Tax Friendly!!!!

                               

 The following case is in the tips in the iceberg, the evaders are more advance to safeguard their own interest. In future, it will be common. The time will say how GSTN will be protected one, tamper proof, evasion proof and free from collusion.

Tax racket busted in Navi Mumbai

The state anti-corruption bureau (ACB) has unearthed a tax evasion scam in Navi Mumbai where the tax collector and two of his colleagues allegedly tampered with the computerised tax system in such a manner that it did not print bills of 3,301 under-construction properties and made sure that the names of these property holders did not appear in the defaulters’ list.

The 3,301 individuals were allegedly helped by a Navi Mumbai Municipal Corporation (NMMC) tax assessment officer, who is currently under suspension, for alleged irregularities committed by him that caused a loss of Rs 681 crore in taxes.

An offence has been registered with NRI police station in Navi Mumbai against chief tax assessor and collector Prakash Kulkarni, accountant Dinesh Gawari and computer operator Kishore Dhole. “The probe will find out the manner in which the racket functioned and provided illegal benefits to those who approached its operators. The officer had tampered with the department’s computerised database to ensure that the 3,301 people managed to pay less tax. A FIR has been filed, which also named two other NMMC employees, a computer operator and a clerk,” said an ACB officer.

After Commissioner Tukaram Mundhe took charge, he stumbled upon the scam. Since then, ACB officials sorted out and studied 3,000 files from the NMMC office. A source said, “There are more than 20 thousand files in NMMC and they have just gone through 3,000 among them. They need to interrogate the accused for which they will soon take custody of the accused.”

He added, “There are three types of fraud we have found in the scam where they have also allegedly issued duplicate property bills and collected tax worth crores of rupees and changed tax valuation of 18 prime properties in Navi Mumbai. We will be conducting a search of 10 different properties and offices belonging to the three accused in the next five days.”

Happy Republic Day

Breach Of Trust...

                                              

          The first GST Council Meeting was held in September, 2016, where the apprehensions about various issues like the one state one vote, exemption limit (turn over), cross empowerment to avoid dual control and threshold limits (with states demanding that they be given the legal and administrative powers for imposing tax on entities with turnover of up to Rs. 1.5 Crores) were deliberated. From the beginning it was emphasized that the proposed GST regime is to be rolled out from 1^st April 2017.

Second Meeting..

     The GST Council finalized five subordinate legislations relating to payment, returns, refunds, invoice and registration. It also reached a consensus on area-based exemptions in accordance with those granted under the current excise regime. The Council decided that under GST, taxes will have to be collected and it can be reimbursed from the annual budgets to the exempted categories. However, the Council faced differences over approving the minutes of the last meeting as certain States disagreed with the decision of Centre assessing the existing service tax assessees in the new regime.

Third Meeting..

                  The GST Council reached a consensus on state compensation - the base year will be 2015-16. A four-tier rate structure comprising a lower rate of 6%, two standard rates of 12% and 18%, and a higher rate of 26% with an additional cess for luxury and demerit goods were proposed. Such cess has been proposed to be used for payment of compensation to the States. However, consensus could not be reached. The Finance Ministry then set the 22nd November 2016 deadline for building consensus on all issues in the Council.

Fourth Meeting..

                 A four-tier GST rate structure of 5%, 12%, 18% and 28% was decided by the GST Council. Essential items including food to be taxed at zero rate. The lowest rate of 5% would be for common use items. 12% and 18% would be the standard rates. The highest rate would apply to luxury and demerit goods, which will also attract an additional cess. The collection from this cess as well as clean energy cess will be used for compensating states for any loss of revenue during the first five years of implementation of GST.

 GSTN Portal was launched.

Fifth Meeting…3^rd December 2016.

             Again, consensus could not be reached on the issue of sharing of administrative powers between the Centre and the States.

Sixth Meeting…11th December 2016.

               Yet another meeting of the GST Council ended inconclusively, as the contentious issue of dual control of assessees could not be sorted. Draft GST legislations were discussed at the meeting.

Seventh Meeting…23rd December 2016.

                No consensus was reached on the issue of dual control. Draft CGST and SGST Law were cleared along with compensation law.

