CBDT says: Value Taxpayer’s time and do not make them wait

The  CBDT in its office memorandum  dated 22.08.2014 has pointed out that few Assessing officers, while issuing notices for appearance,  indicates a standard time to all the respondents and therefore many persons called for hearing etc on a day by an officer are given the same time for appearance and the persons are made to wait for their turn. It has been pointed out that such actions, apart from causing avoidable inconvenience to the taxpayers/ witnesses/ representatives etc cause great embarrassment to the Government. All officers have been advised to maintain the appointment schedule strictly in spirit with the Citizen’s Charter, 2014 of the Department which specifically provides that the Department shall endeavour “to adhere to the schedule of appointments with taxpayers”. All Supervisory officers, i.e. the CCsIT, CsIT and the Addl. CsIT have been requested to ensure that officers reporting to them strictly comply with this instruction and avoid fixing multiple appointments at the same time. 

For  copy of the memo-Please Click here

Claim of Input Tax Credit, if the sellers found non existing

HIGH COURT OF KARNATAKA

M/S. MILAN PLYWOOD SUPPLIERS

VS.

STATE OF KARNATAKA

Date of order- 10^th July, 2014

Mere existence of tax invoice does not ipso facto lead one to the conclusion that the goods had been sold to the assessee – Assessing Authority should have made an enquiry to find out the genuineness of the transaction as set out by the Tribunal. It is only after such enquiry if the Assessing Authority is satisfied that the transaction in question is genuine one, the assessee has paid the money, he has received the goods and necessary entries are made in the books of accounts of the assessee, then merely because of the dealer has not remitted the tax would not enable the Assessing Authority to deny the benefit to the assessee. 

For full text of the judgment-  Please click here

Period in which the claim of goods return under CST Act can be made

HIGH COURT OF PUNJAB & HARYANA

M/s. Modern Dairies Limited
Vs.
The State of Haryana and others

Claim of credit of goods return under CST Act can be claimed only in the quarter in which the gods were returned.

Date of order 10/07/2014
While dealing with the question that whether Hon'ble Tribunal was justified in holding that the sales return are allowed to be deducted only in the year to which it relates and not in the period during which it has been returned back ignoring Rule 22(4) read with Section 9(2) of the CST Act, Hon'ble High Court refer to the provisions of Rule 22 (4) of the Haryana Value Added Tax Rules, 2003 and observed that "the assessee is not entitled to claim the benefit of return of goods sold to any person in any other quarter except the quarter in which the goods have been returned. In our opinion, no other meaning can be assigned to the said rule".Matter remanded

For full text of judgment- please click here
Readers may also refer to - 1983(53)STC 48

GUJARAT HIGH COURT- REDUCTION OF ITC IN CASE OF CST SALES, JUSTIFIED

High Court of GUJARAT
Reversal of Input tax Credit (2%), if the goods are sold in course of inter-state trade or commerce- Sustained

KADWANI FORGE LTD. & OTHERS

Vs.

STATE OF GUJARAT & OTHERS

Date: 22nd July 2014

The Court held-

 "It appears that the impugned notifications are issued reducing the input tax credit to the extent of 2% on the goods supplied outside State of Gujarat in the larger public interest and to ensure adequate funds in the development programme of the State. Reduction of the rate of central sales tax from 4% to 3% with effect from 01.04.2007 and from 3% to 2% with effect from 01.06.2008 and the failure on the part of the Central Government to compensate the State for the losses on account of the aforesaid reduction can be said to be
one of the cause and/or reason. It appears that as the State has suffered loss of thousands of crores of revenue due to the said reduction and the Central Government failed to compensate the said losses and it has been found that the tax revenue of the State has been adversely affected, when the impugned notifications are issued it can neither be said to be arbitrary nor illegal and/or unconstitutional."

