Commodity Transaction Tax (Chapter VII) effective from July 1, 2013

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GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(DEPARTMENT OF REVENUE)

NOTIFICATION 45/2013

New Delhi, the 19 June, 2013

S.O. 1768 (E).- In exercise of the powers conferred by sub-section (2) of section 115 of the Finance Act, 2013 (17 of 2013), the Central Government hereby appoints the 1^st day of July, 2013 as the date on which Chapter VII of the said Act shall come into force.

Govt notifies Commodity Transaction Tax Rules & Forms for return & appeals filing

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GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(DEPARTMENT OF REVENUE)

Notification No. 46/2013

New Delhi, the 19^th June, 2013

COMMODITIES TRANSACTION TAX RULES, 2013

S.O. 1769 (E).- In exercise of the powers conferred by sub-sections (1) and (2) of section 133 of the Finance Act, 2013 (17 of 2013), the Central Government hereby makes the following rules relating to commodities transaction tax, namely:-

1. Short title and commencement. ─ (1) These rules may be called the Commodities Transaction Tax Rules, 2013.

(2) They shall come into force on the 1^st day of July, 2013.

2. Definitions. ─ (1) In these rules, unless the context otherwise requires,-

(a) “Act” means the Finance Act, 2013 (17 of 2013);

(b) “authorised bank” means any bank as may be appointed by the Reserve Bank of India as its agent under the provisions of sub-section (1) of section 45 of the Reserve Bank of India Act, 1934 (2 of 1934);

(c) “Form” means a Form set out in the Appendix to these rules.

(2) Words and expressions used and not defined in these rules but defined in the Act, the Forward Contracts (Regulation) Act, 1952 (74 of 1952), the Income-tax Act, 1961 (43 of 1961), or the rules made thereunder, shall have the meanings respectively assigned to them in those Acts and rules.

3. Agricultural commodities. ─ For the purposes of clause (7) of section 116 of the Act, the agricultural commodities shall be the following, namely:-

(i) Almond

(ii) Barley

(iii) Cardamom

(iv) Castor Seed

(v) Channa/Gram

(vi) Copra

(vii) Coriander/Dhaniya

(viii) Cotton

(ix) Cotton seed Oilcake/Kapasia Khali

(x) Guar Seed

(xi) Isabgul Seed

(xii) Jeera (Cumin Seed)

(xiii) Kapas

(xiv) Maize Feed

(xv) Pepper

(xvi) Potato

(xvii) Rape/Mustard Seed

(xviii) Raw Jute

(xix) Red Chilli

(xx) Soya bean/seed

(xxi) Soymeal

(xxii) Turmeric

(xxiii) Wheat

4. Rounding off value of taxable commodities transaction, commodities transaction tax, etc. ─ The value of taxable commodities transaction and the amount of commodities transaction tax, interest and penalty payable, and the amount of refund due, under the provisions of Chapter VII of the Act shall be rounded off to the nearest rupee and, for this purpose, where such amount contains a part of a rupee consisting of paise then, if such part is fifty paise or more, it shall be increased to one rupee and if such part is less than fifty paise it shall be ignored.

5. Payment of commodities transaction tax. ─ Every recognised association, who is required to collect and pay commodities transaction tax under section 119 of the Act, shall pay the amount of such tax to the credit of the Central Government by remitting it into any branch of the Reserve Bank of India or of the State Bank of India or of any authorised Bank accompanied by a commodities transaction tax challan.

6. Return of taxable commodities transactions. ─ (1) The return of taxable commodities transactions required to be furnished under sub-section (1) of section 120 of the Act shall be in Form No. 1, verified in the manner indicated therein, and may be furnished in any of the following manners, namely:-

(i) furnishing the return in paper form;

(ii) furnishing the return electronically under digital signature:

Provided that where the return is furnished in the manner provided in clause (i) the particulars required to be furnished in the Schedules to Form No. 1 referred to in sub-rule (1) shall be furnished on a computer media, in accordance with the following, -

(a) the computer media conforms to the following specifications:-

(i) CD ROM of 650 MB capacity or higher capacity; or

(ii) Digital Video Disc;

(b) if the data relating to the Schedules are copied using data compression or backup software utility, the corresponding software utility or procedure for its decompression or restoration shall also be furnished; and

(c) the return shall be accompanied by a certificate regarding clean and virus free data.

(2) The return of taxable commodities transaction entered into during a financial year shall be furnished on or before the 30th June immediately following that financial year.

(3) The Director-General of Income-tax (Systems) shall specify the procedures, formats and standards for ensuring secure capture and transmission of data and shall also be responsible for evolving and implementing appropriate security, archival and retrieval policies in relation to furnishing the returns in the manners specified in clause (ii) of sub-rule (1).

