Criterias for selection of cases for scrutiny assessment for F.Y. 2013-14 under Income Tax Act, 19610 comments Wednesday, August 7, 2013
CBDT has laid down and disclosed the guidelines for selection of cases for scrutiny assessment under section 143(2) of Income Tax Act, 1961 for the financial year 2013-14. This disclosure has been made after the direction of Delhi High Court in a recent case namely Joginder Pal Gulati vs OSD-CPIO, to disclose the norms of scrutiny assessment.
E-trip in Punjab-an uncontrolled delegated legislation?0 comments Tuesday, August 6, 2013
The area of trade, commerce and business is at present under a rigourous administrative regulation. Broad powers to regulate trade and commerce have been conferred on administrative authorities through statutes or rules.
Legislature sometimes leave a large amount of discretion in the hands of administrative authorities. Legislation conferring powers on the executive sometimes is drafted in broad and general terms that it leaves a large area of choice to the administrator to apply the law at his sweet will, and such legislation sometimes does not specify clearly the conditions and circumstances subject to which, and the norms with reference to which, the executive must use the powers conferred on it, which endangers a legal proverb coming true i.e "power corrupts a man and absolute power corrupts a man absolutely."
The latest example of such legialation can be found in the law implementing E-Trip in Punjab under the Punjab VAT Act, 2005. E-Trip means the reporting of intra-state transactions meant for trade relating to the specified goods on the virtual information collection centre i.e on the official website of the Excise and Taxation Department. In simple terms it is a mandatory reporting of any movement of specified goods within the state meant for trade on the Department's website before such movement starts.
Specified goods for the purpose of E-trip have been defined u/r 2(hh) of Punjab VAT Rules, 2005, which says that specified goods means the goods of certain value for the purpose of rules 64-A and 64-B, respectively, as specified by the Commissioner from time to time.
The commissioner has been given a very wide discretionary power to impose E-trip on any goods and on any value of the goods without any check and control and without any criteria prescribed for exercising such power. Furthermore relevant rules for E-trip i.e rules 64-A and 64-B also confers discretionary power on the Commissioner to also prescribe maximum transition time for delivery of such goods from one destination to another.
Thus Commissioner has been given absolute power not only to regulate the inter-state as well as intra-state movement of goods in terms of its pre-reporting but also regulating the transition time for such movement of goods from one destination to the other.
No doubt conferment of administrative discretionary power is neccessary for the smooth implementation of any law, but how much discretion can be conferred on the executive to control and regulate trade and commerce is a question to be asked.
The general principle in this connection should be that the power conferred on the executive should not be arbitrary, unregulated by any rule or principle and that it should not be left entirely to the discretion of any authority to do anything it likes without any check or control by any higher authority.
A law or order which confers arbitrary and uncontrolled power upon the executive in the matter of regulating trade or business in normally available commodities cannot but be held to be unreasonable-Dwarka Pd. vs State of U.P. AIR 1954 SC 224.
The law while granting a discretionary power to the executive should also lay down grounds and norms subject to which such discretionary power is to be exercised.
Rule 2(hh) and Rules 64-A and Rules 64-B no where have prescribed such guidelines or grounds or criteria for exercising discretionary power by the Commissioner to specify the goods for the purposes of e-trip. The power given under Rule 2(hh) seems uncontrolled. There seems to be no check on the discretionary power granted to the executive relating to e-trip.
At present E-trip has been imposed on few items only keeping the other items out of its ambit and the limit fixed for the transaction is Rs 50000. What is the criteria for determining this monetary limit or the goods, nobody knows. In the current scenario where the inflation is at its peak, prices of goods rising high, monetary limit of Rs. 50000/- is too small for the businessmen operating at small scale who still may not have any access to computers and internet and thereby adding to their costs and hindering their trade.
Tomorrow e-trip may be implemented on a transaction of Rs. 1000/- also, as no criteria whatsoever has been prescribed for specifying the goods or determinng the monetary limit and the Commissioner also need not have any prior permission of the State Government for regulating the trade and commerce in the grab of implementing etrip on any goods.
There should have been provision laying down the norms or criteria for exercising the power under Rule 2(hh) or under the rules relevant to e-trip or there should have been a check on such absolute power by the State Government.
