated 30.6.2017).

2. Various issues have been highlighted by field formations and exporters regarding the requirement of a certificate to be obtained from the jurisdictional GST officer prescribed vide Note and Condition 12A of Notification 131/2016-Cus (N.T.) dated 31.10.2016 as amended by Notification 59/2017-Cus (N.T.) dated 29.6.2017. The certificate aimed to ensure that there was no double neutralisation of taxes by way of credit/refund and drawback. However, in view of factors such as absence of clarity about jurisdictional GST officer, time lag between exports and the requisite returns to be filed under GST laws, etc., the said certificate from GST officer may not be available immediately at the time of export.

3. Keeping in mind the above difficulties, the Government has amended Note and Condition 12A of Notification 131/2016-Cus (N.T.) dated 31.10.2016 by Notification 73/2017-Cus (N.T.) dated 26.7.2017 and dispensed with the requirement of the certificate from GST officer to claim higher rate of drawback. To facilitate exports, the higher rate of drawback can be claimed on the basis of self-declaration to be provided by exporter in terms of revised Note and Condition 12A of aforesaid Notification.

4. Since Notes and Conditions of Notification No. 131/2016-Cus (NT) dated 31.10.2016 (as amended) are integral part of the rates of drawback given under the Schedule to said Notification, accordingly in terms of the Section 75(3) of the Customs Act, 1962 and Rule 5(2) of the Customs, Central Excise Duties and Service Tax Drawback Rules, 1995, it may be noted that the changes made in Note and Condition 12A shall be applicable w.e.f. 1.7.2017 itself. Thus, exports which have been made from 1.7.2017 onwards shall be governed by the revised Note and Condition 12A. For all exports made w.e.f 1.7.2017 for which higher rate of drawback is claimed, exporter has to submit the self-declaration in the format attached. This format is also being suitably included in the EDI shipping bill. In respect of exports that have already been made, exporters may submit a single declaration regarding the export products covered in past shipping bills for which let export order has been given from 1.7.2017 onwards. This shall be irrespective of any certificate or declaration, if any, given earlier.

5. Another aspect that may be noted is that there could be cases where export goods had been cleared from factory, warehouse, etc. prior to 1.7.2017 but let export order has not been issued before 1.7.2017. Such goods are not supplies under GST and accordingly, said Note and Condition 12A is not applicable. For such goods, the declaration from exporter or certificate from the then Central Excise officer as applicable in terms of Note and Condition 12 of said Notification No. 131/2016-Customs (NT) shall continue.

6. As part of audit checks, the need for regular sample checking of the veracity of declarations accepted for disbursing AIR drawback claims has been highlighted in Board’s instruction F. No. 603/01/2011-DBK dated 11.10.2013. The said instruction is reiterated for the purpose of audit checks for above cited self-declarations. Directorate General of Audit (Central Taxes) is also being asked to have the declarations given by exporters about non-availment of ITC/refund etc. in respect of exports under drawback verified at the time of audit of these units/exporters. These checks will thus ensure that there is no double neutralisation of taxes by simultaneous availment of credit/refund and drawback.

7. In order to further facilitate exporters, it may be ensured that all pending drawback claims are disposed of on priority and zero pendency be maintained. Supplementary claims whenever filed should also be processed on priority.

8. Wide publicity on these aspects may be given by way of issuance of trade notice and field officers also should be sensitised.

[F. No. 609/64/2017-DBK]

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No GST on second hand goods if sold lower than purchase price

1 comments Tuesday, July 18, 2017

Press Information Bureau

Government of India

Ministry of Finance

Position regarding applicability of the Margin Scheme under GST for dealers in second hand goods in general andfor dealers in old and used empty bottles in particular.

Doubts have been raised regarding the applicability of the Margin Scheme under GST for dealers in second handgoods in general and for dealers in old and used empty bottles in particular.

