DVAT : SUBMISSION OF FORM T-2

NOTIFICATION  NO. F.7(433)/POLICY-2 VAT/2012 180-190           

DATE: 17/05/02013

In supersession of notification NO.F.7(433)/POLICY-II/VAT/2012/1429-38 dated 21.03.2013 and notification NO.F.7(433)/POLICY-II/VAT/2012/1464-74 DATED 01.04.2013 regarding submission of information  in from T-2, it is directed that the details of Invoice and Goods Receipt Note in respect of all goods purchased/received as stock transfer on consignment agreement from outside Delhi, shall be submitted by the dealers online, using their login id and password , before the goods physically enter the boundary of Delhi. For this purpose, the form T-2 annexed this notification shall be used.

It is directed that if the vehicle number is not available in advance, Form T-2 would need to be field without it and the detail would need to be updated within 24 hours of receipt of the goods by the Delhi dealer. In such of case, the dealer shall not dispose of sell dispatch such goods till the vehicle number is updated online and Form T-2 thereby completed.

In case the goods are being imported Form the National Capital Region, as defined in National Capital Region planning Board ACT of 1985,in goods vehicle owned by the supplier and where it is practically not possible to carry the G,R. then from DVAT-32 should be required to be filled in Form T-2 before the goods enter Delhi.

Transporter is required to obtain a hard copy of form T-2 with or without the vehicle number and carry it with the goods. In case, the dealer updates the information in form T-2 within 24 hours of receipt of goods. The transporter would obtain a revised hard copy of form T-2 also and retain it.

In case of new vehicles, without registration number, driven by a driver. Entering Delhi for sale the first time, Engine number of such vehicle should be mentioned in place of vehicle should be mentioned in place of Vehicle number in Form T-2.

This notification shall come in to force as per following schedule:-            

            

Class of Dealers	Effective date
Dealers having GTO> Rs.10 Crore in the year 2011-12 or future date on which the dealer attains the lower limit of GTO of Rs. 10 Crore, except the dealers exclusively dealing in Tax Free Goods.	17/05/2013
All others dealers	To be notified later on

Explanation 1: once a dealer become liable to file form T-2, his liability to file form T-2 will remain in force even if his GTO will goes down below the threshold limit of Rs. 10cr. in any subsequent year.

Explanation 2: Once T-2 form is filed on line it could be saved and e-mailed to the supplier who can take printout and send it with the transporter.

Regards

CA. Mona Singhal

Partner

Arpit Gupta & Associates

Chartered Accountants

701, Nirmal Tower,

26, Barakhamba Road,

Connaught Place, Delhi-110001

Mobile:- +91-9873082769 

Website: www.caaga.co.in

DVAT: UPDATED PROFILE OF DEALER

NOTIFICATION No F. 3(352)/Policy/VAT/2013|231-241                                                       Date 25/05/2013                                                          

It is mandatory for all registered  dealers to inform  the Commissioner about any  amendment in respect of their business activities , as detailed out in section 21 of the Delhi value Added Tax Act, 2004 (hereinafter called the Act’’).

It is also mandatory for all registered dealers to declare the name of manager of business, PAN No. and Importer Code (IEC) under section 95 of the Act so that the updated dealer Profile of all the registered  dealers is available with the Department .

All the dealers registered under the Act, as on 31-03-2013, shall furnish the information online on or before 30.060.2013, using their login ID and Password. For this Purpose, form DP-1 shall be used. 

Regards

CA. Mona Singhal

Partner

Arpit Gupta & Associates

Chartered Accountants

701, Nirmal Tower,

26, Barakhamba Road,

Connaught Place, Delhi-110001

Mobile:- +91-9873082769 

Website: www.caaga.co.in

SERVICE TAX REVISED RETURN CAN BE FILED WITHIN 90 DAYS FROM THE DATE OF FILING OF THE ORIGINAL RETURN

Service Tax Returns (ST 3) for the period July -Sept, 2012,e-filed in ACES, can now be viewed by the Assesses under 'View Original ST3' and 'View ST3' options under the RET module of ACES with a facility to revise it, if required.

