CBDT Notifies new ITR Forms
31 07 2015
Friday
THE CBDT has notified new FORM ITR-3, FORM ITR-4, FORM ITR-5, FORM ITR-6 and FORM ITR-7.
The Forms are for:
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ITR-3
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For Individuals/HUFs being partners in firms and not carrying out business or profession under any proprietorship. |
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ITR-4
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For individuals and HUFs having income from a proprietary business or profession. |
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ITR-5
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For persons other than,- (i) individual, (ii) HUF, (iii) company and (iv) person filing Form ITR-7 |
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ITR-6
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For Companies other than companies claiming exemption under section 11 |
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ITR-7
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For persons including companies required to furnish return under sections 139(4A) or 139(4B) or 139(4C) or 139(4D) or 139(4E) |
Some of the new requirements are:
1. Aadhaar information has to be given for ITR-3 and ITR-4. Never mind if you don't have aadhaar.
2. If you are an HUF, the date of forming the HUF has to be furnished - ITR-4
3. While it is mandatory to furnish details of all bank accounts, dormant accounts are excluded – for all forms.
4. ITR-5 requires details of remuneration paid to partners.
5. Detailed information is sought on foreign accounts.
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.
CBDT Notification 61/2015, Dated: July 29, 2015
Reduction of CENVAT credit on Intangible Services
SOMETIME 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 – 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.
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.
Its surreal, I told myself!
That was the last I heard from him on the subject matter.
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.
Read further…
Inputs short received – CENVAT credit cannot be denied of tax paid on Inward Transportation service
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. Revenue is of the view that the shortage has occurred of inputs, consequently the input service credit is not admissible.
The original authority confirmed the demand and the Commissioner (Appeals) was all too happy to uphold the same.
Before the CESTAT, the appellant pointed out that although there is an allegation of "shortage of inputs" the credit is not denied on the shortages but what is denied is the "input service credit on transportation". 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.
The AR did his job – reiterate the findings in the impugned order.
The Bench while allowing the appeal observed –
"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."
See 2015-TIOL-1585-CESTAT-MUM
Consultant pocketing Service Tax and giving forged challans to assessee
IN DDT 2574 we reported that the Mumbai Service Tax has arrested one S. Shivaraman, Tax Consultant for evasion of Service Tax amounting to Rs.89 lakhs!
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!
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.
The CCE, Pune-I is before the CESTAT against the orders passed by the Commissioner(Appeals).
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.
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.
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.
See 2015-TIOL-1586-CESTAT-MUM & 2015-TIOL-1587-CESTAT-MUM
Tribunal to correct its approach so as to ensure such lapses do not recur
THE 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.
Although the departmental representative accepted this position before the Tribunal, the ITAT remanded the very issue to the Assessing Officer for fresh examination/determination.
The High Court was peeved with this manner of disposing the appeal and, therefore, made the following caustic comments –
"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."
Not that the CESTAT does not get the stick. It had its share of embarrassment in Sunbel Alloys Co. of India Ltd. 2015-TIOL-234-HC-MUM-CX.
Please see 2015-TIOL-1735-HC-MUM-IT
Australia to increase GST rate?
"IF 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."
This is what the New South Wales Premier Mike Baird said in an interview to ABC News, yesterday.
He wants an increase to Australia's goods and services tax (GST) to help state and territory governments meet the increasing costs of healthcare.
According to 2015 OECD data, the average rate of GST in OECD countries is 19.2 per cent, very close to 20 per cent.
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.
For the record, GST was introduced in Australia fifteen years ago but the rate debate continues.
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 "reasonable" GST rate.
Now, what is "reasonable" to the Government may be "unreasonable" to the trade!
And the "please all" debate continues…circa 2020
Revenue Secretary Tweets on GST
THE Revenue Secretary Shaktikanta Das shares his vision of GST through twitter. Some of his recent tweets on GST:
Until Monday with more DDT
Have a nice weekend.
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