Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
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) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: empanelment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARDS :: Central Excise rule to resale the machines to a new company :: form 3cd :: ACCOUNTING STANDARD :: TAX RATES - GOODS TAXABLE @ 4% :: list of goods taxed at 4% :: due date for vat payment :: TDS :: articles on VAT and GST in India :: VAT RATES :: VAT Audit :: cpt
 
 
News Headlines »
 Tax-saving for young earners simplified
 How to save income tax? Here are 6 investments with tax free income
 10 Top salary deductions that can save tax for you
 What are the tax saving options beyond Section 80C?
 The penalties for not paying tax on time
 How to make your salary tax efficient
 I-T Department may go into overdrive this quarter
 Ways to reduce the TDS deduction from your salary
 4 Tips for choosing who prepares your 2017 Tax Returns
 Processing of income-tax returns under section 143(1) of the Income-tax Act which were filed in Forms ITR-1 to 6 & applicability of section 143(1)(a)(vi)
 Price Waterhouse gets 2-year ban in Satyam case

New Penal Provisions Under Cenvat Credit Rules
May, 26th 2015

Vide Notification No. 6/2015-ST dated 1.3.2015, following amendments have been made in Rule 15containing penal provisions to rationalize penalties w.e.f. date of enactment of Finance Act, 2015(14.05.2015)

Under

Penalties Imposable

Rule 15(1)

As per Section 11AC(1) (a) or (b) of Central Excise Act, 1944

or

As per section 76(1) of Finance Act, 1994

Rule 15(2)

As per section 11AC (1) (c) and (d) or (e) of Central Excise Act, 1944

Rule 15(3)

As per section 78(1) of Finance Act, 1994

The aforementioned penalties shall be over and above interest recoverable under Rule 14 of Cenvat Credit Rules, 2004. Readers may refer to Topic No. 25 for penalties under section 76 and 78 of theFinance Act, 1994

Penalties for short / non-payment of duty under Section 11AC of Central Excise Act, 1944

Penal provisions have been rationalised and the amount of penalties is sought to be reduced significantly. The amended penalties under section 11AC under different situations will be as under:

(a) For show cause notices issued after enactment of the Finance Act, 2015 (i.e, 14.05.2015)-

1. For cases not involving fraud, collusion, wilful-misstatement etc. with the intent to evade duty

  1. Amount of maximum penalty shall be limited to the extent of 10% of the duty demanded or ₹ 5,000/-, whichever is higher.
  2. No penalty to be levied if duty and interest is paid with in 30days from the service of show cause notice
  3. Penalty shall be reduced to 25% of the penalty demanded if duty, interest and reduced penalty is paid within 30days from the communication of the adjudication order or the appellate order, as the case may be.

2. For cases involving fraud, collusion, willful-misstatement etc. with the intent to evade duty-

  1. Penalty shall be leviable equivalent to 100% of the duty amount.
  2. Penalty shall be reduced to 15 % if the duty and interest is paid with in 30 days from the service of show cause notice.
  3. Penalty shall be reduced to 25% of the penalty demanded, if duty, interest and reduced penalty paid within 30days from the communication of the adjudication order or the appellate order, as the case may be.

(b) For the pending SCN’s before adjudication at the time of enactment of the Finance Act, 2015, i.e. on 14.05.2015 (where the assessee does not wish to wait for adjudication) -

  1. Cases can be closed upon the payment of duty, interest and penalty @ 15% of the duty in the matters involving fraud, collusion, willful-misstatement etc. within 30days from the enactment of the Finance Act, 2015.
  2. Cases can be closed upon the payment of duty and interest in the matters not involving fraud, collusion, willful-misstatement etc. within 30days from the enactment of the Finance Act, 2015.(i.e. from 14.05.2015)

(c) For show cause notices issued before and adjudicated after the enactment of the Finance Act, 2015 (i.e. after 14.05.2015) -

  1. Reduced penalty of 25% of duty payable shall be applicable in the matters involving fraud, collusion, willful-misstatement etc. if the duty, penalty and interest is paid within 30 days from the communication of the order.
  2. Reduced penalty shall be payable @ 25% of the penalty imposed in the order for cases not involving fraud, collusion, willful-misstatement etc. if the duty, penalty and interest is paid within 30 days from the communication of the order.

Further, for penalty under section 11A, availability of specified records shall no more be a criteria for issuing show cause notice to demand reduced penalty.

Where only interest is to be demanded and a show cause notice is to be issued for recovery of interest, relevant date shall be the date of payment of duty to which such interest relates.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Work Flow Workflow Software Software Automation Workflow automation Software Design Workflow Design Business Work Flow Workflow automation tools

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