TMI BlogNotes on clausesX X X X Extracts X X X X X X X X Extracts X X X X ..... certain activities, specified in Schedule I of the proposed Act, even made or agreed to be made without a consideration shall be treated as supply. This clause also provides activities which are neither supply of goods nor supply of services. Clause 8 provides for the tax liability on a composite or a mixed supply. Clause 9 provides for levy and collection of central tax on all intra-State supplies of goods or services or both except on the supply of alcoholic liquor for human consumption, on the value determined under clause 15 at a rate not exceeding forty per cent. This clause further provides that- (i) central tax on the supply of petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas and aviation turbine fuel to be levied with effect from a date notified by the Central Government on the recommendations of the Council; (ii) the Central Government to notify categories of supply of goods or services or both, the tax on which shall be paid on reverse charge basis by the recipient of such goods or services or both, on the recommendations of the Council; (iii) the central tax in respect of the supply of taxable goods or services ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ovides that a registered person is entitled to take credit of input tax charged on any supply of goods or services or both to him which are used or intended to be used in the course or furtherance of his business. Clause 17 provides for apportionment of input tax credit and blocked input tax credit. This clause provides for the extent of apportionment of credit where the goods or services or both are used partly for the purpose of any business and partly for other purposes or where the goods or services or both are used by the registered person partly for effecting taxable supplies including zero-rated supplies. This clause further provides for a specific mechanism of taking of input tax credit by a banking company or a financial institution including a non-banking financial company engaged in supplying services by way of accepting deposits, extending loans or advances. This clause also provides the list of supplies on which input tax credit cannot be availed of. Clause 18 provides for availability of credit in special circumstances like new registration, shifting from composition levy to normal levy, exempted supplies becoming taxable and vice versa. Clause 19 provides fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Clause 28 provides for amendment of registration. This clause also provides for deemed approval or rejection of amendment where any approval or rejection of amendments has been done under the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act. Clause 29 provides that the proper officer may, either on his own motion or on an application filed by the registered person or by his legal heirs, in case of death of such person, cancel the registration under certain specified circumstances. This clause further provides that cancellation of registration under the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, as the case may be, shall be deemed to be a cancellation of registration under the proposed Act. Clause 30 provides for revocation of cancellation of registration where the registration had been cancelled by the proper officer on his own motion. This clause further provides that the revocation of cancellation of registration under the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, as the case may be, shall be deemed to be a revocation of cancellation of registration under th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r and time of acceptance or rejection of the details communicated from the recipients. This clause also provides for manner of and time period for rectification of error or omission and payment of tax and interest, if any, as a consequence of the unmatched details of outward supplies with inward supplies of the recipient. Clause 38 provides for manner and time of furnishing of the details of inward supplies by a registered person, other than certain specified categories of registered persons, including verification, validation, modification or deletion of details of outward supplies furnished by the corresponding suppliers. This clause further provides for manner and time of communication of the details of supplies, as modified or accepted by the recipient, to the corresponding supplier. This clause also provides for manner and time period for rectification of error or omission and payment of tax and interest, if any, as a consequence to the unmatched details. Clause 39 provides for manner, conditions and time of furnishing of returns by different categories of registered persons. This clause further provides that the tax is required to be paid by the due date of filing of re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lause provides that the input tax credit as self-assessed in the return of a registered person shall be credited to his electronic credit ledger. This clause also provides for the manner in which the amount in the electronic cash ledger or electronic credit ledger can be used. This clause also provides for the ordering of the utilisation of input tax credit for payment of tax, and provides restriction on certain cross-utilisation. This clause also requires a person to discharge his liabilities in a given order. Clause 50 provides for interest on delayed payment of tax. This clause fixes the ceiling of interest rate in normal and other specified situations. Clause 51 provides for deduction of tax at source by Government departments, local authorities, government agencies and other notified persons, at the rate of one per cent. from the payment made or credited to the supplier in specified situations. This clause elaborates on date of deduction, date of payment of the deducted amount to the credit of Government and filing of prescribed statements. Clause 52 provides for collection of tax at source by an electronic commerce operator, at a notified rate where the consideration ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ied situations. This clause provides for the manner of paying tax and also the manner and time limits for finalising of provisional assessment. Clause 61 provides for scrutiny of returns and other particulars and manner of sorting out the discrepancies in the returns and also taking corrective measures for realisation of short-payment. Clause 62 provides procedure of assessment of persons who have not filed returns by the due dates. This clause provides that the proper officer may proceed to assess the tax liability of the non-filer to the best of his judgment. Clause 63 provides procedure of assessment of persons who are not registered though they are liable to get registered. This clause provides that the proper officer may proceed to assess the tax liability of the unregistered person to the best of his judgment. Clause 64 provides for summary assessment in special circumstances with the permission of Additional Commissioner or Joint Commissioner. Clause 65 provides detailed procedure for conduct of audit of records, maintained by a registered person, to verify the correctness of tax liability and tax payment. Clause 66 provides for audit of a registered person ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ement or suppression