Author: abhishek

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Relaxation to Non residents not havig PAN from 20% TDS u/s 206AA:Rule 37BC NN dtd24-06-2016

Finance Act 2016 had amended Section 206AA(7) to provide that higher rate of TDS u/s 206AA shall not apply to payments made to non residents not having PAN  subject to certain conditions

The Conditions have now been specified by incorporating Rule 37BC which provides as under:

  1. Relaxation u/s 206AA(7) to apply to  payments in the nature of interest, royalty, fees for technical services and payments on transfer of any capital asset
  2. Deductee to file following details/documents
  3. a) Name, Email id, Contact No.
  4. b) address in the country or specified territory outside India of which the deductee is a resident
  5. c) Tax Residency Certificate from foreign government, if the laws of that government provide for issuance of such certificate
  6. d) Tax Identificaton Number (TIN)of resident foreign country or if TIN is not available, Unique ID No. of resident foreign country
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Procedure for online submission of TDS return through incometaxindiaefiling.gov.in provided by CBDT vide N/N 11/2016 dated 22-06-2016

  1. Get registered with your TAN on the site
  2. FVU file to be uploaded as zip file.
  3. Statement can be filed through DSC using DSC Management Utility or can be filed using EVC
  4. Submit TDS return by logging in through TAN. Then Go to TDS-Upload TDS. Then upload Zip file along with signature file discussed above
  5. On being uploaded the status shall be shown as “uploaded”. Uploaded file shall be accepted or rejected in 24 hours. Staus can be checked at TDS- View filed TDS. Rejection reasons shall be provided along rejected file
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It is not open to the tribunal itself to raise a ground or permit the party who has not appealed to raise a ground, which will work adversely to the appellant

Old and Gold Rule of Law reiterated by Calcutta High Court in Sheo Kumar Mishra [2016] 70 taxmann.com 375 (Calcutta) FEBRUARY 26, 2016 that In the absence of an appeal or cross-objections by the department against the order in dispute, the Appellate Tribunal will have no jurisdiction or power to enhance the assessment. Under Section 251, CIT A has power to enhance the assessment but u/s 253 Tribunal does not have the power to enhance the enhancement. it is not open to the Tribunal itself to raise a ground or permit the party, who has not appealed, to raise a ground, which will work adversely to the appellant

 

Facts and Decision

The AO had treated  excess claim of certain transportation expense  amounting to Rs2.02 crores  as undisclosed Income of the assesse. He also opined that the assessee had shown bogus expenditures and bogus creditors, the peak credit whereof was Rs. 1.59 crores. He, however, did not treat said amount as undisclosed income on ground that said amount was less than the amount of excess claim of transportation charges and, therefore, no separate addition was made on this account. CIT A upheld order of AO

The Tribunal reversed addition of Rs. 2.02 crores on ground that said charges were already accounted for by the assessee in its account books and, therefore, could not be taxed. The Tribunal, however, confirmed addition of Rs. 1.59 crores on account of bogus expenditures

  Held by High Court that :It was not open to the Tribunal to confirm the addition of the sum of Rs. 1.59 crores because no such addition was made. In the absence of any such addition, there was no basis for the Tribunal to confirm the same. This addition was made by the Tribunal for the first time which the Tribunal could not have done.

The assessee did not raise the issue before the Tribunal of any addition of a sum of Rs. 1.59 crores because there was no addition of the sum of Rs. 1.59 crores or any part thereof. The assessee attempted to demonstrate the fallacy in the finding arrived at by the Assessing Officer by holding at one place that there was an undisclosed income of Rs. 2.02 crores and at another place by holding that there was an undisclosed income of Rs. 1.59 crores. When the Assessing Officer had not made the addition of Rs. 1.59 crores, the assessee had no occasion to challenge the same. When the assessee carried the matter to the Commissioner (Appeals), the latter, without anything more, could have enhanced the addition. But the Commissioner (Appeals) did not do so. He merely confirmed the order of the Assessing Officer. Therefore, the subject matter of challenge before the Tribunal was the addition of Rs. 2.02 crores. The Tribunal could either have upheld the same or could have set aside the same. The Tribunal chose to set aside that addition. The matter should therefore have come to an end in the absence of any cross objection by the revenue.