The Revised return can be filed by the assessee within 90 days from the date of filing of the Original Return. 

CBEC has accepted the Service Tax returns for the period July-September, 2012, which were rejected by system on the sole ground that these returns were filed for the period prior to the dates of registration of the assessees, as valid returns. 

Regards

CA. Mona Singhal

Partner

Arpit Gupta & Associates

Chartered Accountants

701, Nirmal Tower,

26, Barakhamba Road,

Connaught Place, Delhi-110001

Mobile:- +91-9873082769 

Website: www.caaga.co.in

EXPORT OF GOODS AND SOFTWARE – REALISATION AND REPATRIATION OF EXPORT PROCEEDS – LIBERALISATION

RBI/2012-13/503 A.P. (DIR Series) Circular No. 105

1.   Attention of Authorised Dealer Category-I (AD Category-I) banks is invited to A.P. (DIR Series) Circular No. 52 dated November 20, 2012 extending the enhanced period for realization and repatriation to India, of the amount representing the full  value of goods or software exported, from six months to twelve months from the date of export. This relaxation was available up to March 31, 2013.

2.   The issue has since been reviewed and it has been decided, in consultation with the Government of India, to bring down the above stated realization period from twelve months to nine months from the date of export, with immediate effect, valid till September 30, 2013.

3.   The provisions in regard to period of realization and repatriation to India of the full export value of goods or software exported by a unit situated in a Special Economic Zone (SEZ) as well as exports made to warehouses established outside India remain unchanged.

Regards

CA. Mona Singhal

Partner

Arpit Gupta & Associates

Chartered Accountants

701, Nirmal Tower,

26, Barakhamba Road,

Connaught Place, Delhi-110001

Mobile:- +91-9873082769 

Website: www.caaga.co.in

RATE OF INTEREST FOR THE EMPLOYEES PROVIDENT FUND MEMBERS’ ACCOUNT FOR THE YEAR 2012-13

The Finance Ministry has approved payment of 8.5 per cent rate interest for 2012-13, up from 8.25 per cent in the previous fiscal.

CLEAN NOTE POLICY

RBI/2012-13/500

DCM (NPD) No.5133/ 09.39.000/2012-13

1.   In recent periods, instances of certain branches of banks continues to follow old practices like stapling, writing number of note pieces in loose packets on watermark window of notes disfiguring the watermark impression and rendering it difficult for easy recognition have come to our notice. Further, it has also been observed that certain bank branches do not sort notes into re-issuables and non-issuables, and issue soiled notes to public. Such practices are against the “Clean Note Policy” of Reserve Bank of India.

2.  In this connection we invite a reference to Reserve Bank of India’s Directive DBOD No. Dir. BC. 43/13.03.00/2001-02 dated November 7, 2001 and reiterate that:

a)   banks should do away with stapling of any note packet and instead secure note packets with paper bands,

b)   banks should sort notes into re-issuables and non-issuables, and issue only clean notes to public; and,

c) banks should forthwith stop writing of any kind on watermark window of bank notes.

Regards

CA. Mona Singhal

Partner

Arpit Gupta & Associates

Chartered Accountants

701, Nirmal Tower,

26, Barakhamba Road,

Connaught Place, Delhi-110001

Mobile:- +91-9873082769 

Website: www.caaga.co.in

CLASSIFICATION OF THE MACHINES COMMERCIALLY REFERRED TO AS “TABLET COMPUTERS”

Circular No: 20 / 2013- Customs

Dated :14/05/2013

1. The classification of the machines commercially referred to as “tablet computers” is to be determined by application of the General Rules for the Interpretation (GRIs) of the First Schedule to the Customs Tariff Act (CTA), 1975.