Rule 32(5) of the Central Goods and Services Tax (CGST) Rules, 2017 provides that where a taxable supply isprovided by a person dealing in buying and selling of second hand goods i.e., used goods as such or after suchminor processing which does not change the nature of the goods and where no input tax credit has been availedon the purchase of such goods, the value of supply shall be the difference between the selling price and the purchase price and where the value of such supply is negative, it shall be ignored. This is known as the marginscheme.

Further, notification No.10/2017-Central Tax (Rate), dated 28.06.2017 exempts Central Tax leviable on intra-State supplies of second hand goods received by a registered person, dealing in buying and selling of second hand goods [who pays the central tax on the value of outward supply of such second hand goods as determinedunder sub-rule (5)] from any supplier, who is not registered. This has been done to avoid double taxation on theoutward supplies made by such registered person, since such person operating under the Margin Scheme cannotavail input tax credit on the purchase of second hand goods.

Thus, Margin Scheme can be availed of by any registered person dealing in buying and selling of second hand goods [including old and used empty bottles] and who satisfies the conditions as laid down in Rule 32(5) of theCentral Goods and Services Tax Rules, 2017.

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Duty drawbacks under GST

0 comments Sunday, July 16, 2017

In GST regime, duty drawback may lose relevance as there would be seamless
credit at each stage of value addition and better transparency. Even if duty
drawback is continued to offset the impact of basic customs duty component, which is non-creditable tax, the drawback rate could be very less. This could impact largely, those assesses who are dependent on duty drawbacks for
achieving good margin / profit.

No amendments have been made to the drawback provisions (Section 74 or
Section 75) under Customs Act 1962 in the GST regime. Hence, the drawback
scheme will continue in terms of both section 74 and section 75. Option of All
Industry Rate (AIR) as well as Brand Rate under Section 75 shall also continue.
Drawback under Section 74 will refund Customs duties as well as Integrated Tax
and Compensation Cess paid on imported goods which are re-exported.

At present Duty Drawback Scheme under Section 75 neutralises Customs duty,
Central excise duty and Service Tax chargeable on any imported materials or
excisable materials used or taxable services used as input services in the
manufacture of export goods. Under GST regime, Drawback under Section 75
shall be limited to Customs duties on imported inputs and Central Excise duty on items specified in Fourth Schedule to Central Excise Act 1944 (specified petroleum products, tobacco etc.) used as inputs or fuel for captive power generation.

A transition period of three months is also being provided from date of
implementation of GST i.e. 1.7.2017. During this period, existing duty drawback scheme under Section 75 shall continue.

For exports during this period, exporters can claim higher rate of duty drawback (composite AIR) subject to conditions that no input tax credit of CGST/IGST is claimed, no refund of IGST paid on export goods is claimed and no CENVAT credit is carried forward. A declaration from exporter and certificate from jurisdictional GST officer in this regard has been prescribed in the notification related to AIRs. This will prevent double availment of
neutralization of input taxes. Similarly, the exporter can claim brand rate for
Customs, Central Excise duties and Service Tax during this period.
Exporters also have the option of claiming only the Customs portion of AIR and
claim refund/ITC under GST laws. All Industry Rates for the transition period shall be notified in due course of time.�

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GST Transition of ITC on goods taxable at first stage under VAT

4 comments Sunday, April 23, 2017
The most important and the very first step towards GST is the transition provisions under GST law. The transition provisions with regard to input tax credit are very important. In this article I concentrate on how the credit of taxes paid on the goods taxable at first stage especially under Punjab VAT Act, 2005, would be available under the GST regime.
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Taxable event under GST-supply and its scope

2 comments Thursday, January 19, 2017
Taxable event: Taxable event is very important matter in every tax law. Its determination is most crucial for the proper implementation of any tax law. Taxable event is that on the happening of which the charge is fixed. It is that event which on its occurrence creates or attracts the liability to tax.
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Complete User Guide for Migration to GST in Punjab

1 comments Monday, December 12, 2016
GST Migration starts from 16 December 2016 for State of Punjab. Migration will close on 31st December 2016. Registrants will be provided Provisional ID and Password by ETD, to Login to the GSTN Portal (

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Documents required for migration into GST in Punjab

The migration from VAT to GST is going to start from 16th December and this migration will continue till 31st December. To migrate into GST regime a provisional user I'd and password is required, which can be obtained from the jurisdictional excise and taxation department.
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Schedule and documents required for enrollment under GST

2 comments Tuesday, November 8, 2016
The schedule of the enrolment for GST activation drive for states is given below. The date to complete the enrolment will be during the specified dates as given below. However, the window will be open till 31/01/2017 for those who miss the chance.

