TaxTMI 
TaxTMI 
NOTES ON CLAUSES
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....ries", computation of "advance tax" and charging of income-tax in special cases during the financial year 2013-14. Rates for deduction of tax at source during the financial year 2014-15 from income other than "Salaries" Part II of the First Schedule to the Bill specifies the rates at which income-tax is to be deducted at source during the financial year 2014-15 from income other than "Salaries". The rates are the same, as those specified in Part II of the First Schedule to the Finance Act, 2013 for the purposes of deduction of income- tax at source during the financial year 2013-14. The amount of tax so deducted shall be increased by a surcharge in the case of-- (i) every non-resident (other than a company) at the rate of ten per cent. where the income or the aggregate of income paid or likely to be paid and subject to deduction exceeds one crore rupees; (ii) every company other than a domestic company at the rate of two per cent. where the income or ....
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....ving income above one crore rupees, shall be levied at the rate of ten per cent. Marginal relief will be provided. Paragraph B of this Part specifies the rates of income-tax in the case of every co-operative society. In such cases, the rates of tax will continue to be the same as those specified for the assessment year 2014-15. The surcharge in cases of co- operative societies, having income above one crore rupees shall be levied at the rate of ten per cent. Marginal relief will be provided. Paragraph C of this Part specifies the rate of income-tax in the case of every firm. In such cases, the rate of tax will continue to be the same as that specified for the assessment year 2014-15. The surcharge in cases of firms, having income above one crore rupees shall be levied at the rate of ten per cent. Marginal relief will be provided. Paragraph D of this Part specifies the rate of income-tax in the case of every local authority. In such cases, the rate of tax will continue to be the same as that specified for the as....
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....oposed to amend the said section so as to insert a new clause (13A) to define "business trust" to mean a trust registered as an Infrastructure Investment Trust or a Real Estate Investment Trust, the units of which are required to be listed on a recognised stock exchange, in accordance with the regulations made under the Securities Exchange Board of India Act, 1992 and notified by the Central Government in this behalf. This amendment will take effect from 1st October, 2014. The existing provisions of clause (14) of section 2 defines the term "capital asset". The term is defined to include property of any kind held by an assessee whether or not connected with his business or profession but does not include any stock-in-trade or personal assets as provided in the definition. It is further proposed to amend the said clause (14) so as to provide that the term "capital asset" shall include any security held by a Foreign Institutional Investor which has invested in such security in accordance with the regulations made....
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....apital asset, shall not be more than thirty-six months and for that purpose the words "a share held in a company or any other security listed in a recognised stock exchange in India" shall be substituted with the words "a security (other than a unit) listed in a recognised stock exchange in India". Further, in the case of a unit corresponding period of holding of twelve months, shall be limited to a unit of an equity oriented fund. It is further proposed to insert an Explanation to define the expression "equity oriented fund". This amendment will take effect from 1st April, 2015 and will, accordingly, apply in relation to the assessment year 2015-16 and subsequent years. It is also proposed to provide in clause (42A) of section 2 that in the case of capital asset being units of a business trust, allotted pursuant to transfer of share or shares as referred to in clause (xvii) of section 47, there shall be included the period for which such share or shares were held by the assessee. &nb....
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....ed in any other provision of this section [other than clause (1) thereof] shall operate to exclude any income received on behalf of such fund or trust or institution or university or other educational institution or hospital or other medical institution, as the case may be, from the total income of the person in receipt thereof for that previous year. It is also proposed to provide that income for the purposes of application shall be determined without any deduction or allowance by way of depreciation or otherwise in respect of any asset, acquisition of which has been claimed as an application of income under clause (23C) of section 10 or section 11 in any previous year. It is proposed to insert a new clause (23FC) in section 10 so as to provide that any income of a business trust by way of interest received or receivable from a special purpose vehicle would not be included in the total income of the trust. It is further proposed to define the term "special purpose vehicle" to mean an Indian company in which the business trust holds controlling interest and any specif....
