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BLACK MONEY (UNDISCLOSED FOREIGN INCOME AND ASSETS) AND IMPOSITION OF TAX RULES, 2015.

Central Board of Direct Taxes with the approval of the Central Government has made the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Rules, 2015 via notification dated July 02, 2015.

Following are the main provision under Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Rules, 2015:

  1. Determination of fair market value of bullion, jewellery or precious stone, archaeological collections, drawings, paintings, sculptures shall be the higher of,-
    1. its cost of acquisition; and
    2. the price that the bullion, jewellery or precious stone shall ordinarily fetch if sold in the open market on the valuation date
  2. Determination of fair market value of quoted share and securities shall be the higher of,-
    1. its cost of acquisition;
    2. the price as determined in the following manner, namely:—
      1. the average of the lowest and highest price of such shares and securities quoted on any established securities market on the valuation date; or
      2. where on the valuation date there is no trading in such shares and securities on any established securities market, average of the lowest and highest price of such shares and securities on any established securities market on a date immediately preceding the valuation date when such shares and securities were traded on such securities market
  3. Determination of the fair market value of unquoted equity shares shall be the higher of,-
    1. its cost of acquisition; and
    2. the value, on the valuation date, of such equity shares as determined in the following manner, namely:—

      the fair market value of unquoted equity shares = (A+B–L)/ (PE) x (PV)
  4. Tax authorities shall be the Assessing Officer, Joint Commissioner, Commissioner (Appeals), Commissioner or Principal Commissioner, Chief Commissioner or Principal Chief Commissioner.
  5. Where any tax, interest or penalty is payable in consequence of any order passed under the provisions of the Act, the Assessing Officer shall serve upon the assessee a notice of demand in Form 1 specifying the sum so payable
  6. An appeal under sub-section (1) of section 15 to the Commissioner (Appeals) shall be made in Form 2.
  7. Every appeal filed under sub-section (1) of section 15 shall be accompanied by a fee of ten thousand rupees.
  8. A statement of tax arears under section 31 or section 33 shall be drawn up by the Tax Recovery Officer in Form 5.

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CONDITION SPECIFIED IN CENTRAL EXCISE ACT AND SERVICE TAX w.r.t ELECTRONIC RETURN/ FORM:

As per notification no. 18/2015 dated July 06, 2015 from Central Board of Excise and Customs which specifies the following conditions, safeguards and procedures for issue of invoices, preserving records in electronic form and authentication of records and invoices by digital signatures, namely:

  1. Every assessee proposing to use digital signature shall use Class 2 or Class 3 Digital Signature Certificate duly issued by the Certifying Authority in India.
  2. Every assessee proposing to use digital signatures shall intimate the following details to the jurisdictional Deputy Commissioner or Assistant Commissioner of Central Excise, at least fifteen days in advance.
  3. Every assessee already using digital signature shall intimate to the jurisdictional Deputy Commissioner or Assistant Commissioner of Central Excise the above details within fifteen days of issue of this notification.
  4. Every assessee who opts to maintain records in electronic form and who has more than one factory or service tax registration shall maintain separate electronic records for each factory or each service tax registration.
  5. Every assessee who opts to maintain records in electronic form, shall on request by a Central Excise Officer, produce the specified records in electronic form and invoices through e-mail or on a specified storage device in an electronically readable format for verification of the authenticity of the document and the request for such records and invoices shall be specified in the letter or e-mail by the Central Excise Officer.
  6. Every assessee who opts to maintain records in electronic form shall ensure that appropriate backup of records in electronic form is maintained and preserved for a period of 5 years immediately after the financial year to which such records pertain.

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9 July 2015
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