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Corporate News *   Government ignored warnings over GST rollout: sources *  GSTR 3B questionaire introduced- To be filled before filing return *  Advisory mail  to all the taxpayers received from GSTN *   Advisory group on GST submits report, suggests changes *   GST lifted oil demand on higher vehicle sales, says report *   Moody’s gives thumbs up to GST, demonetisation  *   Pass on rate cut benefits immediately, companies tell traders *   Focus will now be on simplifying forms, IT processes under GST: Sushil Modi *  Tax rates lowered on consumer goods,only luxury goods taxed @ 28% *   Businesses can revise GST transition claim form now *  Multiplex owners in UP demand clarity on refund as tax exemptions go away after GST *   GST compliance: A case of much ado about nothing *  PM hints more relief for traders & businesses to ease GST compliance burden *  Infosys deploys more people in states to ease GSTN load *   Further reforms are needed for the GST to succeed *   GST impact! Massive stock clearance discounts on apparels, gadgets likely in December *  Kerala HC releases Detained Goods since State has No Power to make Rules to regulate Inter-State movement of Goods under GST *  Infosys is to blame for GST Network glitches, say government officials *   Publishers versus authors: Who will pay GST on royalty? *   कपड़ा निर्यातकों ने कहा, जीएसटी के कारण भारत से शिपमेंट में आ सकती है भारी कमी *   Tax professionals protest over GST returns filing in Gujarat *  Publishers versus authors: Who will pay GST on royalty? *   Pilot Implementation of Paperless Processing under SWIFT *   Anti-dumping duty levied on the imports of " Color Coated/ Pre-Painted flat products of alloy or non-alloy steel " s *   Anti-dumping duty levied on the imports of "Wire Rod of Alloy or Non- Alloy Steel "   *   Exemption on goods imported by EOUs from integrated tax and compensation cess   *   Fixation of Tariff Value of Edible Oils, Brass Scrap, Poppy Seeds, Areca Nut, Gold and Sliver  *   Appointment of Common Adjudicating Authority by DGRI  *   Amendment in various Customs exemption notifications to exempt Integrated Tax/Cess on import of goods under AA/EPCG schemes  *   BCD and IGST rates on certain goods prescribed  
Subject News *   Vide the notification 71/2017-Central Tax ,dt. 29-12-2017, the Central government seeks to extend the time limit for filing FORM GSTR-1 in relation to outward taxable supplies for taxpayers having aggregate turnover upto  Rs. 1.5 Crore for the Quarter JUL-SEPT 2017 to 10th  January,2018. *   Vide the notification 72/2017-Central Tax ,dt. 29-12-2017, the Central government seeks to extend the time limit for filing FORM GSTR-1 in relation to outward taxable supplies for taxpayers having aggregate turnover more than  Rs. 1.5 Crore for the month JUL-NOV  to 10th  January,2018.   *   Vide the notification 73/2017-Central Tax ,dt. 29-12-2017the Central Government seeks to waive the late fees payable by registered person for failure in filing of FORM GSTR-4.   *   Vide the notification 74/2017-Central Tax ,dt. 29-12-2017 the government seeks to notify February 1, 2018 as the date from which the provisions of E-Way Bill Rules shall come into force. *     Vide the notification 75/2017-Central Tax ,dt. 29-12-2017 the Central Government seeks to make amendments in  Central Goods and Services Tax Rules, 2017. *   Inter - State e - way Bill to be made compulsory from 1st of February, 2018 ; system to be ready by 16th of January, 2018 *  Customs (Furnishing of Information) Rules, 2017 introduced *  GST network simplifies return filing process *   State FMs speak on GST implementation, bringing petrol under its ambit *  Shaky Budget in offing? *   GST woes dominate pre-Budget consultations to Arun Jaitley from stakeholders *   Anti-profiteering: Filing complaints against firms not an easy task *   Putting electricity in GST *   12%, 18% GST rates can be merged to new slab *  Inter state movement of rigs,tools and spares, and all goods on wheels (like cranes) would not attract IGST *   GST rate on terricotta idols is NIL rated *   All taxpayers  exempt from payment of tax on advances received in case of supply of goods *   Suppliers of services through an e-commerce platform are exempted from obtaining compulsory registration *   Refund of unutilized input tax credit of GST paid on inputs in respect of exporters of fabrics vide cicular no 18/2017 GST dt 16.11.17 *   Govt tells companies to pass on GST gains immediately *   Anti-profiteering authority to be set up under GST *   CBEC prescribes procedure for manual filing and processing of refund claims for zero rated supplies *  Changes in Tax rate of permanent transfer of Intellectual Property *  GST on Services by way of admission to protected monuments shall be exempted. *  Relevant Notification to be issued shortly, so as to be made available from 15th of November'17 *  Late fee payable for those where a tax liability arises will be Rs. 50/- per day. *  Supply of services by Composition taxpayer upto Rs 5 lakh per annum will be allowed *  Restaurants in hotel premises having room tariff of less than Rs 7500 per unit per day will attract GST of 5% without ITC. *  Restaurants in hotel premises having room tariff of Rs 7500 and above per day (even for a single room) will attract GST of 18% with full ITC. *  Job work services in relation to manufacture of those handicraft goods in respect of which the casual taxable person has been exempted from registration, shall be reduced to 5% with full ITC.  

