ENA Economy 2016-12-15 07:48:04 <p><strong>New Delhi, Dec 15 (KNN)</strong> In line with the Income Tax Department, the Revenue Department has asked its officials not to reopen the past assessments of excise and service tax of assessees even if their turnover in the current period increases on account of digital payments in the wake of demonetisation.</p> <p>In a circular to excise and service tax chief commissioners, the Central Board of Excise and Customs (CBEC) said there are apprehensions that an increased turnover because of use of digital modes of payment may lead to demands for the earlier period.</p> <p> It is, hereby, clarified that in indirect taxes, past assessments will not be reopened for this reason alone, the CBEC said.</p> <p> By adopting a digital mode of payment, no financial transaction would remain undisclosed and consequently an enhanced turnover might get reflected in the books of accounts, the CBEC said.</p> <p>Last week, the Central Board of Direct Taxes (CBDT) had directed its assessing officers not to reopen past assessments in cases merely on the ground that the current years turnover is higher than previous years' turnovers.</p> <p>Industry body FISME had earlier made suggestion to the MSME Ministry on this. It had also written a letter to Prime Minister Narendra Modi, in which urged the PM to bring two major policy interventions on - Taxation front and Labour Laws front - to help the sector smoothly migrate from cash based economy to a cashless economy.</p> <p>On Taxation, FISME wrote, the enterprises will pledge disclosure and compliance on a promise that their records of previous years will not be opened and they will not be harassed.</p> <p>The existing cash based informal economy- which constitutes over 90% of all enterprises and account for most of the employment in the country other than in the Government and the corporates, is not yet ready for cashless economy and GST, FISME wrote.</p> <p>FISME noted that while most of the entrepreneurs can be counselled/persuaded to migrate to formal economy, the biggest hurdle in the way is the fear of persecution both in future and of non-compliance in past.</p> <p>A comprehensive amnesty a kind of safe passage, is needed especially in two spheres a) Taxation (Direct and Indirect Tax) and b) Labour/ Social Security along with assurance that the government machinery will also be reformed and made to work for the good of the nation and not to serve vested interests, it said. <strong>(KNN Bureau)</strong></p> 15985 http://knnindia.co.in/news/newsdetails/economy/dont-reopen-past-assessments-of-excise-service-tax-if-turnover-jumps-due-to-digital-mode-revenue-dept-to-officials 2016-12-15 07:48:04 knnindia.co.in