MM TAX CLUB

Advisory on New e-Invoice Portal dated 25/02/2023

Circular No. 04/2023-Customs Dated 21st February. 2023

Amendment in Circular No. 25/2016-Customs dated 08.06.2016 for including

details of ex-bond Bill of Entry / Shipping Bill in Form A

            The Circular No. 25/2016-Customs dated 08.06.2016 prescribes "Form A’ regarding maintenance of records in relation to warehoused goods for the purpose of capturing the details related to receipts. handling. storage and removal. It has been brought to notice that the said form do not explicitly capture details of ex-bond bill of entry or shipping bill for the cases where the goods are removed from the warehouse for home consumption or export respectively.

In view of above. it has been decided to amend Form A of the aforesaid Circular No.25/2016-Customs by inserting. after Column No. 25. a new column i.e. Column No. 25A titled "Ex. Bond Bill of Entry No. and date/ Shipping Bill No. and date". Amended Form A is annexed.

Circular No. 05/2023-Customs dated 21st February. 2023

Amendment in Circular No. 26/2016-Customs dated 09.06.2016

Para 4.1 of Circular 26/2016-Customs dated 09.06.2016 provides for a centralized system of antecedent verification of the applicants of license under the Public Warehousing Licensing Regulations. 2016, the Private Warehousing Licensing Regulations. 2016 or the Special Warehousing Licensing Regulations. 2016.

It has been brought to notice that cases of such antecedent verification are facing unreasonable delays at certain field formations. In order to ensure that this task is completed in a time bound manner. it has been decided to amend the aforesaid Circular 26/2016-Customs by inserting the following sentence at the end of Para 4.1:

"The antecedent verification must be completed within 45 days of receipt of the application.

The CAG of India, in Report No. 19 of 2022 (Performance Audit) has also observed on implementation aspects of the above Circular relating to the non-capturing of certain details in the application for warehousing license. annual renewal of solvency certificate. annual renewal of risk insurance policy and irregular storage of goods in public/private bonded warehouses.

The Board directs that it be ensured that every prescribed requirement is properly complied by the applicant and thoroughly checked by the officer(s) concerned.

Each specific case included in the said Report No.19 must also be addressed on priority. 

There could soon be a breather for both the government and the pharmaceutical companies under the proposed Vivaad Se Vishwas 2 scheme announced in the Union budget 2023.

According to sources, the government is soon likely to initiate to settle their long-pending disputes arising out of penalties that were levied by the National Pharmaceutical Pricing Authority on pharma majors for over-pricing of essential drugs.

On February 1, Union Finance Minister Nirmala Sitharaman, in her Budget speech announced the Vivad Se Vishwas 2 scheme, proposing to settle contractual disputes of government and government undertakings where an arbitral award is under challenge in a court, a voluntary settlement scheme with standardised terms will be introduced.

The scheme is aimed at reducing government litigation.

“Once pharma companies opt for settlement under this scheme, the government can unlock around Rs 5,000 crore to Rs 6,000 crore,” sources added.

It is noteworthy that the National Pharmaceutical Pricing Authority (NPPA) had initiated penalty cases against some pharmaceutical companies for prescribing higher medicine prices, despite these being under the essential category and there being a price cap thus, these cases were hanging in for quite a long time.

It was in 2021, when government had initiated to settle these pending disputes with pharma majors under a one-time settlement scheme but, the government could not notify the norms under the then proposed scheme.

CBDT vide notification number 07/2023 dated 21^st February 2023 notified Form 10B and Form 10BB which is required to be filed by the charitable and religious institutions form financial year 2023.

Extract of the notification is as under;

— In exercise of the powers conferred by clause (b) of the tenth proviso to clause (23C) of

section 10, sub-clause (ii) of clause (b) of sub-section (1) of section 12A read with section 295 of the Income-tax Act, 1961 (43 of 1961)(hereinafter referred to as the Act), the Central Board of Direct taxes hereby makes the following rules further to amend the Income-tax Rules,1962, namely:─

1. Short title and commencement. — (1) These rules may be called the Income-tax Amendment (3rd Amendment) Rules, 2023.

                                     (2) They shall come into force from the 1st day of April, 2023.

2. In the Income-tax Rules, 1962 hereinafter referred to as the principal Rules, for rule 16CC, the following rule shall be substituted, namely:—

‘16CC.Form of report of audit prescribed under tenth proviso to section 10(23C).—The report of audit of the accounts of a fund or institution or trust or any university or other educational institution or any hospital or other medical institution which is required to be furnished under clause (b) of the tenth proviso to clause (23C) of section 10 shall be in—

(a)Form No. 10B where—

(I) the total income of such fund or institution or trust or university or other educational institution or hospital or other medical institution, without giving effect to the provisions of the sub-clauses

(iv), (v), (vi) and (via) of the said clause, exceeds rupees five crores during the previous year;      or

(II) such fund or institution or trust or university or other educational institution or hospital or other medical institution has received any foreign contribution during the previous year; or

(III) such fund or institution or trust or university or other educational institution or hospital or other medical institution has applied any part of its income outside India during the previous year;

1. Form No. 10BB in other cases.

Explanation.— For the purposes of sub-clause (II) of clause (a), the expression “foreign contribution” shall have the same meaning assigned to it in clause (h) of sub-section (1) of section 2 of the Foreign Contribution (Regulation) Act, 2010 (42 of 2010).’.

3. In the principal Rules, for rule 17B, the following rule shall be substituted, namely:—

‘17B.Audit report in the case of charitable or religious trusts, etc.— The report of audit of the accounts of a trust or institution which is required to be furnished under sub-clause (ii) of clause (b) of sub-section (1) of section 12A, shall be in—

(a)Form No. 10B where—

(I) the total income of such trust or institution, without giving effect to the provisions of sections 11 and

12 of the Act, exceeds rupees five crores during the previous year; or

(II) such trust or institution has received any foreign contribution during the previous year; or

(III) such trust or institution has applied any part of its income outside India during the previous year;

(b) Form No. 10BB in other cases.

Explanation.— For the purposes of sub-clause (II) of clause (a), the expression foreign contribution shall have the same meaning assigned to it in clause (h) of sub-section (1) of section 2 of the Foreign Contribution (Regulation) Act, 2010 (42 of 2010).’.