TIOL-DDT 2653 · the untouched capture
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<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3"><s><strong><font size="2"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3"><s><strong><font size="2"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=23157"><img width="300" border="0" align="right" hspace="5" height="148" alt="DDT in Limca Book of Records - Third Time in a row" src="http://www.taxindiaonline.com/RC2/image/stories/limca_book2015_1.jpg" /></a></font></strong></font></strong></font></strong></font></strong></font></strong></s></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></s>TIOL-DDT 2653 </font><br />
31 07 2015 <br />
Friday</strong></font></p>
<p align="center"><font color="#FFFFFF" size="3" face="Georgia, Times New Roman, Times, serif" style="background-color:#006A00" span="span"><em><strong>CBDT Notifies new ITR Forms </strong></em></font></p>
<p style="text-align: justify;"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> CBDT has notified new FORM ITR-3, FORM ITR-4, FORM ITR-5, FORM ITR-6 and FORM ITR-7. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Forms are for:</font></p>
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<div align="right"><strong><font size="2" color="#993300" face="Verdana, Arial, Helvetica, sans-serif">ITR-3 </font></strong></div>
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<td width="90%" valign="top" bgcolor="#FFFFFF"><strong><font size="2" color="#993300" face="Verdana, Arial, Helvetica, sans-serif">For Individuals/HUFs being partners in firms and not carrying out business or profession under any proprietorship. </font></strong></td>
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<div align="right"><strong><font size="2" color="#993300" face="Verdana, Arial, Helvetica, sans-serif">ITR-4 </font></strong></div>
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<td width="90%" valign="top" bgcolor="#efcbc2"><strong><font size="2" color="#993300" face="Verdana, Arial, Helvetica, sans-serif">For individuals and HUFs having income from a proprietary business or profession. </font></strong></td>
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<div align="right"><strong><font size="2" color="#993300" face="Verdana, Arial, Helvetica, sans-serif">ITR-5 </font></strong></div>
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<td width="90%" valign="top" bgcolor="#FFFFFF"><strong><font size="2" color="#993300" face="Verdana, Arial, Helvetica, sans-serif">For persons other than,- (i) individual, (ii) HUF, (iii) company and (iv) person filing Form ITR-7 </font></strong></td>
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<div align="right"><strong><font size="2" color="#993300" face="Verdana, Arial, Helvetica, sans-serif">ITR-6 </font></strong></div>
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<td width="90%" valign="top"><strong><font size="2" color="#993300" face="Verdana, Arial, Helvetica, sans-serif">For Companies other than companies claiming exemption under section 11 </font></strong></td>
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<div align="right"><strong><font size="2" color="#993300" face="Verdana, Arial, Helvetica, sans-serif">ITR-7 </font></strong></div>
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<td width="90%" valign="top" bgcolor="#FFFFFF"><strong><font size="2" color="#993300" face="Verdana, Arial, Helvetica, sans-serif">For persons including companies required to furnish return under sections 139(4A) or 139(4B) or 139(4C) or 139(4D) or 139(4E) </font></strong></td>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Some of the new requirements are: </font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Aadhaar information has to be given for ITR-3 and ITR-4. Never mind if you don't have aadhaar. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. If you are an HUF, the date of forming the HUF has to be furnished - ITR-4 </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. While it is mandatory to furnish details of all bank accounts, dormant accounts are excluded – for all forms. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. ITR-5 requires details of remuneration paid to partners. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. Detailed information is sought on foreign accounts. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6. Income from house property –to be declared if the property is let out or deemed to be let out. If you have more than one house, one can be claimed as self-occupied and the others are deemed to be let out. </font></p>
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<p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTgzNTM=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT Notification 61/2015, Dated: July 29, 2015 </font></strong></a></p>
<p align="center"><font face="Georgia, Times New Roman, Times, serif"><strong><font size="3" color="#ffffff" style="BACKGROUND-COLOR: #006a00" span="span"><em>Reduction of CENVAT credit on Intangible Services </em></font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>SOMETIME</strong> back, after the visit of the Audit team in his factory a netizen called me and said – The audit was smooth; they loved the food and the dessert but said that for the sake of raising an objection they would be taking the following issue –<em> Inputs are chemicals supplied in tankers and the quantity is obtained by dip measurement. On occasions there are shortages in the receipt of inputs due to various factors like transit / evaporation / handling losses/ incorrect measurements etc. Since there are Tribunal decisions which have held that the CENVAT credit attributable to the short receipt of inputs cannot be demanded as such shortages are inevitable and are within acceptable industry standards, they would be raising an unanswered issue – that the CENVAT credit availed on the Inward Transportation service would be sought to be denied to the said extent of short receipt</em>. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">I was taken aback and said that the Audit team may have playfully threatened him but asked the netizen to wait for the SCN, if and when it comes. </font></p>