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Held by High Court of Karnataka:-

M/s. MicroFx

Vs

The State of Karnataka

09/07/2014
When the goods involved is a "portable handheld ticketing machine" that is how the assessee has described the machine and that is how the customers have also understood it and in the Central Excise Tariff Act this ticket issuing machines are expressly included in Entry 8470, the Court cannot hold that it falls under 8471 especially when it specifically states that "not elsewhere specified or included" - By virtue of the words used in 8471 "not elsewhere specified or included", 8471 do not include ticket issuing machines. When ticket issuing machines are expressly mentioned in 8470 and in the notification issued on 31.3.2006 under the heading "the Information Technology product" 8470 is not included, the assessee is not entitled to the benefit of 4% tax – Revision petitions dismissed.


For full text of Judgment- Please click here

TRIPURA-VAT- TDS ON CONSIDERATION FOR RIGHT TO USE OF GOODS

F.1- 1(43)- TAX/2013 (P-II)

Dated 16/08/2014

Published on 20/08/2014

Amendment of sub-rule (2) of Rule 7 of the Tripura Value Added Tax Rules, 2005.

Provision for deducting tax at source on consideration payable for right to use of goods.

For Notification- PLEASE CLICK HERE

Punjab Last date of filing VAT-15 for q.e. 30/06/2014 extended to 25/08/2014.

Dated: 19th August, 2014

PUBLIC NOTICE 

In the light large number of representations received from lawyers and trade bodies, it is notified that last date of filing of VAT-15 return of Quarter-1 ending 30th June, 2014 for the year 2014-15, has been extended to 25th August, 2014. However, dates for payment of tax will remain unchanged.

For Notification, Please Click here

RAJASTHAN- VAT RATE- SPICES & DHANIA

Amendments in Schedule -IV of Rajasthan VAT Act, 2003 regarding Spices - order dated 19/08/2014.

For Notification -PLEASE CLICK HERE

RAJASTHAN VAT- RATE OF TAX ON WHOLE CORRIANDER-- SABUT DHANIA DATED 19/08/2014

AMENDMENT IN SCHEDULE VI OF RAJASTHAN VAT ACT, 2003 REGARDING DHANIA IN WHOLE FORM- DATED 19/08/2014

For Notification- Please Click here

JHARKHAND- TERMS & CONDITIONS FOR SUGAM-G

Terms and conditions under Sugam-G [in Hindi]

FOR FULL NOTIFICATION- PLEASE CLICK HERE

WEST BENGAL- TRADE CIRCULAR NO. 13/2014- DATED 13/08/.2014

e-service for cancellation of Certificate of Registration.

In order to extend e-service to the dealers, Directorate is continuously engaged in introducing newer e-services or expanding already available e-services. The latest of such services, that is going to be introduced, is the online facility to be available for filing application for cancellation of certificate of registration by a dealer, registered under the WBVAT Act, 2003, WBST Act, 1994 or CST Act, 1956..............

For Circular Please click here

CIRCULAR- DATED 18/08/2014- KARNATAKA

Enabling the dealers to download Statutory forms such as declaration in C form F Forms etc. who have failed to declare the purchase value in the return or wrongly declared the value in different boxes other than the appropriate boxes of the return but paid taxes as applicable on the corresponding sales of such goods-reg. For Circular- Please click here

यह घटना न सिर्फ निंदनीय है बल्कि सभ्य समाज में किसी भी तरह स्वीकार्य नहीं है. कर चोरी एक अपराध है इसमें कोई संदेह नहीं रहना चाहिए. कर संग्रह करने व कर चोरी रोकने हेतु सरकार ने काफी बड़ा बिभाग बना रखा है और यदि यह बिभाग गंभीरता पूर्वक और ईमानदारना तरीके से कार्य करे तो कर चोरी काफी हद तो रुक सकती है. पर.......

STAY ON REPRESENTATION SERVICES BY LUCKNOW BENCH- MODIFIED


Announcement on Court Verdict Modifying The Stay Order Dated 6 August 2014, By The Lucknow Bench of The Allahabad High Court on VAT. - (20-08-2014)

ATTENTION OF MEMBERS

ANNOUNCEMENT ON COURT VERDICT MODIFYING THE STAY ORDER DATED 6 AUGUST 2014, BY THE LUCKNOW BENCH OF THE ALLAHABAD HIGH COURT ON VAT

This is with reference to the order passed by the Lucknow Bench of the Allahabad High Court in the matter of Tax Lawyers Association & Anr. v/s State of U.P. & Ors. whereby only registered advocates were permitted to appear before the Authority under the VAT Act in the State of U.P.

