Are You under the scanner of Excise and Service Tax Department?

Are You under the scanner of Excise and Service Tax Department?

A new section 15A has been inserted in the Central Excise Act’ 1944 w.e.f. the date of the applicability of the Finance Bill’ 2014. Further, this section has also been made applicable for Service Tax Law by virtue of Section 83 of Finance Act’ 1994.

This is known as Information Return. A new concept of collecting information of Tax evaders of Indirect taxes.

The concept can be said to be same as Annual Information Return (AIR) in Income Tax.

This new section has been inserted so as to empower the CG

à To prescribe an authority or agency

à To whom the information return in prescribed form and manner shall be filed

à By the specified persons such as Income-tax authorities, State Electricity Boards, VAT or Sales Tax authorities, Registrar of Companies.

Information can be collected for the purposes of the Act, such as, to identify tax evaders or recover confirmed dues.

Further, new section 15B has also been inserted, which provides for imposition of penalty on failure to furnish information return.

Indirect Tax being a major source of revenue, the Government has introduced this concept to grab more assesses in its clenches. Thus, there is a need to properly reconcile the accounts and comply with these laws before its too late.

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