GRI 1 requires that, “in classifying articles, for legal purpose it shall be determined according to the terms of the headings and any relative Section or Chapter Notes”. Hence, all relevant legal texts must be considered.

Note 5.(A) to Chapter 84 states that, “For the purposes of heading 8471, the expression “automatic data processing machine” means machine capable of:   

(i)        storing the processing programme or programmes and at least the data immediately necessary for the execution of the programme;

(ii)   being freely programmed in accordance with the requirements of the user;

(iii)      performing arithmetical computations specified by the user; and

(iv)      executing,

without human intervention, a processing programme which requires them to modify their execution, by logical decision during the processing run”.

In addition to the above relevant Note 3 to Section XVI stipulates that, “unless the context otherwise requires, composite machines consisting of two or more machines fitted together to form a whole and other machines designed for the purpose of per-forming two or more complementary or alternative functions are to be classified as if consisting only of that component or as being that machine which performs the principal function”.

2.   A Tablet Computer is designed to be primarily operated by using its touchscreen. It can process data, execute programs, and connect to the Internet via a wireless network in order to, for example, exchange and manage e-mails, exchange or download files, download software applications, conduct video or VoIP (“Voice over Internet Protocol”) communications, etc. In addition, it can also be connected to a cellular network to make voice calls.

3.   It is seen that “Tablet Computers” can be programmed in a variety of ways thereby qualifying as machines capable of being freely programmed in accordance with the requirements of the user, as required by Note 5 (A) (ii) to Chapter 84.

It is also held that the products at issue have essentially the same functionality as a laptop. The function as an Automatic Data Processing Machine (ADP) is the main function of the product, while other functionalities of said machines are not different from the auxiliary functions that could be seen on any computer, such as desktop or laptop computers.

The mobile phone calling function could be provided by the products only as a supplementary function because it could not be activated without running an operating system of the “Tablet Computer”, and in order to use the function a headset had to be used.

The size of such machines when exceeding the dimensions mentioned in Note 8 to Chapter 84 relating to the “pocket-size” machines of heading 8470, is too big to be used principally for making voice calls. The tablet computers are not intended to be a substitute for a mobile phone to make voice calls, but, according to its main technical features is designed as a substitute for laptops.

The difference between a “Smartphone” and a “Tablet Computer”, is not based on whether the product has a voice calling function or not, but on the principal features that a producer has intended for the device when designing and developing it.

4.   Therefore, it is decided that machines commercially referred to as “Tablet Computers” are more appropriately classifiable in heading 8471, subheading 847130, by application of General Rules for Interpretation (GRI) of Import

Tariff, 1 (Note 3 to Section XVI and Note 5 (A) to Chapter 84) and 6.

Regards

CA. Mona Singhal

Partner

Arpit Gupta & Associates

Chartered Accountants

701, Nirmal Tower,

26, Barakhamba Road,

Connaught Place, Delhi-110001

Mobile:- +91-9873082769 

Website: www.caaga.co.in

Service Tax Voluntary Compliance Encouragement scheme,2013

Notification No:10/2013 - ST

Dated: 13/05/ 2013

The Central Government hereby makes the following rules regarding the form and manner of declaration, form and manner of acknowledgement of declaration, manner of payment of tax dues and form and manner of issuing acknowledgement of discharge of tax dues under the Service Tax Voluntary Compliance Encouragement Scheme,2013,namely:-

1.   Short title and commencement– (1) These rules may be called the Service Tax Voluntary Compliance Encouragement Rules, 2013.

(2) They shall come into force on the date of its publication in the Gazette of India.

2.   Registration – Any person, who wishes to make a declaration under the Scheme, shall, if not already registered, take registration under rule 4 of the Service Tax Rules, 1994.

3.   Form of declaration – The declaration u/s 107(1) of the Act, in respect of tax dues under the Scheme shall be made in Form VCES -1.