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....sp; Clause 7 of the Bill seeks to amend section 11 of the Income- tax Act relating to income from property held for charitable or religious purposes. The existing provisions of the aforesaid section contain a primary condition that for grant of exemption in respect of income derived from property held under trust, such income should be applied for the charitable purposes in India, and where such income cannot be so applied during the previous year, it has to be accumulated in the prescribed modes. It is proposed to insert sub-sections (6) and (7) in the said section so as to provide that-- (i) where any income is required to be applied or accumulated or set apart for application, then, for such purposes the income shall be determined without any deduction or allowance by way of depreciation or otherwise in respect of any asset, acquisition of which has been claimed as an application of income under this section in any previous year, and ....
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....n by the Assessing Officer in case of such trust or institution for any assessment year preceding first assessment year for which the registration applies, merely for the reason that such trust or institution has not obtained registration under section 12AA for the said assessment year. Further, the above benefits would not be available where the registration to the trust or institution has been refused or cancelled by the Commissioner at any time. These amendments will take effect from 1st October, 2014. Clause 9 of the Bill seeks to amend section 12AA of the Income-tax Act relating to procedure for registration. Under the existing provisions contained in sub-section (3) of the aforesaid section, where a trust or an institution has been granted registration and subsequently the Commissioner is satisfied that the activities of such trust or institution are not genuine or are not being carried out in accordance with the objects of the trust or institution....
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....2015 and, will accordingly apply, in relation to the assessment year 2015-16 and subsequent years. Clause 11 of the Bill seeks to amend section 32AC of the Income-tax Act relating to Investment in new plant or machinery. The existing provisions contained in sub-section (1) of aforesaid section provide that where an assessee, being a company, engaged in the business of manufacture or production of any article or thing, acquires and installs new asset after the 31st day of March, 2013 but before the 1st day of April, 2015 and the aggregate amount of actual cost of such new assets exceeds one hundred crore rupees, then, there shall be allowed a deduction,- (a) for the assessment year commencing on the 1st April, 2014, of a sum equal to fifteen per cent. of the actual cost of new assets acquired and installed after the 31st March, 2013 but before the 1st April, 2014, if the aggregate amount of actual cost of such new assets exceeds one hundred crore rupees; and &nb....
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....sessee under the said newly inserted sub-section into the purview of said sub-section (2). These amendments will take effect from 1st April, 2015 and will, accordingly, apply in relation to the assessment year 2015-16 and subsequent years. Clause 12 of the Bill seeks to amend section 35AD of the Income-tax Act relating to deduction in respect of expenditure on specified business. The existing provisions contained in section 35AD, inter alia, provide a deduction in respect of any expenditure of capital nature incurred, other than expenditure incurred on the acquisition of any land or goodwill or financial instrument, wholly and exclusively for the purposes of any specified business carried on by the assessee during the previous year in which such expenditure is incurred. The said section also provides that deduction under the provisions of Chapter VI-A under the heading "C.--Deductions in respect of certain incomes" shall not be available to any specified business which has claimed deduction under the said secti....
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....n (1) of section 17 of the Sick Industrial Companies (Special Provisions) Act, 1985, during the period specified in sub-section (7A). It is also proposed to amend sub-section (8) of section 35AD so as to include the following businesses as specified business for the purposes of deduction under this section,- (i) laying and operating a slurry pipeline for the transportation of iron ore; (ii) setting up and operating a semi-conductor wafer fabrication manufacturing unit notified by the Board in accordance with the prescribed guidelines. These amendments will take effect from 1st April, 2015 and will, accordingly, apply in relation to the assessment year 2015-16 and subsequent assessment years. Clause 13 of the Bill seeks to amend section 37 of the Income-tax Act relating to general expenditure. The existing provisions contained in sub-section....
