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RECOVERY OF SERVICE TAX WITHOUT SCN

Amendments made by Finance Bill, 2015 (w.e.f. enactment date)

Finance Bill, 2015 has made the following two changes in the provision of section 73 -

  1. New sub-section (1A) enabling recovery of self assessed and returned u/s 70 Service Tax payable but not so paid, as per section 87 of the Finance Act, 1994; and

  2. Omission of sub-section (4A) which provided for non-issuance of Show Cause Notice (SCN) where true and complete details of non-payment / short payment of Service Tax / erroneously refund is available in specified records and pays Service Tax along with interest and 25 percent of penalty and informs about the same to Central Excise Officer in writing.

Thus, with effect from a notified date, the amendment seeks to amend section 73 of 1994 Act so as to -

  1. insert a new sub-section (1B) to provide that the recovery may be made under section 87 of the self-assessed service tax, declared in the return but not paid, without service of any notice under sub-section (1), and

  2. omit sub-section (4A).

As a consequence, Rule 6 (6A) which provided for recovery of service tax self-assessed and declared in the return under section 87 has been omitted consequent to the amendment in section 73 for enabling such recovery. This change will come into effect from the date of enactment of theFinance Bill, 2015

In terms of new sub-section (1B) of section 73 and omission of Rule 6(6A), the following impact would be there -

  1. Sub-section (1A) shall over ride sub-section (1) of section 73.

  2. Sub-section (1B) shall be applicable only when Service Tax in payable based upon self assessment / return filed by the assessee, i.e., return filed but tax not paid.

  3. Such Service Tax payable may be full or in part.

  4. Recovery of Service Tax payable shall be made along with interest (not penalty), if any.

  5. Recovery mode may be any of the prescribed modes in terms of section 87 of the Finance Act, 1994.

  6. In such a case, there will be no requirement to serve notice as per sub-section (1) of section 73.

  7. The modes of recovery shall be as per section 87 only

  8. Provision of concessional penalty as per sub-section (4A) shall no longer be applicable.

It may also noted that penalties under section 76 and 78 of the Finance Act, 1994 have been substantially reduced / rationalized by Finance Bill, 2015.

CATEGORIES OF DIRECTORS Series-31

RESIDENT DIRECTOR:

As per Section 149 sub section 3 of Companies Act 2013, Board of Directors of a company, must have at least one resident director i.e. (A person who has lived at least 182 days in India in the previous calendar year)

As per General Circular No. 25/2014 The residence requirement would be reckoned from the date of commencement of section 149 of the Act i.e. 1st April, 2014, The first previous calendar year, for compliance with these provisions would, therefore, be Calendar year 2014. The period to be taken into account for compliance with these provisions will be the remaining period of calendar year 2014 i.e. 1st April to 31st December).

  • Therefore, on a proportionate basis, the number of days for which the director(s) would need to be resident in India. During Calendar year.2014, shall exceed 136 days.
  • Regarding Newly Incorporated Companies it is clarified that companies incorporated between 01.04.2014 to 30.09.2014 should have a resident director either at the time of incorporation OR within six months of their incorporation.
  • Companies incorporated after 30.9.2014 need to have the resident director from the date of incorporation itself.

 Women Director:

As per Section 149 (1) (a) second proviso requires certain categories of companies to have At Least One Woman director on the board. Such companies are any listed company, and any public company having-

 1.  Paid Up Capital of Rs. 100 cr. or more, or

2.  Turnover of Rs. 300 cr. or more.

Independent Director:

Independent Director is for the first time introduced in the Companies Act, 2013 under section 149(6)

Additional Directors: 

Any Individual can be appointed as Additional Directors by a company under section 161 of the New Act.

