CBDT notifies guidelines for notifying semiconductor wafer fabrication units U/s. 35AD
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
(CENTRAL BOARD OF DIRECT TAXES)
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION NO. 80/2014,
Dated: December 12, 2014
In exercise of the powers conferred by sub-clause (xiii) of clause (c) of sub-section (8) of section 35AD read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-
1. (1) These rules may be called the Income-tax (14th Amendment) Rules, 2014.(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the Income-tax Rules, 1962,
(i) after rule 11-OA, the following rule shall be inserted, namely:-
"Guidelines for notification of a semiconductor wafer fabrication manufacturing unit as specified business under section 35AD.11-OB. (1) The notification of a semiconductor wafer fabrication manufacturing unit as a specified business under sub-clause (xiii) of clause (c) of sub-section (8) of section 35AD of the Act shall be in accordance with the following procedure, namely:-(a) the applicant shall apply for notification of the unit in Form No. 3CS to Member (Income-tax), Central Board of Direct Taxes, Department of Revenue, Ministry of Finance, North Block, New Delhi;(b) the Board shall serve a deficiency letter on the applicant if any defect is noticed in the application in Form No. 3CS or if any relevant document is not attached thereto;(c) the applicant shall remove the deficiency within a period of fifteen days from the date of service of the deficiency letter or within such further period which, on an application made in this behalf may be extended;(d) if the applicant fails to remove the deficiency within the period so allowed, the Board, if satisfied, may pass an order treating the application as invalid;(e) the Board may call for such documents or information from the applicant as it may consider necessary and may call for further details or information from the applicant as well as from the income-tax authorities and other Departments or agencies, as it may deem fit;(f) the Board may, after considering the application and the documents or the information referred to in clause (e), either issue the notification to be published in the Official Gazette granting approval to the unit or for reasons to be recorded in writing reject the application.(g) The Board may, withdraw the approval if it is satisfied that:-(i) the assessee has ceased its activities relating to the specified business; or(ii) such activities are not genuine or are not being carried out in accordance with all or any of the conditions under section 35AD or under this rule; or(iii) the approval granted by the competent authority on the recommendations of the Appraisal Committee under the Modified Special Incentive Package Scheme of the Department of Electronics and Information Technology has been withdrawn.(h) no order treating the application as invalid or rejecting the application or withdrawing the approval or cancellation of the notification, shall be passed without giving an opportunity of being heard to the assessee;(i) a copy of the order invalidating or rejecting the application or withdrawing the approval shall be communicated to the applicant and the Assessing Officer and the Commissioner having jurisdiction over the assessee.(2) A unit shall be considered for notification if it fulfils all of the following conditions, namely:-(a) the unit shall be exclusively for the manufacture of semiconductor wafer fabrications;(b) the unit shall have prior approval of the competent authority on the recommendations of Appraisal Committee under the Modified Special Incentive Package Scheme notified by the Department of Electronics and Information Technology, Ministry of Communications and Information Technology, Government of India;(c) the date of commencement of operations of the unit shall be on or after the 1st day of April 2014;(d) the unit may have one or more manufacturing facilities and all the facilities shall be located in India;(3) The assessee shall maintain separate books or accounts for the unit with complete details of all capital expenditure incurred during the previous year on which it intends to claim the said deduction under section 35AD and shall file the relevant income-tax returns by the due date to the Income-tax Department to avail the tax benefit under section 35AD.(4) A unit notified under sub-clause (xiii) of clause (c) of sub-section (8) of section 35AD shall continue to be governed by the provisions of this rule to the extent it is not in contravention with the provisions of the Act, as amended from time to time.(5) In this rule and the Form,-(a) "competent authority" means the authority approving the unit under the Modified Special Incentive Package Scheme notified by the Government of India, Ministry of Communications and Information Technology, Department of Electronics and Information Technology;(b) "date of commencement of operations" means the date on which the commercial production of the unit commences;(c) "semiconductor wafer fabrications" means integrated circuits which are covered in the National Industrial Classification, 2008 under Division 26; Group 261; Class 261; Sub class 26103;(d) "Unit" means manufacturing facility for semiconductor wafer fabrications:"(ii) in Appendix II, after Form No. 3CR, the following Form shall be inserted, namely:-
FORM NO. 3CS
[See rule 11-OB(1)(a)]
[See rule 11-OB(1)(a)]
Application for notification of a semiconductor wafer fabrication manufacturing unit as specified business under section 35AD
1.1 Name and address of the specified business (in full,block letters):-
______________________________________________
______________________________________________
1.2 Details of the assessee:-
(i) Name (in full block letters)………………..