7. Return by whom to be signed. ─ The return under sub-section (1) of section 120 of the Act shall be signed and verified in the case of a recognised association, ─

(i) being a company, by the managing director or a director thereof; and

(ii) in any other case, by the principal officer thereof.

8. Time limit to be specified in the notice calling for return of taxable commodities transaction. ─ Where an assessee fails to furnish the return under sub-section (1) of section 120 of the Act within the time specified in sub-rule (2) of rule 6, the Assessing Officer may issue a notice to such person requiring him to furnish, within thirty days from the date of service of the notice, a return in the Form prescribed in rule 6 and verified in the manner indicated therein.

9. Notice of demand. ─ Where any tax, interest or penalty is payable in consequence of any order passed under the provisions of Chapter VII of the Act, the Assessing Officer shall serve upon the assessee a notice of demand in Form No. 2 specifying the sum so payable.

10. Prescribed time for refund of tax to the person from whom such amount was collected. ─ Every assessee, in case any amount is refunded to it on assessment under sub-section (2) of section 121 of the Act, shall, within thirty days from the date of receipt of such amount, refund the same to the concerned person from whom it was collected.

11. Form of appeal to Commissioner of Income-tax (Appeals). ─ (1) An appeal under sub-section (1) of section 129 of the Act to the Commissioner (Appeals) shall be made in Form No. 3.

(2) The form of appeal prescribed by sub-rule (1), the grounds of appeal and the form of verification appended thereto relating to an assessee shall be signed and verified by the person who is authorised to sign the return of taxable commodities transactions under rule 7, as applicable to the assessee.

12. Form of appeal to Appellate Tribunal. ─ An appeal under sub-section (1) or subsection (2) of section 130 of the Act to the Appellate Tribunal shall be made in Form No. 4, and where the appeal is made by the assessee, the form of appeal, the grounds of appeal and the form of verification appended thereto shall be signed by the person specified in rule 7.

CBDT Amends Format of Form 3CEB – More reporting compliance by the Auditors

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In pursuance of the changes made by the Finance Bill 2012 bringing specified domestic transactions under the ambit of Transfer Pricing Regulations, CBDT has amended the format of Form 3CEB vide notification number 41 dated 10 June 2013. The said notification also amends Rule 10A, 10AB, 10B, 10C, 10D and 10E.

The new format of Form 3CEB includes reporting on specified domestic transactions:

Following are the additional reporting requirements in New Format of Form 3CEB:

1. At Point 4 – Nature of Business or Activity of the Assessee (as per the Code for nature of business to be filled as per the instructions for filling form ITR 6;
2. At Point 8 – Aggregate Value of International Transactions as per books of Accounts;
3. At Point 9 – Aggregate Value of Specified Domestic Transactions as per books of Accounts;
4. At Point 15 – Particulars in respect of transactions involving guarantee;
5. At Point 16 – Particulars in respect of international transactions of purchase or sale of marketable securities, issue and buyback of equity shares, optionally convertible / partially convertible / compulsorily convertible debentures or preference shares;
6. At point 18 – Particulars in respect of international transactions arising out / being part of business restructuring or reorganizations;
7. At point 19 – Particulars of any other transactions including the transactions having a bearing on the profits, income, losses or assets of the assessee;
8. At point 20 – Particulars of Deemed International Transactions;
9. From Point 21 – 25 – Particulars in respect of Specified Domestic Transactions

Soon, you may not have to post acknowledgement of ITR to Bangalore

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Millions of taxpayers filing electronic I-T returns will soon get relief from sending by post the mandatory paper verification form (ITR V- Acknowledgement) as the CBDT has decided to soon stop this practice.

The Central Board of Direct Taxes (CBDT), administrative authority of the Income Tax department, will now instead introduce electronic verification of these online returns.

No disallowance U/s. 40(a)(ia) for default of short-deduction of TDS

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Apollo Tyres Ltd vs. DCIT (ITAT Cochin), I.T.A No.31/Coch/2010,Date of pronouncement: 29-05-2013

 

The Mumbai Bench found that short deduction of TDS, if any, could have been considered as liability under the Income-tax Act as due from the assessee. Therefore, the disallowance of the entire expenditure, whose genuineness was not doubted by the assessing officer is not justified. A similar view was also taken by the Kokatta Bench of this Tribunal in the case of CIT vs M/s S.K. Tekriwal (supra). In this case, on appeal by the revenue, the Calcutta High Court confirmed the order of the Kolkatta Bench of the Tribunal.

In view of the above, this Tribunal is of the considered opinion that section 40(a)(ia) does not envisage a situation where there was short deduction / lesser deduction as in case of section 201(1A) of the Act. There is an obvious omission to include short deduction / lesser deduction in section 40(a)(ia) of the Act. Therefore, this Tribunal is of the considered opinion that in case of short / lesser deduction of tax, the entire expenditure whose genuineness was not doubted by the assessing officer, cannot be disallowed. Accordingly, the orders of lower authorities are set side and the entire disallowance is deleted.