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....owance under the said sub-clause will be attracted, if, after deduction of tax during the previous year, the same has not been paid on or before the due date of filing of return of income specified in sub-section (1) of section 139. The existing proviso to the aforesaid sub-clause provides that where in respect of any such sum, tax has been deducted in any subsequent year or, has been deducted in the previous year but paid in any subsequent year after the expiry of the time prescribed under sub-section (1) of section 200, such sum shall be allowed as a deduction in computing the income of the previous year in which such tax has been paid. It is proposed to substitute the said proviso so as to provide that where in respect of any such sum, tax has been deducted in any subsequent year, or has been deducted during the previous year but paid after the due date specified in sub-section (1) of section 139, such sum shall be allowed as a deduction in computing the income of the previous year in which such tax has been paid. ....
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....bsp; Clause 15 of the Bill seeks to amend section 43 of the Income- tax Act relating to definitions of certain terms relevant to income from profits and gains of business or profession. The existing provisions contained in clause (5) of section 43 define the term speculative transaction. The proviso to the said clause (5) excludes certain category of transactions as speculative transactions. Clause (e) of the said proviso provides that eligible transaction in respect of trading in commodity derivatives carried out in a recognised association shall not be considered to be a speculative transaction. It is proposed to amend clause (e) of the said proviso so as to provide that eligible transaction in respect of trading in commodity derivatives carried out in a recognised association which is chargeable to commodities transaction tax under Chapter VII of the Finance Act, 2013 shall not be considered to be a speculative transaction. This amendment will take effect retrospectively from 1st April, 201....
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....e existing provisions contained in section 45 provide for charging of any profits or gains arising from transfer of a capital asset. Sub-section (5) provides for taxation of capital gains arising from transfer by way of compulsory acquisition, where the compensation is enhanced or further enhanced by a court, Tribunal or other authority. Clause (b) of the said sub-section provides that where the amount of compensation is enhanced by any court, Tribunal or other authority, it shall be deemed to be income chargeable of the previous year in which amount is received by the assessee. It is proposed to insert a proviso to said clause (b) of sub-section (5) of the aforesaid section, so as to provide that any amount of compensation received in pursuance of an interim order of a court, Tribunal or other authority shall be deemed to be income chargeable under the head "Capital gains" of the previous year in which the final order of such court, Tribunal or other authority is made. This amendment will take effect from 1st April, 2015 and will, accordingly, apply in relation to th....
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....p; It is proposed to amend the said clause so as to provide that "Cost Inflation Index" in relation to the previous year, means Index as may be prescribed having regard to seventy-five per cent. of average rise in the Consumer Price Index (Urban) for the immediately preceding previous year to such previous year. This amendment will take effect from 1st April, 2016 and will, accordingly, apply in relation to the assessment year 2016-17 and subsequent assessment years. Clause 20 of the Bill seeks to amend section 49 of the Income- tax Act relating to cost with reference to certain modes of acquisition. The existing provisions of the aforesaid section provide for the ways of determining cost with reference to certain modes of acquisition. It is proposed to amend section 49 so as to provide that where the capital asset, being a unit of a business trust, became the property of the assessee in consideration of a transfer referred to in clause (xvii) of s....
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....te of transfer constructs, a residential house then the amount of capital gains to the extent invested in the new residential house is exempted. It is proposed to amend the aforesaid sub-section so as to provide that the exemption is available, if the investment is made in purchase or construction of one residential house situated in India. This amendment will take effect from 1st April, 2015 and will, accordingly, apply in relation to assessment year 2015-16 and subsequent years. Clause 23 of the Bill seeks to amend section 54EC of the Income-tax Act relating to capital gain not to be charged on investment in certain bonds. The existing provisions contained in sub-section (1) of section 54EC provide that where capital gain arises from the transfer of a long-term capital asset and the assessee has within a period of six months invested the whole or part of capital gains in the long-term specified asset, the proportionate capital gains so invested in the ....
