Method Of Voting At General Meetings under Companies Act, 2013
INTRODUCTION
The votes cast by the shareholders play decisive role in the business proposed in General Meetings of a Company. An equity shareholder has the right to vote for every motion. However, as per the Section 47 of the Companies Act, 2013 preference shareholder is entitled to vote only for a resolution pertaining to his rights.
With the dawn of the new law governing Companies which strives to shareholder activism, there are different options for a shareholder to vote on resolutions to be passed at General Meetings of the Company or in fact, in case of e-voting have his say without actually being present at the meeting!
Shareholders wider participation is giving real heat to the corporates. Recently, Tata undoubtedly India's one of the biggest conglomerate had a bitter taste of it, when postal ballot resolutions paying remuneration to executive directors of Tata Motors failed. Around 64% of institutional investors and 41% of public shareholders have voted against the resolution.
In this article, unless otherwise expressly provided all sections referred to are of Companies Act, 2013 and rules referred to are of Companies (Management and Administration rules), 2014.
METHOD OF VOTING
The various modes through which a shareholder can cast his vote are mentioned below:-
→ By attending the General Meeting:-
1. Show of Hands
As per Section 107, a resolution put to the vote of the meeting shall, unless a poll is demanded under section 109 or the voting is carried out electronically, be decided on a show of hands.
Further, through MCA's General Circular no. 20/2014 dated 17/06/2014, it has been precisely clarified that in case of Companies falling under Section 108 read with rule 20 (voting by electronic means), provisions of Section 107 (voting by show of hands) will not apply.
2. Poll
As per Section 109 a poll may be demanded by such number of members holding, shares worth minimum value of Rs. Five Lakh or 10% voting power in the Company.
Further, MCA vide its aforesaid General Circular has clarified that in case of Companies falling under Section 108 read with rule 20 the concept of demand for poll is redundant.
Manner of voting by shareholders present in meeting if Company falls under purview of Section 108:-
It has been clarified by the circular that since these companies are mandatorily required to provide e-voting facility to its sharehoders where the Principle of "One share – One vote" is recognized, therefore the meeting should be regulated accordingly by the Chairman.
Regulation of meeting by the Chairman:-
The chairman is authorized to regulate the meeting by virtue of Section 109(6) & aforesaid circular. The procedure has been jotted down in this article.
→ By voting electronically:-
As per Section 108 read with rule 20, every listed company and companies having more than 1000 shareholders are required to give e-voting option to their shareholders.
Further, as per revised Clause 35B (2) of listing agreement applicable from 17th April, 2014 every listed company agrees to provide to its shareholders who do not have access to e-voting facility, option to vote through postal ballot.
But, as per the circular issued by MCA it not necessary for a company to provide postal ballot facility to shareholders in case where rule 20 (i.e. e-voting) is applicable. This is however contradictory with Clause 35B (2) of listing agreement.
As per decided case of Supreme Court, in case of listed companies listing agreement shall prevail in comparison to company law. Therefore, in case of listed companies option for postal ballot is also to be provided to shareholders who do not have access to e voting facility.
PROCEDURE FOR POLL AT GENERAL MEETING:-
A. Documents required:-
1. Polling Papers(MGT-12)
2. Register of Members, attendance register(including attendance slips) and proxy register
3. Specimen signatures of members (to be coordinated with the RTA) and proxy forms received (MGT-11)
4. Board Resolution under section 113 (Representation of body corporate)
5. e-voting scrutinizer's report and ballot papers received in pursuance of clause 35B (2) of listing agreement
B. Procedure:-
- The scrutinizer shall distribute the polling paper to the members & proxies and lock an empty box in their presence.
- After voting, he will open the box in presence of at least 2 witnesses.
- He shall count the votes and check the following things while doing so:-
a. The person voting is member in register of members during book closure.
b. The person is present at the meeting, from attendance register.
c. Validity of signature of the person signing, from specimen signatures.
d. In case, person voting is a proxy, then proxy registers and forms.
e. In case member a body corporate, authorization through Board resolution.
f. In cases where e-voting option is also provided technical support should be provided to the scrutinizer for orderly conduct of poll. It should be ensured that members who have voted electronically or who have casted their vote through ballot paper by exercising their right under 35B (2) of listing agreement, are not exercising their voting right again at the general meeting. This can be confirmed from e-voting scrutinizers report.
g. Incomplete polling papers to be taken as invalid.