Nominee Director:

As per Section 161(3). Subject to AOA of company, the Board May appoint any person as a director nominated by any institution in pursuance of the provisions of any law for the time being in force or of any agreement or by the Central Government or the State Government by virtue of its shareholding in a Government company.( According to term: Subject to AOA of company mean there should be provisions in Articles of Association of Company for appointment of Nominee Director, if there is no provision in Articles of company then alter the provision in AOA).

 Alternate Directors:

As per Section 161(2) A company May appoint, if the articles confer such power on company or a resolution is passed (if an Director is absent from India for at least three months). 

  • An alternate Director cannot hold the office longer than the term of the Director in whose place he has been appointed.
  •  Additionally, he will have to vacate the office, if and when the original Director returns to India.
  • Any alteration in the term of office made during the absence of the original Director will apply to the original Director and not to the Alternate Director.

 

CBDT notification – Changes in ITR 1, ITR 2, ITR 4S for A.Y.2015-16

CBDT has vide Notification No. 41/2015 Dated 15.04.2015 notified Form ITR-1, ITR-2 and ITR-4S for Assessment Year 2015-16 i.e Financial Year 2014-15. The Notification also made Several Change in Rule 12 of Income Tax Rules, 1962 which is related to Condition of Filing of Income Tax Return.  A brief summary of Changes is as follows :-

General

1) ITR-1 (SAHAJ) & ITR-4S (Sugam) cannot be filed by individual who has earned any income from source outside India.

2) Introduction of EVC for verification of return of income filed as an option to send ITR-V to CPC, Bangalore.

3) Super Senior citizen are now allowed to file  ROI in paper form even though their income exceed Rs 5 lakhs subject to other conditions.

ITR-1

1) Introduction of furnishing Aadhar Card Number in ROI. Which will be used for EVC system introduced as mentioned above.

2) Details of all bank accounts with Bank name, IFSC Code, Name of Joint Holder, if any, Account number, Account balance as on 31.03.2015 mandatorily to be provided. Even those accounts which are closed during the year.

ITR-2

1) Introduction of furnishing Aadhar Card Number in ROI. Which will be used for EVC system introduced as mentioned above.

2) Details of Foreign Travel made if any (For resident and nonresident both) includes, Passport No, Issued at, name of country, number of times travelled and expenditure

3) Details of utilization of amount deposited in capital gain account scheme for years preceding to last two assessment years. Particulars asked include year of utilization, amount utilized, amount unutilized lying idle in capital gain account scheme till the date of filing of return of income.

4) In case of LTCG & STCG not chargeable to tax to Non-resident on account of DTAA benefit, It is required to furnish Country name, Article of DTAA, TRC obtained or not?,

5) For Non-resident, Income from other sources, If any income chargeable to tax at special rate provided in DTAA, It is now required to provide details of Name of Country, Relevant article of DTAA, Rate of Tax, Whether TRC obtained or not?, Corresponding rate of tax under income tax act.

6) Details of all bank accounts with Bank name, IFSC Code, Name of Joint Holder, if any, Account number, Account balance as on 31.03.2015 mandatorily to be provided. Even those accounts which are closed during the year.

7) In schedule FA- Foreign assets disclosure, Following details added.

a) Foreign Bank accounts details: It is now further require to furnish Account number, account opening date, Interest/income accrued from such account, If any along with details of head of income and schedule under which such income is shown, if offered to tax in India.

b) In similar manner, details of income from Financial interest in any entity outside India along with details of income offered to tax in ITR-2 from such income.

c) Similar disclosure requirement is also required for Immovable property outside India, capital asset held outside India, trust held outside India.

ITR-4S

1) Introduction of furnishing Aadhar Card Number in ROI. Which will be used for EVC system introduced as mentioned above.

2) Details of all bank accounts with Bank name, IFSC Code, Name of Joint Holder, if any, Account number, Account balance as on 31.03.2015 mandatorily to be provided. Even those accounts which are closed during the year.

To read a copy of the notification click here:

http://www.incometaxindia.gov.in/communications/notification/notification41_2015.pdf