References:

  1. State of Kerala v. Vijaya Stores [1979] 116 ITR 15 (SC)
  2. Motor Union Insurance Co. Ltd. v. CIT [1945] 13 ITR 272,(Bom)
  3. New India Life Assurance Co. Ltd. v. CIT [1957] 31 ITR 844 (Bom)

Division Bench judgment of the Bombay High Court in the case of Motor Union Insurance Co. Ltd. v. CIT [1945] 13 ITR 272, wherein the following views were expressed:

‘Apart from statute, it is elementary that if a party appeals, he is the party who comes before the Appellate Tribunal to redress a grievance alleged by him. If the other side has any grievance, he has a right to file a cross-appeal or cross-objections. But if no such thing is done, the other party, in law, is deemed to be satisfied with the decision. He is, of course, entitled to support the judgment of the first Officer on any ground open to him, but he is not entitled to raise a ground so as to work adversely to the appellant and in his favour. Apart from that, the section, in our opinion, does not permit the course adopted by the Tribunal in this case. Under S. 31, when the Legislature thought of giving power to the Appellate Assistant Commissioner to enhance the assessment, it has in terms enacted that. In our opinion, that fact is against the contention that the words of S. 33(4) are wide enough to include a power of enhancement, without an appeal by the Commissioner. The, word “thereon” used in S. 33(4) only means “on the appeal,” which must mean on the grounds raised in the appeal. Read in that way, the sub-section only gives power to the Appellate Tribunal to give its decision and pass orders in respect of all grounds urged (which must be on behalf of the appellant) in respect of the decision, appealed against. In deciding those grounds it can pass appropriate orders. But, in our opinion, it is not open to the Tribunal itself to raise a ground or permit the party, who has not appealed, to raise a ground, which will work adversely to the appellant.’

The judicial principle pressed into service by the Division Bench of the Bombay High Court was later followed by another Division Bench of the Bombay High Court in the case of New India Life Assurance Co. Ltd. v. CIT [1957] 31 ITR 844, and the same view was also endorsed by the Apex Court in the case of State of Kerala v. Vijaya Stores [1979] 116 ITR 15. Their Lordships were considering the question in connection with the powers of the Sales Tax Appellate Tribunal which was similar to the provisions of section 33 of the Income Tax Act of 1922 and this is what Their Lordships observed:

‘The normal rule that a party not appealing from a decision must be deemed to be satisfied with the decision, must be taken to have acquiesced therein and be bound by it, and, therefore, cannot seek relief against a rival party in an appeal preferred by the latter, has not been deviated from in sub-s. (4)(a)(i) above. In other words, in the absence of an appeal or cross-objections by the department against the AAC’s order the Appellate Tribunal will have no jurisdiction or power to enhance the assessment. Further, to accept the construction placed by the counsel for the appellant on sub-s. (4)(a)(i) would be really rendering sub-s. (2) of s. 39 otiose, for if in an appeal preferred by the assessee against the AAC’s order, the Tribunal would have the power to enhance the assessment, a provision for cross-objections by the department was really unnecessary. Having regard to the entire scheme of s. 39, therefore, it is clear that on a true and proper construction of sub-s. (4)(a)(i) of s. 39 the Tribunal has no jurisdiction or power to enhance the assessment in the absence of an appeal or cross-objections by the department. It is true that the two Bombay decisions reported in[1945] 13 ITR 272 and [1957] 31 ITR 844, on which the High Court has relied, have been rendered in relation to s.33(4)of the Indian I.T. Act, 1922, but, in our View, the said provision of I.T. Act is in pari malaria with the provision of s. 39(4) of the Kerala General Sales Tax Act, 1963. Moreover, the Bombay High Court has pointed out in those decisions that s. 33(4) merely enacted what was the elementary principle to be found in the Civil Procedure Code that the respondent who has neither preferred his own appeal nor filed cross-objections in the appeal preferred by the appellant, must be deemed to be satisfied with the decision of the lower authority and he will not be entitled to seek relief against a rival party in an appeal preferred by the latter. In the first mentioned case, the elementary principle is stated at page 282 of the report thus:

 

