TAXING NARAD

Simplifying information, that matters

DVAT amendment Act 2013 dated 28/03/2013 wef 01/04/2013 inserted section 87(6) this sub-section gives AUTOMATIC MITIGATION (Reduction) of 80% penalty u/s 86 if: What When Condition for mitigation A person liable to pay penalty Voluntarily discloses IN WRITING Existence of tax deficiency During the course of proceeding u/s 60 ie. Survey etc. Then Pay such tax deficiency within 3 working days of Conclusion of the proceeding u/s 60. 80% penalty against the admitted and paid tax shall be mitigated/Reduced AUTOMATICALLY

Now, govt. has issued Circular No. 28 of 2013-14 dtd. 03/10/2013 which prescribes the procedure for this voluntary disclosure u/s 87(6) discussed above, which is as follows:1. Admit the amount of cash variation, Stock variation and other discrepancies course of proceedings u/s 60. 2. Show the admitted amount as un-vouched/ unaccounted, retail cash sale, for one or more tax periods prior to the tax period during which proceeding u/s 60 is being carried out. during the

3. Make payment of the admitted tax within 3 working days of the conclusion of proceeding u/s 60.

4. Dealer can pass an accounting entry: Cash a/c Dr. .

taxingnarad@gmail.com, 9899263490, yashu.goel@icai.org, S-10, Shivaji Park, New Delhi 110026.

TAXING NARAD
Simplifying information, that matters

To Sales A/c.

(Being un-vouched / unaccounted retail cash sale effected during the tax period from. to) 5. File Revised returns U/s 28 for earlier tax periods in which un-vouched /unaccounted sale is admitted. Now, once the A.O. (Enforcement) is satisfied with the revised return,

there shall be no need for DEFAULT ASSESSMENT of the dealer consequent to survey.

Above information is contributed by CA YASHU GOEL B.Com(Hons.) FCA, he can be reached at yashu.goel@icai.org

taxingnarad@gmail.com, 9899263490, yashu.goel@icai.org, S-10, Shivaji Park, New Delhi 110026.