Direct Tax
Section 144B OF the ITA - Faceless assessment
ORDER F. NO. 187/7/2024-ITA-I DATED 1 August 2024
As per Section 144B(5) of the ITA, 1961, all communications within various units of National Faceless Assessment Centre (NFAC) and between NFAC and the assessee shall be through NFAC and shall be exchanged exclusively by electronic mode.
However, it is provided that the provisions of this sub-section shall not apply to the inquiry or verification conducted by the verification unit in the circumstances as may be specified by the Board on this behalf.
Thus, the Central Board of Direct Taxes specifies the following circumstances for the purpose of enquiry or verification functions referred to in Section 144B(3) (iii) of the ITA by the Verification Unit:
- Non-availability of digital footprint in respect of the assessee or any other person.
- Electronic or Online verification is not possible on account of no response to notice issued to the assessee or any other person.
- Physical verification of assets or premises or persons is required, regardless of the presence of digital footprint.
Non-applicability of higher rate of TDS/TCS in the event of death of deductee/collectee before linkage of PAN and Aadhar Registration
Circular No. 081 2024 DATED 5 August 2024
As per Section 206AA/206CC, TDS/ TCS shall be deducted at higher rates in case of non-linking of PAN and Aadhaar.
The Board , had earlier provided an extension in case where a transaction is entered up to 31 March 2024 and PAN - Aadhaar is linked before 31 May 2024, 206AA/206CC shall not apply. The board, hereby specifies that in respect of cases where a higher rate of TDS/TCS was attracted under section 206AA/206CC of the act pertaining to the transactions entered into up to 31 March 2024 and in case of demise of the deductee/collectee on or before 31 May 2024, i.e., before the linkage of PAN and Aadhaar could have been done, there shall be no liability on the deductor/collector to deduct/collect the tax under Section 206AA/206CC, as the case maybe.
The deduction/collection, as mandated in other provisions of Chapter XVII-B or Chapter XVII-BB of the ITA, shall be applicable.
Income tax clearance certificate
PRESS RELEASE DATED 20 August 2024
Section 230(1A) of the ITA, 1961 relates to obtaining of a tax clearance certificate, in certain circumstances, by persons domiciled in India.
There was an amendment to this section in budget 2024 to cover the liabilities under the Black Money Act in the same manner as the liabilities under the ITA, 1961 for the purpose of tax clearance certificate. However, the amendment is misinterpreted that all Indian citizens must obtain Income Tax Clearance Certificate (ITCC) before leaving the country, which is factually incorrect.
In view thereof, it is clarified that the ITCC, under Section 230(1A) of the ITA, is needed by residents domiciled in India only in rare cases, such as;
- Where a person is involved in serious financial irregularities. OR
- Where a tax demand of more than INR 1 Million is pending, which is not stayed by any authority.
Indirect Tax
Customs
CBIC extends ADD on import of ‘CPVC – resins or compound’ from China PR and Korea RP
Notification No 15/2024–Customs (ADD) dated 23 August 2024
The Central Board of Indirect Taxes and Customs (CBIC) has extended the levy of Anti-dumping Duty (ADD) on the import of Chlorinated Polyvinyl Chloride Resin (CPVC) – whether or not further processed into the compound, falling under heading 3904 originating in or exported from China PR and Korea RP, by a further period of five y ears. The ADD shall be payable in Indian currency.
Automated customs clearance processes for EOUs under IGCRS Rules implemented from 1 September 2024
Circular No 11/2024-Customs dated 25 August 2024
In terms of the Customs (Import of Goods at Concessional Rate of Duty or for Specified End Use) Rules, 2022 read with Notification No. 52/2003-Customs (as amended), Export Oriented Units (EOUs) are required to adhere to the Customs clearance procedures outlined in Rule 5 thereof.
With the completion of necessary developments in the system to allow clearances to EOUs under IGCR, the CBIC has advised all EOUs to obtain IGCR Identification Number (IIN) at ICEGATE portal and to register their IGCR bond for filing a bill of entry with IGCR benefit. The same process would be used for clearances from SEZ to EOUs as well. The changes have been implemented w.e.f. 1 September 2024.
Foreign Trade Policy (FTP)
DGFT facilitates eBRC self-certification process with two additional functionalities
Trade Notice No 12/2024-2025 dated 14 August 2024
- Vide Trade Notice No 33/2023- 24 dated 10 November 2023, the Directorate General of Foreign Trade (DGFT) had piloted an online self-certification process for the generation of electronic Bank Realization Certificates (eBRCs) by exporters. The Directorate has now integrated banks with the eBRC system, thereby facilitating the automatic transmission of Inward Remittance Messages (IRMs) for all Trade Account transactions.
- In furtherance to the aforesaid
developments, the DGFT has
introduced two additional
functionalities effective from 20
August 2024, viz:
- Bulk upload using the prescribed spreadsheet, which contains the requisite IRM mapping along with shipping bill and invoice details.
- Application Programming Interface (API) Integration between DGFT eBRC system and ERP/Accounting or other software. For enabling API integration, the exporters are required to complete an online registration process specifying the Importer -Exporter Code (IEC) for which the API will be utilized. This registration should be authenticated through the IEC holder’s account. Furthermore, the exporters are responsible for managing API consumer access, including its activation, deactivation, and re-authorization.
DGFT launches Revamped Nonpreferential Certificate of Origin (eCoO) 2.0 System
Trade Notice No 13/2024-2025 dated 16 August 2024
DGFT has launched the upgraded Non-preferential Certificate of Origin (eCoO) 2.0 system, for streamlining the certification process for exporters. Some notable features of the revamped system include:
- Multi-user access for single IEC,
- Aadhaar-based e-signing option, and
- Seamless access to eCoO and other related services such as FTA information, trade events, etc.
Exporters have been allowed to file Non-preferential Certificates of Origin through the new system with issuing agencies from 28 August 2024.