“Apart from statute, it is elementary that if a party appeals, he is the party who comes before the Appellate Tribunal to redress a grievance alleged by him. If the other side has any grievance, he has a right to file a cross-appeal or cross-objections. But, if no such thing is done, the other party, in law, is deemed to be satisfied with the decision. He is, of course, entitled to support the judgment of the first officer on any ground open to him, but he is not entitled to raise a ground so as to work adversely to the appellant and in his favour.”‘

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It would not be appropriate for Court to direct that Circular should be followed and not decision of Court : SC in Rattan Melting & Wire Industries

Ratan Melting & Wire Industries, 2008 (12) STR 416. At paragraph 6 of the judgment, the Hon’ble Apex Court observed as follows “6. Circulars and Instructions issued by the Board are no doubt binding in law on the authorities under the respective statutes, but when the Supreme Court or the High Court declares the law on the question arising for consideration, it would not be appropriate for the Court to direct that the Circular should be given effect to and not the view expressed in a decision of this Court or the High Court. So far as the clarifications/circulars issued by the Central Govt. and/or the State Govt. are not concerned they represent merely their understanding of the statutory provisions. They are not binding upon the Court. It is for the Court to declare what the particular provision of statutes says, and it is not for the executive. Looked at from another angle, a circular which is contrary to the statutory provisions has really no existence in law

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Mere Application to change the use of land does not alter the chracter of agricultural land for 2(14)(iii)

As per Section 2(14)(iii), agricultural land outside specified limit is not capital asset and hence there can be no capital gain on transfer of such agricultural land. Hence it is important to determine whether land is agriculture land or not.

Where assesse enters into agreement to sell agri land. There after makes  an application to the authorities to permit to covert the land into farm houses  and authority replies that no such conversion required for farm houses and there after the sale deed with buyer is registered. Whether the land ceases to be agricltual land on the date of registration of sale deed. What is the relevant date of transfer, the date of agreement or date of registration of sale deed?

Held by Jaipur Tribunal in Megh Chand Meena, HUF [2016] 70 taxmann.com 374 (Jaipur – Trib.)MAY  17, 2016  that  it was clear that there was no conversion of agricultural land and what had been transferred by assessee continued to be agricultural land beyond 8 Kms. of municipal limits. it was not a capital asset under section 2(14)(iii) . therefore, sale consideration was not liable to capital gains tax under section 45.

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Supreme Court Settles the Income Tax matter of Tata Chemleot Project matter of MLAs in the favor of assesse in Balbir Singh Maini Case dtd 04-10-2017 [2017] 86 taxmann.com 94 (SC). However differs from High Court reasoning in CS Atwal case

Important Excerpts from the Order

1 An agreement of sale which fulfilled the ingredients of Section 53A was not required to be executed through a registered instrument. This position was changed by the Registration and Other Related Laws (Amendment) Act, 2001. Amendments were made simultaneously in Section 53A of the Transfer of Property Act and Sections 17 and 49 of the Indian Registration Act. By the aforesaid amendment, the words “the contract, though required to be registered, has not been registered, or” in Section 53A of the 1882 Act have been omitted.

 

[Para 19 on Page 28 of SC Order]

 
2 There is no contract in the eye of law in force under Section 53A after 2001 unless the said contract is registered. (Para 20 on Page 31 of SC Order)

 
3 On the basis of Arguments above SC concluded that “……….we are of the view that sub-clause (v) of Section 2(47) of the Act is not attracted…………..”

[Para 20 on Page 32 of SC Order]

 
4 “…………..the High Court has held that Section 2(47)(vi) will not apply for the reason that there was no change in membership of the society, as contemplated. We are afraid that we cannot agree with the High Court on this score………………..”