In nut shell broad powers present possibilities of being misused and exercised in an arbitrary manner. Therefore it becomes neccessary to devise proper safeguards against such an eventuality so that injustice is not done, trade and commerce are not effected and the fundamental rights especially of freedom of trade and profession guaranteed under article 19(1)(g) of Constuitution remains uneffected. Courts have to play a major role in the process of controlling the functioning of the administration.
Issuing C form is statutory obligation of buyer, can be enforced by a writ petition in the High Court0 comments Monday, July 8, 2013
Many a times I receive queries on a common problem faced by many dealers all over India that what to do when the interstate purchaser of goods refuses or doesnot issue the requisite C forms after purchasing the goods at concessional rate of CST @ 2%. The only solution many people feel is the filing of Civil suit for the recovery of such C forms or the balance tax along with the interest from the refusing buyer. CBDT's instructions on ractification applications u/s 154 of Income Tax Act0 comments Friday, July 5, 2013
The CBDT has issued Instruction No. 03/2013 dated 05.07.2013 with regard to the the directive issued by the Delhi High Court in Court on Its Own Motion vs. UOI 352 ITR 273 on the procedure to be followed on the receipt and disposal of rectification applications filed u/s 154 of the Act. The CBDT has set out a detailed procedure on where applications should be received, the maintenance of registers and their disposal.
As per these instructions it has been strictly directed to all the officers to dispose off the ractification applications u/s 154 within a period preferably of 2 months as prescribed in the citizen charter but not later than 6 months as prescribed u/s 154 of the Income tax Act, 1961.
Applications u/s 154 will also have to be given neccessarly an acknowledgement number and every application is to be filed in the Online Ractification Register.
The CBDT has also issued Instruction No. 04/2013 dated 05.07.2013 with regard to the directive issued by the Delhi High Court in Court on Its Own Motion vs. UOI 352 ITR 273 that the demand should not be enforced in cases where no intimation u/s 143(1) was sent by the field authorities in respect of returns which were processed prior to 31.03.2010.
Hopefully these instructions will help in quick disposal of ractification applications u/s 154 of Income tax act, 1961. The instructions can be downloaded herebelow: CBDT Instructions Share | Authority for advance ruling under State VAT Act cannot give clarifications under CST Act0 comments Tuesday, July 2, 2013
Andhra Pradesh High court in Prathista Industries Limited vs Commercial tax Officer [2013] 61 VST 58 (AP) has held that Authority for advance ruling under State VAT Act cannot act as Authority for Advance Ruling under Central sales Tax Act, 1956. The High Court held that provisions relating to the "Advance ruling" in State Act are not applicable to proceedings for assessment, reassessment, collection and enforcement of payment under CST Act, therefore authority for advance ruling constituted under State VAT Act cannot give clarifications as such authority under Central Saless Tax Act, 1956. Service Tax on Builders2 comments Sunday, June 16, 2013
The revenue and the builders have always been at
dispute when comes to leviability of service tax on the consideration received
in advance by the builders/developers from the prospective buyers of immovable
property to be constructed.
After the negative list regime the construction of a
complex, building, civil structure or a part thereof, including a complex or
building intended for sale to a buyer, wholly or partly has been declared to be
a service liable to service tax. However, if the entire consideration from the
prospective buyer is received after
issuance of completion certificate by competent authority then it is outside
the purview of declared service.
No disallowance of Input Tax Credit for merely not charging VAT seperately in VAT invoice0 comments Thursday, June 6, 2013
Punjab VAT Tribunal
in The 21st Century Builders and Engineers vs State of Punjab VSTI
2013 17 C-388 has held that input tax credit cannot be disallowed merely on the
technical ground that VAT has not been charged separately in VAT invoice, when
tax charged on such VAT invoice is duly deposited by the seller.