Eighth Meeting…3-4th January 2017.

                 Issue of dual control remained unresolved. Some states have raised a new issue - to split the tax in the ratio of 60:40 between States and Centre, instead of equally dividing it. In fresh roadblocks to GST rollout, states demanded taxation rights for sales on high seas and also increasing the number of items on which cess is to be levied to compensate the states to deal with revenue loss estimated at Rs. 90,000 Crores, post demonetisation.

            Initially a Rs. 55,000 Crores GST compensation fund was proposed to be created by levying cess on demerit or sin goods and luxury items, but post demonetization, the compensation amount is expected to go up to Rs. 90,000 Crores, as most states have seen revenue decline of up to 40 per cent, non-BJP ruled states claimed.

                  Also, coastal states pressed for rights to levy GST on trade of goods within 12 nautical miles offshore, holding up finalising of the draft law for levy of Integrated-GST (IGST) on inter-state trade.

Ninth Meeting… January 16, 2017

               There was broad consensus for GST to be rolled out from 1st July 2017, instead of 1st April 2017. The issue of dual control was broadly resolved. States will have powers to assess and administer 90 per cent of the tax payers having less than Rs. 1.5 Crore annual turnover, while the remaining 10% are to be controlled by the Centre. Tax payers with turnover of more than Rs 1.5 Crore will be controlled and administered in 50:50 ratio both by State and Centre. States can levy GST within 12 nautical miles offshore.

                       Now, more or less, the storm of GST is over. The Centre was not only silent but was also soft towards the states who not only resisted the Centre’s authority, but were also not willing to either vote on issues, whether it is turnover, compensation, dual control, threshold. To our dismay, the Centre agreed to surrender in the name of consensus, so that GST can be rolled out from 1^st July. After demonetization, new issues were raised regarding the compensation, control over High Sea sales etc.

                 In the present scenario, no one dares to raise any question about the reasonability about the issues being raised by the States and are expected to only listen, that too silently & obediently, whatever is said by the authority. What is the gain, why was it stretched for so long when the Centre was ready to forgo everything in one go. Although it is a high level decision, but the manner in which the decisions were being made, points not only to a lack/loss of trust between the Centre & the States, but also undermines the supremacy of the Centre in taxation matters. Such type of U-turns have never happened before. History will remember them for what they have asked and what they have offered, which has not happened in the past.

                                The present decision expanded the base of State VAT and delimited the heritage base of CBEC. In the meeting, prominent FMs were from Kerala, West Bengal & others were beneficiary with their aggressive representation. No one spoke or analysed the state of affairs of the VAT Department, whether it is Rajasthan, Haryana, Punjab, Madhya Pradesh etc. They have achieved beyond their expectations.

                             There is absolute pin-drop silence from the more than 15 registered Associations of CBEC including the Group-A ones. It is not a shock that they are still under trauma but it is unable to even decide from where to start and how to stop the irreparable damage that is being caused. They are not able to even raise their voices, against what has not only shaken their career progressions, but also the assessee base in-toto and has doomed the service forever. The encroachment which has taken place will yield its results in future, but as on date the assessment made by our front is full of faults as well as reeks of incompetence.

                                     Since the planning of GST, several batches of ACs, Inspectors, Tax-Assistants were recruited enmasse, who have just joined this Department with an expectation that they will prosper. The recruitment and cadre restructuring was done keeping an eye on the GST implementation. This Department will have a commendable position to administer - all are shattered in one go. Customs, Central Excise, Service Tax, in all the arenas, the  state has very meticulously entered, nothing remains safe or protected that it is ours and the rest is theirs. Thousands of employees, whose loyalty kept the flag of CBEC flying high, are deeply hurt.

                                   In CBEC, a few learned Senior Officers, who author and publish books, some in taxation matters and one or two in day-to-day service matters. The last book was published by Sh. A. K. Pandey, member (P&V), titled as "Grit That Defied Odds". The present officials, who have witnessed the ups and downs and finality of GST in front of them, what prompted them to remain as a silent participant (like a back bencher in college) and given all consent to them. ("The drafting of IGST is a clear cut sabotage by our own officers" ) and the culture of percentage 10% as well as 50-50 - who promoted these concepts ? The services of all Cadres, in every capacity, was not spared - everything is snatched, left only with a begging bowl !!