 

“……………The High Court has not adverted to the expression “or in any other manner whatsoever. in sub-clause (vi), which would show that it is not necessary that the transaction refers to the membership of a cooperative society. We have, therefore, to see whether the impugned transaction can fall within this provision……………….” [Para 21 of SC Order]

 
5 A reading of the JDA in the present case would show that the owner continues to be the owner throughout the agreement, and has at no stage purported to transfer rights akin to ownership to the developer. At the highest, possession alone is given under the agreement, and that too for a specific purpose -the purpose being to develop the property, as envisaged by all the parties. We are, therefore, of the view that this clause [S(47)(vi)]will also not rope in the present transaction. [Para 23]

 
6 In the facts of the present case, it is clear that the income from capital gain on a transaction which never materialized is, at best, a hypothetical income. It is admitted that, for want of permissions, the entire transaction of development envisaged in the JDA fell through. In point of fact, income did not result at all for the aforesaid reason. This being the case, it is clear that there is no profit or gain which arises from the transfer of a capital asset, which could be brought to tax under Section 45 read with Section 48 of the Income Tax Act. [Para 27, Page 37 of SC Order]

 
7 Supreme Court in Excel Industries has said that “……………in our opinion more importantly, that income accrues when there “arises a corresponding liability of the other party from whom the income becomes due to pay that amount……………” [Para 26,Page35]

 

In the present case, the assessee did not acquire any right to receive income, inasmuch as such alleged right was dependent upon the necessary permissions being obtained. This being the case, in the circumstances, there was no debt owed to the assessees by the developers and therefore, the assessees have not acquired any right to receive income under the JDA. This being so, no profits or gains “arose” from the transfer of a capital asset so as to attract Sections 45 and 48 of the Income Tax Act. [Para 28]

 
8 Hence Supreme Court has concurred with the Conclusion of Punjab and Haryana High Court in CS Atwal but not with the reasoning .
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Construction Service Present and Proposed Rates after GST Council Meeting on 06-10-2017

Notification 11/2017-CTR  as amended by Notification 20/2017- CTR dated 22-08-2017, NN 24/2017-CTR dated 21-09-2017 and further proposed to be amended by GST Council meeting recommendations dated 06-10-2017 and  is covered by heading 9954

Sl. No.3

(i) Construction of a complex, building, civil structure or a part thereof, including a complex or building intended for sale to a buyer, wholly or partly, except where the entire consideration has been received after issuance of completion certificate, where required, by the competent authority or after its first occupation, whichever is earlier.  (Provisions of paragraph 2 of this notification shall apply for valuation of this service) is taxable @ 18%

 

In case of supply of service specified in column (3) of the entry at item (i) against serial no. 3  of the Table above, involving transfer of property in land or undivided share of land, as the case may be,

Ø the value of supply of service and goods portion in such supply shall be equivalent to the total amount charged for such supply less the value of land or undivided share of land, as the case may be,

Ø and the value of land or undivided share of land, as the case may be, in such supply shall be deemed to be one third of the total amount charged for such supply.

 

Explanation .– For the purposes of paragraph 2, “total amount” means the sum total of,-

(a) consideration charged for aforesaid service; and

(b) amount charged for transfer of land or undivided share of land, as the case may be

 

Hence effective tax rate shall be 12% in case of construction of complex service.
(ii) composite supply of works contract as defined in clause 119 of section 2 of Central Goods and Services Tax Act, 2017.is taxable @ 18%

 
(iii) Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017, supplied  to the Government, a local authority or a Governmental authority by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of, – [Note: Building,fabrication , Modification, Improvement is not covered]

 

(a) a historical monument, archaeological site or remains of national importance, archaeological excavation, or antiquity specified under the Ancient Monuments and Archaeological Sites and Remains Act, 1958 (24 of 1958);

 

(b) canal, dam or other irrigation works;

 

(c) pipeline, conduit or plant for

(i) water supply

(ii) water treatment, or

(iii) sewerage treatment or disposal.

 

Is taxable @ 12% w.e.f. 22/08/2017. (From 01/07/2017 to 21/08/2017 It is taxable @ 18%)

 

 
(iv) Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017, supplied by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of,-

 

(a) a road, bridge, tunnel, or terminal for road transportation for use by general public;

 

(a)  a civil structure or any other original works pertaining to a scheme under Jawaharlal Nehru National Urban Renewal Mission or Rajiv Awaas Yojana;

 

(c) a civil structure or any other original works pertaining to the “In-situ rehabilitation of existing slum dwellers using land as a resource through private participation” under the Housing for All (Urban) Mission/Pradhan Mantri Awas Yojana, only for existing slum dwellers;

 

(d) a civil structure or any other original works pertaining to the “Beneficiary led individual house construction / enhancement” under the Housing for All (Urban) Mission/Pradhan Mantri Awas Yojana;

 

(e) a pollution control or effluent treatment plant, except located as a part of a factory; or

 

 (f) a structure meant for funeral, burial or cremation of deceased.