On applications filed by the Institute for impleadment and vacation of stay, the Hon’ble Lucknow Bench of Allahabad High Court has modified its order dated 6th August, 2014 and consequently Chartered Accountants would continue to be permitted to appear before the Authority under the VAT Act in the State of U.P.

 
source- ICAI.org

MADRAS HIGH COURT (MADURAI BRANCH)

In the case of :-

Star Marketing and Sun Cellular Communications Vs.  The Assistant Commissioner, Karur (South) Assessment Circle and others

Appellants, who them selves applied for clarifications from Advance Ruling Authority cannot turn-back saying that the clarification is not binding on them.

For full text of judgment- Please click here

Non Advocates barred from appearing before the Authority under UP VAT Act (Interim Order)

Allahabad High Court 

in the case of 
Tax Lawyers Association Lko. 
Vs. 
State of  Uttar Pradesh.

as a Interim Measure held that no person whosoever, may be permitted to advertise in the Newspaper or any leaflet, inviting assesses for the purpose of filing of return or arguing before the authority under the VAT Act. Any person, who is not a registered advocate, shall not be permitted to appear before the Authority under the VAT Act. Judgment is a blow for Professionals like Chartered Accountant, Company Secretaries, Cost Accountants etc. who are working in the filed of UP VAT.

For full text of judgment, please click here

Kerala Value Added Tax Act, 2003 

Appellant:- M/s SAURASHTRA ROADWAYS

Registration of Parcel/courier/transporting and clearing agencies functioning within the State are liable for registration.

Held- There is absolutely no bar on the legislature, to provide for registration of transporting agencies, who have an intimate and proximate connection, to the sales and purchase of goods, and also provide for filing of returns, and inspection of accounts of such transporting agencies. However, as the Act, stands now, it only mandates the latter and does not provide for registration. The statute having not provided for the same, the Commissioner as was noticed, is not entitled to bring in such transporting agencies invoking the administrative powers conferred under Section 3 of the KVAT Act.

W.P(C) Nos.28690 of 2011 & 31635 of 2011, Date: 1st AUGUST 2014 

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THE ASSAM VALUE ADDED TAX (AMENDMENT) BILL, 2014

GIST OF PROPOSALS OF AMENDMENTS IN AVAT (AMENDMENT) BILL, 2014

1. Part –II of the Explanation to clause (44) of section 2 shall be substituted as follows:-
“(ii) any amount allowed by seller of goods to the purchaser as cash discount or commission or trade discount at the time of sale of goods subject to the condition that such discount or commission is shown in the original invoice.”

2. Clause (c) of sub-section (1) of section 13 shall be omitted.

3. New sub-section (3) will be inserted in section 13, which will read as:-
“(3) Notwithstanding anything contained in this Act, if after issuing invoice, any amount is allowed by a selling dealer to a purchaser as cash discount or commission or trade discount or sales incentive or otherwise and such amount is adjusted through credit note issued by such selling dealer to the purchaser or by any other means, the selling dealer shall not be allowed to reduce his output tax liability on account of such deduction".

concessional rate of entry tax on import of raw materials

कच्चे माल के आयात पर प्रवेश कर हटाने की मांग को नज़रअंदाज़ किया गया, टेक्स रेट में रियायत देने का झुनझुना। 



Different Institutions and trade associations has urged in their pre-budget memorandums to abolish entry tax on the import of raw materials by industries. Unfortunately, this demand was totally overlooked by Hon'ble Minister. However he said- "To promote industrialization in the State, especially MSME sector, I propose to allow concessional rate of entry tax on all raw materials, used by local industries, if such raw materials are not available locally. I will instruct industries Department to draw up a scheme for this purpose".