of facts, the adjudication order will be issued within five years from the due date of filing of annual return for the year to which the discrepancy is noticed. Further, the show cause notice is required to be issued at least six months prior to the time limit. This clause also provides that such notice need not be issued if tax along with interest and penalty equal to fifteen per cent. of tax is paid before issue of such notice. This clause also provides that where any person chargeable with tax pays the tax along with interest and penalty equal to twenty five per cent. of tax within thirty days of issue of show cause notice, all proceedings in respect of the notice shall be deemed to be concluded. This clause also provides that where any person chargeable with tax pays the tax along with interest and penalty equal to fifty per cent. of tax within thirty days of communication of order, all proceedings in respect of the notice shall be deemed to be concluded. Clause 75 provides for general provisions for determination of tax. This clause provides that the period of stay, if any, would be excluded while calculating the time period for issuance of show cause n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch transfer, to pay the tax, interest or any penalty due from the taxable person upto the time of such transfer. Clause 86 provides that where an agent supplies or receives any taxable goods on behalf of his principal, such agent and his principal shall, jointly and severally, be liable to pay the tax payable on such goods. Clause 87 provides for the liability of companies when two or more companies are amalgamated or merged in pursuance of an order of court or of Tribunal or otherwise. Clause 88 provides for the liability of company and its directors when any company is being wound up. Clause 89 provides for the liability of director of a private company. Clause 90 provides for the liability of the firm and each of the partners of the firm. Clause 91 provides for the liability of guardians and trustees acting on behalf of a minor or other incapacitated person. Clause 92 provides for the liability of the Court of Wards, the Administrator General, the Official Trustee or any receiver or manager. Clause 93 provides for special provisions regarding liability to pay tax, interest or penalty in certain cases. Clause 94 provides for liability where a taxable pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in law or facts. Clause 104 provides that the advance ruling shall be void where the ruling has been obtained by fraud or suppression of material facts or misrepresentation of facts. Clause 105 provides that the Authority or the Appellate Authority shall have all the powers of a civil court under the Code of Civil Procedure, 1908 for the purpose of exercising its powers under the proposed Act. Clause 106 provides that the Authority or the Appellate Authority shall have power to regulate its own procedure. Clause 107 provides the tax payer or the department may appeal against any decision or order passed by an adjudicating authority under the proposed Act or the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act within three months or six months respectively. The clause provides for a pre-deposit of ten per cent. for admittance of the appeal filed by the tax payer and grant of automatic stay on the remaining amount. Clause 108 provides power of revision to the Commissioner. The clause provides that the Revisional Authority, on his own motion, or upon request from Commissioner of State tax or the Commissioner of Union territory tax may ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the National, Regional, State, Area Bench or a High Court shall be payable notwithstanding that an appeal has been preferred to the High Court or the Supreme Court. Clause 120 confers powers on the Board to issue orders or instructions or directions fixing monetary limits below which appeals will not be filed by the department. Clause 121 provides for matters in which any decision taken or order passed by an officer of central tax cannot be appealed against. Clause 122 provides for a list of offences such as supply of goods without invoice, issue of invoice without supply, etc., which shall be liable to penalty. The clause also provides for offences such as aiding or abetting offences specified, fails to appear on a summon, etc., will be liable of a penalty of twenty-five thousand rupees. Clause 123 provides for a penalty for failure to furnish information return under clause 150. Clause 124 provides for a fine on any person who fails to furnish any information or return under clause 151. Clause 125 provides for a general penalty extending to twenty-five thousand rupees for any contravention to the provisions of the proposed Act and where no penalty has been sepa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... responsible for the conduct of business of the company shall be deemed to be guilty of the offence and punished accordingly. Clause 138 provides for compounding of any offence under the proposed Act, either before or after the institution of prosecution, by the Commissioner on payment of a prescribed compounding amount. Clause 139 provides for migration of taxpayers registered under the existing law to be issued provisional registration under the proposed Act, if the said taxpayer is required to be registered under the provisions of the proposed Act. Clause 140 provides for transitional arrangements for carrying forward of input tax credit available under the existing law. Clause 141 provides for transitional provisions relating to job work. Clause 142 provides for miscellaneous provisions for transition of existing tax payers in various situations. Clause 143 provides for the procedure and conditions for sending any inputs or capital goods, without payment of tax to a job worker for job-work. Clause 144 provides for presumption to be made for documents tendered by the prosecution in evidence unless the contrary is proved by the person being prosecuted. Clau ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... closed. The clause also provides for specific circumstances under which such information can be disclosed. Clause 159 confers power on the Commissioner, or any other officer authorised by him to publish the name of any person and any other particulars relating to any proceedings or prosecution under the proposed Act if it is necessary in public interest to do so. Clause 160 provides that no assessment, re-assessment, adjudication, review, revision, appeal, rectification, notice, summons or other proceedings done, accepted, made, issued, initiated, or purported to have been done, accepted, made, issued, initiated in pursuance of any of the provisions of the proposed Act shall be invalid or deemed to be invalid merely by reason of any mistake, defect or omission. Clause 161 provides that any authority can rectify any error which is apparent on the face of record in any decision or order or notice or certificate or any other document. Clause 162 restricts civil courts to have jurisdiction to deal with or decide any question arising from or relating to anything done under the proposed Act. Clause 163 provides that a fee may be charged for a copy of any order or document ..... X X X X Extracts X X X X X X X X Extracts X X X X
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