4. In case, there is doubt upon validity of proxy, validity shall be decided in consultation with the chairman.
5. The scrutinizer thereafter, prepare his report in form MGT-13 and submit it to the chairman who shall counter-sign the same, within 7 days from date of taking of poll.
CONTRADICTION:
As per rule 21(2) report of scrutinizer on poll theshall be submitted to the Chairman of the meeting within seven days from the date the poll is taken.
Butas per rue 20(3)(xiv) the results declared along with the scrutinizer's report shall be placed on the website of the company and on the website of the agency within two days of passing of the resolution at the relevant general meeting of members.
In, light of above provisions it can be interpreted that the result of poll has to be mandatorily be given by the scrutinizer within 2 days (not seven) to ensure compliance with rule 20(3)(xiv).
Who can be appointed as scrutinizer?
Scrutinizer for e-voting
As per rule 20(3) (ix) the Board of directors shall appoint one scrutinizer, who may be chartered Accountant in practice, Cost Accountant in practice, or Company Secretary in practice or an advocate, but not in employment of the company and is a person of repute.
Scrutinizer for poll
As per Section 109(5) The Chairman shall appoint such number of persons as he deems necessary to scrutinize the poll process and report thereon to him.
Is it necessary that e-voting scrutinizer be appointed as scrutinizer at General meeting?
No, from answer to the previous question it is evident that both the scrutinizers can be different.
However, due to complications occurring from e-voting, it is advisable that the scrutinizer appointed for e-voting be also appointed as scrutinizer for poll to be conducted at general meeting. For, this it should be ensured that the scrutinizer be a member of the Company entitled to attend the General Meeting, so that he can be selected as scrutinizer for poll also.
Suggestions, comments and queries solicited
(Gurminder Dhami – +91-8800568609 - csgurminderdhami@gmail.com)
Rule 5A(2) of Service Tax Rules, 1994 – Ultra vires the Statute
Rule 5A(2) of the ST Rules, 1994 provides that every assessee has to provide to the officer authorized by the commissioner or CAG to produce records maintained by the assessee.
Brief Facts:
Theappellant 'Travelite (India)' is a registered assessee under the Service Tax. It received a notice from the Commissioner of Service Tax seeking records for the earlier years. The appellant being aggrieved of the same filed a writ under Article 226 of the Constitution of India challenging the validity of the same.
Appellant's Plea: The appellant relied on the decision in case of Municipal Corporation v. Birla Cotton, Spinning and Weaving Mills, AIR 1968 SC 1232 and General Officer, Commanding in Chief v. Subhash Chandra Yadav, (1988) 2 SCC 351 wherein it was held that a rule must conform to the statute under which it was framed, and must be within the rule making power of the authority.
Further, the appellant submitted that the said rule is not only inconsistent with Section 72A of the Finance Act, 1994 which empowers the CCEx to order an audit under Special circumstances only but it is also ultra vires the rule making power conferred on the executive under Section 94 of the Act.
It was also submitted relying on the decision in case of Sahara India v. CIT (2008) 14 SCC 151 that an audit carries civil consequences, hence the same cannot be ordered without indicating the reasons for the audit to the assessee.
Observations by Hon'ble High Court:
Hon'ble High Court observed that Section 72A envisages an audit of an assessee in special circumstances. The law is also well settled that a rule acquires statutory force, so long as it first, conforms to the provisions of the statute under which it is framed and second, it must be within the rule- making power of the executive authority charged with framing the rules relying on General Officer, Commanding-in-Chief v. Dr. Subhash Chandra Yadav, (1988) 2 SCC 351 and Dr. Mahachandra Prasad Singh v. Honourable Chairman, Bihar Legislative Council and Ors., (2004) 8 SCC 747.