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.... is proposed to insert a new clause (ix) in sub-section (2) of the aforesaid section so as to provide that where any sum of money, received as an advance or otherwise in the course of the negotiations for transfer of a capital asset, is forfeited and the negotiations do not result in transfer of such capital asset, then, such sum shall be chargeable to income-tax under the head "income from other sources". This amendment will take effect from 1st April, 2015 and will, accordingly, apply in relation to the assessment year 2015-16 and subsequent years. Clause 26 of the Bill seeks to amend section 73 of the Income- tax Act relating to losses in speculation business. The existing provisions of section 73 provide that losses incurred in respect of a speculation business cannot be set off or carried forward and set off except against the profits of any other speculation business. Explanation to section 73 provides that in case of a company deriving its income mainly under the head business (other than a company whose....
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....ary, 2004, who has in the previous year paid or deposited any amount in his account under a pension scheme notified or as may be notified by the Central Government, a deduction of such amount not exceeding ten per cent. of salary is allowed. This is subject to a limit of one lakh rupees provided under section 80CCE. It is proposed to amend sub-section (1) of the said section so as to provide that an individual employed by the Central Government on or after 1st January, 2004 or, being an individual employed by any other employer shall be allowed a deduction of the amount deposited by him in his account under a pension scheme notified or as may be notified by the Central Government to the extent it does not exceed ten per cent. of his salary. It is further proposed to insert new sub-section (1A) so as to provide that the amount of deductions under sub-section (1) shall not exceed one hundred thousand rupees. These amendments will take effect from 1st April, 2015 and will, accordingly, apply in relation to the ass....
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....15- 16 and subsequent years. Clause 31 of the Bill seeks to amend section 92B of the Income-tax Act relating to meaning of international transaction. The existing provisions of section 92B provide for the meaning of "international transaction" for the purposes of applicability of transfer pricing regime. Sub-section (1) defines International transaction as a transaction between two or more associated enterprises, either or both of whom are non-residents, in the nature of purchase, sale or lease of tangible or intangible property or provision of services or lending or borrowing of money or any transaction having a bearing on profits, income, losses or assets of such enterprises. Sub-section (2) of the said section provides for deeming of a transaction between an enterprise and unrelated third party as a transaction between two associated enterprises subject to the condition that there exists a prior agreement in relation to the relevant transaction between the third party and associated enterprise or the terms o....
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....re such agreement provides for determination in respect of past transactions, the arm's length price of such transactions shall be determined in accordance with the agreement. This amendment will take effect from 1st October, 2014. Clause 33 of the Bill seeks to amend section 111A of the Income-tax Act relating to tax on short-term capital gains in certain cases. The provisions of sub-section (1) of section 111A provide for the levy of tax at concessional rate of fifteen per cent. in certain cases. It is proposed to amend the said sub-section so as to provide that the concessional rate of tax shall apply to the transfer of a unit of a business trust as they apply in case of a unit of an equity oriented fund. It is further proposed that the provisions of this sub-section shall not apply in respect of any income arising from transfer of units of a business trust which were acquired by the assessee in consideration of a transfer referred to in clause (xvii)....
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.... foreign currency, of a Mutual Fund specified under clause (23D) of section 10 or the Unit Trust of India. It is proposed to amend clause (a) of sub-section (1) of section 115A to insert a new sub-clause (iiac) so as to provide that where the total income of a non-resident (not being a company) or a foreign company includes distributed income being interest referred to in sub-section (2) of section194LBA such income shall be taxable at the rate of five per cent. It is further proposed to make consequential amendments in item (BA) and item (D) of clause (a) of sub-section (1) of section 115A. These amendments will take effect from 1st April, 2015 and will, accordingly, apply in relation to the assessment year 2015- 16 and subsequent years. Clause 36 of the Bill seeks to amend section 115BBC of the Income-tax Act relating to anonymous donations to be taxed in certain cases. The existing provisions o....
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....able shall be the aggregate of the amount of income-tax calculated on the income by way of such dividends at the rate of fifteen per cent. and the amount of income-tax with which the assessee would have been chargeable had its total income been reduced by the amount of aforesaid income by way of dividends. It is further provided that no deductions in respect of any expenditure or allowance shall be allowed for computing its income by way of dividend. It is proposed to amend section 115BBD to provide that the provisions of taxation of foreign dividends shall continue to apply to foreign dividends received during the financial year 2014-15 and subsequent years. This amendment will take effect from 1st April, 2015 and will, accordingly, apply in relation to the assessment year 2015-16 and subsequent years. Clause 38 of the Bill seeks to amend section 115JC of the Income-tax Act relating to the provisions for payment of tax by certain persons other than a company. ....
