MM TAX CLUB

CBDT Notification No. 01/2023 dated Notification No. 01/2023

Procedure, format and standards for filling an application in Form No. 15C or Form No. 150 for grant of certificate for no-deduction of income-tax under sub-section (3) of section 195 of the Income Tax Act, 1961 through TRACES.

1. Section 195(3) ofthe Income-tax Act, 1961 provides for grant of certificate to a person entitled to receive interest or other sum on which income tax is to be deducted under section 195(1) of the Income-tax Act, 1961 without deduction of tax at source. For the purpose, an application has to be made by the person to the Assessing Officer (hereinafter referred to as "AO") in the prescribed form.

2. Rule 29B of the Income-tax Rules, 1962 prescribes the rules for making application for certificate authorising receipt of interest and other sums without deduction of tax in such cases. Rule 29B(3) of the Income-tax Rules, 1962 provides that the application shall be made by a banking company or insurer in Form No. 15C and by any other person who carries on business or profession in India through a branch in Form 15D.

3. In exercise of the powers delegated by the Central Board of Direct Taxes under sub-rule (1) of Rule 131 ofthe Income-tax Rules, 1962, the Director General of Income-tax (Systems) hereby specifies

a. Form No. 15C and Form No. 15D prescribed under Rule 29B(3) of the Income-tax Rules, 1962 for electronic furnishing at TRACES website under digital signature or through electronic verification code; and

b. the procedure, format and standards for the purpose of electronic filing of Form No. 15C and Form No. 15D and generation of certificate under sub-section (3) of section 195 of Income-tax Act, 1961, through TRACES in the succeeding paragraphs which will be applicable from 01.04.2023.

4. Procedure for filling of application in Form No. 15C or Form No. 150 shall be as follows:

4.1 For making an application in Form No. 15C or in Form lSD, the banking company or insurer or, as the case may be, any other person who carries on business or profession in India through a branch the taxpayer shall login into the TRACES website (www.tdscpc.gov.in)for making the application electronically for grant of certificate under section 195(3) of the Income-tax Act, 1961 for authorising receipt of interest and other sums without deduction of tax.

4.2 The applicant who is not registered at TRACES website shall have to first register with its Permanent Account Number ('PAN") at TRACES (www.tdscpc.gov.in) for login and filling application in Form No. 15C or Form No. 15D. Detailed procedure for registration can be accessed through the link https:!/contents.tdscpc.gov.in/ en/ e-tutorial-taxpayer.html

4.3 The applicant shall login at TRACES website (www.tdscpc.gov.in) and submit Form No. 15C or Form No. 150 along with supporting documents using any of the following:

                (i) Digital Signature,

(ii) Electronic Verification Code,

(iii) AADHAR based Authentication,

(iv) Mobile OTP.

4.4 Applicants accessing TRACES website from outside of India shall login at TRACES website (www.nriservices.tdscpc.gov.in) and submit application in Form No. 15C or Form No. 150 along with supporting documents using Digital Signature only.

4.5 The applicant can track the status of the application through option 'Track Request for Form 13/15C/150' under the tab 'Statements/Forms'.

5. Procedure for assignment of application to the TDS ADs in the International Taxation charges:

5.1 The application will be assigned to the TDS AO in the International Taxation charges on the basis of details furnished by the applicant in Form No. 15C or Form No. 150. Such applications can be accessed by the AO through the path 'Lower/No Deduction Certificate> Generate Certificate>Certificate u/s 195(3) and select 'Open Request (s)'.

5.2 Once the application in Form No. 15C or Form No. 150 has been successfully submitted, the following data will be obtained by CPC(TDS):

(i) Processed data of Income Tax Returns of previous 6 financial years (if available).

(ii) PAN Demand.

(iii) E-filed Income-Tax Returns of previous 6 financial years.

(iv) Audit Report / Form 3CD (if applicable) of previous 6 financial years.

(v) Assessment Orders of previous 6 financial years (if available).

5.3 The applications shall be assigned by default to the DClT/ACIT (IntI. Taxn.) exercising jurisdiction over TDS matters. However, if the jurisdiction orders are otherwise, the assigned AO can transfer the applications to the AO concerned on AO Portal.

6. Processing of the Taxpayer's/deductee's request by the AD, Range Heads and Commissioners of Income-tax:

6.1 Role of ADs:

The AO shall process the application through TRACES - AO Portal after login using their credentials.

6.1.1 By navigating through the path 'Lower/No Deduction Certificate>Generate Certificate> Certificate us/195(3) and select 'Open Request (s)'. the AD will be able to access the following information:

                (i) Information furnished by the tax-payer/Deductee.

(ii) Documents submitted by the tax-payer/Deductee.

(iii) Information essential for processing the request in respect of the tax-payer/Deductee received from other modules.

(iv) Information essential for processing the request in respect ofthe tax-payer/Deductee, as available at CPC(TDS).

