I

MINUTES OF "THE MEETING WITH ASSOCIATIONS OF TAX CONSULTANTS

The representativesof the Chamber of Tax Consultants and Bombay CharteredAccountants'Society met Shri N P Singh, CCIT(CCA),Mumbai and Shri T K Shah,CCIT-V, Mumbai with a suggestion to revive the practice of holding meetings withChief Commissioners. Proposalwas accepted. The representativesthereaftersent alist of issues and suggestionsfor resolution thereof for discussions with the ChiefCommissioners in their first meeting. Consequently, a meeting of the ChiefCommissionersand representativesI office bearersof associationsof tax consultantswas held on 9thMay, 2012 at 4.00 pm in the conferencehall of Aayakar Bhavan,Mumbai. ThefollowingOfficersattendedthe meeting:

1. Shri T K Shah2. Shri S Ravi3. Shri P C Srivastava

4. Shri Swatantra Kumar5. Shri A K Mehrish6. Shri A C Shukla

7. Shri Sandip Pradhan

- CCIT-V,Mumbai;Chairman- CCIT-XI- CCIT~VII- CCIT-XII- CCIT-XIII

- CIT(TDS)- CIT(CO)

The representativesfrom the associationsof tax consultantspresent in the meetingwere:

1. Shri Deepak R Shah - Vice President, BCAS2. Shri Kishor B Karia - Chairman, In1.Taxation Committee, BCAS

3. Shri Gautam S Nay~k - Chairman, Taxation Committee, BCAS4. Shri Vipul B Joshi - Chairman, LawandrepresentationCommittee,CTC5. ShriMahendraSanghvi- Co-chairman,LawandrepresentationCommittee,CTC

6. ShriS M B~ndi - Vice-chairman,LawandrepresentationCommittee,CTC7. ShriApurva R Shah - Convenor, Lawand representationCommittee.CTC

8. Shri Ani! Doshi - Convenor,TaxationCommittee,BCAS

The issuesproposedby the associationsfor discussionsincludedthe following.

1. Rectifications and Appeal Effects.

2. Stay of demand and coercive action for recovery.3. Credit for TDS.4. Interest under section 244A.

5. Revalidation I re-issue of Refund Cheques.6. Adjustment of refunds against old demands.

On preliminary discussions between the participants, a general consensus emergedthat having regard to the accumulated huge volume of work involved in the list ofissues to be resolved, the Department needs to take up one important aspect of workat a time instead of dabbling with all matters simultaneously, review the progress inthe next meeting and move ahead for resolution of other issues.

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It was also felt that the foremostneed is to correct the demand uploadedby the AOson to the CPC server which is otherwiseresulting in adjustmentof refunds againstnon-existentI excessivedemands. -

In this background,the issuesthat were discussedin the meetingare as under:

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I. Correction of Demand uploaded on CPCServer

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Shri M B Sanghvi stated that refunds due to the taxpayers are often not issued as theAOs have uploaded incorrect demands on to the CPC portal.

Shri Swatantra Kumar explained that there were a few system related problemsearlier. These problems have been resolved and the officers are now in position tocorrect the demand.

Shri T.K. Shah informed the participants that the CCIT-I, CCIT-II and CCIT-X havealready appointed their AC/DCsIT(HQ) as Nodal Officers in their Regions to receiveapplications regarding objections to the arrears of demand intimated by the CPC tothe assessees. To start with (upto 30th June. 2012) applicationsfor correctionof suchdemands which are shown outstanding on account of following reasons alone willbe made by the taxpayers.

(i) Multiple demands for the same assessment year such as demand raised undersectons 143(1), 143(3), 154 etc.

(ii) Demand reduced I cancelled on account of rectification I appeal effect ordersalready passed.

(iii) Demand on account of adjustment of refunds or not allowing credit for TDS andtaxes paid.

(iv) Demands in respect of which intimation I order I demand notice not served.

The scope of the matters covered by the applications to be received by theNodal Officers, as aforesaid, needs to be clearly understood and explained.

After 30th June, app'licationsin respect of demands intimatedby the CPC other thanthose specified above at item nos. (i) to (iv) may also be made to the Nodal Officers.

[Action- All associations of tax consultants]

Consequentto the discussions in the meeting, other CCslT have also passed theorders appointing Nodal Officers. List of Nodal Officers appointed by the CCslT isenclosed herewith.