Focus on non-filers and stop-filers to enhance tax base – CBDT Chairman

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A WORD FROM CHAIRPERSON, CBDT

My Dear Members of the Aayakar Family,
On my elevation as Chairperson of CBDT, I take the first opportunity to greet you all and thank you for your good wishes I received during these days. I feel greatly humbled by the confidence reposed in me for leading this great Service.
I am conscious of the fact that standards of performance set by my predecessor have, indeed, been high and would warrant a whole- hearted and concerted effort to match them.
As you all know, our Hon’ble Finance Minister, immediately after his taking over the charge in August, 2012, gave us the guiding principles of non-intrusive and non-adversarial tax administration, to be followed in the day-to-day working and to create environment for voluntary compliance. I am also conscious of the fact that the Hon’ble Finance Minister has empowered us with adequate infrastructure, technological enablement, compatible legislation and requisite manpower. The latest restructuring of manpower thereby approving creation of 1349 posts in IRS Cadre and 19402 posts in non IRS Cadres, totaling 20751 additional posts in the department, is the epitome of support which he has accorded us. The onus is on us now, to come up to the expectations put on us by him and people of this country.

As tax collectors of the country, we have a pivotal role to play in national growth. The huge target of budget collection, for the year 2013-14, may not be an easy task but we should consider that the base of only about 3.5 crore assesses, a mere 2.9% of national population, wherein only 42,800 show annual income over Rs. One Crore, is too small for a country like ours. For sure, potential for tax collection is much higher than what we achieve at present.

While our endeavour would be to promote voluntary compliance and provide a hassle-free service to the honest tax payers, we would also need to focus on non-filers and stop-filers in order in order to enhance the tax base and augment tax collection. We aim at achieving a tax regulation regimen in India which can match the best in the world. I have, thus, a legacy to uphold and develop it further so that the coming batches of officers and staff feel proud of holding a position in this department.

I am fully aware that this department is full of talented, hard-working and dedicated officers and members of staff and that is my biggest strength. Believe me, I believe you and your potential and hope that each one of you will rise to the occasion and prove yourself to be an effective instrument in improving our working, in bringing about transparency and in making objective, fair and quick decisions with ethical base and humane touch. I want all of you to be ‘thinking’ persons, with ingenuity to think ways and means for the development of the Department and the well-being of the nation. Together, we can not only chart the course set for us, we can also take strides in a direction whereby every Indian should feel proud of our services.

Redemption fine and penalty to be clubbed to decide applicability of threshold limit prescribed -CBEC

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F.No.390/Misc./163/2010-JC

Ministry of Finance,

Department of Revenue,

Central Board of Excise & Customs

New Delhi 3^rd June, 2013

INSTRUCTION

Sub:- Reduction of Government litigation – providing monetary limits for filing appeals by the Department before CESTAT/High Courts and Supreme court – Regarding

I am directed to refer to Instruction of even number dated 17.8.2011 on the captioned subject.

Reference has been received regarding the application of the threshold limit prescribed vide Instruction ibid to cases where either redemption fine alone is in dispute or both redemption fine and penalty are in dispute. For example, in one case the Tribunal confirmed the duty but set aside the penalty of Rs. 5 lakhs and redemption fine of Rs. 15 lakhs imposed by the adjudicating authority. As the Instruction ibid did not specifically mention about redemption fine a clarification has been sought whether the word “penalty” mentioned in para 2 of the Instruction ibid would include redemption fine or otherwise.

The matter has been examined. Redemption fine is an option in the hand of the owner of goods to redeem goods confiscated by the department for violation of any provisions of the Customs Act. On the other hand, penalty is imposed on any person who violates the provisions of the Customs Act while importing or exporting the goods out of India. Therefore, the nature and scope of penalty is different from that of the redemption fine. While penalty is in persona, redemption fine is on goods. However, both redemption fine and penalty are imposed for violations of the statutory provisions. Therefore, even though redemption fine cannot be said to be covered under the word ‘penalty’ the treatment given to both redemption fine and penalty is required to be identical and hence, redemption fine and penalty would need to be clubbed to decide the applicability of threshold limit prescribed.

Accordingly, it is clarified that if the imposition of redemption fine alone is the subject matter of dispute, and if such redemption fine exceeds the monetary limits prescribed, then the matter could be litigated further in Courts and Tribunal. Further, if both the amount of redemption fine and penalty are in dispute and if such redemption fine and penalty is in dispute, taken together, exceed the prescribed monetary limit then the matter should be litigated further.

Instruction ibid stands suitably modified.

This issues with the approval of Chairperson (CBEC).