                                      The word ‘Salt’ was removed from the Salt Act, 1944. The day it was removed, loyalty perished and now loyalty to the service appears to be no more.

                                        CESA, Mumbai appeals to all the office bearers to come forward and rise to the occasion, like in the case of autonomy of the RBI. Employees should stand for their autonomy as like Khadi Gramudyog as like Jallikattu, when they feel that something is infringed. We hope that we will all be united to submit our stand, before the final round of GST council Meeting, which is scheduled on 18^th February, 2017.

                                      Being a Central Government Employee, we all want a strong Centre, as well as a strong GST and will endeavor to our best for a smooth transition from present tax regime to the new tax regime…

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CESA salutes to the Great Warrior....

 तुम मुझे खुन दो, मैं तुम्हें आजादी दूँगा -नेताजी सुभाषचंद्र बोस

23जनवरी को नेताजी सुभाष चंद्र बोस की जयंती पर उन्हें  शत शत नमन करते हैं ।

जय हिन्द

Cheers and Tears of GST....

Centre to roll out GST on July 1

During the Ninth meeting of the GST Council, a consensus was reached and the roll out of the Goods and Services Tax (GST) has been deferred to 01-July-2017 from the proposed 01-April-2017. The Centre and the States, on Monday, reached a consensus on most of the controversial issues, including dual control and taxation in the high-seas, making way for the GST to be rolled out in the country

Tax payers will be split for Audit Asper agreement, the States will have the power to assess and administer 90 per cent of the tax payers with less than Rs. 1.5 Crores annual turnover, while the remaining (10 per cent) would be controlled by the Centre.

Intelligence based enforcement power will be with both the Centre and States. For tax-payers with more than Rs. 1.5 Crore turnover, the States and the Centre will control and administer them in a 50:50 ratio.Each assessee will be assessed by only one authority. 

The States would also have the powers to levy tax on economic activity within 12 nautical mlles of the territorial waters of India, even though such rights constitutionally vests with the Centre. The power of audit of tax-payers and taxation in the high-seas were holding up the consensus on GST. 

The power to levy and collect Integrated-GST (I-GST), a tax on inter-state movement of goods and services, will lie with the Centre, but by special provisions in the law, the states will also be cross-empowered.

The Council will now meet on 18-Feb-2017 to approve the drafts of the I-GST law and other supporting legislations, needed for subsuming Central and State levies like Excise Duty and Service Tax and VAT.

West Bengal's Amit Mitra, said he dissented at the meeting, as his State government wanted 100 per cent of the tax payers up to Rs. 1.5 Crore turnover to be with the States.

This is the development which bring cheers to the staff of the State and their mentors and tears to the staff of the CBEC and little remorse to the mentors, as they are having a few months left of their service and are satisfied, as they have no role to play, citing it as a political decision.

The glorious Department in the hands of defensive heads, will be shattered in front of their eyes within their tenure. They feel contended, as they have been given invitee positions in the GST Council, which is supreme in GST related matters.

In CBEC, the staff of Customs may not be affected, but the staff of Central Excise and Service Tax will loose a lot, both career-wise as well as position-wise. Demonetization regained the position of the Income Tax Department as well as Enforcement Directorate. The staff of Service Tax, who has taken maximum pain, worked in adversity and shaped the Department from three services to innumerable services (except services in the Negative List) from Zero to Rs. 1.87 Lakh Crores (approx.) may be the biggest losers...

Expecting too much will lead to frustration. Every stakeholder is trying their best to safeguard their own interests, playing the blame game will not yield any results, except developing enmity among ourselves.

The Steering Committee, comprising of all the Associations has already authorized the Conveners to take appropriate steps for safeguarding the position and dignity of our Cadre in the ensuing GST. Shortly, a meeting is planned at New Delhi to chalk out the future course of action in this regard.

Part 2

Cadre is being guided and mis-guided by individuals having vested interests, some are genuine and are putting in their best to drag others in the name of litigation. CESA, Mumbai is not competent to certify the merit of their case but certainly have strong objections about their timings. With respect to promotions, we have patiently waited a lot and allowed the embers of hope to be kindled into a flame, but when the heat starts increasing, you start searching for the phone number of the fire brigade, so as to douse the fire. 

