AMIT BAJAJ ADVOCATE

Dated: 25th March 2013 

Attention: All VAT Dealers, Advocates, Chartered Accountants and Cost Accountants 

Subject: Launching of e-Payment facility 

1. The Department of Excise and Taxation has over the last couple of months received observations regarding inconvenience caused to dealers in submitting payments. In the existing process the dealer has the following inconveniences:

1.1. The dealer visits Department’s office to collect Challan.

1.2. Then he fills the challan manually and visits the Bank to deposit the amount.

1.3. After successfully submitting the Payment, Dealer visits office of AETC to submit the copy of Challan.

1.4. Submission of Challan in the Department is dependent on availability of staff and can be done only during specific working hours.

1.5. Challan is manually handled and reviewed manually by the department.

1.6. Dealer has to retain photocopies of the Challan Copy submitted to the department.

1.7. Dealer Ledger is updated only after Physical Challan is submitted and verified by the department.

2. To eliminate these inconveniences and to make the payment procedure user friendly, the Department is launching an integrated e-payment facility.

3. This e-Payment facility would bring in following benefits for the dealers

3.1. Anytime, anywhere payment facility to the Dealer.

3.2. No need to visit departmental office or Bank for payment.

3.3. No need of waiting or standing in Queues.

3.4. No scope of manual error at Department’s end.

3.5. Automatic update of Dealer Ledger.

3.6. Provision to view past payment details on Portal.

3.7. Provision to view pending payment details on Portal.

3.8. Option to make payment from multiple Banks.

3.9. Automatic three way reconciliation between the Department, Bank and Treasury, hence eliminating the chances of any inconvenience due to non-reconciliation.

 4. The Department has already tied up with Punjab National Bank, ICICI Bank, HDFC Bank and Kotak Mahindra Bank for providing this facility. Dealer can start using the facility with PNB and Kotak Mahindra bank from now onwards. More Banks such as SBI, SBoP, Union Bank of India, Vijaya Bank and Axis Bank would be included in second phase. The existing facility of e-Payment through State Bank of India would continue to be available to the dealers, till it gets upgraded to the integrated e-Payment mode.

5. Dealers are requested to use and test this e-Payment facility.

6. Department intends to make e-Payment mandatory for ALL VAT payments more than Rs.25,000 with effect from 10th April 2013. Concerns, suggestions or objections, if any, may be conveyed through email to feedback.pex@gmail.com latest by 31st March 2013. 

7. The step wise procedure is provided at the end of this notice.

8. Training sessions on the procedure and facility were scheduled by the Department at six major cities of the State between 22nd January and 28th January 2013. Additionally, a detailed step-by-step training video has been uploaded, since 29th January 2013, which can be accessed at http://www.youtube.com/watchv=tgBKwk0wDHg&.

9. Suggestions, views and objections are invited from all concerned stakeholders on the proposed procedure. The suggestions, views and objections may be e-mailed to feedback.pex@gmail.com latest by 31st March 2013.

10. Thank you.

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Delhi High Court in CIT vs Ansal Housing Finance Leasing Co. Ltd has held that ALV of flats, built by assessee engaged in construction business, lying unsold, is assessable as income from house property.

Currently, when a capital asset, being immovable property, is transferred for a consideration which is less than the value adopted, assessed or assessable by any authority of a State Government for the purpose of payment of stamp duty in respect of such transfer, then such value (stamp duty value) is taken as full value of consideration under section 50C of the Income-tax Act.

 These provisions do not apply to transfer of immovable property, held by the transferor as stock-in-trade.

After this judgement now the process evolved by the Excise and Taxation Department to grant the certificates of entry tax deferment to dealers having a limited period validity will be treated as not in accordance with the interim orders of the Hon'ble High court as made in Bhushan Power and Steel Ltd vs State of punjab in CWP 15378 of 2008 and hence not valid.

Clause 42 of the Finance Bill seeks to insert a new section 194-IA in the Income-tax Act relating to payment on transfer of certain immovable property other than agricultural land. 

The provisions contained in clause (14) of the section 2 of Income Tax Act, 1961, define the term “capital asset” as property of any kind held by an assessee, whether or not connected with his business or profession. Certain categories of properties including agricultural land have been excluded from this definition. 

1.No revision in Tax slabs of Income Tax for individuals. A minor Tax credit of Rs.2,000 for whose income is up to Rs.5 lakh has been given (Rebate under Sec 87A).

2. Additional surcharge will be levied at 10% (other than Companies) whose income exceeds Rs 1 crore. Additional surcharges to be in force for only one year.

It is not disputed that there was an agreement to sell between the assessee and M/s Shinestar Buildcon P Ltd. and in terms of the agreement the assessee received Rs. 18 crores as earnest money. Subsequently, the said earnest money was forfeited by the assessee and the same was claimed as capital receipt. Assessing Officer was not satisfied, therefore, a reference was made to Addl. Commissioner of Income Tax, u/s 144 of the IT Act. The Ld. Commissioner of Income Tax (Appeals) has given a categorical finding that in respect of the issue of forfeiture ofearnest money, the Addl. Commissioner of Income Tax, after taking into consideration the provisions of section 51 of the IT Act and decision of the Hon’ble Supreme Court in the case ofTravancore Rubber and Tea Company Ltd., issued directions that forfeited earnest money is not liable to tax and the same is to be considered as charge against the property and value of the property is to be suitably adjusted for the purpose of computation of capital gain, as and when the property is sold.

Recently Punjab & Haryana High Court in Gheru Lal Bal Chand vs State of Haryana has held that no liability can be fastened on the purchasing registered dealer on account of non-payment of tax by the selling registered dealer in the treasury unless it is fraudulent, or collusion or connivance with the registered selling dealer or its predecessors with the purchasing registered dealer is established.

Punjab & Haryana High Court in KRBL Limited vs State of Punjab CWP No. 12965 of 2012 decided on 25th January, 2013 has quashed the notification u/s 3 of Punjab(Institutional and other Buildings) Tax Act, 2011 and the consequential notices issued persuant thereto, levying tax @ Rs. 1 per sq, foot on the basis of floor area on Institutions and Buildings situated outside the municipal areas within Punjab. However the Hon'ble court upheld the constitutional validity of section 3 of the said Act.  

Excise and Taxation Department has issued a Public Notice stating that Efiling of quarterly returns for 3rd quarter of financial year 2012-13, will now start from 31st January, 2013.

It is notable here that efiling is to start in all together new forms i.e VAT-15,18,19,23,24. A trial version of new return forms is also available at the Official website of the department.

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