Rules may only give effect to the statute's provisions and intent and cannot be used to create substantive rights, obligations or liabilities that are not within the contemplation of the statute relying on Kunj Behari Lal v. State of H.P, (2000) 3 SCC 40 and Global Energy Ltd. v. Central Electricity Regulatory Commission, (2009)15SCC570.
Thus the Hon'ble Court held that
In view of the afore-said findings, the writ petition was allowed with no order as to costs.
No Service Tax Audit by Department or CAG
We are sharing with you an important judgment of the Hon'ble Delhi High Court in the case of Travelite (India) Vs. Union of India & Ors. [W.P. (C) 3774/2013, C.M. No. 7065/2013] on the following issue:
Issue:
- Whether Rule 5A(2) of the Service Tax Rules, 1994 is ultra vires the provisions of the Finance Act, 1994 ("the Finance Act")?
- Whether CBEC Instruction No: F.No.137/26/2007-CX.4 dated January 1, 2008 regarding Audit by Department is contrary to the Finance Act?
Facts & background:
In the instant case, Travelite (India) ("the Petitioner") is a registered service tax assessee. The Petitioner received a letter from the Commissioner of Service tax dated November 7, 2012 ("the Letter") which sought its records for the years 2007-08 to 2011-12 for scrutiny by an audit party under Rule 5A(2) of the Service Tax Rules, 1994 ("the Service Tax Rules"). The Petitioner being aggrieved by the Letter filed a writ petition before the Hon'ble High Court of Delhi challenging the validity of Rule 5A(2) of the Service Tax Rules brought into force vide Notification No. 45/2007-ST dated December 28, 2007 as well as the CBEC Instruction F. No. 137/26/2007-CX.4 dated January 1, 2008 ("the Instruction").
Contentions of the Petitioner:
The Petitioner contended that an assessing officer can call for records in respect of any period during which the Department seeks to intensively scrutinize receipts, etc., i.e. under a Special Audit under Section 72A of the Finance Act. It was further argued by the Petitioner that the Finance Act does not contain any substantive power to call for records for scrutiny as is permissible under Rule 5A(2) of the Service Tax Rules or for the purpose of scrutiny by any authority outside of those created under the Finance Act, such as the Comptroller and Auditor General's office.
Furthermore, the Petitioner submitted that the Rule 5A(2) of the Service Tax Rules is not within the rule making power conferred under Section 94 of the Finance Act and is squarely inconsistent with Section 72A of the Finance Act. Moreover, the handing over of records to an audit party cannot be governed by a non-statutory instrument like the Service Tax Audit Manual. The Petitioner also challenged the Instruction issued by CBEC.
Rule 5A(2) of the Service Tax Rules: It requires the assessee to provide records to an audit party, which reads as under:
"Rule 5A. Access to a registered premises.
(1) An officer authorised by the Commissioner in this behalf shall have access to any premises registered under these rules for the purpose of carrying out any scrutiny, verification and checks as may be necessary to safeguard the interest of revenue.
(2) Every assessee shall, on demand, make available to the officer authorised under sub-rule (1) or the audit party deputed by the Commissioner or the Comptroller and Auditor General of India, within a reasonable time not exceeding fifteen working days from the day when such demand is made, or such further period as may be allowed by such officer or the audit party, as the case may be,-
(i) the records as mentioned in sub-rule (2) of rule 5;
(ii) trial balance or its equivalent; and
(iii) the income-tax audit report, if any, under section 44AB of the Income-tax Act, 1961 (43 of 1961), for the scrutiny of the officer or audit party, as the case may be."
Further, the Instruction issued by CBEC in this regard provides as under:
"… A new Rule 5A has also been incorporated in the said Rules to prescribe that an officer authorised by the Commissioner shall have access to any premises registered under the Service Tax Rules for the purpose of carrying out any scrutiny, verification and checks as may be necessary to safeguard the interest of revenue and that the assessee shall provide, on demand, the specified records including trial balance or the equivalent. It may be noted that this rule does not envisage issue of any notification by a Commissioner for such authorisation of officers. The requirement of authorisation could be fulfilled by issue of an office order.