6.1.2 If the AD requires any further information or documents or clarification from the applicant for arriving at a decision, the same shall be obtained online using the option /(Seek Clarification" available within the functionality through the path (TDS AD login->LowerINo Deduction Certificate->Certificate uls 195(3)->Open Request->Request Number->Seek Clarification).

6.1.3 The query raised by the AD shall be forwarded to the applicant through systems for furnishing a suitable response. The query will be available to the applicant in the inbox at TRACES Portal through the applicant's login through the path (Tax Payer login -> StatementIForms-> Track Request Form 13115Cl1SD->Status>Clarification required by AD).

6.1.4 The response submitted by the applicant shall be visible to the AD within the functionality for taking a decision on the application through the path (TDS AD login->LowerINo Deduction Certificate->Certijicate uls 195(3)-> Open Request-> Request Number->Communication History->Comments)

6.1.5 The AD shall approve/reject the application based on the parameters defined in rule 29B of the Income-tax Rules, 1962 as well as any other instructions/guidelines in this regard.

6.1.6 After approval! rejection of the application, as the case may be, it will be forwarded to the supervisory authority, Le., the Range Head & the CIT for according administrative approval.

6.2 Role of Range head:

6.2.1 The Range head shall process the application through TRACES - AD Portal after login using their credentials for granting administrative approval to the recommendation of the AD or otherwise.

6.2.2 The Range Head can view the application details, received for administrative approval, through the path 'Lower/No Deduction Certificate> Generate Certificate> Certificate uls 195(3} and select 'Open Request(s)'. The following information will be available for viewing by the Range Head:

(i) Information furnished by the tax-payer/Deductee.

(ii) Documents submitted by the tax-payer/Deductee.

(iii) Information essential for processing the request in respect ofthe tax-payer/Deductee received from other modules.

(iv) Information essential for processing the request in respect of the tax-payer/Deductee, as available at CPC(TDS).

(v) Recommendation of the TDS AD.

6.2.3 If any clarification is required by the Range Head, the application may be sent back to the AO through TRACES - AO Portal. After submission of clarification by the AO through the AO Portal, the Range Head shall take a decision on the application.

6.2.4 Once the Range Head has taken a decision on the application, it will be forwarded to the CIT concerned for according administrative approval.

6.3 Role ofthe CIT:

6.3.1 The CIT shall process the application through TRACES - AO Portal after login using their credentials for granting administrative approval to the recommendation of the AO/Range Head or otherwise.

6.3.2 The CIT can view the application details, received for administrative approval, through the path 'Lower/No Deduction Certificate> Generate Certificate> Certificate u/s 195(3) and select 'Open Request(s)'. The following information will be available for viewing to the CIT:

(i) Information furnished by the tax-payer/Deductee.

(ii) Documents submitted by the tax-payer/Deductee.

(iii) Information essential for processing the request in respect of the tax-payer / Deductee received from other modules.

(iv) Information essential for processing the request in respect of the tax-payer / Deductee as available at CPC (TDS).

(v) Recommendation of the TDS AO.

(vi) Recommendation of the Range Head.

6.3.3 If any clarification is required by the CIT, the application may be sent back to the Range Head through TRACES - AO Portal.

6.3.4 The Range Head may either send back the application to the AO for obtaining the clarification or submit the case to CIT along with the clarifications as required by the CIT through TRACES - AO Portal.

6.3.5 Based on the information available and the report of the Range Head and the AO, the CIT shall take a decision in the case.

6.3.6 After a final decision in the application has been taken by the CIT, the application will be marked back electronically on AO Portal to the AO for issuance ofthe certificate or rejection of the application.

7. Issuance of Certificate:

7.1 On receipt of approval ofthe jurisdictional CIT, the AO shall generate a certificate on TRACES - AO Portal through the path (TDS AD login->Lower/No Deduction Certificate- >Certificate u/s 195(3)->Received from Range Head/ClT->Request Number->Generate Certificate/Close Request).

7.2 The issued certificates shall be available to the AO for view through the path 'Lower / No Deduction Certificate> History> Certificate issued'.

7.3 The status of request/application shall be available to the Range Head through the path (Range Head lagin->Lawer/ Na Deductian Certificate->Histary-> Certificate Requests)

7.4 The generated certificates shall be available for download to the applicant on their TRACES login. The certificate will be system generated and hence will not require a signature.

8. Where application was made in Form No. 15C or Form No. 150, the onus of sharing the certificate to the respective deductor(s) will be on the applicant.

9. This issues with prior approval of the Director General of Income-tax (Systems).

The Central Board of Direct Taxes (CBDT) has entered into a record 95 Advance Pricing Agreements (APAs) in FY 2022-23 with Indian taxpayers. This includes 63 Unilateral APAs (UAPAs) and 32 Bilateral APAs (BAPAs). With this, the total number of APAs since inception of the APA programme has gone up to 516, comprising 420 UAPAs and 96 BAPAs.