Puducherry, Sikkim
Start Date: 08/11/2016
End Date: 23/11/2016

Gujrat, Maharashtra, Goa, Daman and Diu, Dadra Nagar Haveli, Chhattisgarh
Start Date: 14/11/2016
End Date: 29/11/2016

Odisha, Jharkhand, Bihar, West Bengal, Madhya Pradesh, Assam, Tripura, Meghalaya, Nagaland, Arunachal Pradesh, Manipur, Mizoram
Start Date: 30/11/2016
End Date: 15/12/2016

Uttar Pradesh, Jammu and Kashmir, Delhi, Chandigarh, Haryana, Punjab, Uttarakhand, Himachal Pradesh, Rajasthan
Start Date: 16/12/2016
End Date: 31/12/2016

Kerala, Tamil Nadu, Karnataka, Telangana, Andhra Pradesh
Start Date: 01/01/2017
End Date: 15/01/2017

Service Tax Registrants
Start Date: 01/01/2017
End Date: 31/01/2017

Delta All Registrants (All Groups)
Start Date: 01/02/2017
End Date: 20/03/2017

GST Registration shall start  at Assessees with verified PAN shall be allowed to fill details & submit proofs.

All the taxpayers registered under any of the Acts as specified viz. taxes which are subsumed , are expected to visit the GST System Portal and enroll themselves.

Before enrolling with GST System Portal, you must ensure to have the following information/ documents available with you:-

I. Provisional ID received from State/Central Authorities;

II. Password received from the State/Central Authorities;

III. Valid Email Address;

IV. Valid Mobile Number;

V. Bank Account Number



a. Proof of Constitution of Business:

i. In case of Partnership firm: Partnership Deed of Partnership Firm (PDF and JPEG format in maximum size of 1 MB)

ii. In case of Others: Registration Certificate of the Business Entity (PDF and JPEG format in maximum size of 1 MB)

b. Photograph of Promoters/ Partners/Karta of HUF (JPEG format in maximum size of 100 KB)

c. Proof of Appointment of Authorized Signatory (PDF and JPEG format in maximum size of 1 MB)

d. Photograph of Authorized Signatory (JPEG format in maximum size of 100 KB)

e. Opening page of Bank Passbook / Statement containing Bank Account Number; Account Number, Address of Branch, Address of Account holder and few transaction details (PDF and JPEG format in maximum size of 1 MB)
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GST Network to start collecting traders’ data for issuing tax IDs

3 comments Thursday, August 18, 2016

The network that forms the information technology backbone of the goods and services tax (GST) will start a nationwide drive, in collaboration with state governments, to collect information on around eight million traders and issue them tax identification numbers (TIN) as India prepares to implement the tax from the next fiscal year.

The Goods and Services Tax Network (GSTN), as it is called, has already collated basic information like Permanent Account Number (PAN) and names from existing databases of the income-tax department but needs more detailed data like place of operation, nature of business and bank account details before it can issue a GST ID number to the traders.

All traders will need a GST ID number—a 15-digit PAN-based number—to operate under GST, which is expected to come into effect on 1 April 2017.

As per GSTN estimates, there are around 6.5 million VAT (value-added tax) dealers registered with state tax authorities, and around two million service tax and about half a million excise duty dealers registered with central authorities.

Even if there is an overlap between dealers registered with the centre and the states, GSTN estimates there will be more than eight million traders who will need to be issued GST ID numbers.