Laziness always brings suffering and mis-fortune. CESA, Mumbai raised all these issues since long & at that time the necessary attention was not given to these issues. Getting an order from CAT at the local level will not have an all-India impact. It will only open the chain of judiciary process, which will prolong the issue, as far as the masses are concerned (Exception where impact of an individual is concerned). Within no time, we are able to post what the VAT employee demands are, in the forthcoming GST, their grade, positions & designations. But we ourselves drag each other down within the Zone & within the Department. We may as well forget about the major issues, like parity with Examiner/ Appraiser and Income Tax as well as stagnation.

Good news is expected - holding of the DPC may be likely within a short period, as all the Senior Officers in the Board are unable to find any more excuses in view of our persuasion. Let's hope for the best...

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Relax For Time Being....

Govt employees needn’t file asset details under Lokpal for now

The Centre has extended indefinitely the deadline to file details of assets and liabilities by central government employees under a mandatory provision of Lokpal Act. A new format and fresh set of rules are being finalised by the government in this regard. The last date for filing such details was December 31.

“There is no requirement for filing of declarations of assets and liabilities by public servants now. The government is in the process of finalising a fresh set of rules. The said rules will be notified in due course to prescribe the form, manner and timelines for filing of declaration of assets and liabilities by the public servants under the revised provision of the said (Lokpal) Act.

“All public servants will henceforth be required to file the declarations as may be prescribed by the fresh set of rules,” an order issued by Department of Personnel and Training (DoPT) said.

There are about 50.68 lakh central government employees.

As per rules, notified under the Lokpal Act, every public servant shall file declaration annually pertaining to his assets and liabilities as on March 31 every year or on or before July 31 of that year.

For 2014, the last date for filing returns was September 15. It was first extended till December, then till April 30, 2015 and third extension was up to October 15. The date was again extended to April 15, 2016 and then July 31 for filing of the returns.

The last date was further extended till December 31 after Parliament had passed a bill to amend the Lokpal and Lokayuktas Act, 2013.

The declarations under the Lokpal law are in addition to similar ones filed by the employees under various services rules.

From Sources:-

NEW FLASHPOINT BEFORE GST TALKS

A storm is brewing in the Goods and Services Tax (GST) council over the Centre's comments against "badly managed" states for poor tax collections following demonetisation.

The finance ministry had said the indirect tax collections have taken a hit since December only in the "badly managed" states while others have shown an upward trend.

Some Opposition states such as Kerala, West Bengal and a few north-eastern states are likely to protest on the issue.

"Bengal has received the central government's highest award in integrated financial management system as well as e-taxation methods. So how can they say that we are badly managed, after rewarding us?" said a top functionary in the West Bengal government who did not wish to be named.

Data made available by states show a surge in value added tax (VAT) collection for most in November and December. West Bengal has shown a contraction in December while Arunachal Pradesh and Tripura saw lower tax collection growth in November, and Meghalaya saw a fall in December.

The Opposition-ruled states have already formed a cartel in the GST council to seek more negotiations before allowing the four pending GST-related bills to be passed in Parliament.

"We want a definition of state to help collection of taxes in states with a sea-border," said a GST council member who did not wish to be named. As the ninth GST council meeting is scheduled on January 16 here, several issues remain unresolved. Compensation and dual control are most important among them.

Though the issue of compensation was already discussed and agreed upon in earlier meetings, demonetisation has reportedly spurred the states to demand changes in the law — including bi-monthly payment of compensation instead of quarterly and 100% compensation instead of the earlier decided formula. And with this, the Compensation Bill has been jeopardised.

Dual control will decide who taxes whom between the states and the Centre. At the heart of this debate are states such as West Bengal and Tamil Nadu, which want control over businesses with an annual turnover of less than Rs.1.5 crore. But the Centre has refused to concede, stating that taking such a step would leave it with a very small pool of taxpayers.

Without putting the dual control debate to rest, the council cannot move on the other pending legislations; CGST, SG ST and IGST. 

-- Sources