F. No. 137/ 155 /2012-Service Tax( Part-I)
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise and Customs
Service Tax Wing

New Delhi, the 9th December , 2016

To

All Principal Chief Commissioners / Chief Commissioners of Central Excise/Service Tax

Principal Directors General/ Director General Goods and Service Tax/ Central Excise

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Intelligence/Systems/ Audit/ / Tax Payer Services/Performance Management

Chief Commissioner AR CESTAT

All Principal Commissioners/Commissioners of Central Excise/Service Tax

All Principal Additional Directors General/ Additional Directors General Audit

Madam/Sir,

Recent initiatives of the government to curb black economy in the country encourage people to shift towards digital mode of payment while making financial transactions. By adopting a digital mode of payment, no financial transaction would remain undisclosed and consequently an enhanced turnover might get reflected in the books of accounts. Under the circumstances an apprehension has been raised that increased turnover on account of use of digital means of payment may lead to demands for the earlier period. It is hereby clarified that in indirect taxes, past assessments will not be reopened for this reason alone.

Yours faithfully

Dr. Gaurav Mittal

( Officer on Special Duty)

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Category : Service Tax (3286)

One response to “Indirect tax assessments will not be reopened for mere increase in Sales”

  1. vswami says:

    Offhand
    The observations are, as read and understood, to the effect that , -in the aftermath of the ‘demonitisation’, and certain other related /connected initiatives of the government aimed at curbing black money in circulation, mainly the shift to the digital mode of payment may lead to ushering in ‘transparency’ and ‘accountability’ . To say the least, the objective behind is undoubtedly laudable and the initiatives taken are indisputably commendable. Nonetheless, the unsavory instances of illegitimate practices, galore, since widely reported from across the nation, do not speak well of human behavior, in general, adversely impacting the desired / expected outcome.
    It is noteworthy that explains why , if remembered right, the government has been alert enough to appoint a special committee for probing into and report on , inter alia, the ‘risks’ involved in going ahead with the idea of wholesale ‘digitalisation’ / ‘cashless economy’, without precautions of ‘moderation’,
    One might have to wait for the special committee report, which should hopefully enable anyone concerned, not barring the government, to venture a proper appraisal and forming an unbiased opinion to prudently share.

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