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....p; Clause 40 of the Bill seeks to amend section 115-O of the Income-tax Act relating to tax on distributed profits of domestic companies. Sub-section (1) of the said section provides that any amount declared, distributed or paid by a domestic company by way of dividends shall be charged to additional income-tax at the rate of fifteen per cent. It is proposed to amend the aforesaid section so as to provide that for the purposes of determining the tax on distributed profits payable in accordance with the said section, any amount by way of dividends referred to in sub-section (1) as reduced by the amount referred to in sub-section (1A) of the said section [referred to as net distributed profits], shall be increased to such amount as would, after reduction of the tax on such increased amount at the rate specified in sub-section (1), be equal to the net distributed profits. This amendment will take effect from 1st October, 2014. Clause 41 of the Bill se....
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....lause 42 of the Bill seeks to amend section 115TA of the Income-tax Act relating to tax on distributed income to investors. The existing provisions contained in sub-section (3) of section 115TA provides that the person responsible for making payment of the income distributed by the securitisation trust shall, on or before the 15th September in each year, furnish to the prescribed income-tax authority, a statement in the prescribed form and verified in the prescribed manner, giving the details of the amount of income distributed to investors during the previous year, the tax paid thereon and such other relevant details as may be prescribed. It is proposed to omit sub-section (3) of the aforesaid section 115TA. This amendment will take effect from 1st April, 2015. Clause 43 of the Bill seeks to insert a new Chapter XII-FA in the Income-tax Act which deals with "Special Provisions Relating to Business Trusts". &n....
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....; The existing provision contained in section 133A empowers the income-tax authority to enter a premises in which business or profession is carried out for the purposes of survey. It is proposed to amend section 133A so as to insert sub- section (2A) after sub-section (2) so as to provide that without prejudice to the provisions of sub-section (1), an income-tax authority acting under this sub-section may for the purpose of verifying that tax has been deducted or collected at source in accordance with the provisions under sub-heading B of Chapter XVII or under sub-heading BB of Chapter XVII, as the case may be, enter, after sunrise and before sunset, any office, or any other place where business or profession is carried on, within the limits of the area assigned to him, or any place in respect of which he is authorised for the purposes of this section by such income-tax authority who is assigned the area within which such place is situated, where books of account or documents are kept and require the deductor or the collector or any other person who may at that time and place be attending in any manner to s....
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....ormation or documents, verified in the manner specified therein which may be useful for, or relevant to, any enquiry or proceeding under this Act. This amendment will take effect from 1st October, 2014. Clause 47 of the Bill seeks to amend section 139 of the Income-tax Act relating to return of income. The existing provisions contained in sub-section (4C) of section 139, inter alia, provide for filing return of income by certain entities whose income is exempt under section 10 of the Act. It is proposed to amend sub-section (4C) of section 139 so as to provide that Mutual Fund referred to in clause (23D) of section 10 and securitisation trust referred to in clause (23DA) of section 10 and Venture Capital Company or Venture Capital Fund referred to in clause (23FB) of section 10 shall, if the total income in respect of which such fund, trust or company is assessable, without giving effect to the provisions of section 10, exceeds the maximum amount which i....
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....sessment or reassessment, make a reference to a Valuation Officer to estimate the value, including fair market value, of any asset, property or investment and submit a copy of report to him. Sub-section (2) seeks to provide that the Assessing Officer may make a reference under sub-section (1) whether or not he is satisfied about the correctness or completeness of the accounts of the assessee. Sub-section (3) seeks to provide that the Valuation Officer, on a reference made under sub-section (1), shall, for the purpose of estimating the value of the asset, property or investment, have all the powers that he has under section 38A of the Wealth-tax Act. Sub-section (4) seeks to provide that the Valuation Officer shall, estimate the value of the asset, property or investment after taking into account the evidence produced by the assessee and any other evidence in his possession gathered, after giving an opportunity of being heard to the assessee. Sub-section ....