<p align="justify"><font color="#993300" size="2" face="Verdana, Arial, Helvetica, sans-serif">Its surreal, I told myself! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">That was the last I heard from him on the subject matter. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But a recent case decided by the Mumbai CESTAT proves that such objections certainly survive the cosy confines of the adjudicating and lower appellate authorities and the assessee is required to trudge to the Tribunal. </font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Read further… </font></em></p>
<p align="justify"><font size="2" color="#ffffff" face="Verdana, Arial, Helvetica, sans-serif" style="BACKGROUND-COLOR: #006a00" span="span"><em>Inputs short received – CENVAT credit cannot be denied of tax paid on Inward Transportation service </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">THE brief facts are that the appellant is procuring gas from Gas Authority of India Ltd. (GAIL) through pipelines and the same was supplied through petrol pumps or through pipelines to the consumers. The appellant is availing CENVAT credit on inputs including Inward Transportation Service and paying duty on their final product. At the end of the year, the appellant prepares a balance-sheet and accounts for Measurement Tolerance in their balance sheet showing shortage of gas lost during the supply as final product.<font color="#ff0000"> Revenue is of the view that the shortage has occurred of inputs, consequently the input service credit is not admissible</font>. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The original authority confirmed the demand and the Commissioner (Appeals) was all too happy to uphold the same. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Before the CESTAT, the appellant pointed out that although there is an allegation of <em>"shortage of inputs"</em> the credit is not denied on the shortages but what is denied is the <em>"input service credit on transportation"</em>. Moreover, the Measurement Tolerance has occurred on account of receipt of inputs and supply of finished goods. In these circumstances, whatever shortage may occur that may be lost during the process of manufacturing and, therefore, credit cannot be denied and the order should be set aside. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The AR did his job – reiterate the findings in the impugned order. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Bench while allowing the appeal observed – </font></p>
<p align="justify"><em><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">"6. In this case, there is no dispute on account of availment of CENVAT credit on inputs. When there is no dispute regarding receipt of inputs, therefore, whatever transportation has been paid by the appellant on Inward Transportation Service is entitled for input service credit. Further, the Measurement Tolerance is on account of receipt of inputs and supply of finished goods. In these terms, it cannot be said the appellant has received the input in short quantity. Therefore, service tax on Inward Transportation is fully allowable as input service." </font></em></p>
<p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">See <a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=MTA1MTUx" target="_blank">2015-TIOL-1585-CESTAT-MUM </a></font></strong></p>
<p align="center"><strong><em><font size="3" color="#ffffff" face="Georgia, Times New Roman, Times, serif" style="BACKGROUND-COLOR: #006a00" span="span">Consultant pocketing Service Tax and giving forged challans to assessee </font></em></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> <a href="http://www.taxindiaonline.com/RC2/NewsDesc.php?MpoQSrPnM=MjMzMjk=" target="_blank"><strong>DDT 2574</strong> </a>we reported that the Mumbai Service Tax has arrested one S. Shivaraman, Tax Consultant for evasion of Service Tax amounting to Rs.89 lakhs! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It seems that the phenomenon of Consultants pocketing the Service tax amounts entrusted to them for depositing into the bank accounts is perhaps fast catching up with other metros too as the quickest way to become rich! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In both the below mentioned cases, it appears that the assessees had entrusted money with the Consultants for depositing the TR-6 challans but the Consultants forged the Bank's seal and signature, pocketed the amounts, and gave forged challans in token of having deposited the money with the exchequer. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CCE, Pune-I is before the CESTAT against the orders passed by the Commissioner(Appeals). </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Perhaps the Commissioner(A) had taken a compassionate view of the matter and granted waiver from the penalties imposed on the assessees. This, we say, because the order does not indicate as to what for the Revenue is before the Tribunal. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Be that as it may, the Bench observed that upon investigation by the Revenue it was found that the Consultant had committed the fraud and there was no complicity on the part of the assessees. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And, therefore, held that the findings of the Commissioner(A) were correct and upheld the same, thus dismissing the appeals filed by the CCE, Pune-I. </font></p>
<p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">See <a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=MTA1MTUy" target="_blank">2015-TIOL-1586-CESTAT-MUM</a> & <a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=MTA1MTUz" target="_blank"><strong>2015-TIOL-1587-CESTAT-MUM</strong></a></font> </strong></p>
<p align="center"><font size="3" color="#ffffff" face="Georgia, Times New Roman, Times, serif" style="BACKGROUND-COLOR: #006a00" span="span"><em><strong>Tribunal to correct its approach so as to ensure such lapses do not recur </strong></em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> issue before the ITAT was regarding disallowance made on account of claim for deduction under Section 10A of the Act. This very issue was covered in favour of the Petitioner by the decision of the Tribunal for A.Y. 2005­2006 in the Petitioner's own case. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Although the departmental representative accepted this position before the Tribunal, the ITAT remanded the very issue to the Assessing Officer for fresh examination/determination. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The High Court was peeved with this manner of disposing the appeal and, therefore, made the following caustic comments – </font></p>