“We are making a software where the existing taxpayers can fill essential data, like place of business, name of directors, the nature of their business and bank account details, etc. We are planning to throw this site open in October. Over the next four months, we will roll out a programme in a staggered manner wherein dealers in a state can fill in all their information online,” GSTN chairman Navin Kumar said in an interview.

GSTN and the states will use a mix of newspaper advertisements, media campaigns and direct outreach to encourage taxpayers to provide information about their businesses online.

Kumar said GSTN had asked states to obtain PAN from all the traders and that this exercise has been going on for the past two years.

“We have also verified 90% of the PANs from the income-tax department’s database,” he said. “What we have now is the PAN, the name of the business and details of whether it is a company or a proprietorship. But we couldn’t extract any other information from the states as they were all in different formats.”

To be sure, even after it gathers all the necessary information, GSTN can issue the ID number only after Parliament passes three proposed laws: the Central GST, Integrated GST and the State GST.

“If needed, we can generate the TIN for the eight million taxpayers in one day,” said Kumar.

GST is expected to remove barriers across states and integrate the country into a common market. It will subsume most of the indirect taxes levied by the centre and the states, including excise duty, service tax, VAT, entertainment tax and luxury tax. It will put the entire tax process online—right from registration, tax payment and tax return filing to refunds, audits and assessments—thereby making GSTN a very important part of the GST ecosystem.

“It is going to be a long-drawn exercise because of the huge number of assessees. The earlier they start the better. The law will get passed in the winter session. So it does not make sense to wait till then to collect information about the taxpayers else they will not be able to provide automatic registration to the traders in time,” said R. Muralidharan, senior director at Deloitte in India.
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2 comments Wednesday, August 17, 2016
As the GST Bill is about to come into action by the next year, the government of India is taking necessary steps to make sure that the GST regime works fine. The Government will introduce eight forms namely GSTR-1 to GSTR-8 that will be required to file the GST Tax returns in India. These forms will be collectively used to take the assesses details and offer multiple options to file online return.

As per department issue some draft form for return purpose. These are as below:

*1. GSTR-1 (Sales Register)*

•This is a sales register of goods and services, here we can enter the details data of of sales . If a persons sells his goods and services to a register person within the state in that case he is liable to charge CGST and SGST on the transaction. At the same point of time if the person sells his goods and services to other state he is liable for IGST charge on him.

•Here of each transaction it is important to classify the goods or services with his SAC or HSN code because these codes will identify the nature of the transaction.

•Again for avoidance of the black money or hawala transaction in GST returns, there is a  need to identify  some important transaction like inter state transaction worth Rs. 250000/- or more.

*GSTR- 2 (Purchase Register)*

•This is a comprehensive purchase register. Here we can enter the data of both purchase of service and goods.

•In GSTR-2 the data of the goods purchase from register dealer including debit/credit note will automatically populated as the respective dealers upload there sales register on due date. Due to this we can match our purchases against the sales register and the impact of this in current scenario where tax credit mismatch is hard to match and a time taking process, in GST there we will check our data as per seller return so mismatch issue resolve will solve easily

•As well as here we will amend our purchase bill too as we received in earlier periods

•Here a separate details information will be required for input service distributors

•Due date of filling the return is 15th of the next month. But we can upload our data on daily, fortnight, weekly too. Soon the last date of return filing the workload should be lesser than before

*GSTR-3 (Monthly Return Form)*

•Now the time taking process of return filling is over now. In GST return maximum data of this return is auto populated from purchase and sales registers. Only adjustment entries and challan information will enter after these entries

•Here cash ledger (tax deposit in cash and TDS/ TCS) will made separately for CGST , SGST and IGST

*GSTR-4 (Quarterly return for compounding dealers)*

•This return is a quarterly return filled by the compounding dealer (as per draft GST law the assesses whose turnover is less than Rs. 50 lacs and there is no interstate transaction ) is liable to file return on and before 18th of the month after the quarter

•In this return, data will be automatically populated after filing of GSTR-1
*GSTR-5 (Return file by the Non-Resident)*