2. In this regard, it is clarified that records/documents required to be maintained under various laws such as the Income Tax Act, Companies Law the CENVAT Credit Rules, 2004, VAT and other State legislation would be acceptable, and the amendment made in the rule does not cast any additional responsibility on taxpayers in terms of maintenance of records.
3. The list of records, as required to be provided under said sub-rule (2) should be submitted once only. Once filed, further intimation would be required to be given only in case there is any change in the list (i.e. addition, deletion, modification in the types of records maintained) that had been furnished by the assessee.
4. A copy of the list furnished by the assessee would be sent by the jurisdictional superintendent to the audit section.
5. The audit team or any other officer authorised by the Commissioner to visit the registered premises of an assessee shall give prior intimation to the assessee along with the list of documents that he requires for the purposes of scrutiny, verification or audit.
6. That taxpayer shall provide the records as required by the authorized officer within a period of fifteen days from the date of request. In case, the taxpayer is unable to produce any of the records called for within the stipulated time, he shall intimate the same along with reasons, for non-production of records, and the officer may also further time for production of such records keeping in view the overall facts into account.
7. These amendments have been made in the service tax rules to enable the duly authorised offices to carry out audit or scrutiny as may be necessary to safeguard the interest of revenue. However, it may be ensured that only such records are demanded which are necessary for conducting such audit scrutiny or verification."
Power of Audit under the Finance Act: The only provision in Chapter V of the Finance Act on scrutiny and audit of records of the assessee is under Section 72A of the Finance Act, which reads as under:
"72A. (1) If the Commissioner of Central Excise, has reasons to believe that any person liable to pay service tax (herein referred to as "such person"),-
(i) has failed to declare or determine the value of a taxable service correctly; or
(ii) has availed and utilised credit of duty or tax paid-
(a) which is not within the normal limits having regard to the nature of taxable service provided, the extent of capital goods used or the type of inputs or input services used, or any other relevant factors as he may deem appropriate; or
(b) by means of fraud, collusion, or any wilful misstatement or suppression of facts; or
(iii) has operations spread out in multiple locations and it is not possible or practicable to obtain a true and complete picture of his accounts from the registered premises falling under the jurisdiction of the said Commissioner….."
Only in the specified circumstances as mentioned under Section 72A of the Finance Act, supra, the Commissioner may direct such person to get his accounts audited by a Chartered accountant or Cost accountant nominated by him, to the extent and for the period as may be specified by him.
Contentions of the Department:
The Revenue argued that Rule 5A of the Service Tax Rules was made pursuant to the power conferred under Section 94 of the Finance Act and not pursuant to Section 72A of the Finance Act. Further, the Revenue also contended that the Rule is also justified by invoking the provisions of Service Tax Audit Manual as the basis for ordering an audit.
Held:
Rule 5A(2) of the Service tax Rules is ultra vires the provisions of the Finance Act:
The Hon'ble Delhi High Court held that Rules only give effect to statute's provisions and intent and cannot be used to create substantive rights, obligations or liabilities that are not within the contemplation of the statute. Further, the only audit within the Statute is as mentioned under Section 72A of the Finance Act, i.e. a Special Audit, when only certain circumstances are fulfilled. The Parliament thus had a clear intention to provide for only a special audit. Accordingly, Rule 5A(2) of the Service Tax Rules cannot provide for a general audit of the assessee and is ultra vires the rule making power conferred under Section 94(1) of the Finance Act.
Further, the Hon'ble Delhi High Court also held that the Service Tax Audit Manual is merely an instrument of instructions for the service tax authorities and do not have any statutory force. Therefore, Rule 5A(2) of the Service Tax Rules cannot be justified on the basis of the Service Tax Audit Manual.
