www.trsreddyca.com

+91 44 42617079

[email protected]


	Home Partners Services Goods & Services Tax Corporate Services Corporate Finance Services for Non-Residents Accounting Services Payroll Benefits of Outsourcing Income Tax Audit Value Added Tax (VAT) Corporate Governance TDS Knowledge Bank Calculators GST Calculator Tax Calculator TDS Calculator Calculate Net Profit Calculate Net Worth Effective Capital HRA NSC EMI Auto Loan Calculator Home Loan Calculator Get No. Of Instalment Bulletins Notification Circular Income Tax Company Law Service Tax Excise Matters Customs RBI SEBI FEMA Labour Laws Central Sales Tax Accounting Standards The LLP Act 2008 Accounting Standard (INDAS) Others GST VAT Delhi VAT Maharastra VAT Gujarat VAT Telangana VAT Tamil Nadu VAT IGST UTGST Compensation Cess Utilities Rates of TDS TDS Rates for N.R.I us 195 Rates of Income Tax Cost Inflation Index Rates of NSC Interest Gold and Silver Rates Rates of Depreciation Under Income Tax Act Rates of Depreciation Under Companies Act ROC Fee Structure (As per Companies Act, 2013) ROC Filing Fees (As per Companies Act, 2013) Application & Petition Fees (NCLT) Rates of Stamp Duty Limited Liability Partnership Fees National Industries of Classification IFSC Codes MICR Codes HSN Rate List Comparison of Deduction u/s 80TTA & 80TTB Links Quick Links Important Links GST/VAT Links Ease Of Doing Business Acts Direct Tax Income Tax Act Wealth Tax Act Income Declaration Scheme 2016 Indirect Tax Service Tax(Finance Act, 1994) The Central Excise Act, 1944 Customs Act, 1962 Central Sales Tax Act, 1956 Entry Tax Act Corporate Laws Companies Act, 2013 Companies Act, 1956 The Limited Liability Partnership ACT, 2008 The Securities and Exchange Board of India Act, 1992 VAT Laws Delhi Value Added Tax Act, 2004 Maharashtra Value Added Tax Act (2002) Rajasthan Value Added Tax Act, 2003 Bihar Value Added Tax Act, 2005 Karnataka Value Added Tax Act, 2003 Andhra Pradesh Value Added Tax Act, 2005 The Uttar Pradesh Value Added Tax Act 2008 West Bengal Value Added Tax Act, 2003 Punjab Value Added Tax Act Haryana Value Added Tax Act Telangana VAT Act 2005 Gujarat Value Added Tax Act, 2003 Tamilnadu VAT ACT, 2006 Other Statutes The Indian Partnership Act, 1932 Societies Registration Act, 1860 Reserve Bank of India Act, 1934 Competition Act, 2002 Monopolies and Restrictive Trade Practices Act, 1969 Foreign Exchange Management Act, 1999 The Employees' State Insurance Act, 1948 The Employees' Provident Funds and Miscellaneous Provisions Act, 1952 Profession Tax Act Right To Information Act, 2005 Equalisation Levy Act, 2016 The Insolvency And Bankruptcy Code, 2016 Maharashtra Real Estate Regulatory Authority and Rules THE REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016 GST Laws IGST Act , 2017 Central Goods and Services Tax Act, 2017 Union Territory Goods and Services Tax Act, 2017 GST (Compensation to States) Act, 2017 Rules Direct Tax Rules Income Tax Rules Wealth Tax Rules 1957 Income Declaration Scheme Rules 2016 Indirect Tax Rules Customs Valuation Rules Service Tax Rules Central Sales Tax (Delhi) Rules, 2005 Central Sales Tax (Maharashtra) Rules Entry Tax Rules Cenvat Credit Rules, 2017 GST Valuation Rules , 2016 Corporate Laws Rules Companies Rules, 2014 The Companies Unpaid Dividend Rules, 1978 Limited Liability Partnership Rules, 2009 LLP Winding up Rules, 2012 VAT Laws Rules Delhi Value Added Tax Rules, 2005 Maharashtra Value Added Tax Rules, 2005 Haryana Value Added Tax Rules, 2003 Andhra Pradesh Value Added Tax Rules, 2005 The West Bengal Value Added Tax Rules, 2005 The Uttar Pradesh Value Added Tax Rules, 2008 Punjab Value Added Tax Rules Rajasthan Value Added Tax Rules, 2006 Bihar Value Added Tax Rules, 2005 Karnataka Value Added Tax Rules, 2005 Telangna VAT Rules 2005 Gujarat Value Added Tax Rules, 2006 Tamilnadu VAT Rules, 2007 Other Statutes Baggage Rules, 2016 Profession Tax Rules NBFC Acceptance of Public Deposits (Reserve Bank) Directions, 1998 NBFC and Miscellaneous Non-Banking Companies (Advertisement) Rules, 1977 NBFC Auditor’s Report (Reserve Bank) Directions, 2008 Delhi Labour Welfare Fund Rules, 1997 Cost records and audit Rules, 2014 Equalisation Levy Rules, 2016 NCLT And NCLAT Rules The Insolvency and Bankruptcy of India Rules GST Rules Central Goods and Services Tax Rule, 2017 Forms Income Tax Forms Wealth Tax Forms ROC Forms (As per Companies Act, 1956) Companies Unpaid Dividend Forms Limited Liability Partnership (LLP) LLP Winding up Service Tax Forms NBFCs Forms FEMA Forms ROC Forms (As per Companies Act, 2013) Income Declaration Forms VAT Forms DVAT Forms MVAT Forms Bihar VAT Forms Karnataka VAT Forms UPVAT Forms Haryana VAT Forms WB Vat Forms Punjab VAT Forms Tamil Nadu VAT Forms CGST Forms GST Forms Accounts and Records Advance Ruling Appeals and Revision Assessment and Audit Composition Demands and Recovery Input Tax Credit Inspection, Search and Seizure Offences and Penalties Payment of Tax Refund Registration Returns Transitional Provisions Value of Supply News Query Careers Contact Us