 

Is taxable @ 12% w.e.f. 22/08/2017 (from 01-07-2017 to 21/08/2017. It is taxable @ 18%).

 

Note:

1.     It is similar to Sl No, 13 of 25/2012

2.     However Sl No, 13 of 25/2012 provided exemption for services  by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of a building owned by an entity registered under section 12 AA of the Income tax Act, 1961(43 of 1961) and meant predominantly for religious use by general public

For which concessional tax is not available and hence shall be taxed at 18%.
 
(v) Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017, supplied  by way of construction, erection, commissioning, or installation of original works pertaining to,- [Note : Repair, Alteration. Modification, Renovation, Completion, fitting out not covered by Concessional taxation]

 

(a) railways, excluding monorail and metro; [Note : Cosntruction service for Air port, port, monorail and metro shall be @ 18%]

 

(b)  a single residential unit otherwise than as a part of a residential complex;

 

[Para 2 (zzb) “residential complex” means any complex comprising of a building or buildings, having more than one single residential unit;

 

[Note:

1.      Construction for Residential Complex is taxable @ 18%.

2.     Services by way of pure labour contracts of construction, erection, commissioning, or installation of original works pertaining to a single residential unit otherwise than as a part of a residential complex is exempt as per Sl. No. No. 11 of Exemption Notification 12/2017]

 

(c) low-cost houses up to a carpet area of 60 square metres per house in a housing project approved by competent authority empowered under the ‘Scheme of Affordable Housing in Partnership’ framed by the Ministry of Housing and Urban Poverty Alleviation, Government of India;

 

(d) low cost houses up to a carpet area of 60 square metres per house in a housing project approved by the competent authority under-

 

(1) the “Affordable Housing in Partnership” component of the Housing for All (Urban) Mission/Pradhan Mantri Awas Yojana;

 

(2) any housing scheme of a State Government

 

(e) post-harvest storage infrastructure for agricultural produce including a cold storage for such purposes; or

 

(f) mechanised food grain handling system, machinery or equipment for units processing agricultural produce as food stuff excluding alcoholic beverages.

 

Is taxable @ 12% w.e.f. 22/08/2017 (from 01-07-2017 to 21/08/2017. It is taxable @ 18%)

 

Note: As per item no. 10 of Exemption Notification 12/2017 , Services provided by way of pure labour contracts of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of a civil structure or any other original works pertaining to the beneficiary-led individual house construction or enhancement under the Housing for All (Urban) Mission or Pradhan Mantri Awas Yojana is exempt

 

 

Note :

1.     Para 2(zs) of 12/2017

“original works” means- all new constructions;

(i)                all types of additions and alterations to abandoned or damaged structures on land that are required to make them workable;

 

(ii)              erection, commissioning or installation of plant, machinery or equipment or structures, whether pre-fabricated or otherwise;

 

2.     Hence Pure labor contracts of following nature for erection, commission or installation  in single residential unit should be exempt:

a)     Air Conditioning

b)    Security Systems

c)     Electrical Installations

d)    Sanitary Installation
(vi)  

 Services provided to the Central Government, State Government, Union Territory, a local authority or a governmental authority by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of –

(a) a civil structure or any other original works meant predominantly for use other than for commerce, industry, or any other business or profession;

(b) a structure meant predominantly for use as (i) an educational, (ii) a clinical, or(iii) an art or cultural establishment; or

(c) a residential complex predominantly meant for self-use or the use of their employees or other persons specified in paragraph 3 of the Schedule III of the Central Goods and Services Tax Act, 2017.

