Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: due date for vat payment :: VAT RATES :: ACCOUNTING STANDARD :: list of goods taxed at 4% :: form 3cd :: VAT Audit :: ACCOUNTING STANDARDS :: TAX RATES - GOODS TAXABLE @ 4% :: TDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ARTICLES ON INPUT TAX CREDIT IN VAT :: cpt :: empanelment :: articles on VAT and GST in India :: Central Excise rule to resale the machines to a new company
« Indirect Tax »
 Indirect tax receipts to see small, brief hit’
 There is no tax on interest income of up to Rs3 lakh a year for senior citizens
 Chidambaram favours change in direct tax rates
  Further rationalization of revised simplified procedure for fixation of brand rates
 Kerala to accept demonetised banknotes for payment of state tax till Nov 24
 Centre-state gridlock over GST jurisdiction remains, could threaten tax rollout
 India to levy tax on investments from Cyprus from April 2017
 Why tax radar may detect your cash deposits after Nov 8
 Income tax notices to religious, charitable trusts
 ICAI starts course on accounting technicians
 More trouble ahead as Tata Trusts get I-T summons for tax avoidance

CBEC relaxes tax regime
April, 15th 2016

In a significant reform that would cut the audit delays concerning indirect taxes, give relief to taxpayers and reduce litigation, the Central Board of Excise and Customs (CBEC) has eased and expedited the procedure of dealing with audit objections raised by the Comptroller and Auditor General (CAG).

According to a CBEC circular issued to its field formations, the practice of issuing protective show-cause notices (SCNs) to assessees in cases where the audit objections are not accepted by the CBEC has been done away with. If the CBEC accedes to the objections, the SCNs would henceforth be issued forthwith and adjudicated expeditiously. No SCNs will be transferred to the call book, where they used to get piled up.

“The revamp of the procedure to deal with audit objection including time-bound responses by the tax authorities, discontinuing the practice of transferring SCNs to the call book and early adjudication of SCNs will lead to certainty of tax liability of the assessees. Further, quarterly coordination meetings to track the progress of audit objections will add momentum to the closure of long-pending audit objections,” said Santosh Dalvi, partner (indirect tax) at KPMG in India.

The CBEC circular has prescribed time limits within which departmental officers are expected to complete their internal procedures. This will, in turn, help in the issuance of SCNs in a timely manner and so interest liability on the taxpayer, which used to accrue for unnecessary long periods, could get reduced.

An audit objection raised by the CAG’s Central Excise Revenue Audit (CERA) and Customs Revenue Audit (CRA) could potentially mature into an audit paragraph and become part of the apex auditor’s audit report tabled in Parliament. Citing the recommendation of the Tax Administration Reform Commission, the CBEC via the latest circular rescinded all past instructions and circulars regarding the procedure of dealing with audit objections. Instead, new timelines have been prescribed by the CBEC for itself and the field officers from directors and assistant commissioners to principal chief commissioners to reply to queries form CAG in the life cycle of an audit objection.

“The provisions like non-issuance of SCNs unless department has accepted the objections of CERA team and dropping of proceedings basis the judgment of the apex court or CBEC circular are beneficial for taxpayers and will save time and cost of tax payers wasted in futile proceedings,” said Abhishek Jain, tax partner, EY.

In the past, various field formations used to adopt different approaches to deal with these matters and the formulation of a uniform guideline to deal with various issues emanating from CERA or CRA audits will go a long way in streamlining the entire process. The new circular, tax experts said, would result in a reduction in litigation and bring attendant benefits to the taxpayer and the economy at large.

“These guidelines would help in providing a clear procedure for field officers to deal with CERA or CRA objections and at the same time improve the ease of doing business in India along with bringing certainty regarding tax liability of an assessee,” said Tanushree Roy, director (indirect taxation), Nangia & Co.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Privacy Policy

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions