CBEC – ServiceTax:
CBEC has issued Clarification regarding the provision of Section 73, 76 and 78 of the Finance Act, 1994 and Section 11AC of the Central Excise Act, 1944 after amendments made vide Finance Act. 2015 made with effect from 14.05.2015. An attempt has been made to clarify the doubts on Issuance of a Show Cause Notice (SCN), whether the SCN have to be issued in a case involving the extended period of limitation, where the assessee pays the tax/duty, interest and 15% penalty as prescribed or not and doubts w.r.t the Conclusion of proceedings and who is competent to order conclusion of proceedings if the conditions meriting conclusion of proceedings are fulfilled.
DVAT:
DVAT Authorities have detected numerous dealers who in terms of provisions of Section 40A of the DVAT Act, 2004 have entered into an , arrangement to defeat the purposes of the DVAT Act by way of claiming refunds, on Input Tax Credit to which they are not entitled or by providing fictitious ITC to the purchasing dealer or by downloading Central Forms against fictitious inter-state purchases. With an aim to safeguard revenue of the Government from such arrangements and frauds, the department is contemplating requiring Additional Security from Dealers registered with the Department within last three years, whose turnover has crossed Rs. 10 crores in any of the financial years, will be required to furnish additional security for an amount equal to 0.1% of the maximum of the quantified turnover in the manner prescribed in rule 23 of the DVAT Rules, 2005.
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