The Instruction regarding Audit by Department is contrary to the Statue:
Further, it was held that the Instruction is also ultra vires the Finance Act since executive instructions without statutory force cannot override the law. Consequently, any notice, circular, guideline etc., contrary to statutory laws cannot be enforced since the parent statute in this regard, the Finance Act itself does not authorise a general audit of the type envisioned by the impugned Rule 5A(2) of the Service Tax Rules, and furthermore only stipulates that a Special Audit can be undertaken if the circumstances outlined in Section 72A of the Finance Act are fulfilled. The Hon'ble High Delhi Court finds that the Instruction is not only an attempt to widen the scope of the law impermissibly but also is patently contrary to the Statute. The Instruction, to the extent it provides clarifications on Rule 5A(2) of the Service Tax Rules, pertaining to Service Tax audit, is quashed.
Important to Note:
It will not be out of place to mention that recently, the Hon'ble Allahabad High Court in thecase of ACL Education Centre Pvt. Ltd. & Ors. Vs. Union of India [2014-TIOL-120-HC-ALL-ST] has held that the Audit under service tax is to be conducted by Chartered Accountants/ Cost Accountants only and not by officers of the Department.
Further the Hon'ble Calcutta High Court in the case of SKP Securities Ltd. Vs. DD (RA-IDT) & Ors. [2013-TIOL-38-HC-KOL-ST] has held that no audit of private assessee can be undertaken by CAG.
(Bimal Jain, FCA, FCS, LLB, B.Com (Hons), Mobile: +91 9810604563, Email: bimaljain@hotmail.com)
Service tax Implications on Land Development Agreement
What is a Land Development Agreement
Land Development Agreement also known as Joint Development Agreement is one of the arrangements commonly resorted to by the builders/developers nowadays to develop and sell properties. There are two parties to this agreement, a Land owner and a Builder. It is sometimes also a tripartite agreement between the land owner, builder/developer and a contractor. We are discussing the first category of arrangement in this article. In this arrangement the land owner agrees to transfer the land rights to the developer to build/develop and sell flats/ property. In consideration to the said sale of land rights the land owner agrees to a sum in cash and some flats in the developed property. One of the major advantages of this kind of arrangement is that it does not involve excessive investments from both the parties and is as such a win-win situation for both the developer and the land owner.
Complexities involved
Some of the important issues in dealing with this kind of arrangement is (i) whether the sale of land and consideration received thereon is liable to service tax, (ii) whether the consideration received by the land owner in terms of flats is liable to service tax, (iii) if the answer to (ii) is yes then at what value will the service tax be leviable, (iv) who is liable to pay the service tax, is it the builder or the land owner (v) when is the service tax payable, is it at the time of entering into the agreement or at the time of possession of the flats.
This article attempts to answer all the above queries in as uncomplicated way as possible.
Solutions
One of the most important circular in respect of real estate is Circular 151/ 2/2012-ST issued on 10th February 2012 which provided clarifications with respect to the various business model adopted by the construction industry and the treatment of service tax thereon. It also discussed the Development Agreement in detail. Further post the negative list regime the Para 6.2.1 of Education Guide – taxation of services issued by the CBEC also covered this subject briefly.
Clarification provides that the sale of land by the land owner to the builder/developer is exempt from service tax as it is a sale of immovable property which is out of the scope of service tax net. Hence answer to query (i) is a vehement NO.
Moving on the answer (ii), it is yes, which is what is warranting the need of writing this article. Construction services provided by the builder/developer is taxable in case any part of the payment /development rights of the land was received by the builder/developer before the issuance of completion certificate and the service tax would be required to be paid by the builder /developers even for the flats given to the land owner.
Coming to the valuation of the flats given to the land owner. Value of the taxable service in such as case would be determined in terms of section 67(1)(iii) read with Rule 3(a) of the Service Tax (Determination of Value) Rules 2006. Accordingly value of these flats would be equal to the value of similar flats charged by the builder/developer from other buyers to whom he is selling flats. In case the price of flat undergoes a change over the period of sale then the value of similar flat as sold nearer to the date on which the land is made available for construction should be used for arriving at the value for the purpose of tax. Service tax is liable to be paid by the builder/developer on the 'construction service' involved in the flats to be given to the land owner, at the time when the possession of the flats are transferred to the land owner by entering into a conveyance deed or similar instrument(like allotment letter).