 

[Notification 24/2017-CTR dated 21-09-2017]
(vii) Construction services other than (i), (ii), (iii), (iv), (v) and (vi) above is taxable @ 18%

 

Note : Construction Services shall cover pure labor service also

 

Further as per GST Council decision dated 06-10-2017

1  Works contract services involving predominantly earth works (that is, constituting more than 75% of the value of the works contract) supplied to Central Government, State Governments, Local Authority, Governmental Authority or Government Entity shall be taxed at 5%.
2 Present definition of “governmental authority”  has the same meaning as  assigned to it in the Explanation to clause (16) of section 2 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017

As per Explanation to Section 2(16) of IGST Act:

Explanation.––For the purposes of this clause, the expression “governmental authority” means an authority or a board or any other body,–

(i) set up by an Act of Parliament or a State Legislature; or

(ii) established by any Government

 

Definition of Governmental Authority expanded also to include any authority set up to carry out any functions entrusted to a Panchayat under Article 243G of the Constitution.
3 Supply of service or goods by a Government Entity to Central Government, State Government, Union Territory, Local Authority or any person specified by them against consideration received from them in the form of grants, shall be exempted.

 

“Government Entity” shall be defined as an authority or a board or any other body including a society, trust, corporation which is, –

(i) set up by an Act of Parliament or State Legislature, or

(ii) established by any government,

 

with 90% or more participation by way of equity or control, to carry out a function entrusted by the Central Government, State Government or a local authority
4 The reduced rate of 12% on specified works contract services supplied to the Central Government, State Government, Union Territory, Local Authority and Governmental Authority shall be extended to a Government Entity, where such specified works contract services have been procured by the government entity in relation to the work entrusted to it by the Central Government, State Government, Union Territory or Local Authority
5 GST shall be levied @ 12% on works contract services in respect of offshore works contract relating to oil and gas exploration and production (E&P) in the offshore area beyond 12 nautical miles
6 Exemption to annuity paid by NHAI (and State authorities or State owned development corporations for construction of roads) to concessionaires for construction of public roads.

 

 

 

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Job Work present and proposed rates after GST Council 22nd Meeting on 06-10-2017

 

W.e.f. 01-07-2017 Changes W.e.f. 22-08-2017 As per 22nd GST Council meeting on 06-10-2017 (not yet effective)
Job Work for Printing of Newspaper and books, journals and newspapers

(Newspaper, journals, periodcals, printed books are exempt)

 5% Job work for printing of Newspapers and books , Journals and newspapers only was retained at 5% but where only content is provided by publisher and printer has obligation to provide paper also along with performing printing rate was pegged at 12% No Change
Printing of Brochures,

leaflets and similar

printed matter, whether

or not in single sheets, Maps, atlas, charts and globe, Judicial, Non judicial stamp

papers, Court fee stamps

when sold by the

Government Treasuries or

Vendors authorized by

The Government,

Postal items, like envelope, Post card etc.,

sold by Government, rupee notes when sold to

the Reserve Bank of India

& Cheques, lose or in book form

(Supply of these items is exempt or taxable at 5%)

 18% No Change 5% but where only content is provided by publisher and printer has obligation to provide paper also along with performing printing rate pegged at 12%
Printing of :

1.Children’s picture, drawing or colouring books,

 

2.Music, printed or in manuscript, whether or not bound or illustrated,

 

3.Plans and drawings for architectural, engineering, industrial, commercial, topographical or similar purposes, being originals drawn by hand; hand-written texts; photographic reproductions on sensitised paper and carbon copies of the foregoing

 

4. Unused postage, revenue or similar stamps of current or new issue in the country in which they have, or will have, a recognised face value; stamp impressed paper; banknotes; cheque forms; stock, share or bond certificates and similar documents of title

 

5. Transfers (decalcomanias) [The art or process of transferring pictures and designs from specially prepared paper (as to glass)]

 

6. Printed or illustrated postcards; printed cards bearing personal greetings, messages or announcements, whether or not illustrated, with or without envelopes or trimmings

 

6. Calendars of any kind, printed, including calendar blocks

 

7. Other printed matter, including printed pictures and photographs; such as Trade advertising material, Commercial catalogues and the like, printed Posters, Commercial catalogues, Printed inlay cards, Pictures, designs and photographs, Plan and drawings for architectural engineering, industrial, commercial, topographical or similar purposes reproduced with the aid of computer or any other devices.

 

8. Uncoated paper and

paperboard, uncoated

kraft paper,

greaseproof paper,

glassine paper,

composite paper etc.

