RBI and Electricity Authorities to file returns to Central Excise
THERE is an innocuous looking Section 15A in the Central Excise Act by which the Central Excise (and Service Tax) authorities can ask for returns from anybody like VAT authorities, Company Registrar, Electricity Board, Reserve Bank and even an Income Tax Officer. This section brought into the statute in 2014 has not so far been used. The Board which was on an "ease of doing business" carnival of late, suddenly must have thought that they were distributing too many roses without the mandatory thorns. Here comes the thorn. The Board has put Section 15A into action.
The CBEC yesterday issued the Service Tax and Central Excise (Furnishing of Annual Information Return) Rules, 2016 effective from 1st April 2016.
The Reserve Bank of India is required to furnish an annual return on the details of certain foreign remittances for such entities whose value of remittances aggregates to more than fifty lakh rupees in a financial year to which the return pertains.
Similarly, an Electricity Board or an electricity distribution or transmission licensee has to furnish the return on the Electricity consumed by such manufacturers, using an induction furnace or rolling mill to manufacture goods falling under Section XV (Metals) of the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) whose aggregate value of clearances exceeds one hundred and fifty lakh rupees in the financial year.
The return has to be filed electronically by 31st December to the Directorate General of Systems and Data Management. Till the proper electronic filing is in place, the return has to be given in CD or DVD. (Flash Drive not permitted?). The return has to be signed and verified. (And how do you sign a return in a CD?)
What will the Board do if RBI and Electricity Boards do not furnish the returns? As per Section 15B, "If a person who is required to furnish an information return under section 15A fails to do so within the period specified in the notice issued under sub-section (3) thereof, the prescribed authority may direct that such person shall pay, by way of penalty, a sum of one hundred rupees for each day of the period during which the failure to furnish such return continues.”
It may be easier and less expensive for the RBI and Electricity Boards to pay the penalty than to go round furnishing these cumbersome returns. Why does the Government need this information?; what are they going to do with it? What have they done with the mountains of information they have already collected through various returns.? And are they happy with a small penalty instead of the return. Is there any provision for advance payment of penalty?
Notification No. , Dated: February 15, 2016