Section 139 - E- Filing of return of income - Relaxation from compulsory e-filin

Section 139 - E- Filing of return of income - Relaxation from compulsory e-filing of return in case of representative assessees of non-residents and private discretionary trusts

Circular No. 6/2012 [F.No.133/44/2012-SO (TPL)], dated 3-8-2012

Rule 12 of the Income-tax Rules, 1962 mandates that an individual or Hindu undivided family, if his or its total income or the total income in respect of which he is or it is assessable under the Act, during the previous year, exceeds ten lakh rupees, shall furnish the return electronically for the assessment year 2012-13 and subsequent assessment years.

2. It has been brought to the notice of the Board that the agents of non-residents, within the meaning of section 160(1)(i) of the Income -tax Act, are facing difficulties in electronically furnishing the returns of non-residents. This is because there may be more than one agent of the non-resident in India for different transactions or a person in India may be an agent of more than one non-resident. Such situations are not covered by the existing e-filing software which functions on the principle of one assessee-one PAN-one return.

3. It has also been brought to the notice of the Board that 'private discretionary trusts' having total income exceeding ten lakh rupees are facing problems in filing their return of income electronically in cases where they are filing their return in the status of an individual. This is because status of a private discretionary trust has been held in law as that of an 'individual'. The existing e-filing software does not accept the return of a private discretionary trust in the status of an 'individual'.

4. Accordingly it has been decided by the Board that:
(i) it will not be mandatory for agents of non-residents, within the meaning of section 160(1)(i) of the Income-tax Act, if his or its total income exceeds ten lakh rupees, to electronically furnish the return of income of non-residents for assessment year 2012-13;
(ii) it will not be mandatory for 'private discretionary trusts', if its total income exceeds ten lakh rupees, to electronically furnish the return of income for assessment year 2012-13.


SERVICE TAX


Clearing and Forwarding agent service-Facilitating clearances of export/import cargo, freight booking, etc.-Levy of service tax
The CBEC vide its Circular dated 24-4-2002 had clearly clarified that essential characteristic of any services to get classified under the category of clearing & forwarding agent is relationship between the service provider and receiver and the same should be in the nature of principal (owner) and agent. In the instant case, this relationship has not been established by the Revenue which is obvious as the assessee was not functioning as clearing & forwarding agent. The clinking point in this case is that the assessee was not receiving the goods from principal or storing the goods or dispatching the goods, as per the orders received from the principal or prepares the invoices on behalf of the principal. It is also on record that in these cases, the assessee does not receive any commission as remuneration for receipt/store/dispatch and preparing invoices of the goods on behalf of the principal. In the absence of any such service being rendered by the assessee, circular issued by CBEC would be binding of the lower authorities. :-CCE v. Chamundi Textiles (Silk Mills) Ltd. (CETAT-Bang) Final Order Nos. 211-214/2011 decided on 4-3-2011.