It was clarified that Nodal Officers will not be appointed for CIT charges located inBKCandVashi as theywillI are beingservedby AayakarSeva Kendra(ASK)..Shri S Ravi suggested that the Chartered Accountants I Advocates may makeavailablethe list of rectifications(if they are more in nos.) in excel format along withapplications,so that the same may be uploadedto the CPC by the AO. Modalitiesforimplementationof this suggestionneedto be discussedand finalized.

[Action- Shri S Raviand representatives of associations of tax consultants)

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Shri T K Shah proposed that second fortnight of June will be devoted to corrections indemands, as aforesaid, which was found acceptable by all the participants. He furthersuggested that the clearance period may be given wide publicity by the Department ITax Consultants Associations.

[Action- All associations of tax consultants]

The format to be used by the assessees for making applications for correction ofdemand devised by the Associations is enclosed.

II. TDS Mismatch

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Shri Kishor B Karia, stated that in a large number of cases, credit for TDS is not givenas it does not appear in Form 26AS. He raised the issue that if the assessee makesan application regarding TDS mismatch, whether the Income Tax Department cantake action against the deductor. He further suggested that (i) the reasons for non-grant of credit must invariably be given along with the relevant order I intimation and(ii) detailed guidelines should be issued for claims in respect of TDS credits in caseswhere amount does not appear in Form 26AS.

In response to the same, Shri T.K. Shah stated that there were various improvementsunder consideration and were being looked into. Since under the existing instructions,in a case where amount of TDS is not reflected in Form no. 26AS, the AO has to allow

credit after "due verification", reference will be made to the CBDT to issue guidelineswith regard to what constitutes "due verification" for this purpose.

[Action - Shri T K Shah]

Shri A C Shukla stated that for F.Y.2007-08 and 2008-09, large no. of statements Ireturns were pending due to mentioning of wrong PAN, Section, AY. etc. by the taxdeductors. The deductor has to file revised statements to sort out this problem.Regarding 26AS, he.further requested the representatives to sensitize the deductorsabout proper deduction and uploading of TDS statements I returns. It was decid~dthat the common reasons for mismatch of TDS may be compiled by the CIT(TDS) andannexed with these minutes. The CIT(TDS) has since done that. A copy of thecommon reasons compiled by him is enclosed.

[Action- All associations of tax consultants]

Another problem pointed out in this regard was that TDS certificate cannot begeneratedfrom TIN centre in a casewhere PAN of the deducteeis not available. ShriA C Shuklastatedthat this problemhas been taken up with the DGIT(Systems),NewDelhi. ·

[Action - Shri AC Shukla]

Shri Swatantra Kumar inf9rmed the participants that with issue of TDS certificatesfrom TIN, this problemwill no longerbe there.

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III. Rectification &Appeal Effects

Shri M B Sanghvi requested that each and every officer should maintain a separateregister for such applications (formattersotherthan those whereapplicationsare madeto theNodal. Officerin respect of demands intimatedby the CPC)which shouldbear a separateacknowledgementnumber. This suggestionwas foundacceptableby the participants.Instructionsto this effectwill be issuedto the AOs otherthan those servedby ASK.

[Action - All CCslT]

IV. Re-issue I Revalidation of Refund Cheaues

The Membersstatedthat in manycases, refundchequesare not sent in time and arereceived by the assesseesfew days before their expiry dates and at times after theexpiry dates. The representativesstated that the new procedure of issuing newrefundchequedelays the matterand suggestedthat the rules should be amendedtopermit revalidationof cheques. It was clarified that in view of the guidelinesof theRBI, revertingbackto the processof revalidationis not an option.

To eliminate this problem, Shri T K Shah suggested that the Associations shouldeducate I encourage the assessees to opt for receipt of refunds under ECS andfurnishrelevantbank accountdetails in the return itself.

, [Action - All associations of tax consultants]

Regarding issue of refunds, Shri Sandip Pradhan suggested that if there is change inaddress, the assessees should be advised by the associations to get PAN dataimmediately updated otherwise the refunds cheques are returned unserved.

[Action-Allassociations of tax consultants]

V. MiQration of PAN and Jurisdiction of the Assessee

The representatives of associations stated that during the process of PAN migration,some clerks do not accept the returns in new jurisdiction as per the Notification ofjurisdiction on the ground that the PAN is not migrated to their jurisdiction. Theysuggested that the clerk in new jurisdiction should accept returns in such cases.

