CLARIFICATION ON FORM DP - 1

Circular no: 09/2013-14

Dated: 6^th Aug 2013

The dealers who have submitted Form DP-1 without purchase commodities in the pre- revised Form DP-1 have the option to edit the Form DP-1 and submit the details of commodities purchased by them. Further, they can also edit the details of the commodities for sale, otherwise the commodities list submitted earlier would be treated as if these commodities are for sale. The last date for editing the said form is 26.08.2013.

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   

TAX DEPOSIT AND RETURN FILLING BY NEWLY REGISTERED DEALERS

Circular No: 12/2013-14

Dated: 07^th Aug 2013

The Department has resolved the issue of validation problems and fresh TINs have been issued to the newly registered dealers. Hence, they are required to immediately deposit their due tax. Further, in compliance of rule 28(3) of DVAT Rules, 2005, such dealers are required to file their return for the first quarter of 2013-14, within seven days from the date of grant of such TINs.

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

RAJYA SABHA PASSES COMPANKES BILL, 2012

Parliament today passed the much-awaited Companies Bill which is aimed at protecting the interest of employees and small investors, with the government saying the "historic" measure will give impetus to growth and bring transparency.

The Companies Bill, which will replace the nearly 50-year-old Companies Act, was passed by Rajya Sabha by voice vote. Lok Sabha had given its assent in December last year.

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

TAX DEDUCTORS WHO DEFAULT IN DEPOSITING TDS BY DUE DATE SHALL BE LIABLE FOR PROSECUTION: CBDT

It has come to the notice of Income Tax Department that many times the tax deductors, after deducting TDS from specified payments, are deliberately not depositing the taxes so deducted in Government account and continue to deploy the funds so retained for business purposes or for personal use. Such retention of Government dues beyond the due date is an offence liable for prosecution under Section 276B of the Income Tax Act, 1961. The defaulter, if convicted, can be sentenced to Rigorous Imprisonment (RI) for a term which can extend upto seven years.

The TDS units of Income Tax Department have been taking up prosecution proceedings in suitable cases where TDS has been retained beyond the due date. The Central Board of Direct Taxes has partly modified existing guidelines for identification of cases for launching prosecution. As per the revised guidelines, the criterion of minimum retention period of 12 months has been dispensed with.

For the benefit of public at large, it is now clarified that defaulters, who have retained the TDS deducted and failed to deposit the same in Government account within due date, shall be liable for prosecution, irrespective of the period of retention.

However, the offence u/s 276B of the Income Tax Act can be compounded by Chief Commissioner having jurisdiction on the case, either before or after the launching of prosecution proceedings. In the recent past, several defaulters have submitted petitions for compounding of such offences and compounding orders have also been passed by the Competent Authority in suitable cases.

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

PROCEDURE AND CRITERIA FOR SELECTION OF SCRUTINY CASES UNDER COMPULSORY MANUAL DURING THE FINANCIAL-YEAR 2013-2014-REGD

Instruction No: 10/2013

Dated: 5th August, 2013

In supersession of earlier instructions on the above subject, the Board hereby lays down the following procedure and criteria for manual selection of returns/cases for scrutiny during the financial-year 2013-2017:

1.   The targets for completion of scrutiny assessments and strategy of framing quality assessments as contained in Central Action plan document for Financial Year 2013-2014 has to be complied with. It is being reiterated that all scrutiny assessments including the cases selected under manual criteria will be completed through AST system software only.

2.   The following categories of cases / returns shall be compulsorily scrutinized:-

a)   Cases where value of international transaction as defined u/s   92B of IT Act exceeds Rs.15 crores.

b)   Cases involving addition in an earlier assessment year on the issue of transfer pricing in excess of Rs. 10 Crores or more which is confirmed in appeal or is pending before an appellate authority.

c)   Cases involving addition in an earlier assessment year in excess of Rs. 10 lacs on a substantial and recurring question of law or fact which is confirmed in appeal or is pending before an appellate authority.

d)   all assessments pertaining to Survey under section 133A of the IT Act excluding the cases where there are no impounded books of accounts/documents and returned income excluding any disclosure made during the Survey is not less than returned income of preceding assessment year. However, where assessee retracts the disclosure made during the Survey will not be covered by this exclusion.

e)   Assessment in search and seizure cases to be made under sections 158B, 158BC,158BD, 153A & 153C read with 143(3) of the IT Act.

f)    All returns filed in response to notice u/s 147/148 of the IT Act.

g)   Cases claiming exemption of income u/s 11 or u/s 10(23C) which are hit by proviso(s) to Section 2(15) of IT Act.

h)   Entities which received Donations from countries abroad in excess of Rs. One crore during the Financial Year 2011-2012 (relevant for the A.Yr. 2012-2013) under the provisions of Foreign Contribution Regulation Act (FCRA). Such Information is maintained by Ministry of Home Affairs and is available on its Website (http://mha.nic.in/fcra.htm). Respective Cadre-Controlling chief Commissioners / Directors - General of Income-tax may identify the cases pertaining to their respective jurisdiction after downloading from the website and disseminate the information to various field offices.

i)     Cases in respect of which information is received from other Government Department(s) or other authorities pointing out tax-evasion. The Assessing Officer shall record reasons in such cases and take approval from jurisdictional CCIT/DGIT before selecting such case for scrutiny.

