Skip to main content

No Indirect Tax Recovery During Pendency of Stay

By
CBEC tells field officials not to go ahead with recovery of `confirmed' demand during the period
The Central Board of Excise & Customs (CBEC) has directed its field officials not to proceed with the recovery of a “confirmed“ demand in relation to indirect taxes if the matter has been stayed, providing significant relief to industry.
“In cases where the stay application is pending before the Commissioner (Appeals) or CESTAT for periods prior to August 6, 2014, no recovery shall be made during the pendency of the stay application,“ the apex indirect taxes body said in a circular issued on Monday.
A confirmed demand of tax arises when, after ex amining submissions of a tax payer, an order is issued validating the claim made on the assessee.
The government had amended the law on the issue on August 6, 2014, pro viding for a fixed payment of 7.5% or 10% of the tax demand in case the as sessee decides to challenge a tax deci sion, providing clarity on how much could be demanded as a pre-deposit before the appeal is filed.
The Central Board of Excise & Cus toms circular now makes it clear that no recovery action can be taken if the assessee has taken this recourse after making the due deposit. Where the demand is confirmed by the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) or high court, recovery proceedings may be initiated 60 days from the date of the order, provided that no stay is in operation, it said.
“The said circular has been issued to ensure that the assessee gets adequate opportunity to appeal before recovery proceedings are started in indirect taxes. The circular would also bring uniformity in practice regarding recovery of confirmed demands of tax,“ according to an official statement.
Experts said that this brings clarity to taxpayers on the issue.
“The Central Board of Excise & Customs circular has objectively clarified as well as provided for guiding principles to revenue in liberalising the time period for recovery of confirmed demands on matters of litigation,“ said Nitish Sharma, a partner at Nangia & Co.
The Economic Times New Delhi, 06th July 2016

Comments

Post a Comment

Popular posts from this blog

Govt’s gamble on GST cuts: What do the bond and currency markets signal?

By
  It’s not just humans who suffer from cognitive biases; markets do too. Interestingly, different financial markets exhibit distinct biases, each interpreting events through its own prism of prejudice. Take the recent announcements on GST reforms: equity markets have chosen to view them through the lens of growth, while bond and currency markets are focusing on potential macroeconomic risks—fiscal pressures and current account challenges. So, which lens captures the true pulse?Equity markets may be right in expecting GST reforms to revive consumption, which has remained lacklustre for a while. But the key question remains—will this revival come at the cost of broader macro stability?It is well known that consumption stocks have rallied since the GST rationalisation announcement. But what about bond markets? What signals are they sending since this rejig was announced from the ramparts of the Red Fort?The signs aren't encouraging. Bond prices have slumped and yields have surged sinc...
Post a Comment
Read more

Luxury carmakers urge clarity on GST rates to boost festive season sales

By
  A clear picture regarding new GST rates at the earliest will help the overall auto industry, including the luxury car segment, to regain momentum in the ongoing quarter, which generally sees enhanced sales on account of the festive season.The high-powered GST Council, chaired by Finance Minister Nirmala Sitharaman, will meet on September 3-4 to discuss moving to a two-slab taxation.In an interaction with PTI, BMW Group India President and CEO Hardeep Singh Brar said the recent speculation about the change in GST rates has caused uncertainty in the minds of consumers.Consumer interest and demand is strong, but they (prospective buyers) have adopted a wait-and-watch approach, and this delayed decision-making is impacting new vehicle sales at a certain level, he noted."Expediting clarity on GST rates is essential to get back to speed and ensure the auto sector's contribution to economic growth during this quarter is robust," Brar stated.He also hoped that the sustainable p...
Post a Comment
Read more

Sebi proposes tighter norms for green bond third-party reviewers

By
  Sebi on Friday said it has proposed to tighten the norms to appoint independent third-party reviewers or certifiers for green debt securities to align them with requirements for other ESG-linked bonds.In a draft circular, Sebi said that the current norms for green bonds, introduced in February 2023, lack detailed requirements around reviewer independence, conflict of interest mitigation, and disclosure standards that are now in place for other ESG-linked securities under a June 2025 circular.The regulator's latest proposal seeks public comments on a revised framework that would bring parity by incorporating comprehensive criteria for third-party certifiers of green bonds on non-convertible securities.Under the proposed norms, issuers of green debt securities will need to appoint reviewers who are independent of their management, directors, and key managerial personnel. These reviewers will be remunerated in a way that prevents any conflicts of interest and possess relevant expert...
Post a Comment
Read more