The Bihar Settlement of Taxation Disputes Rules, 2024, introduced under the Bihar Settlement of Taxation Disputes Act, 2024, delineates the procedural framework for resolving taxation disputes within the state. Enacted on 15th March 2024, these rules aim to streamline dispute settlement processes, ensuring fairness and efficiency.
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The 15th March 2024
S.O 68, dated the 15th March 2024—In exercise of the power conferred by sub-section (1) of section 6 of the Bihar Settlement of Taxation Disputes Act, 2024 (Bihar Act 04, 2024), the Governor of Bihar is pleased hereby to make the following rules, namely:–
1. Short title, extent and commencement.—
(1) These rules may be called the Bihar Settlement of Taxation Disputes Rules, 2024.
(2) It shall extend to the whole of the State of Bihar.
(3) These rules will come into force from the date of issue of notification and will remain in force till the effective date of Bihar Settlement of Taxation Disputes Act, 2024.
2. Definitions.–In these rules, unless there is anything repugnant in the subject or context,–
(a) “FORM” means a form appended to this rule.
(b) “section” means a section of the Act;
(c) “the Act” means the Bihar settlement of Taxation Disputes Act 2024;
(2) Other words and expressions used in these rules and not defined herein, but defined in the Act or in the Law or in the rules made thereunder, shall have the meanings respectively assigned to them in the Act or in the Law or in the rules made thereunder, as the case may be.
3. Manner and form of application for settlement. –
(1) Subject to the provisions of sub-rule (2) any party wishing to settle a dispute, shall furnish to the authority specified in sub rule (6) a duly completed and signed application in FORM-I, at least twenty days before the expiry of the Rules:
Provided that a party wishing to settle a dispute, may furnish to the authority specified in sub rule (6) a duly completed and signed application in FORM-I on their official email address exhibited in departmental website of Commercial Taxes Department, Bihar.
(2) Separate applications in FORM -I, shall be furnished for every dispute along with–
(a) copy of annual return or all applicable quarterly returns for the period in dispute, if filed :
Provided that where a dispute does not relate to any assessed tax but relates to imposition of any penalty or interest or fine, copy of returns/annual return shall not be required to be enclosed,
(b) proof of payment in support of payment of admitted tax and payment against disputed amount, by way of challan or challans along with statement, or the payment report downloaded from the website of Commercial Taxes Department or fully and correctly filled TDS certificate in FORM C-II, where applicable:
Provided that in case of TDS certificate in FORM C-II, applicant shall furnish a certificate issued by the deducting authority that amount of tax Rs. ……………………… . deducted from the applicant’s bill for the period ………………… has been deposited into ………………………….. . (name of the treasury) Treasury vide challan no. ………………… .dated ………………………The said challan of Rs…………………. .. deposited into government treasury also includes the amount deducted from M/s…………………………….. (name of deductee)
(c) copy of the order levying any tax, interest or penalty or fine where available,
(d) copy of the demand notice, where not furnished under clause (c),
(e) statement along with statutory certificates/declarations received, to be submitted in original,
(f) e-mail address and mobile number on prescribed place of Form-I,
(g) copy of PAN of the applicant, duly signed by blue ballpoint pen.
(3) An application in Form -I will cover only one case of any period under the Law
and shall cover entire dispute of that case and not a part of it.
(4) The said application in FORM-I will be signed at the place provided in the form by the proprietor of the business; or, in the case of a firm, by the partner authorized to act on behalf of the firm; or, in the case of business of an undivided Hindu family, by the Karta of the family; or, in the case of a company incorporated under the Companies Act, 1956 (Act 1 of 1956) or a corporation constituted under any law, by the managing director or principal executive officer thereof; or, in the case of a society, club or association of persons or body of individual or a department of Government or local authority, by the principal executive officer, or officer in charge thereof; or, by the declared manager in all cases.
(5) If application is sent by Registered or Speed Post, the day on which such application is received by the prescribed authority shall be treated as the day of its presentation.
(6) Duly filled in and signed application in Form-I with required documents shall be submitted before the authority as mentioned below:
TABLE
|
Sl. |
As on 31.01.2024 dispute related to |
Authority before whom FORM-I to be submitted |
| (1) | (2) | (3) |
| 1. | Tax/Interest/Penalty/fine | Head of the Office where order in dispute has been passed. |
| 2. | Penalty order related to violation of provisions for movement of
goods passed by Check post |
Incharge of the circle in whose territorial Jurisdiction such check post was situated. |
| 3. | All other cases other than Sl. no.1 & 2 above | Incharge of the circle who has jurisdiction over the business of the applicant. |
(7) The office of the authority referred to in sub-rule (6) shall, after checking the completeness of the application, grant a receipt in FORM -II to the party.