Shrl Sandip Pradhan clarified that the assessees have option to file return in either ofthe jurisdiction. Shri P C Srivastava suggested that it will be advisable if the return tobe filed in new jurisdiction is accompanied by a copy of the application addressed tothe AO in old jurisdiction for migration of PAN to the new jurisdiction.

. [Action-Allassociations of tax consultants]

It was pointed out that the AO does not send intimation to the assessee at the time ofmigration of PAN. Shri Sandip Pradhan clarified that the assessee can always knowthe change jurisdiction I AO online.

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Regarding PAN migration, the CIT(CO) suggested that the matter pending before theold AO should be resolved first. Only thereafter the system allows migration of PAN tothe new AO.

[Action- All associations of tax consultants]

VI. Stay of Demand & Coercive Action for Recoverv

The representatives stated that very large demands have been raised uponcompletion of the scrutiny assessments and coercive action is taken without giving theassessee adequate opportunity to aven approach the concerned authorities for stay ofrecovery of demand. Shri Vipul B Joshi suggested that the bank accounts should notbe freezed, if stay application is pending. In response, Shri T K Shah stated that therecannot be any specific guidelines and as facts of cases vary, a decision requires to betaken by the officer concerned. The department also has its administrativeInstructions to follow. Shri P C Srivastava stated that there is a Board CircularNo.1914 which is followed in such cases.

On the issue of action during the pendency of stay application, it is also a fact that theassessees go on making applications for stay at various levels when application isrejected at one level. It may not be workable option not to take action for recoveryduring the course of pendency of stay petition at level higher than that of AO. It wasagreed that this issue will be discussed in next meeting.

.VII. Interestu/s.244A

The representativesbrought to the notice of the Departmentthat the AO is issuinginterestu/s 244A till the date of intimationI order, but in fact, the assesseeis gettingthe refund cheque only after "3 to 4 months from the date of intimation I order. Inresponse,Shri T K Shah stated that in many a case, the delay is due to absence ofdetails from the assessee and that under the law the AOs are required to grantinterestuptothe date-ofissueof refund.

Conclusion

Shri T K Shah thanked all the participants for their presence and participation. It wasagreed to hold next meeting in the first week of September, 2012.

The meeting concluded at 5.30 pm.

&6n1\-¥ (T K Shah)

Chairmanand ·ChiefCommissionerof Income-tax- V,Mumbai

22-. O~. 2011-

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COMMON MISTAKES MADE BY TDS DEDUCTORS.- - " .

Points to remember while depositing TDS/TCS'. Select correct minor head code (200) while depositing TOSjTCS.. Select correct minor head code (400) while making regular

TDSjTCS payments arising out of Order ujs. 201(1)j201(lA)j271Cor 272A(2)(k) etc. "

. Ensure due diligence in quoting TAN,section code and assessmentyear while making TOSjTCS deposits .

· Refer to latest chartjrules for TDSjTCSrates while deducting.. On due date deposit tax before 20.00 hrs to avoid late payment

interest.

Points to remember while filing quarterly TDS/TCS statement. Get latest return preparation and file validation utility from TIN

website (www.tin-nsdl.com) before preparing quarterly TDSjTCSstatement.

. Do not split the challans in quarterly TDSjTCSstatement.

. Mention correct section code, TANand Financial Year

. Quote correct gender of employee incase of salary TDSstatement.

. Quote correct PANof the deductee

. Where TDS has been deducted at lower rate as per 197 certificate,. the correct rate is to be entered. "

. Quote correct deductee code (companyjnon-company)

Rectification of mistakes in chalanField to be rectified Who can rectiSection code Jurisdiction TOS Assessin OfficerMinor Head code Jurisdiction TDS Assessin OfficerTAN Jurisdiction TOS Assessin OfficerAssessment Year Jurisdiction TOS assessin officerMa'or Head code Bank where TOS/TCS is de ositedChallan de osit Amount Bank where TOSjTCS is de ositedTANName Bank where TOSjTCS is deDositedAllother fields Deductor

Rectification in quarterly TDS/TCS statement: Rectification inquarterly TDSjTCS statement can be done "only""by the respectivedeductor. For any rectification, in quarterly TOSjTCS statementdeductor is requirecLto file correction statement as per the prescribedformat. The deductor is required to download Consolid.ated TDS/TCSFile from TIN website after registering "TAN.Detailed procedure forfiling correction statement is available at TIN website.