(ii) Is there any change in the name? If yes, please furnish the old name ———————
| (iii) PAN | |
(iv) Complete address ______________________________________________
_______________________________________________________________
_______________________________________________________________
(V) Office Phone Number (with STD Code) _____________________________
(vi) Mobile No. _____________________ Email Address ____________________________________
| (vii) Date of incorporation/formation (DD/MM/YYYY) (whichever applicable) | |
(viii) Status
[public company-1, private company-2, Partnership firm-3, local authority-4, cooperative society-5, LLP-6, AOP/BOI artificial juridical person-7, individual-8, HUF-9, any other person-10 (please specify: _______________________)]
(ix) If a domestic company (Tick)
(x) Income-tax Ward/Circle____________________________________________
(xi) Residential Status (Tick)
Resident Non-Resident
2.1 Location of the proposed unit:-
(i) Name of the unit (if any)_______________________________
(ii) Complete address of location/locations of the proposed unit:-
a) Location 1._______________________________________________
b) Location 2._______________________________________________
2.2 Expected or actual date of commencement of operations of the unit
________________________________
3.1 Whether each of the following conditions mentioned in sub-rule (2) of rule 11- OB is fulfilled:-
__________________________________________________________________________
| a) the unit is exclusively for the manufacture of semiconductor wafer fabrications. | Yes/No |
| b) the unit has been approved by the competent authority on the recommendations of the Appraisal Committee under the Modified Special Incentive Package Scheme of the Department of Electronics and Information Technology, Ministry of Communications and Information Technology Government of India | Yes/No |
| c) the date of commencement of operations of the project is on or after the 1st day or April 2014; | Yes/No |
| d) all the manufacturing facilities of the unit are located in India; | Yes/No |
3.2 If answer to 3.1 (b) above is 'yes', then
(a) Date of approval under the Modified Special Incentive Package Scheme of the Department of Electronics and Information Technology:________________________________________(b) Order No of such approval_________________________________________
DECLARATION
I/We hereby undertake to continue to operate the……………….. unit during the period…………………… in accordance with the provisions of section 35AD of the Income-tax Act, 1961.
I/We hereby certify that the above statements are true and correct to the best of my/our knowledge and belief.
__________________________
(Signature of Applicant)
(Signature of Applicant)
__________________________
(Name in Block Letters)
(Name in Block Letters)
…………………………………………….
(Designation of the signatory)
(Designation of the signatory)
Place:______________
Date:_______________
List of Enclosures:-
1._______________
2._______________
3._______________
4._______________
5._______________
6._______________
7.________________
F. No.142/04/2014-TPL
(Raman Chopra)
Director (TPL-II)
Director (TPL-II)
Note:- The principal rules were published in the Gazette of India vide notification number S.O. 969 dated the 26th March, 1962 and was last amended by, vide notification S.O.3015 (E) dated 28.11.2014.
Press Information Bureau
Government of India
Ministry of Finance
Government of India
Ministry of Finance
19-December-2014 19:46 IST
Union Finance Minister Shri Arun Jaitley Intoduces the Constitution Amendment Bill on Goods and Services Tax (GST) in Lok Sabha;
New Article 246a Proposed to Confer Simultaneous Power to Union and State Legislatures to Legislate on GST ;
Centre To Compensate States for Loss of Revenue Arising on Account of Implementation of the GST for a period up to Five Years
The Union Cabinet approved on 17th December,2014 the proposal for introduction of a Bill in the Parliament for amending the Constitution of India to facilitate the introduction of Goods and Services Tax (GST) in the country. The Union Finance Minister Shri Arun Jaitley introduced the said Bill in the Lok Sabha today. New Article 246a Proposed to Confer Simultaneous Power to Union and State Legislatures to Legislate on GST ;
Centre To Compensate States for Loss of Revenue Arising on Account of Implementation of the GST for a period up to Five Years
The proposed amendments in the Constitution will confer powers both to the Parliament and State legislatures to make laws for levying GST on the supply of goods and services in the same transaction.