For the sake of convenience and better understanding I would like to explain the above in the form of an example. Mr. A (Builder/Developer) enters into an agreement Mr. B (Land Owner) to build a residential complex in his land. Mr. A agrees to construct 40 flats and 10 villas in the said land. The agreement states that the land development rights are sold to Mr. A in lieu of consideration in cash of Rs. 40 Lakhs (to be paid as per agreed terms of payment), 4 (3BHK) flats and a Villa. The agreement was entered into on the 10th July 2013. Mr. A starts the construction and sells his first flat (2BHK) for Rs. 4000 Rs. Per square feet on 10th September 2013 sells a 3BHK flat at Rs. 4200 on 7th November 2013. He sells his first villa on 5th January 2014 for Rs. 1.5 Crores. The construction is completed on 1st August 2015. Possession of flats are transferred to the land owner on 1st January 2015 and of the Villa on 15th July 2015. Now the valuation would be For Flats – 4*2000*4200=Rs. 3.2 Crores(Value to be taken of similar flat) and for the Villa would be Rs. 1.5 Crores. The service tax would be paid by the builder on separate date for flats and Villa as the possession was transferred on 2 separate dates.
On some of the instances the land owner may also decide to sell the flats given to him by the builder/developer in lieu of the land development rights transferred. In such cases also the service tax will be required to be paid by the transferee if any consideration is received by him from any person before the receipt of completion certificate.
(Article written by Sweta Agarwal – Contact me at caswetaagarwal.kol@gmail.com)
The Top 3 Ways in Which Your Bank Helps You
It's 9 am, and Amar realises he has to deposit a cheque that his previous company has given him. Not only that, he is late for an important client meeting and he has just missed the last direct bus to office. Not to mention, he intended to transfer the amount to his parents as soon as possible.
Almost all of us have faced this situation. Finances keep pouring in, yet there are times when we don't have enough time to ensure that they reach our bank account. In a fast-paced world, we barely have enough time for ourselves, let alone take that time to go to the bank.
Banks, too have realised that customers need to find time to transfer funds or make any transaction. With ATMs, mobile banking facilities and SMS banking, Amar's bank ensured that he had an alternative. Here's how Amar solved his dilemma:
Amar's dilemma been faced by all of us. The marriage of technology and banking systems was inevitable leading to a world of banking innovation and brilliance. Here's a look at the top 3 ways in which innovative easy banking has reached out to make the world of customers better:
- When you drop in, drop it: Cheque Deposit Kiosks are available at all ATMs of certain banks. For instance, Kotak Bank has ensured that their ATMs and other important locations including their bank branches have the cheque deposit box. This reduces your time and your stress from waiting in long queues or taking time from traveling to the nearest branch.
- Check your messages: SMS Banking is not new, some efficient banks ensure that customers are notified at every step taken towards enhancing their account. Hence, most banks ensure that their customers register for SMS banking facilities whenever they can.
- Your bank is mobile like you:Mobile Banking or online banking is one of the most useful conveniences to change the world of banking. Not only do customers have the potential to receive updates on the recent activity taking place in the account, but also to ensure that one can transact with the convenience of the mobile banking app.
Let's face it, no matter how much free time we have, we wouldn't want to spend our time in the long queues in the bank. Not only is it vital to have the convenience of our bank updates within our fingertips, but it's also important to have the convenience of transacting money online. Today, almost no one can live without their mobile phones or smartphones. Banks have the advantage of reaching to each and every customer, and ensuring that they are aware of the variety of offers from the bank. Customers need not feel that they are missing out on any important offers on their account. By tapping into a whole new world of online net banking conveniences, one can enhance their world by using mobile banking services.
(Author Bio: Anupama Sughosh is an independent finance blogger who loves writing about the rise and fall in the world of finance, banking, general industry trends and corporate sustainability. She holds a rich experience of working with corporates such as KPMG as well as institutions such as TISS, her articles share insights from the individual and the corporate perspective.)