 

9. Aseptic packaging

Paper

 

10. Boxes, pouches,

wallets and writing

compendiums, of

paper or paperboard,

containing an

assortment of paper

stationery including

writing blocks

 

11. Cartons, boxes and

cases of corrugated

paper or paper board

 

12. Exercise book, graph

book, & laboratory

note book

 

13. Kites

 

14. Paper pulp moulded

Trays

 

15. Braille paper

 

16. Paper splints for

matches, whether or

not waxed, Asphaltic

roofing sheets

 

[ These items are taxable @ 12%]

 18% 18% 12%, whether or not paper is also provided by the printer.
Other Printing Job Work on material taxable @ 18% including printing on Cartons, boxes and

cases of non -corrugated

paper or paper board

 

 18% 18% 18%
Textile Job Work 5% for Textile yarns (other than of man-made fibres) and textile fabrics

 

 Tax rate for Job work on all textile products falling under chapter 50 to 63 was reduced to 5% including job work on man made fibres and job work on garments or made ups
Jewellery Sector Job Work 5% for

Cut and polished diamonds; precious and semi-precious stones; or plain and studded jewellery of gold and other precious metals, falling under Chapter 71 in the First Schedule to the Customs Tariff Act, 1975

 

But Job work for imitation jewellery, gold smith, silver smith wares was not specified in 5% category. Hence it was taxable at 18%

 

 No Change Job Work for all Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin has been pegged at 5%
Processing of Hides skins and leathers 5% for

Processing of hides, skins and leather falling under Chapter 41 in the First Schedule to the Customs Tariff Act,

 

 No Change
Job Work in relation to food products 18% subject to exemption under Notification 12/2017  for

1 Slaughtering of Animals

 
2 pre-conditioning, pre-cooling, ripening, waxing, retail packing, labelling of fruits and vegetables

 
3 Services provided by the National Centre for Cold Chain Development under the Ministry of Agriculture, Cooperation and Farmer’s Welfare by way of cold chain knowledge dissemination

 
4 processes carried out at an agricultural farm including tending, pruning, cutting, harvesting, drying, cleaning, trimming, sun drying, fumigating, curing, sorting, grading, cooling or bulk packaging and such like operations which do not alter the essential characteristics of agricultural produce but make it only marketable for the primary market;
5 loading, unloading, packing, storage or warehousing of agricultural produce
6 loading, unloading, packing, storage or warehousing of rice.

 

 

 No Change 5%. However packaging of milk processed milk into packets is not in 5% category.
Job Work in relation to residue and waste of food industry and animal fodder 18% 18% 5% except job work for

 dog and cat food put up for retail sale
 

 Job work in relation to manufacture of umbrella
18% 18% 12%
Manufacture of clay bricks 18% 18% 5%
Other Job Work 18% No Change 18%

 

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Electronic Assessment proceedings in cases getting time barred on 31-12-2017: Instruction 8/2017 dated 29-09-2017

  • AO shall issue a communication to assesses having e filing accounts and also having their cases pending for scrutiny assessment by 8th October 2017

 

  • These Assessee to send his consent for E-assessment till 15-10-2017

 

 

  • Mannual Scrutiny to be kept at hold till 15-10-2017 or till the consent of these assesse, whichever is earlier

 

  • E-proceedings can be opted out subsequently under intimation to AO

 

 

  • Proceedings of assesses not having e filing accounts, assesses opting for manual scrutiny, search assessments, transfer pricing assessments, Cases before Range Head u/s 144A shall continue to be assessed manually.

 

  • Notices/communications/orders through e proceedings to be digitally signed by AO

 

 

  • Mannual issue of notice to Assessee shall be done only after providing reason to Range Head

 

  • Online response to AO can be made only till the conclusion of office hours of the day fixed for response

 

 

  • Response for electronic proceedings to be closed by seven days before time barring date i.e. 24-12-2017. An exception can be allowed with permission of Range Head only.

 

  • Manual production of response can  be allowed in following cases
  1. Where manual books or original documents have to be examined
  2. Where summons are issued to assesse or for third party enquiries
  3. Where examination of witness is required by assesse.
  4. Where show cause notice is issued drawing any adverse inference and assesse requests personal appearance

 

  • In appeal proceedings documents shall be produced in two parts : Manual-Part A & Electronic-Part B