GST will simplify and harmonise the indirect tax regime in the country. GST will broaden the tax base, and result in better tax compliance due to a robust IT infrastructure. Due to the seamless transfer of input tax credit from one state to another in the chain of value addition, there is an in-built mechanism in the design of GST that would incentivize tax compliance by traders. It is thus, expected that introduction of GST will foster a common and seamless Indian market and contribute significantly to the growth of the economy.
Following are the salient features of this Bill:
• A new Article 246A is proposed which will confer simultaneous power to Union and State legislatures to legislate on GST.
• A new Article 279A is proposed for the creation of a Goods & Services Tax Council which will be a joint forum of the Centre and the States. This Council would function under the Chairmanship of the Union Finance Minister and will have Ministers in charge of Finance/Taxation or Minister nominated by each of the States & UTs with Legislatures, as members. The Council will make recommendations to the Union and the States on important issues like tax rates, exemptions, threshold limits, dispute resolution modalities etc.
• It is proposed to do away with the concept of 'declared goods of special importance' under the Constitution.
• Centre will compensate States for loss of revenue arising on account of implementation of the GST for a period up to five years. A provision in this regard has been made in the Amendment Bill (The compensation will be on a tapering basis, i.e., 100% for first three years, 75% in the fourth year and 50% in the fifth year).
The proposed GST has been designed keeping in mind the federal structure enshrined in the Constitution and will have the following important features:
• Central taxes like Central Excise Duty, Additional Excise Duties, Service Tax, Additional Customs Duty (CVD) and Special Additional Duty of Customs (SAD), etc. will be subsumed in GST.
• At the State level, taxes like VAT/Sales Tax, Central Sales Tax, Entertainment Tax, Octroi and Entry Tax, Purchase Tax and Luxury Tax, etc. would be subsumed in GST.
• All goods and services, except alcoholic liquor for human consumption, will be brought under the purview of GST. Petroleum and petroleum products have also been Constitutionally brought under GST. However, it has also been provided that petroleum and petroleum products shall not be subject to the levy of GST till notified at a future date on the recommendation of the GST Council. The present taxes levied by the States and the Centre on petroleum and petroleum products, i.e., Sales Tax/VAT, CST and Excise duty only, will continue to be levied in the interim period.
• Both Centre and States will simultaneously levy GST across the value chain. Centre would levy and collect Central Goods and Services Tax (CGST), and States would levy and collect the State Goods and Services Tax (SGST) on all transactions within a State.
• The Centre would levy and collect the Integrated Goods and Services Tax (IGST) on all inter-State supply of goods and services. There will be seamless flow of input tax credit from one State to another. Proceeds of IGST will be apportioned among the States.
• GST is a destination-based tax. All SGST on the final product will ordinarily accrue to the consuming State.
• GST rates will be uniform across the country. However, to give some fiscal autonomy to the States and Centre, there will a provision of a narrow tax band over and above the floor rates of CGST and SGST.
• It is proposed to levy a non-vatable additional tax of not more than 1% on supply of goods in the course of inter-State trade or commerce. This tax will be for a period not exceeding 2 years, or further such period as recommended by the GST Council. This additional tax on supply of goods shall be assigned to the States from where such supplies originate.
DSM/ka
--
"No candle loses its light while lighting another candle. So never stop sharing and helping others because it makes your life more meaningful"
e-UPASS-Self Policing – Electronic uploading of Purchase and Sales Statement in Karnataka
The main intention of Govt., to repel old Sales Tax and introduce VAT was to remove cascading effect and thereby make Indian goods more competitive and marketable and in turn to raise good amount of taxes for the benefit of common man.
The Govt., later realised in a country like ours success of this story is only possible through self policing method as there is no suitable resources or man power with any Govt's to watch huge number of dealers and assess bulk data.
In the process Govt., has brought in the following provisions to achieve its objective
1. E-sugama
2. E-filing of returns
3. E-Registration
4. E-statutotory forms
5. E-Audit
And the latest one is E-upass
Lastest e-upass in Karnataka is like old wine in new bottle as its history goes back to 2008.The first notification of asking the additional information in support of VAT return dates back to June,2008, vide Notification Sl.No. 105 KSA CR 155/2007-08,B'lore dt.23.06.2008.