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Publish Date: 05 Mar, 2016
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LIMITATION FOR ISSUING SCN UNDER SECTION 73 ENHANCED

LIMITATION FOR ISSUING SCN UNDER SECTION 73 ENHANCED

Or
PROS AND CONS OF AMENDED SECTION 73

 

An article by:-
CA PRADEEP JAIN &
CA NEETU SUKHWANI

 
It was proposed in the Central Excise Tariff Conference that the time limit for issuing show cause notice under normal period of limitation should be increased and it appears that the suggestion has been considered by the government in this Budget. In this budget, the government has amended section 73 of the Finance Act wherein the time limit for issuing show cause notice under normal period of limitation has been increased from the present ‘eighteen months’ to ‘thirty months’ from the relevant date.
 
The effect of increase in time limit is favourable or adverse decision of the government from the point of view of assesses will be known in the time to come. However, there are both pros and cons of the amendment made in section 73 of the Finance Act. The favourable and unfavourable consequences of the amendment are discussed in the succeeding paragraphs.
 
The advantage of enhancing the time limit to issue normal period of limitation may be viewed as beneficial in the sense that the probability of assessees availing the benefit of ‘no penalty’ by concluding the proceedings under section 76 or proviso to section 11AC (1)(a) may increase. This is for the reason that the show cause notice issued within normal period of limitation generally would not allege fraud, suppression of facts or wilful misstatement with intention to evade payment of duty. Consequently, one may believe that the benefit of waiver from penalties may be extended on comparatively large scale. However, it is also not hidden that the penalty provisions of section 78 or section 11AC (1)(c) are always invoked whether there is allegation of fraud, collusion or wilful misstatement or suppression of facts or not.
 
One may also contend that increasing time limit for issuing show cause notice under normal period of limitation may be perceived as promoting lethargic attitude of the revenue authorities. It is commonly observed that the show cause notices pertaining to audit objections are also issued after 3-4 years by invoking extended period of limitation. Consequently, since the time limit to issue show cause notice under normal period of limitation is increased to 30 months, the policy of delay in issuance of show cause notices would continue even more. Moreover, the thin gap between the normal period of limitation and the extended period of limitation would make the provision of normal period of limitation redundant as 99%, the revenue authorities will have tendency to invoke larger period of limitation.
 
With the government planning to introduce unified taxation reform GST in the coming year, the provisions regarding time limit to issue show cause notice under normal period of limitation should be kept at minimum like one year as all the data pertaining to tax credit, payments, returns will be electronically filed and accordingly, it would be expected by the government that scrutiny and verification procedures are carried on speedily. Providing enhanced time limit to issue show cause notice would encourage unnecessary delays in verification and assessment mechanism. 

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