Direct Tax
Monitory limit of income-tax authorities in respect of reduction or waiver of interest paid or payable under section 220(2)
Circular No. 15/2024 [F. NO. 400/08/204-IT(B)] Dated 4 November 2024
- Interest @ 1% per month is levied under section 220(2) of the Income Tax Act (ITA) in case of delay in making payment against any notice of demand under section 156 of the Act.
- In accordance with the powers vested with the income-tax authorities specified in section 220(2A), CBDT hereby specifies the following monetary limits to waive such interest as under:
| Sr. No | Income-tax Authority | Monetary Limits for reduction or waiver of interest |
|---|---|---|
| 1 | Principal Commissioner (Pr. CIT) or Commissioner (CIT) | Upto Rs. 50 lacs |
| 2 | Chief Commissioner (CCIT) or Directorate General of Income Tax (DGIT) | Above Rs. 50 lacs to Rs. 1.5 crore |
| 3 | Principal Chief Commissioner (Pr. CCIT) | Above Rs. 1.5 crore |
Condonation of delay under section 119(2)(b) in filing of form no. 9a/10/10b/10bb for assessment year 2018-19 and subsequent assessment years
Circular No. 16/2024 [F. NO. 197/693/2024-ITA-I] Dated 18 November 2024
- In the given circular, the Central Board of Direct Taxes (CBDT) specifies authorities and time limit as below for dealing and
admitting application of condonation of delay in filing Form 9A/10/10B/10BB (applicable to charitable or religious trust/
institution) for Assessment Year 2018-19 and subsequent assessment years:
Sr. No Income-tax Authority Time limit 1 Pr. Commissioners of Income Tax ('Pr. CsIT')/ Commissioners of Income Tax ('CsIT') Delay is upto 365 days 2 Pr. Chief Commissioners of Income Tax ('Pr. CCsIT')/ Chief Commissioner of Income Tax ('CCsIT')/ Director Generals of Income Tax ('DGsIT') Delay is more than 365 days - However, in case of application filed on or after the date of issue of this Circular, no application for condonation of delay in filing of Form No. 9A/10/10B/10BB shall be entertained beyond 3 years from the end of the assessment year for which such application is made.
- The concerned authority while dealing with the applications should be satisfied that the applicant was prevented by reasonable cause from filing such Forms within time lines and that the case is of genuine hardship on merits. Further, they should also be satisfied that the amount accumulated or set apart has been invested or deposited in any one or more of the forms or modes specified in section 11(5) of the Act.
- A condonation application should be disposed of, as far as possible, within six months from the end of the month in which such application is received by the Competent Authority.
Non-applicability of section 194n of income tax act, 1961
Notification No. 123/2024/F. No. 275/39/2021-IT(B) Dated 28 November 2024
CBDT hereby specifies that the provisions of section 194N of the ITA shall not apply to Foreign Representations duly approved by the Ministry of External Affairs of the Government of India including Diplomatic Missions, agencies of the United Nations, International Organizations, Consulates and Offices of Honorary Consuls which are exempt from paying taxes in India as per the Diplomatic Relations (Vienna Convention) Act 1972 (43 of 1972) and the United Nations (Privileges and Immunities) Act 1947 (46 of 1947).
Indirect Tax
Customs
CBIC clarifies on simultaneous availment of benefits under IGCR and MOOWR
Circular No. 26/2024-Customs dated 21 November 2024
The Central Board of Indirect Taxes and Customs (CBIC) has issued clarification on simultaneous availment of concessional customs duty benefit subject to compliance with the Customs (Import of Goods at Concessional Rate of Duty) Rules, 2022 (IGCR) by units operating and availing duty deferment benefit under the Manufacturing and Other Operations in Warehouse Regulations (MOOWR) scheme. It has been reiterated that MOOWR unit may avail IGCR exemption along with duty deferment under MOOWR scheme simultaneously, provided that the importer undertakes to adhere to the compliances and conditions prescribed under IGCR including with respect to time-limit etc. in addition to MOOWR compliances and procedures.
The Board has further clarified that the IGCR benefit is available to MOOWR units who import certain goods, undertake value addition and supply the value-added intermediate goods for further manufacturing of mobile phones. Perusing the expression “for use in manufacture of cellular mobile phones” in entries at Sr. No. 5C to 5E in Notification No. 57/2017-Cus, the Board has explained that the requirement is the ultimate use of the component in the manufacture of mobile phones and does not mean that it needs to be imported by mobile phone manufacturers.
CBIC permits manual filing of monthly returns under IGCRS Rules 2022 until 31 January 2025
Circular No. 25/2024-Customs dated 21 November 2024
Considering the difficulties being faced by the importers in electronic filing of their IGCR-3 monthly statement, the CBIC has permitted manual filing before the jurisdictional officers till 31 January 2025. Electronic filing will become mandatory from February 2025.
Further, an excel utility will be made available by DG Systems in December 2024 for filing IGCR-3 monthly statement. The importers have been encouraged to use the same to file their IGCR-3 / IGCR-3A statements electronically for present and past periods, by 31 January 2025.
CBIC clarifies classification of ‘Clear Float Glass’
In consultation with CSIR-Central Glass & Ceramic Research Institute, Kolkata, the CBIC has clarified that the Clear Float Glass which is not wired, not colored, not reflective, and not tinted, but has only a tin layer on one side by default and there is no other metal oxide layer on it, will be said to have no absorbent layer. Therefore, it will be correctly classified under tariff item 7005 29 90 instead of 7005 10 90.
CBIC amends the Customs Inland Container Depots (ICD) and Seaport lists
Notification Nos. 76/2024-Customs (NT), 78/2024-Customs (NT), 81/2024-Customs (NT) and 83/2024-Customs (NT)
CBIC has de-notified Pimpri, Maharashtra as an ICD, while adding Jajpur, Odisha, and Dhanakya, Rajasthan to the list, for the purpose of unloading of imported goods and the loading of export goods or any class of such goods. Accordingly, Notification No. 12/97-Customs (NT) stands amended to this effect.
Further, the Board has notified Chhara port as Customs Seaport, thereby amending Notification No. 62/94-Customs (NT).
Foreign Trade Policy (FTP)
The Directorate General of Foreign Trade (DGFT) eases import policy for ‘Electronic Integrated Circuits’ and ‘parts’ under ITC(HS) 8542
Notification No. 41/2024-25 dated 29 November 2024
The requirement of compulsory registration under Chip Imports Monitoring System (CHIMS) in terms of Policy Condition No. 8 of Chapter 85 of ITC(HS) 2022, Schedule-I (Import Policy) has been discontinued with immediate effect.
Accordingly, Electronic Integrated Circuits falling under ITC(HS) Code 85423100, 85423200, 85423300, 85423900 and Parts falling under ITC(HS) Code 85429000 can be imported freely without any condition.
Quality Control Orders issued by Ministry of Heavy Industries inapplicable to inputs imported by Advance Authorisation holders, Export Oriented Units (EOUs), and Special Economic Zones (SEZs)
Public Notice No. 31/2024-25 dated 5 November 2024
With immediate effect, the DGFT has amended Appendix 2Y [list of Ministries / Departments whose notifications on mandatory Quality Control Orders (QCOs) are exempted by the DGFT for goods to be utilized/consumed in manufacture of export products] to include the Ministry of Heavy Industries.
Accordingly, inputs imported by Advance Authorisation holders, EOUs, and SEZs would not be subject to QCOs notified by the Ministry of Heavy Industries, in addition to QCOs of Ministry of Steel, Ministry of Textiles etc.