<p align="justify"><em><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">"This is without in any manner even attempting to indicate why and how its earlier decision will not apply to the facts for the subsequent Assessment year. The Tribunal should not completely disregard its earlier order without some reason. This is the minimum expected of any quasi-judicial / judicial authority. If the Tribunal has failed to perform its basic judicial functions in such arbitrary manner, the approach of the Tribunal must be corrected, so as to ensure that such lapses do not occur again." </font></em></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Not that the CESTAT does not get the stick. It had its share of embarrassment in <em>Sunbel Alloys Co. of India Ltd</em>. <strong><a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=OTkzNTg=" target="_blank">2015-TIOL-234-HC-MUM-CX</a>. </strong></font></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Please see <a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=MTA1MTUw" target="_blank"><strong>2015-TIOL-1735-HC-MUM-IT</strong></a> </font></strong></p>
<p align="center"><font size="3" color="#ffffff" face="Georgia, Times New Roman, Times, serif" style="BACKGROUND-COLOR: #006a00" span="span"><em><strong>Australia to increase GST rate? </strong></em></font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">"<strong>IF</strong> you look around the world, where we sit in terms of income tax, we're not really that competitive, whereas in terms of the GST, we're right down the bottom. So the average rate across countries is about 20 per cent. We're at 10 per cent. Whereas we're above the OECD average in terms of income tax." </font></em></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This is what the New South Wales Premier Mike Baird said in an interview to ABC News, yesterday. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">He wants an increase to Australia's goods and services tax (GST) to help state and territory governments meet the increasing costs of healthcare. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">According to 2015 OECD data, the average rate of GST in OECD countries is 19.2 per cent, very close to 20 per cent. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In comparison, Australia is a relatively low GST country, having a GST tax rate of 10 per cent. Only three OECD countries have lower GST rates than Australia. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Interestingly, GST was introduced in Australia fifteen years ago but the rate debate continues. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Interestingly, back home, a day after the Cabinet approved incorporation of changes in the landmark GST Bill,the Revenue Secretary said that the Finance Ministry is working closely on a <em>"reasonable"</em> GST rate. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now, what is "reasonable" to the Government may be <em>"unreasonable"</em> to the trade! </font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And the "please all" debate continues…circa 2020 </font></em></p>
<p align="center"><font size="3" color="#ffffff" face="Georgia, Times New Roman, Times, serif" style="BACKGROUND-COLOR: #006a00" span="span"><em><strong>Revenue Secretary Tweets on GST</strong></em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Revenue Secretary Shaktikanta Das shares his vision of GST through twitter. Some of his recent tweets on GST: </font></p>
<blockquote lang="en" class="twitter-tweet">
<p lang="en" dir="ltr">Presentation of report by Rajya Sabha select committee is a positive development. One step closer to implementation.</p>
— Shaktikanta Das (@DasShaktikanta) <a href="https://twitter.com/DasShaktikanta/status/623869079187689472">July 22, 2015</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <blockquote lang="en" class="twitter-tweet">
<p lang="en" dir="ltr">GST will add to GDP growth and economic buoyancy. Will improve efficiency of our economy.</p>
— Shaktikanta Das (@DasShaktikanta) <a href="https://twitter.com/DasShaktikanta/status/623870381158346752">July 22, 2015</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <blockquote lang="en" class="twitter-tweet">
<p lang="en" dir="ltr">GST: India will become a single and common market. Movement of goods to be seamless. Transaction costs to go down.</p>
— Shaktikanta Das (@DasShaktikanta) <a href="https://twitter.com/DasShaktikanta/status/623871071175835648">July 22, 2015</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <blockquote lang="en" class="twitter-tweet">
<p lang="en" dir="ltr">24 yrs ago delicensing of industries was announced, unleashing lot of energy to our economy. GST will add even more energy.</p>
— Shaktikanta Das (@DasShaktikanta) <a href="https://twitter.com/DasShaktikanta/status/624418838809972736">July 24, 2015</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <blockquote lang="en" class="twitter-tweet">
<p lang="en" dir="ltr">Working closely on GST rates. Reasonable rates are key to its success. Passage of Bill in Parliament to take us to next activities.</p>
— Shaktikanta Das (@DasShaktikanta) <a href="https://twitter.com/DasShaktikanta/status/626580635692367872">July 30, 2015</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script>
<p align="justify"><font size="2" color="#ff6666" face="Verdana, Arial, Helvetica, sans-serif">Until Monday with more <strong>DDT</strong></font></p>
<p><strong><font size="2" color="#ff6666" face="Verdana, Arial, Helvetica, sans-serif">Have a nice weekend. </font></strong></p>
<p><font size="2" color="#ff6666" face="Verdana, Arial, Helvetica, sans-serif">Mail your comments to </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="mailto:vijaywrite@tiol.in"><strong>vijaywrite@tiol.in</strong></a></font></p>