•This will be a monthly return filed by the non –resident within 18th day after end of the month and within the 7 days after expiry of registration

•In this return HSN/SAC code should be mention because these are classify the transaction as a sales and purchase of goods and services

*GSTR-6 (Return for Input Service Distributor)*

•This return will be filed by the Input Service Distributors within 15 days after end of the month

•In this return form input service distribution ledger will be maintained. In this ledger credit of CGST, SGST, IGST  will maintain separately of each tax amount

*GSTR-7 (TDS Return)*

•Tax deductor will be liable to file this TDS return within the 10 days after end of the month
•This return form is almost similar to TDS return of income tax (26Q/24Q etc) as in this return deductee information and transaction information is mention with the related challan in which the TDS amount is paid to department

*GSTR-8 (Annual Return)*

•This return form will be filed on or before 31st December of the next financial year

•In this return the total annual returns information will be matched by the department with the monthly /quarterly return filled by the assesse

•In this return auditors information will submitted

•In this return all the transaction will bifurcated within goods and services. This bifurcation should be match with the HSN/SAC code given by the assessee in his monthly/ quarterly return

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No disallowance of ITC for mere technical defect in VAT invoice-HC

0 comments Saturday, August 6, 2016
The Hon'ble Punjab & Haryana High Court in a crucial decision has held that input tax credit cannot be disallowed merely for a technical defect in the VAT Invoice such as non mentioning of words " “Input Tax Credit is available to a person against this copy” as per Rule 54 of the Punjab VAT Rules, 2005.
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TCS to apply only on cash portion of sales transaction CBDT clarifies

0 comments Friday, June 24, 2016
Welcome clarification by CBDT on TCS on Cash Sale.

CBDT vide Circular No. 23/2016 dt. 24 June 2016 has clarified on FAQs of stakeholders reg. scope of the provisions and the procedure to be followed in case of the amended provisions of Section 206C of the Income Tax Act, as under:
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Facility of efiling of returns extended to Punjab luxury tax and Entertainment tax

0 comments Wednesday, June 8, 2016



 Kind Attention: Dealers/Chartered Accountants/Lawyers/Other Stakeholders
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Assessee cannot be asked to reverse ITC for non payment of tax by selling dealers

1 comments Tuesday, June 7, 2016
In a PATH BREAKING JUDGEMENT the Madras High Court has held that  Assessee cannot be asked to reverse input tax credit due to non-payment of taxes by the selling dealers.

Sri Lakshmi Textiles Vs. the Commissioner of Commercial Taxes and Others 

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Scope of prima facie adjustments u/s 143(1) of Income Tax Act enhanced

0 comments Saturday, May 28, 2016
The Finance Act, 2016 has made a very important amendment to section 143(1) of Income Tax Act, 1961, whereby the scope of prima facie adjustments u/s 143(1) has been enhanced while processing the returns. The following four sub-cluases and two provisos to the clause (a) of Section 143(1) have been added to allow for the following adjustments also while processing the returns:

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No entry tax on sugar in Punjab till date

0 comments Wednesday, May 18, 2016
There has been a lot of confusion off late about the levy of entry tax on import of sugar from outside the State of Punjab. The Excise and Taxation Department has been recovering entry tax on sugar imported from outside the state of Punjab.

The new entry tax law legislated by Punjab Government I.e. Punjab Development of trade commerce and Industries (Validation) Act is under challenge before the Punjab & Haryana High Court in CWP no 26998 of 2015. In the said Writ petition while passing an interim order on 27.04.2016 not only the stay on recovery of entry tax on sugar levied under an earlier ordinance I.e Ordinance no 1 of 2015 has been continued by the Hon'ble High Court but also it has been conceded by the Government councel in the court that no notification for leving  entry tax on sugar under new law (i.e validation Act) has been issued till date.

Thus it is very much clear that no entry tax is leviable on sugar imported from outside State of Punjab till date. Hence any recovery made in this regard at the check post by the Department is illegal.
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