COMMODITIES TRANSACTION TAX RULES, 2013

[Mr. M. GOVINDARAJAN]

Section 133 of Finance Act, 2013 gives powers to the Central Government, by notification in the Official gazette may make rules for carrying out the provisions of Chapter VI of Finance Act, 2013. Sub-section (2) of Section 133 provides that the Central Government may make rules in particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters namely:

• The time within which and the form and the manner in which the return shall be delivered or caused to be delivered or furnished under Section 120;
• The form in which an appeal may be filed and the manner in which it may be verified under Sections 129 and 130.

By virtue of the powers given in Section 133 of Finance Act, 2013, the Central Government made ‘The Commodities Transaction Tax Rules, 2013’ vide Notification No.46/2013, dated 19.06.2013. The said Rules came into force from 01.07.2013.

AGRICULTURAL COMMODITIES

Section 116(7) of the Finance Act, 2013 (‘Act’ for short) defines the ‘taxable commodities transaction’ as a transaction of sale of commodity derivatives in respect of commodities, other than agricultural commodities, traded in recognized associations. Rule 3 provides that the following are the agricultural commodities for the purposes of Section 116(7) :

• Almond;
• Barley;
• Cardamom;
• Castor seed;
• Channa/gram
• Copra
• Coriander/dhaniya
• Cotton;
• Cotton seed Oilcake/Kapasia Khali;
• Guar seed;
• Isabgul Seed;
• Jeera (Cumin Seed);
• Kapas;
• Maize Feed;
• Pepper;
• Potato;
• Rape/Mustard Seed;
• Raw Jute;
• Red Chilli;
• Soya bean/Seed;
• Soymeal;
• Turmeric;
• Wheat.

PAYMENT OF TAX

Rule 5 provides the payment of commodities transaction tax.   The Rule provides that every recognized association who is required to collect and pay commodities transaction tax 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 State Bank of India or of any authorized bank accompanied by a commodities transaction tax challan.

Rule 4 provides that the value of taxable commodities transaction and the amount of commodities transaction tax, interest and penalty payable and amount of refund due, shall be rounded off to the nearest rupee and, for this purpose, where such amount contains a part of a rupee consisting paise then, if such part is fifty paise or more, it shall be increased to one rupee and if such part is less than fifty paise it shall be ignored.

FILING OF RETURN

Rule 6 provides for filing of return. The said rule provides that the return of taxable commodities transactions required to filed in Form No. 1, verified in the manner indicated therein, and may be filed in-

• Paper form;
• Electronically under digital signature.

Where the return is furnished in paper form the particulars required to be furnished in the Schedules to Form No. 1 shall be furnished on a computer media, in accordance with the following:

• The computer media conforms to the following specifications:
  • CD ROM of 650 MB capacity or higher capacity; or
  • Digital video disc;
  • If the data relating to the schedules are copies using data compression or backup software utility, the corresponding software utility or procedure of its decompression or restoration shall also be furnished; and
  • The return shall be accompanied by a certificate regarding clean and virus free data.

The return shall be furnished on or before 30^th June, immediately following that financial year. 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.

The return shall be signed and verified in the case of a recognized association-

• Being a company, by the Managing Director or a Director thereof; and
• In any other case, by the principal officer, thereof.

If the assessee fails to furnish return within the time specified, the Assessing Officer may issue a notice to such person requiring him to furnish, within 30 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.

NOTICE OF DEMAND

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

REFUND OF TAX

Every assessee, in case any amount is refunded to it on assessment shall within 30 days from the date of receipt of such amount, refund the same to the concerned person from whom it was collected.

APPEAL

An appeal shall be made in Form No. 3. The form of appeal prescribed, 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 authorized to sign the return of taxable commodities transactions as applicable to the assessee.

APPEAL TO APPELLATE TRIBUNAL

An appeal to the Appellate Tribunal shall be made in Form 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 as specified.