4.   Form of acknowledgment of declaration – The designated authority on receipt of declaration shall issue an acknowledgement thereof, in Form VCES -2, within a period of 7 working days from the date of receipt of the declaration.

5.   Payment of tax dues – (1) The tax dues payable under the Scheme along with interest, if any, u/s 107 of the Act shall be paid to the credit of the Central Government in the manner prescribed for the payment of service tax under the Service Tax Rules, 1994.

(2) The CENVAT credit shall not be utilised for payment of tax dues under the Scheme.

6.   Form of acknowledgement of discharge – (1) The designated authority shall issue an acknowledgement of discharge u/s 107(7) of the Act, in Form VCES - 3.

(2) The acknowledgement of discharge shall be issued within a period of 7 working days from the date of furnishing of details of payment of tax dues in full along with interest, if any, by the declarant.

Some references have been received seeking clarification as regards the scope and applicability of the Scheme. The issues have been examined and clarifications thereto are as follows:

S. No.	Issues	Clarification
1	Whether a person who has not obtained service tax registration so far can make a declaration under VCES?	Any person who has tax dues to declare can make a declaration in terms of the provisions of VCES. If such person does not already have a service tax registration he will be required to take registration before making such declaration.
2	Whether a declarant shall get immunity from payment of late fee/penalty for having not taken registration earlier or not filed thereturn or for delay in filing of return.	Yes. It has been provided in VCES that, beside interest and penalty, immunity would also be available from any other proceeding under the Finance Act, 1994 and Rules made thereunder.
3	Whether an assessee to whom show cause notice or order of determination has been issued can file declaration in respect of tax dues which are not covered by such SCN or order of determination?	In terms of section 106 (1) of the Finance Act, 2013 and second proviso thereto, the tax dues in respect of which any show cause notice or order of determination under section 72, section 73 or section 73A has been issued or which pertains to the same issue for the subsequent period are excluded from the ambit of the Scheme. Any other tax dues could be declared under the Scheme subject to the other provisions of the Scheme.
4.	What is the scope of section 106 (2)(a)(iii)? Whether a communication from department seeking general information from the declarant would lead to invoking of section 106 (2) (a)(iii) for rejection of declaration under the said section?	Section 106 (2) (a)(iii) of the Finance Act, 2013 provides for rejection of declaration if such declaration is made by a person against whom an inquiry or investigation in respect of service tax not levied or not paid or short-levied or short paid, has been initiated by way of requiring production of accounts, documents or other evidence under the chapter or the rules made thereunder, and such inquiry or investigation is pending as on the 1st day of March, 2013. The relevant provisions, beside section 14 of the Central Excise Act as made applicable to service tax vide section 83 of the Finance Act,1994, under which accounts, documents or other evidences can be requisitioned by the Central Excise Officer for the purposes of inquiry or investigation, are as follows,- (i) Section 72 of the Act envisages requisition of documents and evidences by the Central Excise Officer if any person liable to pay service tax fails to furnish the return or having made a return fails to assess the tax in accordance with the provision of the Chapter or rules made thereunder. (ii) Rule 5A of the Service Tax Rules, 1994 prescribes for requisition of specified documents by an officer authorised by the Commissioner for the purposes specified therein. The provision of section 106 (2)(a)(iii) shall be attracted only in such cases where accounts, documents or other evidences are requisitioned by the authorised officer from the declarant under the authority of any of the above stated statutory provisions and the inquiry so initiated against the declarant is pending as on the 1st day of March, 2013. No other communication from the department would attract the provisions of section 106 (2)(a)(iii) and thus would not lead to rejection of the declaration.

Regards

CA. Mona Singhal

Partner

Arpit Gupta & Associates

Chartered Accountants

701, Nirmal Tower,

26, Barakhamba Road,

Connaught Place, Delhi-110001

Mobile:- +91-9873082769 

Website: www.caaga.co.in