Further it is to report that Karnataka is not the one state or first state in the country to seek this kind of information many other states in our country have successfully introduced with similar initial difficulties as of now we are facing.
And the present e-upass notification was issued on in exercise of powers conferred on Commissioner u/s. 35(1) of KVAT Act,2003 vide Notification No.-CCW/CR 44/2013-14 dt.29.04.2014 making mandatory submission of dealer's whose total turnover in previous year exceeds Rs.50 lakhs. Owing to widespread protest the Govt. Announced upto 20.10.2012 as educative period to certain dealers.
After elapse of educative period was ended on 20.10.2012 and now the hot topic is regarding levy of penalty for non submission.
Everybody is interpreting in their own style and the Dept is simply avoiding the question of penalty by simply saying that at present we are not interested in levying/talking of about penalty provisions.
And now after completion of educative period few Dept officials started issuing notices of levying penalty without specifically mentioning under which proviso they are empowered to do so.
Hence to through some light on this issue and to analyze provisions which directly and indirectly speaks of penal provisions for non submission of e-u-pass statements in time are listed below.
1. Sec. 35.Returns
(1) Subject to sub-sections (2)to (4), every registered dealer, and the Central Govt., a State Govt., a statutory body and a local authority liable to pay tax collected under sub-section (2) of Sec.9, shall furnish a return in such forms and manner, including electronic methods, and shall pay the tax due on such return within twenty days or fifteen days after the end of the preceding month or any other tax periods as may be prescribed
Provided that the specified class of dealers as may be notified by the Commissioner shall furnish particulars for preparation of the return in the prescribed form or submit the return in the prescribed form, electronically through internet in the manner specified in the said notification"
Sec.72 Penalties relating to returns and assessment
(1) xxxxx
(2) xxxxxxx
(3) A dealer who furnished a return which is incomplete or incorrect in any material particular as informed in notice issued to him, shall be liable to a penalty of fifty rupees for each day the return remains incomplete or incorrect"
(4) xxxx
(5) xxxxxx
(6) xxxxxxx
(7) Any dealer who fails to submit returns as required by the provisions of the Act continuously for three months or two quarters, as a case may be, shall on convinction, in addition to recovery of any tax or penalty or interest or other amount that may be due from him or levied on him, be punishable with simple imprisonment which may extent to six months or with a fine which shall not be less than five thousand rupees but which may extend to twenty five thousand rupees or with both and when offence is a continuing one, with a daily fine not exceeding two hundred rupees during the period of continuance of the offence.
Sec.34.Requirement to provide documents and information
Notwithstanding anything, to the contrary contained in this Act, the prescribed authority may, for any purpose related to the administration or enforcement of this Act, by notice, require any person to provide the prescribed authority, within such reasonable time as is stipulated in the notice, with any information or additional information, including a return under this Act, or any other documents, whether inside or outside the State. (Ref. Rule 148)
Sec.79 .Fraudulent evasion of tax
Without prejudice to the provisions of Sec.71 to 77, if any person is knowingly concerned, in or in the taking of steps with a view to the fraudulent evasion of tax by him or any other person, he shall be liable to a fine of one lakh rupees or double the amount of the tax evade, whichever is the greater or to imprisonment for a minimum term of six months but not exceeding five years, or to both.
(1).xxxxx
(2).Failure to file return/returns or
(3).xxxx
(4).xxxx
(5).Non production of books of accounts, documents and non furnishing of information or
(6).xxxx
(7).xxxx
(8). Fraudulent evasion of tax
Last but not least it is fact that that only 3-4% of total collections of our State Govts., were collected through by enforcement and by penal provisions and the rest 95% of our total collections were out of best compliance of our consumers, dealers and the tax practitioners.
In this regard my humble request to my dealer community is kindly co-operate in submission of e-upass statement because it is purely in our interest and this is going to be the big strength of ours in discharging burden of proof u/s70(2) of KVAT Act,2003 before the court of law.
And my last humble request to the Dept.pl don't make it one more VAT 100 in the dept vat soft folder, pl make use of data trace defaulters, punish and ease the life of best tax compliancer.
B.C. Guru SwamySales Tax Practitioner
Guru and Associates,Ballari
__._,_.___
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