Delhi VAT -Regarding Amnesty Scheme
GOVERNMENT OF NATIONAL CAPITAL TERRITORY OF DELHI
DEPARTMENT OF TRADE AND TAXES
VYAPAR BHAWAN, I.P.ESTATE, NEW DELHI-110 002
No.F.3(399)/Policy/VAT/2014/PF/ 247-254
Dated: 05/08/2014
CIRCULAR NO. 7 of 2014-15
Government of NCT of Delhi had notified a scheme named Delhi Tax Compliance Achievement Scheme, 2013 vide Notification No.F.3(16)/Fin./Rev.I/2013-14/dsVI/786 dated 20/09/2013. The scheme envisages declaring tax deficiency voluntarily and paying tax and seeking registration under the Delhi Value Added Tax Act, 2004. To reduce litigations, the scheme was extended to registered dealers also. The registered dealers who have been assessed already were required to deposit tax and interest stated in the order. Consequential, penalty related to tax deficiency is to be waived off by opting the scheme.
2. The scheme provided additional facility to Works Contract dealers who could opt the scheme by paying 1% or 3% of the turnover like an existing Composition Scheme. The Assessment orders, issued, if any, become null and void in such cases. But, the order shall stand in the System till it is nullified. Therefore, to smoothen the process, and to maintain correct data base, it has been decided that in cases where DSC-3 has been issued, the assessment orders have to be nullified in the following manner:-
(i) Works Contract dealers who have opted to deposit tax @ 1% or 3% of the turnover, the assessment orders issued for the tax period in Form DVAT-24 for tax and interest and consequential penalty in Form DVAT 24A should be nullified by reviewing the orders suo motto after DSC-3 has been issued. The Works Contract dealers who have not opted for paying turnover tax @ 1% or 3% shall be dealt with like any other dealer.
(ii) Any dealer (WC or other) who have been assessed u/s 32 of Delhi Value Added Tax Act, 2004 and against whom an assessment order in Form DVAT-24 for tax and interest has been issued and opted the scheme to pay tax and interest stated in the order, the payment so made shall be treated as recovery against the order. No further action to recover the amount should be taken against the dealer.
(iii) The consequential penalty order issued in Form DVAT-24A for the tax deficiency for which DVAT-24 (tax and interest) has been issued, stand nullified with the option of the scheme. Therefore, such penalty orders have to be nullified by reviewing the same.
2. It is again emphasized that aforesaid actions may be initiated only after ascertaining the eligibility of the dealer for issue of DSC-3. Zonal Additional/ Joint Commissioners shall ensure compliance of the orders.
3. System Branch shall provide necessary software support to complete the process by concerned Assessing Authorities. The demand becoming null and void with the option of the scheme and duly nullified by Assessing Authorities shall not be shown as outstanding demand.
4. This issues with the approval of Commissioner, Value Added Tax conveyed vide Dy No. 902 dated 31/07/2014
(Sanjeev Ahuja)
Spl.Commissioner(Policy)
Dated:05/08/2014
'KOSH MULO DAND' written on ITR Acknowledgement – What it Means?
The water mark printed on the ITR V in English states Income Tax Department and in Hindi it states 'KOSH MULO DAND'.
If translate income tax department in Hindi it will be AYAKAR VIBHAG and translation of 'KOSH MULO DAND' MEANS as follows :-
KOSH – Fund
MULO - Principal / Main
DAND - Punishment
Why is it written Dand / punishment ?
The assesses are paying self assessment tax which they are assessing on them and wishfully paying it off. They are not taking it as a punishment rather as a responsible citizens making their contribution to make their country financially strong. They understand government is using this tax to provide them the facilities ,security and other required infrastructures.
It should be printed in Hindi ayakar vibhag or some other suitable word instead dand as it is not a punishment .Please stop this taboo of considering income tax department as a punishment department only.There are responsible citizens who understand their duties and deposit the tax on their own without considering it dand/punishment.
We the citizens of India understand our duties and do not take paying tax as a punishment rather we feel proud that we make a small contribution towards the progress of our country.
Hence ,the Income tax department is requested to find a suitable word for it or simply the Hindi translation of Income Tax Department into Hindi Ayakar Vibhag is appropriate to replace the term 'KOSH MULO DAND' .
Advocate Sargun Babuta
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