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

RBI deputy governor cautions fintech platform lenders on privacy concerns during loan recovery

By
  India's digital lending infrastructure has made the loan sanctioning system online. Yet, loan recovery still needs a “feet on the street” approach, Swaminathan J, deputy governor of the Reserve Bank of India, said at a media event on Tuesday, September 2, according to news agency ANI.According to the ANI report, the deputy governor flagged that fintech operators in the digital lending segment are giving out loans to customers with poor credit profiles and later using aggressive recovery tactics.“While loan sanctioning and disbursement have become increasingly digital, effective collection and recovery still require a 'feet on the street' and empathetic approach. Many fintech platforms operate on a business model that involves extending small-value loans to customers often with poor credit profiles,” Swaminathan J said.   Fintech platforms' business models The central bank deputy governor highlighted that many fintech platforms' business models involve providing sm
Post a Comment
Read more

Credit card spending growth declines on RBI gaze, stress build-up

By
  Credit card spends have further slowed down to 16.6 per cent in the current financial year (FY25), following the Reserve Bank of India’s tightening of unsecured lending norms and rising delinquencies, and increased stress in the portfolio.Typically, during the festival season (September–December), credit card spends peak as several credit card-issuing banks offer discounts and cashbacks on e-commerce and other platforms. This is a reversal of trend in the past three financial years stretching to FY21 due to RBI’s restrictions.In the previous financial year (FY24), credit card spends rose by 27.8 per cent, but were low compared to FY23 which surged by 47.5 per cent. In FY22, the spending increased 54.1 per cent, according to data compiled by Macquarie Research.ICICI Bank recorded 4.4 per cent gross credit losses in its FY24 credit card portfolio as against 3.2 per cent year-on-year. SBI Cards’ credit losses in the segment stood at 7.4 per cent in FY24 and 6.2 per cent in FY23, the rep
Post a Comment
Read more

India can't rely on wealthy to drive growth: Ex-RBI Dy Guv Viral Acharya

By
  India can’t rely on wealthy individuals to drive growth and expect the overall economy to improve, Viral Acharya, former deputy governor of the Reserve Bank of India (RBI) said on Monday.Acharya, who is the C V Starr Professor of Economics in the Department of Finance at New York University’s Stern School of Business (NYU-Stern), said after the Covid-19 pandemic, rural consumption and investments have weakened.We can’t be pumping our growth through the rich and expect that the economy as a whole will do better,” he said while speaking at an event organised by Elara Capital here.f there has to be a trickle-down, it should have actually happened by now,” Acharya said, adding that when the rich keep getting wealthier and wealthier, they have a savings problem.   “The bank account keeps getting bigger, hence they look for financial assets to invest in. India is closed, so our money can't go outside India that easily. So, it has to chase the limited financial assets in the country and
Post a Comment
Read more