New income tax rules for determining net agricultural income0 comments Tuesday, May 14, 2013
Finance Act 2013 Has Inserted New Rules For Computation Of Net Agricultural Income & Amended The Definition Of Net Agricultural Income Vide Section 2(13)(c). Text of Such Rules & section Are As Follows:-
Rules for Computation of Net Agricultural Income
Application for VAT registration cannot be rejected on the ground of insufficient place of business0 commentsMadras High Court in Sri Sundha Metals vs. Commissioner of Commercial Taxes, Ezhilagam, Chepauk, Chennai and another; (2013) 57 VST 73(Madras) has held that registration under VAT Act cannot be denied on the ground that place of business is not sufficient for conducting specified business in the absense of any provision under the Act specifying required area for conducting business. Personal assets required to be disclosed in new ITR forms for A.Y. 2013-14 if income exceeds Rs. 25 lakhs1 comments Tuesday, May 7, 2013
An important change has been made in the new ITR forms launched for the assessment year 2013-14. Now a person having income above Rs. 25 lakh willl have to give information in the income tax return regarding his personal movable and immovable assets except those which are already disclosed in the balance sheet. These details are required to be filed in ITR 3 and ITR 4 forms only and not in ITR 1 and ITR 2 or ITR 4S Confusing law regarding monthly payment of taxes under Punjab VAT Act, 20050 comments Sunday, May 5, 2013
Rule 36 of Punjab VAT Rules read with section 26 along with section 33 of Punjab VAT Act, 2005 prescribe for the perodicity of filing of returns and payment of due taxes. Efiling of audit reports under Income tax and ITRs if income exceeds Rs. 5 lakh now mandatory1 comments Saturday, May 4, 2013
CBDT has finaly notified new Income Tax return forms for the Assessment year 2013-14. Certain amendments have also been made to Rule 12 of Income Tax Rules which are as follows: 1. Mandatory efiling of audit reports: E-filing of following audit reports shall be mandatory in following cases: Download Income Tax Return forms for assessment year 2013-140 comments
CBDT has notified Income Tax Return forms for the assessment year 2013-14. The return forms in PDF files can be downloaded herebelow: Capital gain exemption u/s 54 & 54F can be claimed simultaneously for investment in the same house0 comments Monday, April 22, 2013
Hyderabad ITAT in Venkata Ramana Umareddy vs DCIT has held that Section 54 and section 54F are independent provisions and assessee can claim exemption under both sections for investment in same house. No penalty u/s 271(1)(c) merely because books of account rejected and profit estimated on basis of fair gross profit ratio0 comments Sunday, April 21, 2013
High Court of Gujarat in CIT vs Whitelene Chemicals uphled the order of ITAT deleting the penalty u/s 271(1)(c) which was imposed merely because books of account maintained by assessee were rejected and its profit was estimated on basis of fair gross profit ratio.
Last date of efiling of Punjab VAT returns Q4 year 2012-13 extended to 9th may, 2013, last date of tax deposit unchanged.0 comments Friday, April 19, 2013
GOVT. of PUNJAB
Excise and Taxation Department
PUBLIC NOTICE
Dated: 17thApril 2013
Changes in rates of tax of certain goods under Punjab VAT Act, 20050 comments
The proposed changes in the Budget of Punjab of year 2013-14, regarding rates of taxes under Punjab VAT Act, 2005 on certain goods have been notified. The changes made in the rates of tax on such goods under Punjab VAT Act, 2005 will be as follows: New criteria of institutional tax in Punjab notified0 comments
Punjab Government has reissued notification u/s 3(1) of The Punjab (Instituitions and other Buildings) Tax Act, 2011 leving institutional and Building tax as per the new criteria. Entry tax on automobiles in Punjab, no more cheaper vehicles from other States due to difference in rate of tax0 comments Wednesday, April 10, 2013
Punjab Government has levied entry tax on all motor vehicles purchased from outside the State of Punjab but brought into the local areas of Punjab for registration under Motor Vehicles Act, 1988. The tax has been levied on all the persons except the Taxable persons registered under Punjab VAT Act, 2005 and who exclusively deal in sale and purchase of motor vehicles. Thus entry tax on automobiles will not be payable by the persons registered under Punjab VAT Act and exclusively dealing in sale, purchase of motor vehicles. New VAT-2 and CST challan forms for VAT and CST payments notified0 comments
Excise & Taxtaion Department, Government of Punjab has notified new VAT-2 challlan forms for VAT payments under Punjab VAT Act, 2005 and also a new Form-II(CST) challan form for CST payments under CST(Punjab) Rules, 1957.
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