The year has been a record-breaking year in several ways. This year, CBDT recorded the highest ever APA signings in any financial year since the launch of the APA programme, signing a total of 95 APAs. This year, CBDT also signed the maximum number of BAPAs in any financial year till date. The BAPAs were signed as a consequence of entering into Mutual Agreements with India’s treaty partners namely Finland, the UK, the US, Denmark, Singapore, and Japan. A record of the largest number of single day signings in the history of the programme was also created with a total of 21 APAs signed on 24^th March, 2023.

The APA Scheme endeavours to provide certainty to taxpayers in the domain of transfer pricing by specifying the methods of pricing and determining the arm’s length price of international transactions in advance for a maximum of five future years. Further, the taxpayer has the option to rollback the APA for four preceding years, as a result of which, tax certainty is provided for nine years. The signing of bilateral APAs additionally provides the taxpayers with protection from any anticipated or actual double taxation.

            The APA programme has contributed significantly to the Government of India’s mission of promoting ease of doing business, especially for MNEs which have a large number of cross-border transactions within their group entities.  CBDT appreciates the taxpayers for their cooperative attitude and for being equal partners in this programme.   

CBIC vide notification number 09/2023- Central Tax dated 31^st March 2023, extended time limit specified under sub[1]section (10) of section 73 for issuance of order under sub-section (9) of section 73 of the said Act, for recovery of tax not paid or short paid or of input tax credit wrongly availed or utilized.

In exercise of the powers conferred by section 168A of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereinafter referred to as the said Act) read with section 20 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017), and section 21 of the Union territory Goods and Services Tax Act, 2017 (14 of 2017) and in partial modification of the notifications of the Government of India, Ministry of Finance (Department of Revenue), No. 35/2020-Central Tax, dated the 3^rd April, 2020 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 235(E), dated the 3^rd April, 2020 and No. 14/2021-Central Tax, dated the 1^st May, 2021 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 310(E), dated the 1^st May, 2021 and No. 13/2022-Central Tax, dated the 5^th July, 2022, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 516(E), dated the 5^th July, 2022, the Government, on the recommendations of the Council, hereby, extends the time limit specified under sub[1]section (10) of section 73 for issuance of order under sub-section (9) of section 73 of the said Act, for recovery of tax not paid or short paid or of input tax credit wrongly availed or utilised, relating to the period as specified below, namely:–

(i) for the financial year 2017-18, up to the 31st day of December, 2023;

(ii) for the financial year 2018-19, up to the 31st day of March, 2024;

      (iii) for the financial year 2019-20, up to the 30th day of June, 2024.

On recommendation of GST council CBIC vide notification number 08/2023 – Central Tax dated 31^st March 2023, notified the late fees waiver for filing GST Final Return GSTR-10.

If a taxpayer file their pending GSTR-10 final return of GST between 1^st April 2023 to 30^th June 2023, they will have to pay a maximum penalty of Rs.1000/- (Rs.500/- under CGST and Rs.500/- under SGST or UTGST)

Official Notification can be read as under;

        In exercise of the powers conferred by section 128 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby waives the amount of late fee referred to in section 47 of the Act, which is in excess of five hundred rupees for the registered persons who fail to furnish the final return in FORM GSTR-10 by the due date but furnish the said return between the period from the 1^st day of April, 2023 to the 30th day of June, 2023.

On recommendation of 49^th GST council meeting, CBIC notified late fees waiver for filing GST annual return GSTR-9 vide notification number 07/2023 – central tax. The notification will be applicable from FY 2022-23 onwards.

Late fees waiver has been given on the basis of turnover of the taxpayer, earlier Rs.100 each per day under CGST and SGST or UTGST is  applicable as late fees for filing annual GST return. Now by this notification relaxation in late fees has been given to the taxpayer having aggregate turnover in relevant financial year upto 5 crore and above 5 crore to 20 crore. Reduced late fees has been summarized as under;

Official Notification can be read as under;

In exercise of the powers conferred by section 128 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereinafter referred to as the said Act), the Central Government, on the recommendations of the Council, hereby waives the amount of late fee referred to in section 47 of the said Act in respect of the return to be furnished under section 44 of the said Act for the financial year 2022-23 onwards, which is in excess of amount as specified in Column (3) of the Table below, for the classes of registered persons mentioned in the corresponding entry in Column (2) of the Table below, who fails to furnish the return by the due date, namely:—

Provided that for the registered persons who fail to furnish the return under section 44 of the said Act by the due date for any of the financial years 2017-18, 2018-19, 2019-20, 2020-21 or 2021-22, but furnish the said return between the period from the 1st day of April, 2023 to the 30th day of June, 2023, the total amount of late fee under section 47 of the said Act payable in respect of the said return, shall stand waived which is in excess of ten thousand rupees.