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08 March, 2014

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Updates that Matter (UTM # 6)

Dear All,
Please find below the "Updates that Matter (UTM # 6)",
Ø  DVAT: - Implementation of Form T-2 in Delhi to be effective from 15th March, 2014.

Ø  Service Tax : No Service tax on Chit fund business (Hon'ble Supreme Court)
Ø  CE: - Amendments with respect to Importers issuing invoice for passing Cenvat Credit.
Ø  CE:- To accommodate the importers the quarterly returns and registration form have been widened.
Ø  DVAT: - DVAT Public Notice for principal place of business.

Ø  CL :- MCA Notifies CSR Provisions

a)    DVAT: - Delhi VAT Authorities have notified the requirement to furnish the details of Invoice and Goods Receipt (GR) Note in respect of all goods purchased or received as stock transfer or received on consignment agreement from outside Delhi shall be submitted online by dealers, using their login id and password, before the goods physically enter the boundary of Delhi vide Form T-2. The details shall be submitted by all dealers, except dealers exclusively dealing in Tax Free Goods, having GTO >= 1 Crore in 2012-13 or on any date in the current financial year on which the dealer attained/attains the lower limit of GTO of Rs 1 Crore.

b)    Service Tax:  In a Big relief to chit fund businesses, recently the Hon'ble Supreme Court dismissed the Special Leave Petition against the Delhi High Court Judgement. Hon'ble Delhi High Court earlier held that –

"In a chit business, the subscription is tendered in any one of the forms of 'money' as defined in section 65B(33). It would, therefore, be a transaction in money. So considered, the transaction would fall within the exclusionary part of the definition of the word 'service' as being merely a transaction in money".

Sr. No. 8 of the Abatement notification no.26/2012 dated 20.6.2012 remains quashed.
Union of India v. Delhi Chit Fund Association {2014} 43 GST 524 (SC)
c)    & d) CE: - The Central Excise authorities have implemented the earlier amendments in regard to the importer in a proper structurisation. The same can be summarised as below :-
a.    Proper Registration under Excise laws.
b.    Proper Issue of Invoice under Excise Laws.
c.     The existing format of return that was applicable in regard to the FSD/SSD has been made applicable to the importer also.
d.    The registration application of Form A-1 have been widened enough to cater to the needs of the importer.

Link to the Notifications

08/2014                     09/2014         10/2014         11/2014 

e)    DVAT: - As per the section 48 and Rules 42 & 19 of Delhi VAT Act & Rules, dealers are also required to maintain and retain prescribed records at the declared principal place of business in Delhi for 7 years. The record may be in the form of soft/hard copy but should be readily available on demand and be able to explain all business transactions. Further, in case of multi-state operations, all books of accounts should be separately maintained in relation to business operations in Delhi.
A Public notice was released by the Delhi VAT Authority suggesting the penal and other adverse implications of not maintaining the records at the principal place of business.
f)     CL: -MCA has notified Corporate Social Responsibility (CSR) Rules, they will come into force w.e.f from 1st April, 2014. Following companies are required to incur 2% of average net profit of preceding three years on CSR activities:
·         Companies with net worth of Rs 500 crores or more
·         Companies with turnover of Rs 1,000 crores or more
·         Companies with net profit of Rs 5 crores or more

CA.Ankit Gulgulia (Jain)|B.COM(H), C.A, C.IFRS, C.B.V
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