Govt Tightens Tax Recovery Norms

Taxpayer Will Get Just 30 Days To Obtain A Stay On Disputed Indirect Tax

The Central Board of Excise and Customs (CBEC) has sought to initiate recovery proceedings on custom,excise and service tax orders raised if the tax evader is unable to obtain a stay within 30 days. After 30 days of filing of an appeal together with a stay application by the taxpayer with the Commissioner (Appeals) or the Customs,Excise and Service Tax Tribunal (CESTAT),the indirect tax authorities will move to recover the demands raised,even if the stay application has not been heard.In case of appeals before the courts,even this 30-day period is not available and recovery will be initiated immediately,according to a CBEC circular issued last week. Practically,it is difficult for taxpayers to obtain a stay order within such a short period.The irony is that the law itself permits the appellate authorities,both the Commissioner (Appeals) and the higher authority CESTAT to hear a stay petition within six months from the date of filing a stay appeal.There are various other situations outlined in this circular,but the essence in each case is the sameit all boils down to expediting recovery proceedings. For indirect tax matters,the taxpayer when filing a litigation appeal in parallel also files a stay application.Prior to the issue of this circular,dated January 1,2013,which is addressed to the chief commissioners,the indirect tax authorities did not resort to coercive action to recover the demand raised,till the stay application was heard.This circular has also rescinded seven earlier circulars,some of which were more beneficial to the taxpayer. This circular will not only impact India Incboth large and small entitiesbut will also impact service providers and professionals that pay service tax.Bipin Sapra,partner,Ernst & Young,said: While this circular refers specifically to excise,the procedure set out would be applicable to service tax matters also. Today almost all services,apart from 17 exempt heads under the negative list,such as school educational services,public transport,health care,services provided by an individual advocate to other individuals,to name a few,are covered under the service tax net and taxed at 12.36%.Ramifications of this circular are wide,as the cash flow situation now arising owing to prompt payment of service tax demand,may cascade down to consumers through higher pricing. Sunil Gabhawalla,a chartered accountant,said: The circular is draconian and detrimental to the interests of taxpayers.Taxpayers will have to follow up aggressively to ensure they get a stay within 30 days. However,if for instance,the Commissioner (Appeals) or the Tribunal bench does not hear the matter due to huge pendency or non-availability of bench members,it may be difficult to obtain the stay.Typically,even the government department representatives ask for an alternative date for hearing of the stay application which results in delays. A government official said: This circular was issued after a Supreme Court order.The Supreme Court in the case of Krishna Sales had observed: As it is well known,mere filing of appeal does not operate as a stay or suspension of the order appealed against. He also added that taxpayers delay hearing proceedings to buy time to pay the demands.An added procedural problem arises for taxpayers. Once a stay is obtained,refund will have to be given.However,obtaining a refund is time consuming.The circular will cause an added administrative burden to both taxpayers and tax authorities, added Sapra. During the first half of the current financial year 2012-13,indirect tax collections had arisen at a low rate of 15.6% to Rs 2.17 lakh crore only.The government has fixed the target of indirect tax collection,comprising customs,excise and service tax,at Rs 5.05 lakh crore for the current fiscal.

Times of India, New Delhi, 08-01-2012

33828 Times Visited