3.   In order to ensure the quality of assessment orders, CCsIT/DGsIT would evolve suitable monitoring mechanism. They shall analyse at least 50 quality assessments of their respective charges and send the report to respective Zonal Member with copy to Member (IT) with suggestions for improvement by 30th April, 2014. CCsIT/DGsIT would further ensure that cases selected for publication in 'let us share' are picked up from quality assessments as reported.

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

FILLING OF ONLINE DVAT -48 RETURN FOR THE FIRST QUARTER 2013-14

Circular No: Vat/2011/591-597

Date: 6/08/2013

In partial modification to department’s circular No. 8 of 2013-14 on the  subject cited above, the last date of filling of  return, for the quarter ending 30.06.2013, is extending to the dates as per schedule  given below:-

Last date of filling of online return In DVAT -48	Last date of filling hardcopy of return in form DVAT 48 along with form DVAT 43
29.08.2013	31.08.2013

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

EXEMPTION TO UNREGISTERED PREMISES OF PHARMACEUTICAL PRODUCTS

Notification no: 11/2013

Dated: 2^nd Aug 2013

The CBEC hereby exempts from registration under sub-rule (1) of rule 9 of Central Excise Rules, 2002, unregistered premises used solely for affixing a sticker or re-printing or re-labeling or re-packing of pharmaceutical  products falling under Chapter 30 of the First Schedule to the Central Excise Tariff Act, 1985 with lower ceiling price to comply with the notifications issued by the National Pharmaceutical Pricing Authority under Drugs (Prices Control) Order, 2013 published in the Gazette of India vide S.O. 1221 (E), dated the 15^th May, 2013 subject to the conditions specified in the notification  no. 22/2013 - Central Excise dated the 29^th July, 2013 exempting the pharmaceutical products from payment of Central Excise duty.

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 TAX ON STEAM RADIATOR”

Dated: 18^th July 2013

Assessee Submission:  The item traded is Steam Radiator. He further stated that his client is charging 12.5% rate of VAT on the sale of this item whereas others manufactures of the said item are charging 5% rate of VAT on the pretext that the steam radiator is an industrial input, which is indirectly affecting his business.

Department Representative (DR): stated  that  the  item  under consideration i.e. steam radiator is not included in the list of ‘capital goods’ as specified in entry no. 86 of Schedule III appended to the DVAT Act, 2004.

Entry no. 86 of Schedule III –

Capital goods as specified below:

(i) Machinery for tea industry;

(ii) Machinery for food and food processing industries including flour mill;

(iii) Machinery for sugar mill;

(iv) Machinery for beverages, tobacco and tobacco products industries;

(v) Machinery for jute, hemp, mesta textiles industries;

(vi) Machinery for textile industries including hosiery othe than jute,

(vii) Machinery for engineering industries;

(viii) Machinery for paint industry;

(ix) Machinery for furniture and wood products industries;

(x) Machinery for paper and paper products and printing publishing and allied     industries;

(xi) Machinery for leather and fur product industries;

(xii) Rubber, plastic, petroleum and coal product industry machinery;

(xiii) Machinery for chemical and chemical products;

(xiv) Machinery for basic metal and alloys industries;

(xv) Machinery for non-metallic mineral product and industries;

(xvi) Machinery for construction works;

(xvii) Transport equipment and motor parts manufacturing machinery;

(xviii) Mining machinery;

(xix) Packaging machinery;

(xx) Foundry machinery;

(xxi) Agricultural machinery other than those mentioned elsewhere in any other   Schedule;

(xxii) Waste treatment plant and pollution control equipment manufacturing machinery;

(xxiii) Machinery for printing industry;

(xxiv) Machinery for iron and steel industry;

(xxv) Machinery for refrigeration and cooling towers including air-conditioners;

(xxvi) Cooling towers;

(xxvii) Earth moving machinery;

(xxviii) Spare parts, accessories and components of the plant and machinery specified in items (i) to (xxvii).

In DR’s opinion Steam Radiator is an unspecified item falling under section 4 (1) (e) of the Delhi Value Added Tax Act, 2004 and taxable at the rate of 12.5%.

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

LAST DATE FOR FILLING OF STOCK STATEMENT IN FORM STOCK-1 ONLINE

Notification : Vat/2012/565-576

Dated: 2^nd Aug 2013

The VAT Department has extended the date for filling of stock statement in Form Stock- 1 online for the stock available on 31^st March 2013 to the following date:

Class of Dealers	Last date for filling of stock statement in form Stock- 1
Dealers having Gross Turnover (GTO) upto Rs. 1.00 Crore during the year 2012-13	19.08.2013

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