4. Disposal of application-
(1) No application shall be considered by the authority referred to in sub-rule (6) of rule 3 unless the application conforms to the requirements of rule 3.
(2) The authority referred to in sub-rule (6) of rule 3 shall verify the computation of the disputed amount, payments made, the settlement amount and other particulars furnished by the party in the application in FORM–I within two days of the furnishing of the said application.
(3) Where upon verification under sub-rule (2), it is found by the authority specified in that sub-rule that the application is incomplete/incorrect/does not conform to the requirements of rule 3, the said authority shall, on the next day of verification as specified in sub-rule (2), issue Deficiency memo in FORM-III for rectification of defects of application in Form-I.
(4) A party to whom a Deficiency memo in FORM-III has been communicated shall rectify the defects of application in FORM-I within four days of the receipt of the Deficiency memo:
Provided that if the party fails to rectify the defects of the application in FORM-I as communicated in FORM-III, the said authority shall reject the application for settlement of dispute within a period of two days after the expiry of the period specified in sub-rule (4) by an order in FORM-VII, a copy of which shall be forwarded to the party on the e-mail address:
Provided further that the rejection as aforesaid shall, subject to sub-rule (1) of rule 3, not debar the party from filing a fresh application.
(5) Where after removal of defects by the party under sub rule (4), or upon verification under sub-rule (2) it is found by the authority referred to in sub-rule
(6) of rule 3 that-
(a) any payment of tax, interest, penalty or fine specified by the party in the application in FORM –I is or are not borne out and not verifiable from the official records or payment reports generated on the VATMIS Application of the Commercial Taxes Department, Bihar, or
(b) the disputed amount or the settlement amount has not been computed correctly or is not in accordance with the provisions of the Act, the said authority shall, within ten days from receipt of application in FORM-I, direct the party by order in FORM-IV to furnish treasury certificate(s) only in respect of such payments of tax, interest, penalty or fine which could not be verified through the official records or payment reports generated on the VATMIS Application of the Commercial Taxes Department, Bihar or as the case may be, to deposit the payable settlement amount as calculated in accordance with the provisions of the Act into Government Treasury, in the manner provided in Rule 27 of the Bihar Value Added Tax Rules, 2005, and furnish the challan evidencing such payment preferably within seven days of the receipt of the order, but in no case later than two days before the expiry of the Rules.
(6) Where upon verification under sub-rule (2), it is found by the authority specified in that sub-rule that
(a) the application conforms to the requirements of rule 3,
(b) the disputed amount and the settlement amount have been computed correctly, and in accordance with the provisions of the Act, and
(c) all payments of tax, interest, penalty or fine specified by the party in the application in FORM –I are borne out and verified from the official records or payment reports generated on the VATMIS Application of the Commercial Taxes Department, Bihar, the said authority shall, within ten days from receipt of application in FORM-I, direct the party by order in FORM-V, to deposit the settlement amount into Government Treasury, in the manner provided in Rule 27 of the Bihar Value Added Tax Rules, 2005, and furnish the challan evidencing such payment preferably within seven days of the receipt of the order, but in no case later than two days before the expiry of the Rules.
(7) The authority specified in sub-rule (2) shall, within two days of the deposit of the entire settlement amount, as aforesaid, make an order in FORM-VI settling the dispute.
(8) If the party –
(a) fails to rectify the defects of the application FORM-I as communicated in FORM-III; or
(b) does not furnish treasury certificate(s) in response to the order of FORM-IV in respect of payments of tax, interest, penalty or fine which could not be verified through the official records or payment reports generated on the VATMIS Application of the Commercial Taxes Department, Bihar within the time limit specified in clause (b) of sub-rule (5); or
(c) does not produce evidences of payment of balance settlement amount in response to the order of FORM-IV as calculated in accordance with the provisions of the Act within the time limit specified in clause (b) of sub-rule (5); or
(d) does not produce the evidences of the deposit of the entire settlement amount, as required by FORM-V within the time limit specified in clause (c) of sub-rule (6);
the said authority shall reject the application for settlement of dispute by an order in FORM-VII before expiry of the Rules and communicate such order to the party:
Provided that the rejection as aforesaid shall, subject to sub-rule (1) of rule 3, not debar the party from filing a fresh application.
(9) All communication in FORM-III, FORM-IV, FORM-V, FORM-VI and FORM-VII shall be made on e-mail address specified in FORM-I.
