Commodities Transaction Tax (CTT)

Section 105

Value of taxable commodities

Section 106

Collection and recovery of commodities transaction tax.

Section 107

Furnishing of return.

Section 108

Assessment.

Section 109

Rectification of mistake.

Section 110

Interest on delayed payment of commodities transaction tax.

Section 111

Penalty for failure to collect or pay commodities transaction tax.

Section 112

Penalty for failure to furnish return.

Section 113

Penalty for failure to comply with notice.

Section 114

Penalty not to be imposed in certain cases.

Section 115

Application of certain provisions of Income-tax Act.

Section 116

Appeal to Commissioner of Income-tax (Appeals).

Section 117

Appeal to Appellate Tribunal.

Section 118

Punishment for false statement.

Section 119

Institution of prosecution.

Section 120

Power to make rules.

Section 121

Power to remove difficulties.

Section 121 A

Provisions of Chapter VII not to apply to taxable commodities transaction.


Introduction

The Finance Act, 2013 proposed to levy Commodities Transaction Tax@0.01 % on sale of commodity derivatives in respect of non-agricultural commodities, traded in recognised associations.

Every recognised association shall collect the commodities transaction tax from the seller who enters into a taxable commodities transaction tax from the seller who enters into a taxable commodities transaction in that recognised association at specified rate of @0.01%.

The tax so collected is to be deposited to the Credit of Central Govt. on every 7th of Next Month. If the tax is not so deposited within 7 days of Calender Month, simple interest 1% shall be applicable.

This tax shall come into force on 01.07.2013 by the Notification No. 45/2013, dated 19.06.2013.

Penalty

Default

Penalty

(i) Failure to collect fully or partly CTT

Amount equal to 100 percent of CTT not collected.

(ii) Failure to pay CTT to the Credit of the Govt.
within specified time

Rs. 1000 for each day of default.

(iii) Failure to furnish return u/s-I 10(2)

Rs. 100 for each day of default

(iv) Failure to Comply with notice issued in
assessment_proceeding_u/s._110(1).

Rs. 10000 for each such default

1. Agricultural Commodities.

For the purposes of clause (7) of Section 116 of the Act, the  Agricultural Commodities  hall be the following, namely:—

(i)         Almond

(ii)        Barley

(iii)       Cardamom

(iv)       Castor Seed

(v)        Channa/Gram

(vi)       Copra

(vii)      Coriander/Dhaniya

(viii)     Cotton

(ix)       Cotton seed Oil-cake/ Kapasia Khali

(x)        Guar Seed

(xi)       Isabgul Seed

(xii)      Jeera (Cumin Seed)

(xiii)     Kapas

(xiv)     Maize Feed

(xv)      Pepper

(xvi)     Potato

(xvii)    Rape/Mustard Seed

(xviii)   Raw jute

(xix)     Red chilli

(xx)      Soya bean/seed

(xxi)     Soymeal

(xxii)    Turmeric

(xxiii)   Wheat

2. Rounding off value of taxable commodities transaction,  commodities transaction tax, etc.

The value of taxable commodities transaction and transaction tax, interest and penalty payable, and the amount of provisions of Chapter VII of the Act shall be rounded off to the purpose, where such amount contains of a part a rupee co part is fifty paise or more, it shall be increased to one rupee fifty paise it shall be ignored.

3. Payment of commodities transaction tax.

Every recognised association, who is required to collect and pay commodities transaction tax under section 119 of the Act shall pay the amount of such tax to the credit of the Central Government by remitting it into any branch of the Reserve Bank of India or of the State Bank of India or of any authorised Bank accompanied by a commodities transaction tax challan.

4. Return of taxable commodities transactions.

(1)        The return of taxable commodities transactions required to be furnished under sub-section (1) of section 120 of the Act shall be in Form No. 1,verified in the manner indicated therein, and may be furnished in any of the following manners, namely:

(i)         furnishing the return in paper form;

(ii)        furnishing the return electronically under digital signature;

Provided that where the return is furnished in the manner provided in clause (i) the particular. required to be furnished in the Schedules to Form No. 1 referred to in sub-rule (1)shall be furnished on a computer media, in accordance with the following-

(a)        the computer media conforms to the following specifications:

(i)         CD ROM of 650 MB capacity or higher capacity; or

(ii)        Digital Video Disc;

(b)       if the data relating to the Schedules are copied using data compression or backup software utility, the corresponding software utility or procedure for its decompressions or restoration shall also be furnished; and

(c)        the return shall be accompanied by a certificate regarding clean and virus free data.

(2)        The return of taxable commodities transaction entered into during a financial year shall be furnished on or before the 30th June immediately following that financial year.

(3)        The Director-General of Income-tax (Systems) shall specify the procedures, formats and standards for ensuring secure capture and transmission of data and shall also be responsible for evolving and implementing appropriate security, archival and retrieval policies in relation to furnishing the returns in the manners specified in clause (ii) of sub-rule (1).

5. Return by whom to be signed.

The return under sub-section (1) of section 120 of the Act shall be signed and verified in the case of a recognised association, —

(i)         being a company, by the managing director or a director thereof, and

(ii)        in any other case, by the principal officer thereof.

6. Time limit to be specified in the notice calling for return of taxable commodities transaction.

Where an assessee fails to furnish the return under sub-section (1) of section 120 of the Act within the time specified in sub-rule (2) of rule 6, the Assessing Officer may issue a notice to such person requiring him to furnish, within thirty days from the date of service of the notice, a return in the Form prescribed in rule 6 and verified in the manner indicated therein.

7. Notice of demand.

Where any tax, interest or penalty is payable in consequence of any order passed under the provisions of Chapter VII of the Act, the Assessing Officer shall serve upon the assessee a notice of demand in Form No. 2 specifying the sum so payable.

8. Prescribed time for refund of tax to the person from whom such amount was collected.

Every assessee, in case any amount is refunded to it on assessment under sub-section (2) of section 121 of the Act, shall, within thirty days from the date of receipt of such amounts, refund the same to the concerned person from whom it was collected.

9. Form of appeal to Commissioner of Income-tax (Appeals).

(1)        An appeal under sub-section (1) of section 129 of the Act to the Commissioner (Appeals) shall be made in Form No. 3.

(2)        The form of appeal prescribed by sub-rule (1), the grounds of appeal and the form of verification appended thereto relating to an assessee shall be signed and verified by the person who is authorised to sign the return of taxable commodities transactions under rule 7, as applicable to the assessee.

10. Form of appeal to Appellate Tribunal.

An appeal under sub-section (1) or sub-section (2) of section 130 of the Act to the Appellate Tribunal shall be made in Form No. 4, and where the appeal is made by the assessee, the form of appeal, the grounds of appeal and the form of verification appended thereto shall be signed by the person specified in rule 7
 
 
 
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