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....tion (2), have not been regularly followed by the assessee, the Assessing Officer may make an assessment in the manner provided in section 144. It is proposed to amend sub-section (2) of section 145 to provide that the Central Government may notify in the Official Gazette from time to time income computation and disclosure standards to be followed by any class of assessees or in respect of any class of income. It is also proposed to amend sub-section (3) of the aforesaid section to provide that where the Assessing Officer is not satisfied with the correctness or completeness of the accounts of the assessee, or where the method of accounting provided in sub-section (1), has not been regularly followed by the assessee, or income has not been computed in accordance with the standards notified under sub-section (2), the Assessing Officer may make an assessment in the manner provided in section 144. These amendments will take effect from 1st April, 2015 and will, accordingly, apply in relation to the assessment year....
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....me of any other person. The existing provisions contained in sub-section (1) of the aforesaid section provide that notwithstanding anything contained in section 139, section 147, section 148, section 149, section 151 and section 153, where the Assessing Officer is satisfied that any money, bullion, jewellery or other valuable article or thing or books of account or documents seized or requisitioned belongs or belong to a person, other than the person referred to in section 153A, then the books of account or documents or assets seized or requisitioned shall be handed over to the Assessing Officer having jurisdiction over such other person and that Assessing Officer shall proceed against each such other person and issue such other person notice and assess or reassess income of such other person in accordance with the provisions of section 153A. It is proposed to amend the said sub-section so as to provide that notwithstanding anything contained in section 139, section 147, section 148, section 149, section 151 and section 153, where the Assessing Officer is satisfied th....
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....unt of such payments to the payee during the financial year is less than one hundred thousand rupees. This amendment will take effect from 1st October, 2014. Clause 56 of the Bill seeks to insert a new section 194LBA in the Income-tax Act which relates to certain income from business trust. The said new section proposes to provide for deduction of tax at the rate of five per cent. in case of non-resident unit holders and at the rate of ten per cent. in case of resident unit holders of business trust on that portion of distributed income of the trust which is taxable in the hands of unit holder. This amendment will take effect from 1st October, 2014. Clause 57 of the Bill seeks to amend section 194LC of the Income-tax Act relating to income by way of interest from Indian company. Under the existing provisions of the aforesaid section, the be....
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....y or the person authorised by such authority such statement in such form and verified in such manner and setting forth such particulars and within such time as may be prescribed. It is proposed to insert a proviso to the aforesaid sub-section so as to provide that the person who delivered statement under the aforesaid sub-section may also deliver to the prescribed authority a correction statement for rectification of any mistake or to add, delete or update the information furnished in the statement delivered under this sub-section in such form and verified in such manner as may be specified by the authority. This amendment will take effect from 1st October, 2014. Clause 59 of the Bill seeks to amend section 200A of the Income-tax Act relating to processing of statements of tax deducted at source. The existing provisions contained in sub-section (1) of the aforesaid section provide that where a statement of tax deduction at source has been made by a perso....
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....that section 206AA shall not apply in respect of payment of interest on long- term bonds referred to in section 194LC of the Act. This amendment will take effect from 1st October, 2014. Clause 62 of the Bill seeks to amend section 220 of the Income-tax Act relating to when tax payable and when assesee deemed in default. The existing provision contained in sub-section (1) of the aforesaid section provides that any amount specified as payable in a notice of demand under section 156 shall be paid within thirty days of the service of notice at the place and to the person mentioned in the notice. It is proposed to insert a new sub-section in the said section so as to provide that where any notice of demand has been served upon an assessee and any appeal or other proceeding, as the case may be, is filed or initiated in respect of the amount specified in the said notice of demand, then, such demand shall be deemed to be valid till the disposal of the appeal by ....
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....count payee bank draft or use of electronic clearing system through a bank account if, the amount of such loan or deposit or the aggregate amount of such loans or deposits is twenty thousand rupees or more. This amendment will take effect from 1st April, 2015 and will, accordingly, apply in relation to assessment year 2015-16 and subsequent years. Clause 64 of the Bill seeks to amend section 269T of the Income-tax Act relating to mode of repayment of certain loans and deposits. The existing provisions of the aforesaid section provide that no loan or deposit shall be repaid otherwise than by an account payee cheque or account payee bank draft, if the amount of such loan or deposit together with interest or the aggregate amount of such loans or deposits together with interest, if any payable thereon, is twenty thousand rupees or more. It is proposed to amend section 269T so as to provide that no person shall repay any loan or deposit made with it otherwise....
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....ails to inform and furnish correct information within the time specified under sub-section (6) of section 285BA, then, the prescribed income-tax authority may direct that such person shall pay, by way of penalty, a sum of fifty thousand rupees. This amendment will take effect from 1st April, 2015. Clause 67 of the Bill seeks to amend section 271G of the Income-tax Act relating to levy of penalty for failure to furnish information or document under section 92D of the Act. Under the existing provisions of section 271G, if any person who has entered into an international transaction or specified domestic transactions fails to furnish any such document or information as required by sub-section (3) of section 92D, then, such person shall be liable to a penalty of a sum equal to two per cent. of the value of international transaction or specified domestic transaction for each failure. The said section provides that the above penalty may be levied by the Assessing Officer or the Commissioner (Appeals). ....
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....p; This amendment will take effect from 1st October, 2014. Clause 70 of the Bill seeks to amend section 281B of the Income-tax Act relating to provisional attachment to protect revenue in certain cases. The exiting provisions of sub-section (1) of the aforesaid section provide that the Assessing Officer, during the pendency of any proceeding for assessment or reassessment, in order to protect the interests of revenue may, with the previous approval of the Chief Commissioner or Commissioner, attach provisionally any property belonging to the assessee in the manner provided in the Second Schedule. Sub-section (2) of the said section provides that the provisional attachment shall cease to have effect after the expiry of six months provided that the Chief Commissioner or Commissioner may extend the period upto a total period of two years. It is proposed to amend sub-section (2) of the said section so as to provide that the provisional attachment shall cease to have effect after the exp....
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.... referred to in clause (a); and (c) the due diligence to be carried out by the persons for the purpose of identification of any reportable account referred to in sub-section (1). This amendment will take effect from 1st April, 2015. Indirect Taxes Customs Clause 72 of the Bill seeks to amend the Customs Act so as to provide that a reference in the Customs Act to a Chief Commissioner of Customs or a Commissioner of Customs may also include a reference to the Principal Chief Commissioner of Customs or the Principal Commissioner of Customs, as the case may be. Clause 73 of the Bill seeks to amend section 3 of the Customs Act so as to provide for inclusion of Principal Chief Commissioner of Customs and Principal Commissioner of Customs in the class of officers of customs. Clause 74 of the Bill seeks to amend section 15 of the Customs Act to insert the words "or the vehicle" so as to determine th....
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....basis of such documents. It further seeks to amend clause (c) thereof to substitute the figures and letters "28AA", for the word, figures and letters "section 28AB" to align it with the existing provision on interest on delayed payment of duty. It also seeks to omit sub-section (2) as the same has become redundant and leads to different interpretations. Clause 79 of the Bill seeks to amend clause (i) of sub-section (1) of section 127L of the Customs Act so as to insert an Explanation thereto to clarify that the concealment of particulars of duty liability relates to any such concealment made from the officer of Customs, to avoid confusion as to whether the concealment is from officer of customs or Settlement Commission and making the provision clear. Clause 80 of the Bill seeks to substitute the words "rupees fifty thousand" with the words "rupees two lakhs" in the second proviso to sub-section (1) of section 129A of the Customs Act so as to enable the discretionary powers of the Tribunal to refuse admission of appeal in cases up to rupees two lakhs. It also seeks to ....
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....supply to household domestic consumers or to non-domestic exempted category (NDEC) customers. Customs Tariff Clause 86 of the Bill seeks to amend sub-section (2A) of section 8B of the Customs Tariff Act so as to align the provisions with sub-section (2A) of section 9A of the Customs Tariff Act. Clause 87 of the Bill seeks to amend the First Schedule to the Customs Tariff Act in the manner specified in the Third Schedule so as to,- (a) omit a tariff item; (b) revise the rate of customs duty on certain tariff items; and (c) amend units specified in column (3) in respect of certain goods. Excise Clause 88 of the Bill seeks to amend the Central Excise Act so that a reference in that Act to a Chief Commissioner of Central Excise or a Commissioner of Central Excise may also include a re....
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....of section 32-O of the Central Excise Act so as to insert an Explanation therein to clarify that the concealment of particulars of duty liability relates to any such concealment made from the Central Excise Officer, to avoid confusion as to whether the concealment is from Central Excise Officer or Settlement Commission and making the provision clear. Clause 95 of the Bill seeks to amend section 35B of the Central Excise Act so as to- (i) amend the second proviso to sub-section (1) to substitute the words "rupees fifty thousand" with the words "rupees two lakhs" so as to enable the discretionary powers of the Tribunal to refuse admission of appeal in cases up to rupees two lakhs. (ii) amend clause (i) of sub-section (1B) so as to enable the Board to constitute Committee by issuing an order instead of a notification to be published in the Official Gazette. Clause 96 of the Bill seeks to omit the first, second and third proviso to sub-section (2A) of sectio....
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.... Excise Act published vide number G.S.R.95 (E), dated the 1st March, 2006 [No.5/2006-Central Excise, dated the 1st March, 2006] in the manner specified in the Fifth Schedule retrospectively- (a) with effect from 29th June, 2010 to 16th March, 2012 so as to exempt duty of excise- (i) on polyester staple fibre/polyester filament yarn manufactured from plastic waste or scrap or plastic waste including waste polyethylene terephthalate bottles; (ii) on tow manufactured and captively consumed within the factory of its production for the manufacture of goods at (i) above; (b) with effect from 1st March, 2011 to 16th March, 2012 so as to exempt duty of excise on unbranded articles of precious metals. Clause 103 of the Bill seeks to amend notification issued under sub-section (1) of section 5A of the Central Excise Act vide number G.S.R. 163 (E), dated the 17th March, 2012 in the manner specified in the Si....
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....se (39a) therein to provide for the definition of "print media", with effect from such date as the Central Government may, by notification, appoint. Sub-clause (B) seeks to amend section 66D so as to,- (a) substitute clause (g) and specify sale of space for print media in the negative list of services; (b) omit "radio taxis" from sub-clause (vi) of clause (o) so as to provide for levy of service tax on services by radio taxis, with effect from such date as the Central Government may, by notification, appoint. Sub-clause (C) seeks to amend section 67A so as to substitute the Explanation defining the "rate of exchange", with effect from such date as the Central Government may, by notification, appoint. Sub-clause (D) seeks to amend section 73 with a view to insert sub-section (4B) to specify a time limit for adjudication, as either six months or one year, depending on the nature of case, to be adher....
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....services provided by the Employees' State Insurance Corporation, prior to the 1st day of July, 2012. Miscellaneous Clause 107 of the Bill seeks to amend the Seventh Schedule to the Finance Act, 2001 to omit tariff item 2402 20 60 and the entries relating thereto. Clause 108 of the Bill seeks to amend section 13 of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002. The existing provisions contained in sub-section (1) of section 13 of the aforesaid Act provide that notwithstanding anything contained in the Income-tax Act, 1961, or any other enactment for the time being in force relating to tax or income, profits or gains, no income-tax or any other tax shall be payable by the Administrator up to the 31st day of March, 2014 in respect of any income, profits or gains derived, or any amount received in relation to the specified undertaking. It is proposed to amend sub-section (1) o....